Travel Agencies: Regulations, Services, and Contracts in Spain
Travel Agencies: Regulations and Operations in Spain
Travel agencies serve as intermediaries between product suppliers (direct suppliers) and the final user. The subject company engages in contracting, travel arrangements, etc. Travel agencies are regulated by:
- Royal Decree 271/88 of March 25th
- Valencian Autonomous Regulation 20/1997 of February 11th
Subject Matter
1. Travel agents exclusively handle the following:
a) Mediation in ticket sales or seat reservations for all means of transport, as well as room and service reservations in tourism enterprises, particularly in accommodation establishments.
b) Organization and sale of “packages” as defined in Article 2.1 of Law 21/1995, of July 6th, Regulating Combined Travel.
c) Organization and sale of “day programs.” A “day program” refers to all tourist services offered by the agency or projected upon request at an inclusive price, when the elements do not constitute a “package.”
d) Acting as a representative for other national or foreign agencies, providing any of the services listed in this article on their behalf and to their clientele.
2. Only travel agents can engage in the activities mentioned above.
Nonexclusive services for which travel agencies are also empowered:
3. In addition to the above, travel agents can provide the following services to their customers, as described by law:
a) Currency conversions and sales and cashing of traveler’s checks.
b) Formalization of tourist insurance, loss or damage to baggage, and other insurance covering risks arising from travel.
c) Car rental with or without a driver.
d) Reservation, purchase, and sale of tickets for all kinds of shows, museums, and monuments.
e) Rental of tools and equipment for practicing sports tourism.
f) Chartering planes, boats, buses, special trains, and other means of transport to carry out their own tourism services.
g) Provision of any other tourism services that complement those listed in this article.
Title License or Authorization
4. This is the official authorization. Operating without this title is an infringement. It requires evidence of the applicant’s personal circumstances. The activity can be carried out by an individual or a social employer.
Those interested in obtaining the title-license for a travel agency in Valencia must apply to the Valencia Region Tourist Board, providing the following documents:
- Insurance Policy
- Designation of the person responsible for the establishment (proof of property availability)
- Designation of the person responsible for the establishment. The existence of a responsible principal (a figure who aims to provide better performance for the user and defend their interests).
- Documentation proving guarantee of borrowing relationships with users. The warranty is usually covered by a bond insurance policy, the amount of which varies depending on whether it is a travel wholesaler, retailer, or mixed.
- Certificate issued by the Patent and Trademark Office stating the date of request and the trade name of the establishment, a name the agency intends to use.
- Proof of physical personality (photocopy of DNI and NIF) or legal personality (legal copy of the deed of incorporation and bylaws containing the inscription on the MRI) of the applicant.
Special Requirements for Incorporation
V. Administrative authorization, known as title-license.
Art. 4 Registration. Registration in insurance coverage (it is a requirement). Minimum capital adapted to fit the corporate type. Foreign agencies may also delegate administration to national companies.
Regarding state competition and autonomous regulation, these regulations often overstep their boundaries, for example, imposing minimum capital requirements higher than the corporate ones. As for industrial property, autonomous regulations impose obligations that are inconsistent with state regulation.
Travel agencies have exclusive rights to certain services (such as transport, package holidays).
Classes of Travel Agencies
6. Travel agencies can be wholesalers, retailers, or wholesaler-retailers.
1. Wholesalers plan, develop, and organize all kinds of services and packages for retail agencies. They cannot offer their products directly to the user or consumer.
2. Retail agencies (commercial banks are losing this role) either sell the wholesaler’s product directly to the user or consumer, or design, develop, organize, and/or supply all kinds of services and packages directly to the user. However, they cannot offer their products to other agencies.
3. Wholesaler-retail agencies can simultaneously engage in the activities mentioned in the preceding two paragraphs.
Types of Contracts with Travel Agencies
7. Article 22. Types of Contracts
For the purposes of this regulation, the types of contracts between travel agencies and users or consumers can be:
1. Loose service: when a single element of a trip or stay is provided on commission.
2. Day programs: when a group of pre-programmed services is offered to the public for a lump sum, or projected upon request at an inclusive price, when the elements do not constitute a combined trip.
3. Package: as defined and regulated in Law 21/1995, of July 6th, Regulator of Packages. (In 2007, this law was repealed and is now covered by Title IV of the Royal Decree).
Loose Services
In loose service contracts, agencies may not charge their customers more than the price applicable to such services, to which they may add a surcharge for management costs.
At the time of contract perfection, the travel agency must provide the user or consumer with titles, bonds, etc., for the services, along with an invoice that includes the total price paid by the client, clearly specifying the price of services and the fee for administration costs.
Day Programs
In day programs, the travel agency must make public the full details of the products and provide clear and accurate written information about their content and price. It will also provide information on potential liability, cancellation, and other conditions of the program.
The travel agency will deliver to the user or consumer the documentation for the complete realization of the services and the invoice after completing the payment.
Contracts are usually bilateral and have the force of law; they are an agreement between the two parties and usually involve a service at a price.
Online Travel Agencies and Central Reservations
Central reservations are tourism intermediaries that cannot check tourists in for the services they provide. Their professional value is limited to that of a mere intermediary, which is the same as contracts between suppliers of tourism services and the user or even the travel agent. Sometimes they put us in touch with those who provide services or tell us how to contact them.
There are central reservation agencies that are linked to other tourism businesses, usually created and managed by their own tourist facilities (hotels themselves).
Independent central reservations are those that are not created or operated by the tourist company. They have contracts with those providing tourist services themselves.