Value chain risk analysis

In many destinations, tourists may be approached by children on the streets or be in contact with children when they visit tourist sights. Tourists can have negative impacts on children in various ways.

With the aim of offering their customers special insights into the local day-to-day life and culture in the travel destinations, some tour operators may offer visits to schools, orphanages or slums. Such visits may however have negative impacts on children. Visits to schools may harm children’s educational development and interfere with their school routine. Furthermore, such visits may violate the children’s right to privacy, and the increased contact to strangers makes them more vulnerable to harassment and abuse. Tour operators should therefore refrain from offering such trips and adequately inform their customers on how to deal with children in the destinations they visit.

Children often approach tourists, asking them for money or gifts, trying to sell something or offering to go with them as a guide (for money). Tourists should, however, be aware that children approaching them are generally forced to do so either out of poverty, social exclusion or because they are trapped in a trafficking situation. Moreover, the more money children make by begging or selling, the more it will lead them into a cycle of poverty and dependency. Tour operators should therefore inform their customers about how to react in such situations.

Sexual exploitation of children in tourism is an issue in all world regions and does not stop at national borders. In recent years, sexual exploitation of children in travel and tourism (SECTT) and the offenders have become more diverse and are following less easily identifiable patterns. Tour operators should inform their customers on the issue of SECTT and provide information on where to report potential cases.

For more information on children’s rights risks in tourism, see the other risk cards on the issue.  

When planning new tourist destination offers, the interests and needs of the local stakeholders and communities living on-site and affected by the projects are often not sufficiently taken into account by tour operators.

Destination plans are often presented to local stakeholders and the local population as a fait accompli, increasing the risk of tourism having negative impacts on local communities. At worst, new destination offers are linked to illegal land acquisition and evictions, with local communities being forced to make way for new resorts, parks, sports facilities or other tourist attractions without receiving appropriate compensation or opportunities to build a new livelihood. Indigenous peoples and traditional fishing communities are particularly vulnerable as their land rights are often not secured by title deeds. Further negative impacts on communities can be the inflation of housing and goods prices, the shortage of and reduced access to water and other natural resources, the loss of agricultural land and related income opportunities, destruction or degradation of local wildlife habitats, restricted mobility, and increased waste.

Poor destination planning and inadequate consultation with stakeholders can also increase the risk of economic leakage, meaning that only a fraction of the money tourists spend on holidays benefits the local communities. This is the case when most of the tourism revenue flows into international businesses (tour operators, transport, hotels), international staff and imported products (food, drinks, souvenirs).  

The behaviour of tourists, who sometimes lack knowledge of and respect for local traditions, customs and religion, can have negative impacts on local communities.

What might be a part of everyday life and custom in one’s home country, may be seen as offensive in another place. Issues such as how to dress appropriately, if and where to consume alcohol and drugs, how to behave in religious or sacred sites, how and where to take pictures, or how to act as a couple in public, are seen differently in different cultures. Unsensitive or offensive behaviour often occurs because visitors do not have adequate knowledge and understanding of their travel destinations. Retail and sales companies should provide customers with relevant information or encourage them to inform themselves about local habits in destination countries.

For many tourists, taking pictures is an indispensable component of their holiday. It can, however, offend people in destination countries, e.g. when the photographer neglects or violates communities’ rights to privacy, takes pictures of people (especially children) without their consent, or views local traditions through the camera lens in a voyeuristic way. Retail and sales companies should sensitize their customers on how to behave appropriately when taking pictures in a destination country.

The main customer rights issues related to retail and sales activities are data privacy and the provision of correct information on products and services offered.

Data privacy

In travel and tourism, large amounts of customer data are shared, stored, and processed. Retail and sales offices need data about customers’ travel schedules, locations of stay, personal details, financial data including credit card details and sometimes health information, as well as other data. Privacy and security of stored data is therefore an important issue for tour operators’ retail and sales offices. The new EU General Data Protection Regulation, which came into force in May 2018, regulates data protection and privacy issues in the EU and the European Economic Area. As the law protects all EU citizens, it also concerns companies and institutions processing personal data in countries outside the EU. Personal data are an important source of information for tourism companies, such as when developing personal customer profiles. They therefore have a particular responsibility to protect customers’ data. The new regulation also includes an obligation to report data breaches.

