In a strategic move to champion the interests of travel advisors and their supplier partners, more than 250 industry professionals gathered in Washington, D.C. for the American Society of Travel Advisors (ASTA) Legislative Day. This event serves as a crucial forum for lobbying on significant issues affecting the travel ecosystem, particularly legislation that seeks to mitigate the financial burden placed on travel agencies regarding air ticket refunds. The current industry landscape is marked by complex regulations, and the necessity for reform has never been clearer.
Effective October 28, a new rule from the Department of Transportation (DOT) shifts the responsibility for refunding airline ticket purchases to the “merchant of record.” This designation typically falls to airlines, but travel agencies occasionally find themselves categorized as merchants, especially when reselling airline seats. ASTA has raised considerable concerns about this rule, emphasizing that the burden of refunds should not fall on travel advisors who lack direct control over airline funds. The association claims that shifting the financial responsibility to small business travel agencies could have devastating economic impacts on the sector.
In response to this pressing issue, a bipartisan group of legislators has proposed the Flight Refund Fairness Act. Representatives Maria Salazar (R-Fla.), Dina Titus (D-Nev.), and Mark Alford (R-Mo.) are championing this bill, which promises to protect small businesses from having to issue refunds unless they have already received payment from airlines. With approximately 98% of travel agencies classified as small businesses, ASTA argues that this legislative change is crucial for industry sustainability.
In addition to the Flight Refund Fairness Act, ASTA is also advocating for the ACPAC Modernization Act, which seeks to secure a seat for ticket agents on the DOT’s Aviation Consumer Protection Advisory Committee. Currently, this committee holds significant power over regulations affecting the travel industry. However, the absence of travel agents from this influential body undermines their capacity to input on issues that directly impact their work. ASTA has voiced disappointment over the failure of recent FAA Reauthorization Act proposals to include this vital representation.
During Legislative Day, ASTA aims not just to push for necessary legislative reforms but also to elevate the profile of travel advisors within the broader travel and tourism industry. According to ASTA CEO Zane Kerby, it is imperative to foster acknowledgment of the critical contributions travel advisors make to the market’s ecosystem. By securing legislative support and enhancing industry visibility, ASTA strives to empower its members and reinforce their pivotal role in facilitating travel experiences.
As discussions unfold and advocacy efforts intensify, the travel industry stands at a crossroads. The legislative changes advocated by ASTA could redefine the operational landscape for travel advisors, forging a more equitable environment that recognizes the challenges and complexities of their roles. Should these efforts culminate in successful legislation, the implications for small business travel agencies could be profound—a step toward a more sustainable and fair industry. The future of travel advisory services hinges on collaborative efforts to navigate and address the evolving legislative terrain.