New protection to consumers of air tickets comes into force -CHOICE # 366

With effect from April 1, consumers purchasing air tickets through a travel agent will be better protected in the event of default or closure of the selling agent.

In the first two months of this year, the Consumer Council has received 69 complaints concerning the purchase of air tickets, 39 of which were due to the sudden closure of the travel agents.

At present, outbound travelers who, through travel agents, only book air tickets or overseas accommodation are not covered by the Travel Industry Compensation Fund (TICF).

Nor the levy payment equal to 0.3% of the fare paid is required, and therefore consumers are not entitled to any ex-gratia payment (of up to 90%) under the TICF.

With a view to providing better protection for travelers who have purchased only air tickets from travel agents, the Travel Industry Council (TIC) has issued a new directive clearly setting out the responsibilities of travel agents (including consolidators and selling agents) in the sale of air tickets.

The TIC has resolved that travel agents "shall not unilaterally void any air tickets (including electronic air tickets) that have been issued and paid for by a traveler".

Under the directive, consumers are protected in the event of sudden closure of a travel agent.

The Consumer Council wishes also to draw attention of consumers purchasing air tickets and hotel accommodation services for the same trip through the same travel agent. 

They should ask the travel agent to combine these two service items in a single receipt. And make sure that the receipt for the payment indicates levy payment equal to 0.3% of the total price paid so as to be entitled to the protection of the TICF.

More tips for booking air tickets through travel agents:

• When paying for the service, it's best to obtain the air tickets immediately in order to minimize loss in case of default of the travel agents.
   
• Ask travel agents to provide payment receipt.
   
• When booking electronic ticket, request the travel agent to print out the e-ticket itinerary and receipt once the booking is confirmed, and check if it has a ticket number.
   
• Verify whether the relevant abbreviations and details (name, dates, destinations, validity, etc.) are on the air tickets at the first instance, and contact airlines to double check the booking status.
   
• Choose a reputable travel agent and be alert to exaggerated advertisement or promotion claims.