What are the requirements for tourism services in the European market?

There are a number of legal, non-legal, voluntary and common requirements that organisations offering tourism services to the European market must or should comply with. European tour operators must comply with strict regulations that ensure their travelling customer is protected financially and will be personally safe while travelling overseas. Health and safety protocols in response to the COVID-19 pandemic have become the most important factor affecting the inbound and outbound travel industry.

1. What are the mandatory requirements?

European Package Travel Directive

The European Package Travel Directive protects European travellers’ rights when they book package holidays. Amendments made in 2018 take account of changing booking methods among travel consumers. The Directive expanded the definition of package travel to include customised packages and linked travel arrangements as follows:

• A package holiday is defined as a combination of at least two different types of travel services, such as transport, accommodation or a tourist service, such as a trip to a historical attraction. All elements of the package holiday are booked and paid for through one agent at the same time.
• Linked travel arrangements are travel services bought in different contracts over a 24-hour period and are linked to the same package.

The broadening of the concept of travel package aims to provide clearer information for travellers on the sort of travel product they are buying and the corresponding level of protection. In particular, the new concept of linked travel arrangements ensures that payments are protected in case the seller goes bankrupt. The update also creates stronger cancellation rights, requires clear liability arrangements and applies to online bookings.

Tour operators outside the European Union are not legally bound by the European Package Travel Directive, but European operators will expect their foreign suppliers to have relevant liability insurance in place so they can make sure that their customers are protected according to the Directive. They will also expect you to have insolvency protection in compliance with the European Package Travel Directive. You must be able to provide full details of your insurance policies.

The COVID-19 pandemic has had a major effect on tourism worldwide. In response to COVID and the scale of the challenge facing the travel industry, the European Commission (EC) issued Information on the package travel directive in connection with COVID-19, which provided advice regarding the cancellation of package holidays. This was followed in May 2020 by a recommendation on vouchers offered to travellers as an alternative to reimbursement for cancelled package travel and transport services.

Individual European countries announced temporary regulatory measures, and this paper issued by ABTA, EU Member State changes to Package Travel Regulations, provides a summary of actions taken to date by a variety of nations.

COVID-19 has also exposed the difficulties of the Package Travel Directive because of the huge numbers of refunds that were required for cancelled holidays. In 2022, the European Commission is due to assess the current framework and whether amendments are required, particularly around insolvency protections. You should ensure that you stay up to date about any changes made to the Directive.

Liability insurance

All European tour operators must have their own liability insurance for damages caused by third parties to ensure they comply with the European Package Travel Directive. Some operators, like TUI, require potential suppliers to indicate the extent of coverage provided by their own liability insurance. In most cases, suppliers are required to have the appropriate level of liability insurance.

If you sell tours or packages directly to European travellers, they will also expect you to have comprehensive liability insurance so they are fully covered while under your care.

Liability insurance for tour operators usually has three areas of coverage:

• Third-party or public liability covers bodily injury and property damage to customers in your care.
• Contingent auto liability is additional auto liability over and above local compulsory automobile insurance for owned, hired and non-hired vehicles.
• Contingent watercraft liability covers owned, hired and non-owned watercrafts with motors that carry paying passengers. Local tour operators wishing to work with cruise lines are required by the cruise lines to have excursion insurance.

For business insurance that covers you in the event of travel risk, crisis management and response, you can consider a specialist provider such as Global Rescue which provides an integrated service for medical, security, travel risk and crisis management all over the world. For tour operators, Global Rescue offers a partnership scheme whereby members insure clients’ trips, reduce the risk of liability and earn revenue for their own business through the sales of insurance policies.

This type of scheme can generate confidence among your buyers and there are several leading tour operators that have partnered with Global Rescue. It has an in-house operations team that provides regular travel updates on the global COVID-19 situation.

General Data Protection Regulation (GDPR)

The EU adopted the General Data Protection Regulation (GDPR) in 2016 to replace the 1995 Data Protection Directive, which had been adopted when the internet was still in its infancy. Fully recognised as law across the EU in May 2018, GDPR better protects people’s privacy, particularly with regard to personal data storage, processing and sharing. Personal data includes name, address, email address, bank details, social media data, passport information, biometrics, online identifiers, such as an IP address, among other data.

The purpose of GDPR is to give EU nationals more power over where and how their personal data is stored and used.

Figure 1: What is Personal Data?

Source: iocea

The new GDPR rules also apply to the European travel industry, including tour operators which directly handle traveller personal data. But it also applies to any company anywhere in the world that processes the personal data of people who reside in the European Union. If you sell directly to European residents, it affects you too.