Correct information

Retail and sales offices should make sure they provide customers with correct information about pricing, the content of the offers, standards of lodging and transport, available facilities at destination, etc. From a human rights perspective, this is particularly relevant for people with disabilities or specific needs. However, other customers should also be able to rely on information on the products they purchase. 

Customer rights issues related to tour operating include accessibility to services and products, as well as access to adequate and correct information. 

Accessibility of services

For people with disabilities, as well as the elderly and families with children, travelling and travel planning can be a challenge. These people are highly dependent on correct and comprehensive information about accessibility of services, rooms, parking lots and transport infrastructure. Particular challenges for people with disabilities include unavailability of relevant information, untrained tour operators or destinations which do not provide adequate information and advice about accessibility, booking services or websites which are not geared for people with disabilities (e.g. with visual impairment), and accessibility (including accessible planning) of transport, lodging, restaurants, or tourist attractions. People with special needs are sometimes required to pay higher fees for products and services. There are various tour operators who exclusively focus on the needs and requirements of travellers with disabilities. All tour operators should, however, provide information on the accessibility of their products and services to their customers.

Information

Customers depend on tour operators for correct and adequate information on costs, schedules, content of the offer, security issues, and more. False information or changes in planning or offers may include overbooking, delays and cancellations, changes in pricing, room categories or locations. Further hassles for customers may be related to loss of luggage, lack of hygiene, or construction works taking place at the hotel, unavailability of booked services, etc. Tour operators should inform their customers about potential changes in the offer in a correct and timely manner. Furthermore, it is important that tour operators inform customers about where and how to place complaints and provide access to grievance mechanisms.

Women make up a large part of the tourism labour market, and are especially likely to occupy low paid positions. Inequality in wages and career opportunities for women and men is common. Challenges and risks for women in the tourism sector mostly concern low-status work, gender stereotyping and inequality in opportunities. These issues are similar across the globe – in destination countries as well as where tour operators are based.

Even though women outnumber men in the global tourism labour market, representing more than half of the workforce in travel agencies and tour and accommodation services, they are significantly under-represented in senior and executive positions as well as boards of tourism businesses. Women make up a high proportion of lower-skilled and poorly paid areas of the tourism industry and are more often employed in part-time and temporary jobs than men. This segregation of women in the tourism labour market negatively impacts their ability to participate in decision making processes and be promoted.

Women earn significantly less than their male counterparts in the tourism and hospitality sector at an operational level. According to EU reports, the overall average wage difference in the EU-27 in the tourism sector was around 18% in 2014.

Tour operators usually outsource services such as sales or customer service, IT and accounting. Sales or customer services are often provided by call centre agents. These outsourced services are typically paid very badly and sometimes located abroad, bearing the potential for labour rights violations.

Tour operators often need to handle an unpredictable volume of calls and an extensive customer interaction through customer services calls, emails and web chats. Tourism customer queries are not confined to weekdays, office hours, or geographies. These specific demands may lead to long working hours and a high level of stress for call centre agents. Call centre employees are further at risk of low pay, little training, and constant monitoring of their actions, leading to high staff turnover.

Tour operators must ensure adequate working conditions both in their own operations and their outsourced services.

Challenges related to seasonality and heavy price pressure in tourism are often shifted on to staff, who face low wages, long working hours, and insecure working contracts. Tour operators should ensure adequate working conditions for their staff.

It is especially likely that on-line and front-line staff with travel agents or tour operators will receive low salaries, leading to low levels of job loyalty and high turnover. Heavy workloads, long working hours, short-notice bookings or changes, and constant reachability via cell phone in the peak season may lead to high stress levels in tourism staff. A lack of well-functioning grievance mechanisms may decrease staff motivation and lead to poor performance, customer service, or low productivity.

The seasonality of the tourism industry leads to a high rate of casual working contracts and seasonal employees or subcontractors. Social protection and health insurances are sometimes not included in these contracts. Staff recruited through agencies or subcontractors bear an even higher risk of unfair working contracts.

Besides caring about their own staff, tour operators should also ensure adequate working conditions and general human rights due diligence in their supply chain (see related risk cards).