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Summary of Requirements and Procedures for Active Membership in USTOA
(Board approved December 2010)
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Must
meet the definition of tour operator.
- Must have
18 references from a variety of reputable travel industry organizations.
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Must have actively conducted business in the U.S. at least three years under same ownership and/or
management.
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Must participate in the USTOA's Travelers Assistance Program by
posting $1 Million in the form of either a bond, letter of credit, or U.S. Treasury Bill
for use in reimbursing consumer deposits in case of
bankruptcy, insolvency or cessation of business.
Qualifications
To qualify for Active Membership, a Tour Operator MUST: (Board approved December 2010)
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Be formed as a wholesale Tour Operator under the laws of one or more State(s) within the United States and have actively conducted buisness in one or more of said States for not less than three (3) years and continue at all times during membership to actively conduct business in one or more of said States.
- Have operated their business as a wholesale Tour Operator under the same ownership and/or management for not less than three (3) years, except that the same ownership and/or management for not less than three (3) years shall not be required for commencement or continuation of Active Membership of a Tour Operator, ownership of which is acquired by another Active Member in good standing.
ALL OR A SUBSTANTIAL PORTION OF THE COMPANY'S PRODUCT MUST BE INCLUSIVE
TOURS OR PACKAGES.
Travelers
Assistance Program
Active
Members are required to participate in the USTOA $1 Million Travelers
Assistance Program, which consists of furnishing an individual indemnity
bond, letter of credit or U.S. Treasury Bill for $1,000,000.
The USTOA
approved form for indemnity bond, letter of credit or U.S. Treasury Bill, must name the
USTOA Tour Depositors Trust as the obligee, beneficiary, owner, as case may be, so that, in the event of
bankruptcy or insolvency or cessation of business or failure
to refund deposits for cancelled tours, funds will be available to the
Trust for reimbursing that Member's tour purchasers and depositors and
must cover all brands* and affiliates that participate in the Program.
The $1,000,000 minimum is required irrespective of, and is in excess
to, any other such protection, whether by bond, escrow fund, insurance
or other suretyship, and whether voluntarily maintained or required
by government, carrier conference, trade association or other entity.
Tour
Operators Professional Liability Insurance
Each
member must file with USTOA a Certificate of Insurance for Travel Agents/Tour
Operators professional Liability Insurance. This Certificate must be
issued by an insurance company:
- Listed
in Best's Insurance Reports, Fire and Casualty, as published by A.
M. Best Co., Oldwich, New Jersey, with policyholder's service rating
of either A or A+
- Licensed
to transact business in all 50 States and the District of Columbia
- The
Certificate must contain a 30-day prior notice of cancellation clause.
- Coverage
must be written on a worldwide basis.
- Coverage
must be in an amount not less than $1,000,000 Combined Single Limit.
- Coverage
must extend to protect retail travel agents for claims arising out
of the sale of the tour product.
Active Member Dues (approved by Membership December 2010)
1.
Active Member’s annual dues are paid upon the basis of its combined
tour business volume including all Brands for which the logo is used:
#
of Passengers |
Annual
Dues |
Up to 10,000
10,001-50,000
Over 50,000 |
$2,000
$4,750
$9,500 |
2.
Currently there is one assessment for $2,000 for public relations
and advertising, and a $500 voluntary contribution to Tourism Cares. For information, visit www.tourismcares.org.
Membership
Application
Procedures
for applying for Active Membership in USTOA include:
- Submission
of a completed membership application form
- Payment
of $10,000 ($5,000 will be refunded should application not be accepted)
- Designation
of two current USTOA Active Members who have agreed to sponsor the
applicant
- Submission
of the prescribed list of 18 companies including addresses and contacts,
which the applicant authorizes USTOA to contact for business and financial
references.
This list to include:
Six (6) Retail Agents (if you sell through travel agents)
Two (2) Airlines
Five (5) Hotels
One (1) Surface Transport Company or similar ground service supplier
Two (2) Financial Institutions
Two (2) USTOA Active Members
Application
A complete
packet of information, including an Application Form, is available for
download as a PDF, which requires Adobe
Acrobat Reader to view. If you wish to have an application form mailed to you instead, please e-mail
us your request.
Download
Active Membership Application Packet
*“Brand”
means a group or line of tours/packages and other travel products and
services operated under a common trade name or other identification,
which is owned, directly or indirectly or managed and sold by an Active
Member or a separate division of said Active Member or a subsidiary
entity or other affiliate controlled by such Active Member.”
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