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Over the years, you have no doubt experienced memorable
and pleasurable vacations as a result of purchasing tours or
vacation packages.
The vast majority of companies operating tours and packages
are financially stable; however, in recent years, bankruptcies
involving a small number of tour operators have caused
concern among the traveling public.
From the association's inception in 1972, chief among USTOA's
goals has been to help protect you, the consumer,
against loss arising from bankruptcy, insolvency or cessation
of business of an Active Member tour operator. To help
provide travelers with a solid financial safety net that protects
their vacation investment, the USTOA has always maintained
a consumer protection program, in which every USTOA Active
Member must participate.
USTOA $1 Million Travelers Assistance Program
When you see the USTOA logo with the emblem identifying
the $1 Million Travelers Assistance Program, you can be confident
that it represents a company that upholds the travel
industry’s highest standards...
USTOA's $1 Million Travelers Assistance Program requires
each USTOA Active Member company to post $1 million in
security in the form of a bond or letter of credit. The security,
to be held by USTOA Tour Depositors Trust, is solely for use in
reimbursing consumers for tour payments or deposits lost in
the event of:
- A USTOA Active Member bankruptcy
- A USTOA Active Member insolvency
- A USTOA Active Member cessation of business
Failure of a USTOA Active member to refund consumer deposits
or payments within 120 days following its cancellation
of a tour(s) or vacation packages(s) or its material failure to
complete performance of a tours(s) or vacation packages(s).
In some cases–such as one of the larger tour operators
becoming insolvent–the $1 million may not cover all losses.
Also, some tour operator brands share coverage under their
corporate owner's $1 million bond.
In addition to financial protection, USTOA also offers travelers
invaluable assistance in the event of a member insolvency:
USTOA will ask all its member companies to provide assistance
to affected travelers in whatever way they can, on a
voluntary basis.
USTOA will inform consumers on their rights of recovery and
provide a consumer information center through its website
(www.ustoa.com), keeping travelers apprised of latest developments.
USTOA will serve as a clearinghouse of information, apprising
travelers and the press of options available.
In some cases–such as one of the larger tour operators becoming insolvent–the
$1 million may not cover all losses. Also, some tour operator brands
share coverage under their corporate owner's $1 million bond.
In addition
to financial protection, USTOA also offers travelers invaluable assistance
in the event of a member insolvency:
USTOA
will ask all its member companies to provide assistance to affected
travelers in whatever way they can, on a voluntary basis.
USTOA
will inform consumers on their rights of recovery and provide a consumer
information center through its website (www.ustoa.com), keeping travelers
apprised of latest developments.
USTOA
will serve as a clearinghouse of information, apprising travelers
and the press of options available.
Frequently
Asked Questions about the USTOA $1 Million Travelers Assistance
Program
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