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Franchise agreements vs management Agreements (HMA)

Overbooking: a common problem- hotel manager obligation, Sale of a higher number of seats or rooms, especially hotel and plane, than actually available. = overselling. if they oversell: obliged to provide accommodation to the affected people in another establishment of the “same zone of equal or superior category” and in “similar conditions” to those agreed upon. Has to take charge of travel expenses. The “transfer to another hotel” because of overbooking is an expense that can always be claimed at the initiative of the affected customer. if you accept the change this means that you loss the right to clam compensation. if you don’t accept you have the right to reimbursement for the breach of contract, and they have to provide you with transport.

Client obligations Pay the invoice for the room and all the services provided to him/her by the hotel. Respect for the internal regulations (check out time, specific clothes for the restaurant…), own diligence for their own belongings, obliged to identify himself for information and security purposes.

Hotel manager-rights charge the price of the room and services provided to the client, right of admission in certain cases: kids, animals…

When Client does not pay in certain circumstances, can retain the goods in their possession so that the clients satisfies the bill, and if necessary sell the goods.

Client rights 1.- Right of Information, 2.- Right to receive quality of goods and services as contracted and in line with what can be expected from the hotel classification, 3.- Right to enjoy accommodation complying with the current regulations in force as to healthy, safety and security regulations, 4.- Right to peaceful place. (depending on business orientation and classification) 5.- Right to lodge complaints. (see later), 6.-Right to receive a non-discriminatory treatment (e.g. Access to pool, restaurant, etc. – Related right to Access facilities for disabled guests, 7.- Right to compensation in case of contractual (breach of contract) or extra contractual liability – When certain damages to person or belongings can be demonstrated.

Travel agent: makes all the arrangements, flight insurance… tour operator: operates your tour

Purchase a package holiday: you enter into a contract with the tour operator/travel agent, which includes two or more of the following services, for one global price (=not required to pay the different services separately) transport, accommodation…

Obligations at the time of contract: must inform you about the contents of the contractual terms,

Case study package holiday: he could accept the offer if the organizer also offered him an appropriate price reduction; he could ask the organizer to offer a substitute package, or he could cancel the whole trip, be fully refunded and, possibly, claim further compensation. Michel went back to the organizer armed with this information. He ultimately chose the first option – and received a reduction of 50% of the original price. Why can you call this a win-win? What is the issue with canceling the trip?

Obligation de moyenComplies with obligation with all effortsdespite the expected result may not be achieved. Obligation de RésultatUndertakes to achieve a result as agreed by the Parties and failure to obtain the result entails the Breach of the obligation. Limited liabilityA situation in which the owner or shareholders Of Company aren’t responsible for all of its debts If Company fails. Unlimited liabilityOwners of business are liable for the entire amount of debt and obligations of that business. Breach of contract/ of obligationsViolation of any of the agreed-upon terms and Conditions of a binding contract. Force majeureUnavoidable accident which prevents you from Fullfilling a contract, eg: person not held liableBut obligated to reduce damages as much as he can. Joint liabilityObligation of 2 or more partners to pay back a debt or be responsible for satisfying a liability (share risk). Non performanc/Late/DefectiveFailire of party to fulfill terms of contract which can Lead to breach of contract.Failure to deliver the good or service within the Time period prescribed. Compensation of damagesCompensation for loss of injury caused by the wrongfulAct of another (indemnization/replacement/late performance). Ordinary liabilityYou have to proof that the theft/loss/damage/ was in the hotel but not that the hotel was negligent Strict liabilityYou have to prove that it happened in the hotel and that The hotel was negligent.

1)No room until 19h00: breach of contract= non-fulfillment of the accomodation agreement. defective service= unjustified. entitled to compensation unless force majeure. Minor compensation: voucher for free meal and free entrance to spa. The hotel manager should have: reschedule, reorganized and hire extra people.


2)Significant change: on the package travel before starting the hotel. it must be immediately informed to the consumer. – terminate without penalty or payment and entitled to full refund or substitute package of the same quality, – accept expressly a modification and repercussion n the price must be specified, and there must be a refund of the price difference if the new one s cheaper.


3)Missing bags in luggage room: objective liability: only demonstrate bad is missing, as you expressly and visibly handed over (not the hotel negligent). Hotel is responsible of the personal belongings in the luggage room and during the transportation to the room.

4)Obligation de resultant: you have the right to expect what you looked and pad for. Description should be accurate. Clam the package travel- protection of consumers. Misleading advertisement: influencing guest decisions is not sufficient to ask for a full refund. Partial compensation (continuing the trip)

5)Accident due to the slipper floor: considering only relation hotel – guest, objective liability: responsabilty for personal injuries, even if outsourced. Compensation: refund of medical costs, refund for moral damages, if very serious: total refund (the stay in the hotel)


6)Food poison: hotel – extra contractual basis, tour operator – contractual basis – ASAP, -generous with refund. – straight gastroenteritis: no salmonella: yes. Objective liability: demonstrate food was served at the hotel (not that food was overdue). Document the claim: medical receipt, evidence of full board, tickets. Compensation: reinbursh medical treatment and oral damages (not enjoy).


7)Act of vandalism to a car in the street: recommended by the hotel. Relation hotel – guest. is the hotel responsible? – guest was not diligent – negligent (not following recommendation), f hotel offers car park they should make sure t is available or offer a similar alternative, they should have an agreement with other car park and provide shuttle to it,

8)Obligation always to have complain forms and be notified n reception.