| 1. | Objectives |
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| (1) | To ensure that the public receives the best possible service from travel agents. |
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| (2) | To maintain and enhance the reputation, standing and good name of the TIC and its members. |
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| (3) | To encourage initiative and enterprise in the belief that properly regulated competitive trading by and between travel agents will best serve public interest and the well-being of the travel industry. |
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| (4) | To ensure that public interest be predominant in all considerations of the standards of competitive trading between travel agents. |
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| (5) | To encourage the growth and development of the travel industry consistently with the above objectives. |
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| 2. | Principles |
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| (1) | This Code is designed to regulate activities between TIC members and the public and between members themselves in relation to outbound package tours. |
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| (2) | This Code recognises the need to regulate the operating standards and sales procedure of outbound package tours generally and to regulate competitive commercial practices that are considered by the TIC to be in conflict with public interest. |
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| (3) | This Code embodies measures for enforcing the standards and procedures which a member shall observe under the authority of the TIC. |
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| 3. | Conduct between Travel Agents and the Public |
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| (1) | Registration of Package Tour Brochures |
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| | All brochures to be used by a member for advertising purposes shall be registered with the TIC two working days in advance before their dispatch and the sale of the tours therein advertised. Members are allowed to promote such tours or put them up for sale only after registration of the brochures is approved. Members may be required to submit cost breakdown together with any such evidence relevant for justification. A "brochure" shall mean any document which specifies the contents of a tour, holiday or other travel arrangements. |
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| (2) | Advertising |
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| | All advertising and promotion by a member shall comply with the Code of Advertising Practice for Travel Agents and Directives issued by the Board from time to time. |
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| (3) | Conditions of Tour Booking and Responsibilities |
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| | (a) | "Conditions of Tour Booking and Responsibilities" shall define the extent of the responsibilities as well as the liabilities of a member towards clients and shall be so designed that they can be easily read and understood. |
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| | (b) | "Conditions of Tour Booking and Responsibilities" shall prominently indicate the circumstances in which and the conditions on which surcharges may be imposed on clients. |
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| | (c) | "Conditions of Tour Booking and Responsibilities" shall clearly indicate a member's general policy both in the event of his cancelling a package tour or in the event of his altering part of a package tour. |
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| | (d) | "Conditions of Tour Booking and Responsibilities" shall clearly state the amount of, or the basis for calculating the cancellation fees which clients shall be liable to incur as well as the terms and conditions under which clients shall be liable to incur such fees. |
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| | (e) | A member shall disseminate and interpret his "Conditions of Tour Booking and Responsibilities" to every client on or before confirmation of the booking or produce such information to the clients on request. |
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| | (f) | "Conditions of Tour Booking and Responsibilities" shall conform to all relevant provisions of the Code. |
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| (4) | Service Charges |
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| | A member shall print in the itinerary all package tour service charges. |
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| (5) | Surcharges |
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| | (a) | A member shall confirm all tour fares 28 days before the commencement date of all package tours except in circumstances described in subsection (9) below or where the TIC considers as appropriate. |
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| | (b) | A member shall be entitled to impose an additional charge on his clients before full and final payment of a package tour has been made if: |
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| | | (i) | there shall be an increase in the operation costs resulting from variations in the rate of exchange exceeding three per cent; |
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| | | (ii) | there shall be an increase in operation costs due to unforeseeable circumstances with reasonable grounds and the additional charge is proportionate to such increase. |
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| | (c) | If a member is entitled to impose a surcharge under paragraph (a) or (b) above, the clients affected shall have the option of paying the surcharge or cancelling their package tours and receiving all money paid within seven working days. |
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| | (d) | A member shall inform his clients promptly of his decision to impose a surcharge. |
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| (6) | Collection of Tour Payment |
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| | (a) | A member shall collect full payment of any package tours at least 21 days excluding the departure date before the commencement date of any package tour if the commencement date falls within the period commencing on the fifth day immediately before the Chinese New Year's Day and ending on the 10th day immediately thereafter in each and every calendar year. |
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| | (b) | If the commencement date of the package tour falls on any day other than those aforesaid, a member shall collect the full payment at least seven days in advance excluding the departure date prior to its commencement. |
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| | (c) | If a member fails to collect full payment in accordance with paragraph (a) or (b) above and his clients decide to cancel their bookings, the member shall not deduct any charge and shall refund all money received to his clients within seven working days. (Note: this paragraph is not applicable to package tours booked within seven days prior to their departure.) |
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| | (d) | A member shall collect the payment in full for any package tours booked within seven days prior to their departure. |
