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19541339 UNPDF
INTERNATIONAL
HOTEL & RESTAURANT
ASSOCIATION
CODE OF PRACTICE
On the relations between
HOTELIERS AND TRAVEL AGENTS
drawn up by the
INTERNATIONAL HOTEL & RESTAURANT ASSOCIATION
(IH&RA)
and the
UNIVERSAL FEDERATION OF TRAVEL AGENTS'
ASSOCIATIONS
(UFTAA)
14 September 1999
DOC.SG-99.300
Code Of Practice
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INTERNATIONAL
HOTEL & RESTAURANT
ASSOCIATION
CONTENTS
Art- 1. Signatories
1
Art- 2.
Obligations of the Signatories
2
Art- 3.
Exclusively International Nature of the Code of Practice.
2
Art- 4.
National Level
2
Art- 5.
Auxiliary and complementary role of the Code Of Practice
2
Art- 6.
Scope of the Code Of Pratice
2
Art- 7.
Definition of the Hotel Contract
2
Art- 8.
Reservation
3
Art- 9.
Confirmation
3
Art- 10. Reservation Document
3
Art- 11. Rates
3
Art- 12. Advance Payment
3
Art- 13. Payment due to the hotelier
4
Art- 14. Clear Understanding of the Commission Policy
4
Art- 15. Definitions of Groups and Individuals
4
Art- 16. Cancellations – General Terms
4
Art- 17. Cancellation of Groups
5
Art- 18. Cancellations for Individuals
5
Art- 19. Guaranteed and Non-Guaranteed Reservations - No-Shows
6
Art- 20. Premature Departure
6
Art- 21. Information Provided to the Hotel
6
Art- 22. Information to the Travel Agent and Client
6
Art- 23. Quality of Services Provided
6
Art- 24. Disposal of Rooms
7
Art- 25. Obligations to The Client
7
Art- 26. Force Majeure.
7
Art- 27. Notification of "Force Majeure"
7
Art- 28. Refraining from Multiple Bookings
7
Art- 29. Amicable Settlement of Dispute
7
Art- 30. Settlement of Disputes
8
Art- 31. Interpretation of the Code of Practice
8
Art- 32. Text of Reference
8
Art- 33. Enforcement Date of the Code Of Practice
8
Annex 1 : Definitions 9
Annex 2 : Individual client & group cancellations chart 10
Annex 3 : Explanatory chart for cancellation policy for group (article 17.) 11
Annex 4 : Check-list for contract concerning individual clients and groups 12
Annex 5 : IH&RA/UFTAA arbitration rules
13
Annex 7 : Group contract
20
14 September 1999
DOC.SG-99.300
Code Of Practice
INTRODUCTION
2
Annex 6 : Individual client contract
16
 
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INTERNATIONAL
HOTEL & RESTAURANT
ASSOCIATION
INTRODUCTION
This text replaces the IHA/UFTAA Code of Practice on Hoteliers/Travel Agents relations
signed on July 3 rd , 1991 which replaced the 1979 IHA/UFTAA Convention and codified the
same basic principles which, for many years, have governed relations between hoteliers and
travel agents.
Many existing national conventions and agreements reflect the provisions of the former
IHA/UFTAA Convention and the above-mentioned Code of Practice.
Several States have incorporated these essential provisions into their national legislation.
Accordingly, it is probable that the consistency of law and practice will avoid any serious risk
of a divergence of commercial practice and contractual arrangements that would leave
hoteliers and travel agents in a state of uncertainty as to their rights and obligations.
In so far as the terms of the former Convention and Code of Practice stated what is still
customary practice, courts and tribunals can be expected to apply the same principles in
absence of any contract, or when no conflicting contract has been signed by the parties.
In the absence of a contract and when non-contractual terms are under dispute, the Code of
Practice seeks to provide useful guidance to hoteliers and travel agents with a view to
promoting harmonious relations and avoiding possible misunderstandings or disputes. It
includes, general principles to which are annexed :
a list of definitions,
a check-list for individual client and group contracts
arbitration rules.
an individual and group cancellation chart
an explanatory chart for cancellation policy for groups.
14 September 1999
DOC.SG-99.300
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INTERNATIONAL
HOTEL & RESTAURANT
ASSOCIATION
Art. 1. Signatories
The signatories are :
Art. 5. Auxiliary and complementary role of the
Code Of Practice
the International Hotel & Restaurant
Association, headquartered at 251, rue du
Faubourg St Martin, 75010, PARIS (France),
hereafter referred to as "IH&RA",
a) The Code of Practice shall apply whenever
no contract has been concluded between the
hotelier and the travel agent.
b) It shall also apply in order to complement
contracts in respect of any provision not
included therein.
