Recently, Washington D.C. became the focal point for the travel industry as over 250 travel advisors and supplier partners united for the American Society of Travel Advisors (ASTA) Legislative Day. This event served as a platform for industry professionals to advocate for legislative changes essential to safeguarding the interests of travel agencies, particularly regarding the new refund regulations set forth by the Department of Transportation (DOT). The legislation emphasizes the responsibilities of the “merchant of record” in the event of flight cancellations or significant changes, positioning travel agencies at a potential risk of financial liability.
Starting on October 28, the DOT will enforce a rule under which the merchant of record—typically the entity from which the flights are booked—will bear the responsibility for processing refunds. In many situations, travel agencies do not hold this designation, particularly in direct airline sales. However, exceptions arise, such as when agencies purchase bulk tickets for group travelers. ASTA has articulated its concerns, urging the DOT to clarify that travel advisors need only issue refunds if they have already received corresponding funds from the airlines. Without this necessary distinction, small travel agencies could face dire financial consequences as they struggle to manage refund requests from airline customers.
In response to these challenges, key members of Congress—Rep. Maria Salazar, Rep. Dina Titus, and Rep. Mark Alford—have championed the Flight Refund Fairness Act. This proposed legislation aims to provide critical protections to small businesses defined by the Small Business Administration, allowing them to defer refunds until they have received payments from airlines. Given that nearly 98% of travel agencies fall under the small business category, the implications of this bill could be monumental in reinforcing the economic stability of the sector. Additionally, larger travel agencies share concerns over the current refund rules and are pushing for legislative adjustments that foster a more equitable environment.
While ASTA is dedicated to advocating for the Flight Refund Fairness Act, they are also urging Congress to consider the ACPAC Modernization Act. This legislation seeks to secure a seat for ticket agents on the DOT’s Aviation Consumer Protection Advisory Committee—a strategic move that could provide travel advisors with a direct voice in regulatory deliberations. Despite initially being included in various drafts of the FAA Reauthorization Bill, the committee seat was omitted from the final version, leaving a significant gap in representation for travel agents.
ASTA’s CEO, Zane Kerby, emphasized the organization’s commitment to raising awareness about the indispensable role that travel advisors play within the broader travel and tourism ecosystem. By promoting supportive legislation, ASTA seeks not only to protect its members but also to enhance the overall abilities of travel businesses to flourish in a competitive market.
As travel advisors navigate the intricate web of new regulations and advocate for necessary changes, their collective voice is crucial. Legislative Day activities exemplify the ongoing efforts within the industry to safeguard against potentially damaging policies and ensure that the interests of small travel enterprises are prioritized in the legislative arena.
Leave a Reply