United States Tour Operators Association: Smart Travel with Tours and Packages

USTOA's MILLION-DOLLAR CONSUMER PROTECTION PLAN

Protecting consumers' dollars has traditionally been a cornerstone of the United States Tour Operators Association since its inception in 1972. In an effort to provide the traveling public with the best possible protection plan USTOA requires that each of its Active category members post $1 million in security specifically to protect consumers in the case of bankruptcy or default.

Since September, 1993, USTOA's consumer protection plan has stipulated that each of the organization's Active Member compa-nies put up $1 million in the form of either a bond or letter of credit. The security, to be held by USTOA, is solely for use in reimbursing consumer deposits and payments resulting from a member company bankruptcy or insolvency. The $1 million dollar per company amount dramatically increased USTOA's original bonding requirement of $250,000 per company, and replaced the organization's previous $5 million aggregate insurance plan.

In the event that a USTOA Member company declares bankruptcy or otherwise becomes insolvent, USTOA's consumer protection plan will provide reimbursement of travelers' deposits and payments for up to a total of $1 million. "Historically consumer losses almost never exceeded $1 million, with rare exception," remarks Whitley, adding that the USTOA consumer protection plan continues to represent the largest such program of any organization within the industry.

For the free brochure entitled, "The Standard for Confident Travel," which details the protection plan, contact the United States Tour Operators Association (USTOA), 275 Madison Avenue, Suite 2014, New York, NY 10016; or phone 1-800-GO-USTOA; or e-mail information@ustoa.com. Consumers can also request a list of USTOA's Active Member com-panies, all of whom must participate in the plan. For a list of USTOA members, consumers can consult the USTOA Web site at www.ustoa.com.

USTOA's Active Member companies are responsible for the majority of package vacations and tours sold nationwide by U.S. travel agents. In addition to the $1 million consumer protection plan, every USTOA Active Member has been in business at least three years under the same ownership, has met a specified minimum in terms of dollar volume or numbers of travelers carried, has supplied references from 18 companies within the travel industry, and carries at least $1 million liability and omissions insurance.