In a significant display of unity and purpose, over 250 travel advisors and supplier partners gathered in Washington, D.C., this week for the American Society of Travel Advisors (ASTA) Legislative Day. This annual event focuses on advocating for legislative changes that could greatly affect the travel industry, particularly concerning airlines and refund policies. With a new Department of Transportation (DOT) rule set to come into effect on October 28, the urgency was palpable as advisors sought to influence lawmakers regarding the pressures placed on travel agencies.
The imminent DOT regulation stipulates that the “merchant of record” bears the responsibility for issuing refunds to airline passengers in cases of flight cancellations or significant changes. Traditionally, travel agencies are not the designated merchant of record, but exceptions exist, such as when they acquire bulk airline seats for group travel. ASTA has raised important concerns that this regulation could put small travel agencies in a precarious position, as they often lack the financial reserves to manage such refunds. Essentially, travel advisors would be held accountable for funds they do not possess, a challenging situation that ASTA has labeled as “catastrophic.”
In response to these challenges, members of Congress have laid forth the Flight Refund Fairness Act, a legislation designed to protect small businesses from bearing this financial burden until they also receive the corresponding funds from airlines. Given that approximately 98% of travel agencies classify as small businesses according to the Small Business Administration, the success of this act is critical for the survival of many agencies.
During the Legislative Day, travel advisors also addressed the need for representation on the Department of Transportation’s Aviation Consumer Protection Advisory Committee through the ACPAC Modernization Act. Although previous legislative drafts included a ticket agent’s seat on this influential committee, final versions of the FAA Reauthorization Bill omitted this crucial component. ASTA highlighted that, despite the small size of the committee, its members have a significant impact on policies affecting the entire aviation landscape, which directly impacts travel advisors and their businesses.
ASTA’s CEO, Zane Kerby, emphasized the broader objectives of the Legislative Day: to raise awareness of the vital role travel advisors hold within the travel and tourism sector. His statement encapsulated a sentiment shared by many attuned to the industry’s challenges, focusing on the necessity for robust support for policies that can facilitate the success of their operations.
As travel advisors continue to navigate a complex legislative terrain, their collective advocacy underscores a pivotal moment for the industry. With the potential passage of the Flight Refund Fairness Act and increased representation in regulatory discussions, there exists a pathway to mitigate burdens and evolve the nature of travel advisory services in the changing landscape of air travel. The outcome of these legislative efforts could uniquely determine the resilience of small travel businesses facing unprecedented challenges in an ever-evolving marketplace.