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| | (e) | A member shall be entitled to forfeit the deposit paid by his clients for any package tours if the clients fail to settle the balance before the deadline as set by him. |
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| (7) | Levy franking |
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| | (a) | All licensed members shall install a franking machine. |
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| | (b) | All package tour receipts shall be franked with a levy equivalent to a certain percentage of the outbound fare received. The Secretary for Commerce and Economic Development shall specify the percentage. |
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| | (c) | All receipts shall be printed / stamped with a levy sentence in both English and Chinese, saying: "All package tour receipts must be franked for your protection" and "旅行團收據應蓋上印花方可獲得保障". |
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| (8) | Cancellation of Package Tours for Reasons Beyond Control of Travel Agents |
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| | (a) | Members shall try their utmost to make arrangements in order that their package tours can depart as scheduled. If any package tours are cancelled before departure because of reasons beyond control, members shall notify the tour participants as quickly as possible. |
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| | (b) | If the major transport service providers (which are hereafter referred to as "providers" and which mean airlines, cruise liner companies and train companies) impose any cancellation charges (which are hereafter referred to as "cancellation charges") because members have cancelled their bookings, members shall try their best to make the providers waive the cancellation charges and to assist the tour participants in making claims to insurance companies. |
| | (c) | If the providers insist on imposing the cancellation charges, members are allowed, when making refunds to the tour participants, to collect the actual amounts of the cancellation charges subject to the total amounts not exceeding the tour fares or part thereof paid by the participants. |
| | (d) | If the providers allow members which have cancelled their bookings to have the paid monies retained by the providers for future use, members shall not collect the cancellation charges from the tour participants. |
| | (e) | Members shall submit to the TIC written proof and substantiating documents issued by the providers (if any) in order to be allowed to collect the cancellation charges. Members shall not collect any cancellation charges if they do not submit any proof to the TIC. |
| | (f) | The proof submitted by members to the TIC (including the written proof provided by them and the substantiating documents issued by the providers) will be uploaded to the TIC website for the public to browse. |
| | (g) | When notifying the tour participants of the cancellation of the package tour, members shall clearly inform the participants that they may collect cancellation charges; as for the amounts of the cancellation charges, members shall notify the participants within seven working days after such amounts are confirmed by the providers. Members shall try their best to make the providers decide within one month whether the cancellation charges will be imposed, and shall also clearly inform the participants that once the amounts of the cancellation charges are confirmed, they will offer the participants the following two options (members may request the participants to make a decision within 14 working days counting from the day of notification of the amounts of the cancellation charges): |
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| | | (i) | the tour participants may choose to be refunded monies, which include the tour fares, Airport Passenger Departure Tax, fuel surcharges imposed by airlines and service charges imposed by members (visa charges shall be handled in accordance with paragraph 3(12) of the Code of Business Practice on Outbound Package Tours currently in force or any other rules in force at that time), after paying the cancellation charges (if any) and the following handling fee: |
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| | | | (A) | HK$50 or less, for package tours within Guangdong province; |
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| | | | (B) | HK$150 or less, for package tours whose duration is five days or fewer and which are bound for mainland China (except Guangdong province) or Zone 1 of Directive No. 151 or the directive in force at that time (viz. Singapore, Malaysia, Thailand, Vietnam, Cambodia, Myanmar, the Philippines, Taiwan, South Korea, North Korea, Indonesia and Brunei); or |
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| | | | (C) | HK$300 or less, for package tours bound for any other areas. |
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| | | | In the event of transprovincial or transnational package tours, the handling fee equals the higher/highest one pertaining to the above-mentioned area. |
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| | | (ii) | the tour participants may choose to allow the members concerned to retain the tour fares after paying the cancellation charges (if any), and make use of the monies to pay for other package tours or travel products which are to depart or to be used within six months (counting from the day of notification of the cancellation) without having to pay any extra handling fees. As regards any other paid monies such as Airport Passenger Departure Tax, fuel surcharges imposed by airlines and service charges imposed by members, members shall fully refund the monies to the participants (visa charges shall be handled in accordance with paragraph 3(12) of the Code of Business Practice on Outbound Package Tours currently in force or any other rules in force at that time). Members shall also observe the following points: |
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| | | | (A) | members shall not take back the tour participants' franked receipts in order for them to apply for ex gratia payments from the Travel Industry Compensation Fund if necessary; |
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| | | | (B) | if the tour participants join another package tour and that package tour is also cancelled for reasons beyond control, members shall refund all the tour fares retained to the participants within seven working days without imposing any charges; |
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| | | | (C) | if the tour participants join another package tour and that package tour is cancelled not for reasons beyond control, members shall comply with paragraph 3(11) of the Code of Business Practice on Outbound Package Tours currently in force or any other rules in force at that time. If notification of the cancellation is made within seven days prior to departure, or if that package tour is guaranteed to depart, members shall compensate the participants in accordance with paragraph 3(11) of the Code of Business Practice on Outbound Package Tours and Directive No. 135 currently in force or any other rules in force at that time; |
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| | | | (D) | if the tour participants find that no package tour or travel product is suitable, or if they wish to change the decision of having the tour fares retained, members shall allow them to have the monies refunded after paying the above-mentioned handling fee; and |
