SUMMARY OF REQUIREMENTS AND PROCEDURES FOR ACTIVE MEMBERSHIP IN USTOA

• Must meet the definition of tour operator. In addition, they must have 18 references from a variety of reputable travel industry organizations.
• Must be in business at least three years under same ownership and/or management.
• Must meet specific minimums in terms of passengers and/or dollar tour volume.
• Must carry minimum $1,000,000 professional Travel Agent/Tour Operator liability insurance, with worldwide coverage.
• Must participate in the USTOA's Travelers Assistance Program by posting $1 Million in the form of either a bond or letter of credit, for use in reimbursing consumer deposits in case of a USTOA member bankruptcy, insolvency or cessation of business.

---

Qualifications

TO QUALIFY FOR ACTIVE MEMBERSHIP, A TOUR OPERATOR MUST:

1. Have been engaged in business as a wholesale tour operator in the United States for not less than three years under the same ownership or management.
2. Operate tours totaling a minimum of 7,500 passengers a year or $7,500,000 land tour volume per year (packaged and operated by such Tour Operator and cannot be purchased from another U.S. tour operator or tour packaging enterprise and shall not include revenue from consolidation or cruise line operations. The Membership Committee may request confirmation of the land tour volume by an independent certified public accounting firm where it deems necessary or appropriate).
   
   ALL OR A SUBSTANTIAL PORTION OF THE COMPANY'S PRODUCT MUST BE INCLUSIVE TOURS OR PACKAGES AND COMMISSIONABLE TO RETAIL TRAVEL AGENTS.

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 or letter of credit for $1,000,000.

The USTOA approved form for indemnity bond or letter of credit, must name the USTOA Tour Depositors Trust as the obligee, so that, in the event of a member's 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.

Dues

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
7,500-10,000 10,001-25,000 25,001-50,000 50,001-100,000 Over 100,000	$1,150 $2,300 $3,450 $4,600 $5,750

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:

1. Submission of a completed membership application form
2. Payment of $5,000 ($2,500 will be refunded should application not be accepted)
3. Designation of two current USTOA Active Members who have agreed to sponsor the applicant
4. 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
   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 faxed or mailed to you instead, please e-mail us your request.

Download 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.”

 

Test Your Vacation Smarts with this Fun True/False Quiz

FINDING THE RIGHT VACATION FIT: Try These Five Questions from the Experts at USTOA

It's a lot easier--and a lot more fun--to plan your trip when you know your Vacation Personality. Find out what yours is now!

USTOA cites new frontier of web fraud: Always check out your travel company before paying your money.

10 Ways to Avoid Disappointment on Your Next Vacation



FROM THE PRESIDENT'S DESK

October 2007 Far & Wide Update

USTOA is dedicated to protecting the world's treasures for future generations of travelers. Visit the Tourism Cares website for more information.