Update (May 10, 2024): On May 8, ASTA urged travel advisors to reach out to their senators in support of Sen. Rand Paul’s amendment to the FAA bill (Amendment 1954), which would restore the original language in the House bill. On the evening of May 9, the bill was approved by the Senate without addressing the DOT rule regarding airline refunds. On May 10, ASTA's CEO and President, Zane Kerby, issued the following statement:
“Time and time again, we’ve heard politicians in Washington give lip service to small businesses. Travel agencies are not positioned to float the kind of financial obligations that policymakers are strapping on their backs. Consumer protection could have been accomplished without sacrificing the interests of small business travel advisors who work diligently every day on behalf of the traveling public. Those household name OTAs are resourced with billions more dollars than our retail agencies, 98% of which are small businesses. Airlines have been bailed out by Congress over and over, and they are now looking to travel agencies to serve as their bank, paying their customers with no onus to repay the agencies. Requiring advisors to extend credit from their own pockets to pay airline refunds is a gross misplacement of responsibility that must be rectified. Congress failed in its duty to protect Main Street from monolithic airline corporations. In the end, the consumer suffers, as travel advisors will be less inclined to book airfare, leaving the flyer without an advocate when travel plans go south.”
The American Society of Travel Advisors (ASTA) expressed both concerns and positive notes regarding the FAA Reauthorization Bill’s final legislation, in which there were both drawbacks and notable victories for travel advisors.
Drawbacks for Travel Advisors
One setback is the Department of Transportation's (DOT)recent rule that holds travel agencies accountable for providing air ticket refunds if they are the "merchant of record," regardless of whether they possess the funds.
The original version of the FAA Bill from the House of Representatives aimed to supersede this rule, but the final compromise between the House and Senate deferred the issue back to the DOT, which made its final rule last week.
"We were thankful when the House originally recognized this important distinction,” said Zane Kerby, ASTA President and CEO, in a press release. “Unfortunately, the final compromise between the House and Senate kicks this issue back to a DOT that has shown a clear lack of understanding how travel agencies book air travel.
The final FAA bill, which would require the DOT to issue regulations regarding airlines promptly transferring funds back to the ticket agents when they must issue a refund (but are not in possession of the funds) will go into effect in six months.
Another disappointment is that the final bill only requires the Aviation Consumer Protection Advisory Committee (ACPAC) to consult with ticket agents only "as appropriate," rather than granting them a dedicated seat on the committee (which are held by one representative from the U.S. airlines, consumer groups, airports and state or local governments.)
It is disappointing that when given an opportunity to add the views of the agencies who booked 40 percent of air tickets in 2023, Congress deflected to an unenforceable consultative role.
“ASTA has appeared before this committee many times and recent final rules from DOT continue to show a clear lack of understanding on the role of travel agencies and advisors in booking air travel,” Kerby said. “It is disappointing that when given an opportunity to add the views of the agencies who booked 40 percent of air tickets in 2023, Congress deflected to an unenforceable consultative role.”
Wins for Travel Advisors
On a positive note, ASTA championed a provision maintained in the final bill that streamlines offline disclosures surrounding air travel.
"This will reduce frustration with the air ticket purchase process and lessen the unnecessary burdens on our members' business operations while keeping critical consumer protection intact," Kerby said.
Additionally, the legislation establishes the Passenger Experience Advisory Committee within the DOT, where ticket agents will have a voice in advising on improving the passenger experience in air transportation customer service.
ASTA urges the DOT to establish and convene the Passenger Experience Advisory Committee promptly.
Editor’s Note: This article was generated by AI, based on a press release distributed by ASTA. It was reviewed by a TravelAge West editor.
