Hotel and Travel Law: Rights, Obligations, and Liability

Posted on Oct 8, 2025 in Tourism

Franchise Agreements vs. Hotel Management Agreements (HMA)

Overbooking and Hotel Manager Obligations

Overbooking is a common problem involving the sale of a higher number of seats or rooms (especially in hotels and planes) than are actually available (overselling).

Consequences of Overselling

If a hotel oversells, the manager is obliged to provide accommodation to the affected guests in another establishment:

  • In the same zone.
  • Of equal or superior category.
  • Under similar conditions to those originally agreed upon.

The hotel must also cover travel expenses related to the transfer.

Customer Rights Regarding Overbooking

  • The transfer to another hotel because of overbooking is an expense that can always be claimed at the initiative of the affected customer.
  • If the customer accepts the change, they lose the right to claim compensation.
  • If the customer does not accept the change, they have the right to reimbursement for the breach of contract, and the hotel must provide transport.

Client and Hotel Obligations and Rights

Client Obligations

  • Pay the invoice for the room and all services provided by the hotel.
  • Respect internal regulations (e.g., check-out time, specific dress code for the restaurant).
  • Exercise diligence regarding their own belongings.
  • Be obliged to identify themselves for information and security purposes.

Hotel Manager Rights

  • Right to charge the price of the room and services provided to the client.
  • Right of admission in certain cases (e.g., restrictions regarding children or animals).

Recourse When a Client Does Not Pay

In certain circumstances, the hotel can retain the goods in their possession until the client satisfies the bill, and if necessary, sell the goods.

Client Rights

  1. Right of Information.
  2. Right to Quality: To receive goods and services as contracted and in line with what can be expected from the hotel classification.
  3. Right to Compliance: To enjoy accommodation complying with current regulations regarding health, safety, and security.
  4. Right to a Peaceful Place: (Depending on business orientation and classification).
  5. Right to Lodge Complaints.
  6. Right to Non-Discriminatory Treatment: E.g., access to the pool, restaurant, etc. (Related to the 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.

Package Holidays and Travel Contracts

Definitions: Travel Agent vs. Tour Operator

  • Travel Agent: Makes all the arrangements (e.g., flights, insurance).
  • Tour Operator: Operates the tour or package.

Purchasing a Package Holiday

When purchasing a package holiday, the client enters into a contract with the tour operator or travel agent. This package includes two or more services (e.g., transport, accommodation) for one global price, meaning the client is not required to pay for the different services separately.

Obligations at the Time of Contract

The organizer must inform the consumer about the contents of the contractual terms.

Package Holiday Case Study

In a scenario where the package holiday fails to meet expectations, the consumer has several options:

  1. Accept the offer if the organizer provides an appropriate price reduction.
  2. Ask the organizer to offer a substitute package.
  3. Cancel the whole trip, be fully refunded and, possibly, claim further compensation.

Example: Michel chose the first option and received a 50% reduction of the original price.

Discussion Points:

  • Why can this be called a win-win?
  • What is the issue with canceling the trip?

Key Contractual and Liability Concepts

Obligation of Means (Obligation de Moyen)

The party complies with the obligation by exerting all reasonable efforts, even if the expected result is not achieved.

Obligation of Result (Obligation de Résultat)

The party undertakes to achieve a specific result as agreed upon by the parties. Failure to obtain the result entails a breach of the obligation.

Limited Liability

A situation in which the owner or shareholders of a company are not responsible for all of its debts if the company fails.

Unlimited Liability

Owners of a business are liable for the entire amount of debt and obligations of that business.

Breach of Contract

Violation of any of the agreed-upon terms and conditions of a binding contract. This includes the failure of a party to fulfill the terms of the contract, which can lead to a breach, or the failure to deliver the good or service within the prescribed time period (late performance).

Force Majeure (Unavoidable Accident)

An unavoidable accident that prevents a party from fulfilling a contract. The person is generally not held liable but is obligated to reduce damages as much as possible.

Joint and Several Liability

The obligation of two or more partners to pay back a debt or be responsible for satisfying a liability (sharing risk).

Damages and Compensation

Compensation for loss or injury caused by the wrongful act of another (e.g., indemnification, replacement, or late performance compensation).

Liability for Guest Belongings (Theft/Loss/Damage)

Objective Liability (Hotel Negligence Not Required)

The guest only has to prove that the theft, loss, or damage occurred in the hotel, not that the hotel was negligent.

Subjective Liability (Hotel Negligence Required)

The guest has to prove that the incident happened in the hotel and that the hotel was negligent.

Case Studies in Hospitality Liability

1. Delayed Room Access (No Room Until 19:00)

This constitutes a breach of contract (non-fulfillment of the accommodation agreement) and an unjustified defective service. The guest is entitled to compensation unless force majeure applies.

Resolution

  • Compensation: Often minor compensation is offered, such as a voucher for a free meal and free entrance to the spa.
  • Hotel Manager Action: The manager should have rescheduled, reorganized, and potentially hired extra staff to resolve the delay.

2. Significant Change to Package Travel Before Departure

If a significant change occurs to the package travel arrangements before the trip starts, the consumer must be informed immediately. The consumer then has the right to:

  • Terminate the contract without penalty or payment and be entitled to a full refund or a substitute package of the same quality.
  • Expressly accept the modification. If accepted, the price repercussion must be specified, and there must be a refund of the price difference if the new package is cheaper.

3. Missing Bags in the Luggage Room

This typically falls under objective liability. The guest only needs to demonstrate that the item is missing, provided they expressly and visibly handed it over (hotel negligence does not need to be proven).

The hotel is responsible for personal belongings stored in the luggage room and during transportation to the room.

4. Breach of Obligation of Result (Misleading Description)

The client has the right to expect what they booked and paid for. The description should be accurate. This allows the client to claim protection under package travel consumer laws.

Note: Misleading advertisement that merely influences guest decisions is usually not sufficient grounds to ask for a full refund, but may warrant partial compensation (if the guest continues the trip).

5. Accident Due to a Slippery Floor

Considering the hotel–guest relationship, this often involves objective liability for personal injuries, even if the service (e.g., cleaning) was outsourced.

Compensation

  • Refund of medical costs.
  • Refund for moral damages.
  • If the injury is very serious, a total refund (of the stay in the hotel) may be granted.

6. Food Poisoning

Liability depends on the contracting party:

  • Hotel: Extra-contractual basis.
  • Tour Operator: Contractual basis.

Claims should be made as soon as possible (ASAP), and hotels are often generous with refunds in these cases. Objective liability applies: the guest must demonstrate the food was served at the hotel (not that the food was overdue or that the hotel was negligent).

Note: Straight gastroenteritis might not qualify, but confirmed salmonella would.

Documenting the Claim

The claim must be documented with evidence such as medical receipts, evidence of full board, and tickets.

Compensation: Reimbursement of medical treatment and moral damages (e.g., loss of enjoyment of the holiday).

7. Act of Vandalism to a Car in the Street

If the parking spot was merely recommended by the hotel, is the hotel responsible? Generally, no, especially if the guest was negligent (e.g., not following safety recommendations).

However, if the hotel offers car parking, they should ensure it is available or offer a similar alternative. They should ideally have an agreement with another car park and provide a shuttle service to it.

8. Complaint Forms

There is an obligation for the establishment always to have complaint forms available and to ensure guests are notified of their availability at reception.