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Operators sharpen their clause against the bug


IF THE doomsday mongers are to be believed, the dawn of the next millennium will bring with it all manner ofcatastrophes.



But tour operators have sought to protect themselves, inserting a clause into their brochures for next year exempting them from legal action in the event of problems caused by the millennium bug.



So everyone can relax. Well, not quite. Operators facing legal action from dissatisfied clients will have to demonstrate the exemption was made absolutely clear to the customer before the booking was made.



Some operators are better than others at making customers aware of the millennium bug exemption. Travelscene, for example, has featured the clause prominently in the first few pages of its brochure.



Others are content to leave it in the small print within their standard terms and conditions. Most operators have used the suggested wording drafted by ABTA’s legal department. (see box, below).



Airtours Holidays company secretary Andy Cooper recommends that as a safeguard, agents should draw customers’ attention to the exemption clause.



He also advises agents to be sure the operators they deal with are taking steps to sort out any year 2000 problems.



This is something the Federation of Tour Operators is focusing on. Secretary-general Alan Flook said all members had circulated a comprehensive checklist on year 2000 compliance to their supplier hotels.



He believes this process is essential when it comes to insuring operators are covered.



Meanwhile, the Travel Trust Association will be urging its members to make sure customers are aware of millennium bug exemption clauses.



Some operators, however, are advising their clients not to travel at all over the Christmas and New Year period.



Jim Southon, managing director of Spain and Portugal specialist Unicorn Holidays, said: “As far as we can see, after thorough checks, no insurance company will give 100% cover for the risks involved with millennium bug problems, either for travellers or for tour operator’s liability insurance.



“I understand that despite any let-out clause in booking conditions, clients may still be able, in certain circumstances, to sue their tour operator with regard to problems that may arise due to the millennium bug, as it is a known risk.”



It’s January 8 2000. One of your loyal customers comes in to tell you his tale of woe. He has just returned from a winter sun holiday you booked for him which proved to be an unqualified disaster thanks to the millennium bug.



His problems began when he reached the airport. The flight out was delayed for hours. When he eventually arrived in resort, there was no hotel room for him as his reservation had disappeared. He was eventually allocated alternative accommodation, but the stay had proved pretty miserable.



There was the nightmare experience when he found himself trapped in a lift which had suddenly stopped working, injuring his arm as it jolted to the ground. There were evenings when the hotel had no electricity and no hot water. To cap it all, the automated cash machine on hotel grounds had stopped working and he found himself out of cash when there wasn’t a bank for miles.



Now back home, his arm still hurts and he is upset and disappointed at the awful holiday. He wants compensation. However, he has just noticed in the small print of the operator’s terms and conditions a clause which appears to exclude liability for problems caused by the millennium bug. Does that mean he cannot make a case against the holiday company?



The short answer is “it depends”. Even the lawyers who have carefully drafted the wording of these exclusion clauses cannot guarantee they have protected the client against litigation, although they can do their best.



Privately, they will admit the type of clauses which purport to absolve companies of all liability are frequently used as a deterrent, to put the layman off the idea of making a claim.



But if the case came to court the lawyer knows there is always a chance a consumer-friendly judge would say the exemption clause was not worth the paper it was printed on.



The Consumers’ Association has already made plain it would not like to see operators try to avoid responsibility by hiding behind such clauses.



Jackie Hewitt, principal lawyer with the Consumers’ Association said: “Tour operators are aware of the millennium bug problem so they ought to have sorted it out. We wouldn’t be happy if they tried to exclude problems that were within their control.”


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