What function does the Compensation Fund Committee serve?

The Compensation Fund Committee plays a vital role in reviewing and recommending payment of claims against the Compensation Fund. This fund is designed to provide financial protection to consumers in the travel industry in case a registered travel retailer or travel wholesaler fails to fulfill their obligations, such as not providing services paid for by the consumer. By fulfilling this function, the committee ensures that consumers have a layer of security and support, thereby promoting trust and stability within the travel industry.

This responsibility is particularly important because it upholds the integrity of the industry, protecting the interests of consumers and ensuring they are compensated for any losses incurred due to the failure of a travel service provider. The committee evaluates claims, determining their legitimacy and recommending how funds should be disbursed, which is crucial for maintaining consumer confidence.

Other options presented do not align with the primary responsibilities of the Compensation Fund Committee. Developing marketing campaigns pertains to promotional activities rather than financial oversight, monitoring e-commerce activities would involve regulatory and technological considerations rather than direct consumer compensation, and managing the Registrar’s performance relates to administrative oversight instead of claims processing.