User:LRKPR/US Tour Operators Association

The United States Tour Operators Association (USTOA) is a 501(c) registered nonprofit professional association representing the tour operator industry. Its members are made up of companies whose tours, vacation packages, and custom arrangements encompass the entire globe but who conduct business in the U.S. As a voice for the tour operator industry, USTOA represents this sector in matters pertaining to the travel industry as a whole, both here and abroad. Among USTOA's goals are consumer protection and education.

USTOA member companies have met the association’s high standards (see USTOA Membership Standards), including participation in the association’s Travelers Assistance Program, which among other things protects consumer payments up to $1 million in case the company goes out of business. USTOA is a premier association of companies providing vacation packages, tours, and custom travel itineraries for more than 11 million people yearly.

Summary

Table of Contents

Organization Motto

Integrity in Tourism

Mission & Goals

In accordance with USTOA's mission, the association has established some of the highest standards in the industry. Among these is the principle of ethical conduct, which requires members to conduct business according to a set of professional standards. Additionally, members must represent all facts, conditions and requirements relating to tours and vacation packages truthfully and accurately. Truth in Advertising requires that members advertise and quote prices which are totally deliverable; accurately identify facilities, accommodations and services; and communicate any substitutions promptly to the travel agent and/or their client.

Members must also demonstrate ethical and financial responsibility in their business conduct, and instill confidence in their financial stability, reliability and integrity.
 * Inform the travel industry, government agencies and the public about tour operators' activities and objectives.


 * Educate consumers on matters pertaining to tours and vacation packages.


 * Help consumers recoup financial loss arising from an Active Member's bankruptcy or insolvency.


 * Help maintain a high level of professionalism within the tour operator industry.


 * Represent the tour operator community and cooperate with other trade organizations and government agencies.


 * Facilitate and encourage tourism on a worldwide basis

History

Since its founding in February of 1972 by ten wholesalers in California, the United States Tour Operators Association (USTOA) has grown to become a leading national voice representing quality tour operations. Based in New York, USTOA today numbers 47 Corporate Active Members, representing 164 brand names. Among these are some of the oldest and best-known tour operators doing business in the United States. USTOA was founded in response to two overriding concerns: The need to protect consumers from some tour operator bankruptcies which had affected the west coast at the time, and to represent and protect the interests of U.S. tour operators in the face of cumbersome federal requirements regulating charter and scheduled flights.

Early Years

As the first U.S. organization representing tour operators to international destinations, USTOA had a formidable task ahead. By 1974, it became apparent that, in order to be truly effective, the organization would have to realize its original intent of becoming national in scope. To help achieve this goal, H. Don Reynolds, a former assistant director general of the Air Traffic Conferences for IATA, was retained as executive vice president. By 1975, USTOA had become a national organization with headquarters in New York.

In March of 1976, USTOA announced the travel industry’s first consumer protection fund. Adhering to its motto of a “Integrity in Tourism,” USTOA also set about formulating stringent membership requirements, defining the role of tour operator, and establishing ethical standards for the tour operator segment. These guidelines were codified in 1978 as “Ethics in U.S. Tour Operations, Standards for Integrity,” that ensured professional conduct for the entire industry.

Nineteen-seventy-eight brought more changes to USTOA. Membership now included suppliers and related travel industry entities, and these “Allied and Associate” members participated in USTOA’s first annual conference held that year. Additionally, the association increased its consumer protection plan contribution, requiring that individual Active Members post a $100,000 indemnity bond and carry $1 million of liability insurance.

Upon the retirement of H. Don Reynolds in 1978, Robert E. Whitley was retained as executive vice president, and then as the association’s president, a position he holds today. Under Whitley’s leadership the organization would grow to become a major force in the U.S. travel industry and an influential advocate of travel throughout the world.

1980s and Beyond

During the 1980s, USTOA stepped up efforts in the arenas of government affairs, open borders, consumer and travel agent education, and tourism development. The association, through its government and industry affairs committee, helped encourage efforts to enact legislation preventing government tourist offices from selling travel directly to the public from their consular and government offices, a practice that had bypassed the agency distribution system. In 1990, the organization’s stand on “Open Borders” was adopted as official policy of the U.S. government. Two years later, in 1992, following meetings with USTOA and TTGAC (Travel and Tourism Government Affairs Council), the State Department replaced its Travel Advisory Program with a Consular Information Program, which more accurately conveys the conditions in a given country. While USTOA continued to achieve success and steady growth, by the late eighties it was evident that growing numbers of tour operators were vulnerable to a weakening economy and to terrorist events, which had occurred earlier in Europe. Searching for a better way to protect consumers, USTOA responded in 1990 by raising its bonding requirement for individual members to $250,000; and then three months later instituting a $5 million aggregate insurance plan.

In 1993, faced with tour operator bankruptcies in the aftermath of the Gulf War, USTOA replaced its insurance plan with a program that required each individual Active Member company to post $1 million of its own security to be held in trust specifically for consumer protection. In 1996 the USTOA membership acted to further ensure the organization’s strength by increasing Active Membership requirements from 1,000 to 3,000 passengers annually, and from $1 million to $3 million in annual land volume sales. Also in 1996, California recognized USTOA membership as satisfying that state’s Travel Seller Law requirements.

Conservation has also been in the forefront of USTOA efforts. The Travelers Conservation Foundation was formed in 1999, as the charitable arm of USTOA. The foundation identified cultural, historical and environmental sites in need of conservation, preservation or restoration throughout the world, and provided funding either through USTOA-member and public contributions, or through philanthropic partnerships and matching grants. In order to qualify for TCF consideration, all projects had to be related to tourism. TCF proved so successful that it now operates as its own entity, Tourism Cares.