The UNIVERSAL FEDERATION OF TRAVEL
AGENTS' ASSOCIATIONS, having its
registered office at : 163, rue Saint-Honoré,
75001 PARIS (France) and its General
Secretariat at : 1, avenue des Castelans,
Stade Louis II - Entrée H. 98000 MONACO
(Principality of Monaco), hereafter referred to
as "UFTAA".
c) This Code of Practice is intended by its
signatories to serve as a directive for the
solution of disputes between hoteliers and
travel agents, whether amicably, judicially or
in arbitration.
Art. 2. Obligations of the Signatories
Art. 6. Scope of the Code Of Pratice
The signatories undertake :
The Code of Practice is intended to govern
contracts known as "hotel contracts" between
travel agents and hoteliers.
to intercede with the relevant national
associations to ensure that the clauses of this
Code of Practice are complied with at an
international level.
If any article of the Code of Practice conflicts
with national law (for example : "anti-trust"
law) or international law, the signatories
acknowledge that such articles would not
apply.
to recommend that their respective members
and affiliates give preference, when
concluding hotel contracts, to the members
and affiliates of the other signatory body.
Art. 7. Definition of the Hotel Contract
Art. 3. Exclusively International Nature of the
Code of Practice.
The "hotel contract" is a contract by which a
hotelier agrees with a travel agent to provide
hotel services, at a specified price, to a
traveller or a group of travellers who are
client(s) of the travel agent (see annex n°4 –
“Check-list”).
The Code of Practice shall apply to relations of
an international nature between a hotelier and
a travel agent whose establishments are
situated in different countries.
Art. 4. National Level
The signatories recommend that associations
use the same principles, given in this Code of
Practice, as a basis when concluding
conventions/codes at a national level.
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DOC.SG-99.300
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INTERNATIONAL
HOTEL & RESTAURANT
ASSOCIATION
Art. 8. Reservation
c) Vouchers covering an extension of hotel
services are subject to prior written
agreement between the hotelier and the
travel agent regarding the services to be
provided and/or the maximum credit amount
permitted.
a) Hotel contracts shall be initiated by a
reservation request from the travel agent to
the hotelier.
b) Verbal reservation requests shall be
confirmed immediately in writing (letter,
telegram, telex, fax, e-mail ... etc) to the
hotelier.
Art. 11. Rates
The hotelier shall abide by the agreed
contractual rates in the currency of the
country where the hotel is located or any
other currency stated in the contract.
However, long-term contracts may contain a
clause concerning adjustment of the rates.
c) Reservation requests shall specify the services
to be supplied.
Art. 9. Confirmation
a) Upon receipt of the reservation request from
the travel agent, the hotelier shall confirm the
reservation in writing, stipulating in particular
the price of the services ordered, by letter,
telegram, telex, fax, e-mail ... and/or by the
issuance of a reservation number explicitly
referring to the request.
The hotelier shall refrain from accepting
reservations which he cannot honour.
Art. 12. Advance Payment
The hotelier may request either total or partial
pre-payment.
b) Upon receipt of the hotelier's confirmation or
within a time-limit fixed by the latter, the travel
agent must notify, in writing, his/her
acceptance of the hotelier’s conditions.
a) The hotelier may require a reservation fee or
"advance payment" (earnest money or
guarantee deposit) as a condition of his/her
acceptance of the order. If the hotelier
considers "advance payment" as "earnest
money" (see annexed definition) it should be
specifically stipulated. The reservation fee will
be deducted from the final invoice but will not
be reimbursed in case of late cancellation.
b) Any such advance payment may be treated
as a "guarantee deposit", except when a
cancellation is made in accordance with the
hotelier's written cancellation policy or
customary trade practices.
Whenever the hotelier requests an advance
payment, the hotel contract shall be
concluded only on payment of this amount or
when proof of payment has been produced.
Art. 10. Reservation Document
a) Acceptance of the voucher :
If so agreed between the hotelier and the
travel agent, the hotelier must accept a
voucher.
The travel agent acknowledges that the
voucher issued to his/her client - for the
hotelier - is a guarantee of payment, unless
clearly specified otherwise.
c) The hotelier shall acknowledge receipt of the
advance payment no later than seventy-two
(72) hours thereafter.
b) Services to be specified on the voucher
should include – at least : dates of arrival and
departure, hotel services to be provided and
possibly the means of transport.
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