The American Society of Travel Advisors (ASTA) is asking the U.S. Department of Transportation (DOT) to reconsider three regulatory areas that affect travel advisors in DOT’s Request for Information on regulatory reform.
ASTA is asking for the repeal of ticket refund obligations finalized in April 2024, which require ticket agents who are the merchant of record to issue refunds on flights that are canceled or significantly changed by the airline within seven days. Currently, agents are supposed to refund consumers even if they are not in possession of the funds, creating liability and cash-flow issues for small business owners.
The DOT attempted to avoid this issue by requiring the prompt transfer of funds to agents, but ASTA says the current language is ambiguous and ineffective. ASTA is asking for a total repeal of this requirement.
These regulations impose significant costs and risks on small travel businesses with little added value to consumers.
ASTA is also asking the DOT to reevaluate its offline ticket disclosure requirements as directed by Congress in the 2024 FAA Reauthorization Act. According to ASTA, advisors who sell air over the phone or in person are required to “make up to seven separate disclosures during each transaction, a process that is both time-intensive and legally risky.”
ASTA is suggesting that advisors be relieved of the impractical burden by referring clients to the DOT and airline websites.
The third request is for the DOT to remove disclosure mandates related to aircraft disinfection and code share flights. ASTA says these disclosures offer “limited consumer benefit while creating excessive compliance obligations” — and steep penalties for even unintentional noncompliance.
Why It Matters: Travel Regulations Should Help, Not Hurt, Travel Advisors
Travel regulations should protect consumers without hurting small travel business owners. ASTA continues to look out for the best interest of both parties by strongly advocating against poorly written or ill-conceived regulations that place unfair obligations and consequences on travel advisors. Thanks to ASTA’s advocacy, advisors can feel confident that their concerns are being accurately represented to lawmakers.
What They Are Saying: Regulations Need to Be Fair to Small Businesses
"The DOT has saddled the nation's travel agencies with providing refunds when airlines experience travel disruptions,” said Zane Kerby, president and CEO of ASTA. “This misappropriation of responsibility needs to be fixed. Our members shouldn't be forced to cover refunds for flights they didn't cancel."
"These regulations impose significant costs and risks on small travel businesses with little added value to consumers,” said Peter Lobasso, general counsel and senior vice president of industry affairs for ASTA. “Our members need a fair regulatory environment that acknowledges their important but limited role in the transaction chain and supports their continued ability to serve travelers effectively.”