The 21st Century

USTOA entered the new century aggressively in terms of expanding its programs, tightening membership requirements and reaching out to the travel trade and consumers. In 2002, USTOA strengthened its partnership with ICTA (Institute of Certified Travel Agents, now called The Travel Institute) by cooperating on various levels, including sponsorship of Certified Travel Consultant (CTC) scholarships to select individuals.

Following the attacks of September 11, USTOA moved swiftly and effectively to meet the challenge. Members provided millions of dollars of refunds to clients and helped those already traveling return home safely. In the aftermath, the organization remained strong.

Always in the forefront of ensuring the financial stability of its membership, USTOA entered 2003 with revised bylaws. The definition of a tour operator for purposes of membership was revised, stipulating that a company’s main business must be focused on the packaging and marketing of multiple vacation elements. The bylaws also strengthened requirements for USTOA Active category membership, raising the minimum volume requirement for membership to 7,500 passengers or $7.5 million in sales volume annually, up from the previous standard of 3,000 passengers or $3 million that had been in place for almost 10 years.

And, in keeping with the electronic age’s emphasis on the internet USTOA totally redesigned its web site: www.ustoa.com, to provide a complete source of information on package vacations, as well as an information resource for consumers and travel agents on USTOA members. USTOA was tested once again in 2003 with the Iraq War, SARS, a weak economy and the Far&Wide bankruptcy. The association encouraged Americans to travel through media appearances and development of a Travel Comfort Quiz for consumers who were feeling insecure. USTOA also produced a radio public service announcement assuring the traveling public that tour operators are there to help in times of need.

When the Far&Wide bankruptcy hit, more than 35 USTOA Member companies offered affected travelers assistance, and USTOA became a clearinghouse for consumers, travel agents, and the press. The association went the extra mile by advocating for consumers who lost money, and moving to petition the bankruptcy court to place consumers ahead of secured credits in the distribution of Far&Wide’s assets.

In 2004, USTOA renamed its consumer protection plan the Travelers Assistance Program, to better reflect the scope of its activities in helping to protect consumers in the face of a member bankruptcy or insolvency. The Travelers Assistance Program formalized a number of activities that USTOA undertakes in such circumstances, including continuing to require its members to post a bond of $1 Million with USTOA to protect consumers in case the company becomes insolvent. Other activities include informing consumers on their rights of recovery, serving as a clearinghouse of information, apprising travelers and the press of options available, and providing a consumer information center through the USTOA web site (www.ustoa.com) to keep travelers apprised of latest developments. The program also calls for USTOA to continue to ask all its member companies to provide assistance to affected travelers in whatever way they can, on a voluntary basis (i.e. issuing credits for future planning, providing free travel, or honoring deposits already paid).

Other Activities Through the Years

Over the years, in addition to USTOA’s work in consumer protection and freedom of travel, the organization has been instrumental in helping destinations develop their tourism product. As part of its annual domestic and out-of-country meetings, USTOA conducts workshops, site inspections, and brings tour operators in contact with local suppliers. Some destinations that have benefited from the professional expertise of the association’s diverse membership include Germany, Hong Kong, and the ASEAN countries, Jordan, Austria, Finland, Spain, Costa Rica, Peru, India, the Netherlands, Turkey, Australia, Denmark and Canada.

USTOA has also worked tirelessly to educate the traveling public as well as travel agents on the benefits of vacation packages and tours, the importance of dealing with reputable companies, and on what to look for when selecting a vacation package or tour. An active public relations program combined with advertising activities have helped spread the word to consumers and travel agents alike. USTOA has also intensified its marketing and educational efforts through the development of corporate sponsorship programs, through sponsorship of a training module on selling tours and vacation packages in conjunction with the Travel Institute, and through the establishment of USTOA sponsored trade shows.

From its modest beginnings, USTOA has in 35 years become recognized as a leader of the travel and tourism industry.

Membership

USTOA members must meet high industry standards. There are different tiers of membership:

Active Members Must meet the definition of a tour operator. In addition, they:


 * Must have 16 references from reputable travel industry organizations, plus two from USTOA Active Members.


 * Must be in business at least three years under same ownership and/or management.


 * Must meet specific minimums in terms of passengers and/or sales volume.


 * Must carry minimum $1,000,000 of professional Travel Agent/Tour Operator liability insurance, with worldwide coverage.


 * Must participate in USTOA's Travelers Assistance Program, which among other requirements, stipulates that each Active Corporate USTOA member post a $1 million bond to help protect consumers in case of bankruptcy or other insolvency.

Associate Members

Organizations, common carriers and suppliers of tour products and services, other entities connected with travel not directly serving travelers on tour itineraries. Includes Worldwide Airlines, Car Rental Companies, Hotel/Resort/Restaurant Groups, Tourist Boards, Trade Associations.

Allied Members

Carriers (other than common carriers) and suppliers whose products or services bring them into contact with travelers on tour itineraries. Includes Advertising & Public Relations, Airlines (Local), Airport Authorities, Attractions, Cruise Operators, Financial Services, Ground Operator/Services, Independent Hotels/Restaurants/ Resorts, Insurance & Medical Assistance, Legal Services, Marketing & Travel Related Services, Media, Technology & Reservations Systems, Trade Shows, Visa and Passport Services.

Industry Standards

USTOA Active Members pledge to adhere to the following principles:

Ethical Conduct:

Members must conduct business with competence and professionalism, representing truthfully and accurately all facts, conditions and requirements relating to their tours and travel packages.

Truth In Advertising:

Advertising and quoting of prices must clearly show total deliverable prices, accurately identifying facilities, accommodations and services used. Any changes or substitutions must be communicated expeditiously to the travel agent and/or client involved.

Ethical and Financial Responsibility:

Active members' business conduct must instill confidence in their financial stability, reliability and integrity.