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USTOA’S TRAVELERS ASSISTANCE PROGRAM

Protecting consumers has always been in the forefront of USTOA’s goals. Accordingly, in April, 2004, the organization officially renamed and repositioned its consumer protection plan to better clarify the role the association plays in case of a USTOA-member insolvency. As a cornerstone, the new Travelers Assistance Program continues to require each Active Corporate USTOA member to post a $1 million bond in case of bankruptcy or other insolvency.

USTOA President Bob Whitley notes that the $1 Million Consumer Protection bond is just one part of an overall effort to advocate for the consumer. “The new name better reflects the extent to which USTOA goes in order to help consumers, and it better conveys the extent of our services to the traveling public. Each time a traveler purchases a tour or vacation package from a USTOA member company they are covered by our Travelers Assistance Program, ” he adds.

The Travelers Assistance Program consists of the following:

• Each USTOA Active member will continue to be required to post a bond of $1 Million with USTOA to protect consumers in case the company becomes insolvent. The $1 Million bond remains a condition of membership in USTOA as a minimum fiduciary standard.
• In the case of a member insolvency USTOA will continue to inform consumers on their rights of recovery, and provide a consumer information center through its website (www.ustoa.com), keeping travelers apprised of latest developments.
• Should a USTOA member company become insolvent, USTOA will continue to ask all its member companies to provide assistance to affected travelers in whatever way they can, on a voluntary basis. This can take the form of issuing credits for future planning, providing free travel, or honoring deposits already paid.
• In the instance of a member insolvency, USTOA will serve as a clearinghouse of information, apprising travelers and the press of options available.

“Our membership voted to rename and reposition our plan to better represent our role as an advocate for consumers, and to dispel the misperception that USTOA can protect against all losses,” states Whitley, adding that USTOA is the only industry organization that has banded together to offer consumers assistance when a member company goes down.

According to Whitley, USTOA acknowledges that $1 Million may not be sufficiently large to cover 100% of losses in a major bankruptcy, and that, in cases where individual brands are owned by the same corporation, the brands may share coverage under that owner. “Some of our members have also chosen to carry their own additional coverage on top of the USTOA Travelers Assistance Program,” notes Whitley.

“USTOA’s Travelers Assistance Program remains the highest and most comprehensive such plan in the industry, and our members continue to represent the highest standards. Our members have pledged to help protect their travelers at no cost to the consumer. However, the plan should not be construed as a 100% guarantee,” he says, adding that for maximum protection travelers should pay for their vacation with a credit card, and purchase travel insurance.

USTOA Membership Requirements

In order to become a USTOA Active Member, a tour operator or vacation packager must meet the industry’s toughest standards, including participating in the USTOA Travelers Assistance Program. The program requires each company to furnish an individual indemnity bond (or other approved form of security) for $1,000,000; naming the USTOA Tour Depositors Trust as the obligee so that, in the event of a member's bankruptcy or insolvency, funds will be available to the Trust for reimbursing that Member's tour purchasers and depositors. The $1,000,000 minimum is required irrespective of, and is in excess to, any other protection voluntarily maintained or required by government or other entities.

Each member must also file with USTOA a Certificate of Insurance for Travel Agents/Tour Operators Professional Liability Insurance, must be in business for a minimum three years under the same management or ownership, supply 18 industry references, and meet a set minimum number of passengers carried or dollar volume in sales.

For more information on the USTOA Travelers Assistance Program, as well as a listing of USTOA member companies consult the USTOA web site: www.ustoa.com.