The most important changes brought by GDPR include:

• Clearer rules: privacy policies need to be written in clear, straightforward language.
• User consent: users must give an affirmative consent before their data can be used. This means users must actively opt in. Pre-determined opt-out options are no longer permitted.
• Greater transparency: users must be clearly informed when their data will be transferred outside the EU. Data collection must be done for a well-defined purpose, which if changed must be informed to users.
• Stronger rights: users have full rights to access their data and request it to be erased. Businesses must inform users without delay in cases of data breach.
• Stronger enforcement: the European Data Protection Board has the power to impose fines of up to €20 million or 4% of a company’s worldwide turnover for non-compliance.

European Green Deal

The European Green Deal is the European Union’s (EU) commitment to transform the 27-country trade bloc from a high carbon to a low carbon economy, whilst preserving prosperity and improving people’s quality of life. The overarching goal of the European Green Deal is to reduce carbon emissions by 55% from the 1990 base year by 2030, and to net zero by 2050.

The Green Deal is complex and ambitious and affects all major sectors across the economy, including tourism. Tourism businesses are required to embed sustainability across their business. This will extend to fostering sustainable relationships with all their suppliers, including local tour operators, and fostering responsible partnerships with other operators in the private sector.

For more on developing sustainable tourism products, see the section below on Sustainability, and consult the CBI’s new study on how to be a sustainable tourism business.

Brexit

Since Brexit, GDPR rules continue to apply to the UK, which has retained the regulations in UK law. The British Data Protection Act 2018 supplements the GDPR. The ICO has published a range of useful guidance and resources for organisations, including this specific guide, Data protection at the end of the transition period for small businesses.

International travel recommendations are changing all the time. You must stay up to date with travel developments across European markets, and in your own destination. For the time being, Europeans are likely to travel mainly within their own country and/or within Europe. Many long-haul destinations from Europe, like Brazil, India and many African nations, remain on governments’ red lists, or their borders are still closed.

Countries with open borders have varying entry requirements. Negative COVID tests, vaccination certificates and/or 14-day quarantines at the point of entry at travellers’ own expense are common. The high cost and inconvenience of all the various requirements continue to put off many travellers. To find out what the restrictions are in your destination (or any other destination), visit the official government website.

Alternatively, the internet is a good source of information. World Nomads, a travel insurance and online travel information portal, regularly updates its travel alerts: Which countries are open for tourism during COVID-19?.

Read more about how the EC is supporting the relaunch of travel and tourism across Europe through the launch of web platform, Re-open EU, which provides real-time information on borders and available means of travel through the continent.

Keep monitoring the advice European governments are providing their nationals about travelling abroad:

• The foreign ministries of EU Member States provide travel advice to their citizens and you can find a full list of ministries and websites on the European Commission website.
• In the UK, the government website regularly updates its list of countries and territories that are exempt from advice against ‘all but essential’ international travel.
• The German government also issues comprehensive travel advice and regulations through the Federal Foreign Office as does the Dutch government through the Government of the Netherlands. 
• To keep abreast of travel developments throughout the Schengen region, consult Schengen Visa Info News.
• This interesting news article, Coronavirus Travel Rights, provides some of the most recently available information on UK and overseas travel restrictions.

The United Nations’ World Tourism Organisation (UNWTO) has also created a COVID-19 section on its website and publishes an extensive range of online resources and guides for tourism businesses to consult. The section on Travel Restrictions features monthly reports on the current status of travel restrictions around the world. UNWTO also reports on tourism news, such as in this July 2021 article: International travel largely on hold despite uptick in May.

The World Travel & Tourism Council (WTTC) has published a range of Safe Travel Protocols to support a number of tourism-related sectors, including Tour Operators, Hospitality, Adventure Operators and Attractions. The aim of the protocols is to establish a common set of standards to ensure the safety of staff and tourists as the sector moves towards a new normal.

Becoming Safe Travel certified and having globally recognised and standardised health and hygiene protocols will help boost travellers’ confidence. You should download and study the most appropriate protocol/s for your organisation and apply for the Global Safety Stamp.

2. What additional requirements do buyers often have?

Code of conduct

European tour operators seek professional and reliable suppliers. To protect their image as proficient, accountable organisations, they seek to provide the services they agreed with their customers, which includes taking responsibility for them. Consequently, many European tour operators will have their own code of conduct, which they require their suppliers to comply with.

A typical code of conduct may include some or all of the following:

• Health and safety requirements on safely managing guests and staff.
• Business ethics standards to minimise environmental impact, work with local people and locally owned businesses, avoid child labour and protect animals and the environment.
• Corporate social responsibility standards for monitoring responsible tourism policies.

Professionalism and reputation

Meeting the needs of customers is of paramount importance to European tour operators, which continually monitor satisfaction ratings. Travellers like to feel protected and safe when they book a trip or excursion. They rely heavily on word-of-mouth recommendations, social media commentary and review platforms, such as Tripadvisor. Many European travellers are keen to share their experiences on these platforms, whether good or bad, and negative reviews naturally affect the European tour operators’ reputation.

