日本財団 図書館


Revision of the Travel Agency Law

The Travel Business Agency Law was introduced in 1952 to protect consumers and corporations from dishonest travel companies. The law was revised and renamed as Travel Agency Law in 1971, and, since then, has undergone several revisions to reflect changes in the market. The law was revised drastically in 1995. The registration system was overhauled, and classifications into two categories based on overseas versus domestic service were substituted for the previous general tourism operator, domestic tourism operator, and travel agency classifications. The collection of a fixed operation bond from tourism operators was modified to charge an amount proportional to sales volume. The revised law also spelled out the responsibility of businesses to guarantee the content of package tours they sell, with the obligation to pay compensation if they fail to do so. Other changes include the requirement to give more detailed descriptions of terms and conditions in writing, and other regulations ensure accurate advertisement of package tours. These revisions are expected to enhance consumer protection.

 

Operation bond and compensation fund contribution systems

Travel companies commonly receive fees from customers in advance, then pay transportation and accommodation services after the tours are completed. This creates the risk of customers finding themselves unable to obtain services or refunds if the travel company goes bankrupt between the time the customers pay and the time they receive the services. To protect consumers and businesses from this risk, the Travel Agency Law stipulates that travel companies must pay an operation bond before starting the business. However, travel companies that become guaranteed members of the Japan Association of Travel Agents (JATA) are allowed to pay a lower compensation fund contribution to the association instead of paying the operation bond. Critics say this increases the danger that consumers will not be sufficiently protected if such companies go bankrupt.

 

 

 

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