This week marked a significant moment for travel advisors as over 250 industry professionals gathered in Washington, D.C., for the American Society of Travel Advisors (ASTA) Legislative Day. The event had a singular focus: lobbying for crucial legislation designed to alleviate the burdens placed on travel agencies in situations where refunds for canceled flights are involved. Historically, the responsibility for issuing refunds has frequently fallen on travel advisors, despite many not being the primary sellers of airline tickets. This disconnect presents a major challenge for small businesses that make up a substantial part of the travel industry.
One of the central issues at the heart of ASTA’s advocacy efforts centers around an impending rule from the Department of Transportation (DOT) that is set to take effect on October 28. This stipulation designates the “merchant of record” as the entity responsible for issuing refunds in the event of flight cancellations or significant alterations. Travel agencies, which often operate as intermediaries in air sales, might find themselves in a precarious position when they do not retain the funds received from airlines, particularly in situations where they purchase bulk seats for resale.
ASTA emphasizes that holding small businesses accountable for these refunds, without prior receipt of funds from airlines, could lead to catastrophic financial repercussions across the industry. This concern has fueled ongoing support for the Flight Refund Fairness Act, championed by Congress members Rep. Maria Salazar, Rep. Dina Titus, and Rep. Mark Alford. If successfully passed, this legislation would safeguard small businesses, liberating them from the burden of refunding flights before they have been compensated by the airline.
A Unified Voice for Small Businesses
ASTA’s assertion that 98% of travel agencies are small businesses underscores the importance of this advocacy. The need for reforms is equally echoed by larger agencies, demonstrating an industry-wide consensus for change. In previous legislative efforts, there was hope for amendments related to travel advisor responsibilities under the Federal Aviation Administration (FAA) Reauthorization Act; however, provisions for travel advisors were omitted from the final legislation. Consequently, ASTA is galvanizing support for the Flight Refund Fairness Act as a priority.
Moreover, attendees at Legislative Day are also advocating for the ACPAC Modernization Act, which seeks to include a representative from ticket agents on the DOT’s Aviation Consumer Protection Advisory Committee. The absence of such representation, despite its initial inclusion in earlier versions of the FAA bill, highlights a missed opportunity for industry stakeholders to have their voices heard in critical regulatory discussions.
During this gathering, ASTA’s CEO, Zane Kerby, made it clear that the overarching goal of the week’s activities was to elevate the awareness of the essential functions travel advisors perform within the wider tourism landscape. By fostering more supportive policies, ASTA aims to bolster the sustainability and success of its members’ businesses in an increasingly challenging environment.
As the travel industry navigates new complexities brought about by regulatory changes, the efforts of ASTA and its advocates will remain pivotal in ensuring that travel agencies can continue to operate effectively, providing valuable services without undue financial strain. The outcomes of these legislative endeavors could forge a stronger future for travel advisors, ultimately benefiting clients and the industry as a whole.