Many European tour operators choose to do business with a destination management company (DMC), which is responsible for ensuring that local operator suppliers comply with their requirements. Being a member of national or international tourism associations can help boost your reputation as a local tour operator with DMCs and European tour operators.

The Adventure Travel Trade Association (ATTA), for example, is a global membership organisation for a wide variety of travel companies, including tour operators. Becoming a member of an organisation such as ATTA can help you to promote your business to a wider audience. ATTA is currently offering limited time COVID-19 pricing to new members.

Membership in trade associations can bring additional benefits, including:

• Networking opportunities with similar operators, other professionals in the industry and potential clients;
• Access to industry insights and events to stay up to date with new trends;
• Added recognition through awards programmes.

Sustainability

Sustainability and environmental protection are hot topics in every industry around the world. In tourism, travelling sustainably has become a very important issue in recent years. Increasing numbers of travellers are concerned about their carbon footprint and seeking ways of minimising the environmental impact of their travels.

However, sustainability in tourism is a broad concept. The World Tourism Organization defines sustainable tourism as ‘tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities’. The new CBI study on how to be a sustainable tourism business has detailed information on developing sustainable tourism activities.

The Global Sustainable Tourism Council (GSTC) establishes and manages global sustainable standards known as GSTC Criteria, for industry and destinations. The industry criteria for accommodation providers and tour operators set the guiding principles and minimum requirements, which include the protection of natural resources and sustainability.

The GSTC Criteria are strongly linked to the United Nations Sustainable Development Goals (SDGs), a UN call to action to promote global prosperity while protecting the planet. Tourism is a key sector in the challenge of meeting the 17 SDGs (see table 1 below). Read more about tourism and the SDGs to see how your business can contribute to sustainable development.

Figure 2: UN Sustainable Development Goals

Source: UNWTO

Where tourism is not sustainably managed, it can stimulate undesirable development, social disruption, loss of cultural heritage and permanent environmental damage. Tour operators all over the world are in a unique position to help travellers make sustainably conscious choices. European tour operators like to have local people and businesses as partners in their travel destinations because this:

• adds value to their product and enhances the travel experience;
• brings measurable benefits to local communities;
• helps to preserve biodiversity and wildlife habitats;
• brings local economic growth.

Euromonitor International has identified six key drivers of sustainability that can help businesses create their own strategies to comply with legislation, increase business opportunities and develop resilience in the long term.

Figure 3: Euromonitor sustainability drivers

Carbon footprint of tourism

Tourism is estimated to account for around 8% of global carbon emissions, almost half of which (49%) relates to transportation.

Figure 4: Carbon Footprint of Global Tourism

Source: Sustainable Travel International

Many tour operators contribute to carbon offsetting initiatives to compensate for the carbon emissions their operations and trips generate. These initiatives include tree planting, renewable energy schemes and other international carbon reduction programmes. Carbon offsetting schemes are common among airlines, which regularly offer their passengers the opportunity to make a financial contribution towards an initiative to compensate for their flight’s emissions.

Responsible tourism

Responsible tourism is strongly linked to sustainable tourism. It refers to individual actions that are taken by people and businesses to create sustainable tourism. Responsible tourism has become an important issue affecting the industry in such areas as the protection of children, wildlife preservation, environmental protection and overtourism.

Measures that prioritise social impact before profit are an important factor within responsible tourism. Social impact measures include actions such as preserving local cultures/heritage, strengthening communities and providing social services. Many European operators have a Corporate Social Responsibility (CSR) charter in which they outline the social impact measures they adopt and Quality in Travel provides certification for travel companies in the UK.

B Corporation was developed in the United States and the B Corps certification programme is based on how well a company is governed, how well staff are treated and what they do to benefit communities, customers and the environment. Intrepid Travel is the world’s largest travel B Corporation and in their B Impact Report, you can find out the measures they have taken to become certified. You can browse the B Corp Directory to find other tour operators that are B Corps certified.

Many European tour operators have signed up to The Code, an industry-driven initiative to fight against the sexual exploitation of children in tourism. Suppliers are often required to adhere to The Code’s standards, which usually includes a zero-tolerance approach throughout the supply chain.

Visits to orphanages in developing countries have been singled out after many reported cases of children being purposefully kept in poor conditions, denied food, clothing and other essentials to attract more money from visitors. In reaction, a growing number of European tour operators have been removing trips to orphanages from their itineraries altogether.

Another important issue is the conservation and protection of wildlife through responsible tourism. Wildlife tourist attractions that offer close animal interactions such as touching, holding and riding animals have a negative impact on animals’ welfare. Responsible European tour operators will expect their suppliers to not promote practices that negatively affect animal welfare and conservation efforts. The CBI study on Entering the European market for wildlife tourism has detailed information on ensuring the welfare of animals in tourism.

