In a concerted effort to rethink the legal responsibilities of travel agencies in the wake of flight cancellations and significant changes, over 250 travel advisors and supplier partners flocked to Washington, D.C. for the American Society of Travel Advisors (ASTA)’s Legislative Day. The focus was predominantly on a new regulation from the Department of Transportation (DOT) that becomes effective on October 28. This regulation places the onus of ticket refunds on the “merchant of record,” creating a layer of risk that could imperil the already fragile ecosystem in which small travel businesses operate.
A critical feature of this new DOT rule is its definition of the „merchant of record.“ In most airline transactions, travel agencies do not hold this designation, which is usually assigned to airlines or major booking platforms. However, unique scenarios—such as travel agencies reselling bulk airline tickets to groups—will necessitate that they assume this responsibility. ASTA contends that the burden of processing refunds in these circumstances could lead to catastrophic consequences, especially for smaller agencies that often operate on tight margins.
The association advocates for a clearer stipulation from DOT, suggesting that agencies should only be held accountable for refunds if they have already received the funds from airlines. The stakes are high; according to ASTA, a staggering 98% of travel agencies fall under the classification of small businesses, emphasizing the need for legislative support to safeguard their operations.
To address these concerns, three members of Congress—Rep. Maria Salazar, Rep. Dina Titus, and Rep. Mark Alford—have co-sponsored the Flight Refund Fairness Act. This proposed legislation would protect small businesses from the financial fallout of refunding clients when they are still awaiting reimbursements from the airlines. This single legislative move could fundamentally reshape how travel agencies interact with their customers during times of crisis.
Disappointment has also been noted regarding the failure of an amendment related to travel advisors to gain traction within the FAA Reauthorization Act. As ASTA continues to lobby our legislators, its members are not only fighting for funding protection but also for the inclusion of travel advisors in the DOT’s Aviation Consumer Protection Advisory Committee through the ACPAC Modernization Act. This committee wields significant influence over regulatory matters affecting the travel industry.
ASTA’s push extends beyond legislative changes; it aims to strengthen the perception of travel advisors as vital stakeholders in the travel and tourism sector. ASTA CEO Zane Kerby articulated a mission to elevate awareness about the importance of travel advisors, nurturing a climate where supportive policies are recognized as essential for their success.
The confluence of small business advocacy and legislative adjustment at ASTA’s Legislative Day illustrates a critical juncture for the travel industry. Ensuring that travel advisors can operate without the fear of undue financial burden from bureaucratic inadequacies stands as the overarching goal. Legislative actions like the Flight Refund Fairness Act could pave the way for a more resilient and sustainable operation framework for the travel advisory community.
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