Recently, over 250 travel advisors and industry suppliers gathered in Washington, D.C., for the American Society of Travel Advisors (ASTA) Legislative Day. This annual event serves as a crucial platform for travel professionals to engage lawmakers on pivotal legislation that could shape the future of the travel industry. The primary focus this year was advocating for adjustments to a new Department of Transportation (DOT) rule that places significant financial burdens on travel agencies concerning air ticket refunds.
The Implications of the DOT’s New Rule
Set to take effect on October 28, the new DOT rule mandates that the “merchant of record” bear the responsibility for refunding airline passengers when flights are canceled or altered significantly. Typically, travel agencies do not hold this designation in air sales; however, exceptions arise when they resell bulk ticket options, especially for group travel. ASTA strongly argues that requiring travel agencies—especially smaller ones—to manage refunds without having received funds from the airlines will be disastrous. Given that most travel agencies are classified as small businesses, this rule could adversely impact their financial stability and operational viability.
In response to these challenges, three congressional representatives have put forward the Flight Refund Fairness Act. This proposed legislation aims to protect small businesses by allowing them to withhold refunds until they receive the corresponding funds from the airlines. ASTA highlights that approximately 98% of travel agencies are categorized as small businesses under the Small Business Administration’s definitions. The act seeks to level the playing field and alleviate some of the financial pressures that travel advisors face, pushing for a balanced distribution of responsibilities between them and the airlines.
In addition to the Flight Refund Fairness Act, attendees at Legislative Day urged legislators to consider the ACPAC Modernization Act. This proposal seeks to add a representative from the ticket agent sector to the Department of Transportation’s Aviation Consumer Protection Advisory Committee (ACPAC). The absence of such representation in recent drafts of the FAA Reauthorization Bill was noted as a significant oversight, as the ACPAC holds substantial sway over regulations affecting travel consumers and service providers alike.
ASTA’s efforts are partly focused on enhancing awareness of the vital role that travel advisors play in the broader tourism ecosystem. According to ASTA CEO Zane Kerby, the organization’s initiatives aim to secure legislative support that aligns with industry needs and ensures the sustainability of travel businesses. As travel advisors navigate a complex landscape altered by regulations and economic challenges, their advocacy efforts become more crucial than ever.
The outcomes of this year’s Legislative Day underscore the interconnectedness of travel advisors and regulatory frameworks. As the landscape evolves, travel advisors must remain vigilant and lobby for policies that not only protect their interests but also enhance consumer trust in the travel industry. Enhanced representation and fair regulations will be central to nurturing a resilient travel ecosystem as we move further into the complexities of post-pandemic travel.