Overtourism happens when there are too many visitors to a particular destination. This has negative impacts on the environment and destination, as well on the local quality of life of people and wildlife. European tour operators are well aware of the negative impacts of overtourism, especially because many European destinations are classic examples of overtourism. Examples include Venice, Barcelona and Dubrovnik, all of which have introduced measures to control visitor numbers.

Figure 5: Overtourism at the Great Wall of China

Source: Pixabay

It is important that you understand the impact of overtourism on your destination and take measures to mitigate them, including diverting visitors to alternative sites or encouraging travel in different seasons.

3. What are the requirements for niche markets?

ISO standards

The International Organization for Standardization (ISO) is an independent, nongovernmental international organisation with a membership of 164 national standard bodies. ISO standards are voluntary, consensus-based, market relevant international standards that ensure products and services are safe, reliable and of good quality. They help companies access new markets and facilitate trade by driving up standards and offering continuity among organisations.

You can browse the ISO website for standards that may be appropriate for your business. The ISO also publishes some interesting articles in the News section. The table below outlines some of the standards specifically developed for the tourism industry.

Table 1: ISO Standards for the Tourism Industry

Standard	Details
ISO 21902:2021 Accessible tourism for all	The first international standard to help the tourism industry make travel accessible to all. Published in July 2021.
ISO/PAS 5643:2021 Requirements and guidelines to reduce the spread of COVID-19 in the tourism industry	Establishes requirements and recommendations for tourism businesses to protect employees and tourists. Published in May 2021.
ISO 21417:2019 Recreational diving services	Requirements for training on environmental awareness for recreational divers.
ISO 21401:2018 Sustainability for Accommodation Providers	Specifies the environmental, social and economic requirements to implement a sustainability management system for tourism accommodation providers.
ISO 20410:2017 Bareboat Charter	Minimum service level and equipment requirements for bareboats offered for charter on inland, coastal and/or offshore waters.
ISO 17679:2016 Wellness Spa	Establishes the service requirements of a wellness spa.
ISO 21101:2014 Adventure Tourism	Outlines the requirements of a safety management system for adventure tourism activity providers. See section below, Standards for adventure tourism, for more information.
ISO 26000:2010 Social Responsibility	Provides guidance to help clarify what is social responsibility and how it can be implemented effectively. The figure below demonstrates the seven core subjects involved in social responsibility.
ISO/DIS 3021 Hiking and Trekking	Requirements and recommendations. Under development.

Figure 6: Social Responsibility: 7 Core Subjects

Source: ISO

Standards for adventure tourism

The ISO standards for adventure management were developed in 2014 and reviewed in 2019. The ISO 21101:2014 standard provides a basis for adventure tourism activity providers to plan, promote and deliver adventure tourism activities as safely as possible. The Practical Guide for SMEs offers step-by-step guidance and examples. ISO 21103:2014 specifies the minimum requirements for information to be provided to participants before, during and after adventure tourism activities.

Published in August 2020, the ISO 21102:2020 establishes requirements and expected skills for leaders in adventure tourism activities.

Standards for adventure tourism in the UK

The British Standards Institution (BSI) has developed a British Standard for adventurous activities outside the United Kingdom (BS8848:2014). The standard details good practices to ensure the safety and well-being of travellers and minimise the risks of adventure travel.

It is specifically aimed at UK tour operators and providers of any adventurous activities outside the UK, including adventure holidays, gap-year trips, volunteering projects, charity challenges, expeditions, field research and educational visits. It covers planning, transport, staff, accommodation and the activities themselves.

Although voluntary, most British tour operators that specialise in adventure are highly likely to ensure that their trips and holidays comply with BS8848. It is important for them to provide peace of mind for participants across all their activities. It is likely that British adventure tour operators will expect suppliers in other countries to comply with BS8848.

Meeting customer needs across niche tourism segments

The tourism industry is comprised of many tourism niches that attract travellers with different needs and expectations. It is important to ensure you understand what customers want so that you can take steps to meet these needs. Some examples of these segments include:

• Community-based tourism (CBT) – these travellers desire authentic experiences and enjoy immersive experiences with local communities. They like to feel like that they are making an important contribution. In homestay CBT experiences, luxury facilities are not required but clean spaces with at least basic toilet facilities are the minimum standard for accommodation.
• Voluntourism – these travellers are keen to provide hands-on help to local communities.
• Adventure tourism – travellers who look for thrill and adventure experiences.
• Wildlife tourism – travellers who like to see positive animal welfare and habitat conservation in practice.
• Birders – travellers who choose destinations where bird life is plentiful and varied, along with specific bird groups and endemic species.

This study was carried out on behalf of CBI by Acorn Tourism Consulting Limited.

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