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| | | | (E) | members shall allow the tour participants to make use of the tour fares retained on more than one occasion within the six-month period, or to have the balance refunded within the six-month period after paying the above-mentioned handling fee. |
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| | (h) | If members only collect the handling fee, they shall, within seven working days after the cancellation of the package tour, refund the balance to the tour participants or submit the refund application to the banks if the tour fares are paid by credit card. |
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| | | If members collect the handling fee and the cancellation charges, they shall, within seven working days after submission of the proof for collection of the cancellation charges to the TIC (counting from the date on the proof), refund the balance to the tour participants or submit the refund application to the banks if the tour fares are paid by credit card. |
| | (i) | If, after the departure of a package tour, members terminate the itinerary of the package tour because of reasons beyond control and arrange for the tour participants to return to Hong Kong earlier than scheduled, then members shall, within one month after the participants return to Hong Kong, refund the participants the monies proportionate to the reduction in costs and submit relevant substantiating documents to the TIC. |
| | (j) | In their tour booking terms and conditions, members shall stipulate in clear language how the monies paid by consumers will be handled should package tours be cancelled because of reasons beyond control, and mention the TIC website (www.tichk.org) for easy reference by consumers. Such information shall be made available to consumers before they sign up for the tours. |
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| (9) | Material Alterations to Package Tours for Reasons Beyond Control of Travel Agents |
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| | (a) | A member shall endeavour not to make any material alteration to a package tour. |
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| | (b) | If a member makes a material alteration to a package tour prior to its commencement for reasons beyond his control and in which case it results in increasing the operation costs, he shall inform his clients without delay and shall give his clients the choice of either accepting the alteration with a reasonable adjustment in the tour price, or of receiving a full refund of all money paid within seven working days. However, if it results in reducing the operation costs, he shall offer a refund to his clients proportionate to such reduction in costs within seven working days. |
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| | (c) | If a member makes a material alteration to a package tour after its commencement for reasons beyond his control, he may impose any additional charge to his clients as a result of an increase in operation costs; however, if such material alteration results in reducing the operation costs, he shall offer a reasonable refund to his clients proportionate to such reduction in costs within one month after completion of the package tour. |
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| (10) | Definition of "Reasons Beyond Control" |
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| | "Reasons beyond control" mean hostilities, political unrest, terror attacks, natural disasters, pestilences, bad weather, technical problems to transport, changes to the frequency/timetable of any means of conveyance by its operator without advance notice, strikes, industrial action, travel advisories (warnings) issued by governments of the destinations/the World Health Organisation, red/black outbound travel alerts issued by the Hong Kong SAR Government, and any other situations of which the industry has no control and which are unfavourable to outbound trips of travellers. |
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| (11) | Cancellation and Alteration for Other Reasons |
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| | (a) | If a member cancels a package tour to any destinations (except within Guangdong province) prior to its commencement for reasons other than those stated in subsection (10), he shall notify his clients of the cancellation at least seven days in advance excluding the departure date. Failing that he shall make a full refund of all money received, and shall also offer to pay 15 per cent of the price of the relevant package tour but not exceeding HK$1,000 to his clients as compensation within three working days. |
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| | (b) | If a member cancels a package tour destined for Guangdong province prior to its commencement for reasons other than those stated in subsection (10), he shall notify his agent and clients of the cancellation at least one day in advance excluding the departure date. Failing that he shall make a full refund of all money received, and shall also offer to pay 15 per cent of the price of the relevant package tour but not exceeding HK$1,000 to his clients as compensation within three working days. |
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| | (c) | If a member cancels a package tour prior to its commencement for reasons other than those stated in subsection (10), he shall make refund applications to banks for credit card payments of tour fares within three working days. |
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| | (d) | If a member makes a material alteration to a package tour after its commencement for reasons other than those stated in subsection (10), he shall not impose any additional charge to his clients as a result of an increase in operation costs; however, if such material alteration results in reducing the operation costs, he shall offer reasonable refund to his clients proportionate to such reduction. |
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| (12) | Visa Charges |
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| | (a) | If a member cancels a package tour, he shall refund service / handling charge for processing the visa to his clients within three working days. Any visa fees already incurred by the member for the clients in application for a group visa which is invalid for use by his clients individually shall also be refunded to his clients within three working days. |
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| | (b) | If a member cancels a package tour, he shall be entitled to deduct any visa fees already incurred by the member for the clients in application for a travel visa other than a group visa stated in paragraph (a). |
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| | (c) | If a client cancels a booking or if the tour is cancelled due to reasons beyond the control of a member, the member shall be entitled to deduct the service / handling charge and visa fees already incurred by the member for the clients in any application for a travel visa from the tour fare to be refunded. |
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| (13) | Tour Escort |
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| | Tour escorts leading outbound tours must hold a valid Tour Escort Pass. |