CTC Travel Regulations & Ethical Practices 3 — Questions and Answers
Question 1: A client books an all-inclusive resort and later complains that alcohol was not included despite the consultant's verbal assurance. Who bears primary liability?
- The resort, for not honoring the package
- The airline, for poor customer service
- The travel consultant, for misrepresenting the product (Correct answer)
- The client, for not verifying in writing
Correct answer: The travel consultant, for misrepresenting the product
Consultants are liable for misrepresentations they make, even verbal ones, and must ensure accuracy of product descriptions.
Question 2: Under GDPR, which applies when serving European clients, how long may a U.S. travel agency retain a client's personal data without a legal basis?
- Indefinitely, if stored securely
- Up to 10 years for financial compliance
- Only as long as necessary for the stated purpose (Correct answer)
- Five years minimum for auditing purposes
Correct answer: Only as long as necessary for the stated purpose
GDPR's storage limitation principle requires personal data to be kept only as long as necessary for its original purpose.
Question 3: A travel consultant is offered a free familiarization (FAM) trip by a cruise line. What ethical obligation accompanies acceptance of this trip?
- The consultant must exclusively sell that cruise line for one year
- The consultant must disclose the FAM experience when recommending that cruise line (Correct answer)
- The consultant must pay taxes on the trip's retail value
- The consultant must complete a certified review of the ship
Correct answer: The consultant must disclose the FAM experience when recommending that cruise line
Transparency requires disclosing when personal experience was gained through a complimentary FAM trip that may create perceived bias.
Question 4: When a traveler's passport is set to expire 4 months before their international trip to Europe, what should a knowledgeable consultant advise?
- The passport is valid and no action is needed
- The traveler should renew because many countries require 6 months validity beyond return date (Correct answer)
- The traveler can use a driver's license as backup identification
- The traveler should apply for an emergency passport only at the destination
Correct answer: The traveler should renew because many countries require 6 months validity beyond return date
Many countries, particularly in Europe, require a passport valid for at least 6 months beyond the return travel date.
Question 5: Which type of insurance is most important for a travel agency to carry to protect against claims from errors in booking advice?
- General liability insurance
- Errors and omissions (E&O) insurance (Correct answer)
- Workers' compensation insurance
- Business interruption insurance
Correct answer: Errors and omissions (E&O) insurance
E&O insurance specifically protects travel agencies against claims arising from professional mistakes or omissions in their advice or bookings.
Question 6: A client requests a booking for a minor traveling alone internationally. What is the travel consultant's primary responsibility?
- Refuse the booking as minors cannot travel internationally
- Inform the client of airline unaccompanied minor policies and destination entry requirements (Correct answer)
- Book the trip normally since parental consent is assumed
- Require a notarized permission form before discussing options
Correct answer: Inform the client of airline unaccompanied minor policies and destination entry requirements
Consultants must inform clients about unaccompanied minor policies and any destination-specific requirements like consent letters.
Question 7: Under U.S. law, what is the maximum time an airline must allow a passenger to hold a reservation without payment before canceling it?
- 12 hours
- 24 hours (Correct answer)
- 48 hours
- 72 hours
Correct answer: 24 hours
DOT regulations require U.S. airlines to allow a 24-hour hold or free cancellation within 24 hours of booking for tickets purchased at least 7 days before departure.
CTC Travel Regulations & Ethical Practices 3
A client books an all-inclusive resort and later complains that alcohol was not included despite the consultant's verbal assurance.
Who bears primary liability?