The American Association of Travel Advisors (ASTA) said it was disappointed in new rules for airlines that govern when to refund travelers for delays and how to properly disclose fees.
“The Department of Transportation made a serious error with this final rule,” said ASTA President and CEO Zane Kirby. “Our biggest concern for our members was that regulations aimed at protecting consumers could harm the small travel companies that book airline tickets.”
“And that’s exactly what happened,” Kirby continued. “While travel agents sold 40% of airline tickets in 2023, DOT understands that in limited circumstances where a travel agent is the seller of record, payments will be immediately passed on to the airline. I haven’t.”
This latest rule, approved by U.S. President Joe Biden and the Department of Transportation (DOT), requires U.S. airlines to provide “automatic cash refunds” within days if flights are significantly delayed or canceled altogether. ” is required to be carried out.
Airlines and ticket agents need to be transparent about checked and carry-on baggage fees and reservation cancellations or changes. Airline websites must list all charges when travelers view prices and schedules. The DOT estimates the new rules will save American travelers more than $500 million annually.
In response, ASTA clarified that distributors are responsible for issuing refunds to consumers, regardless of the airline’s funding.
Despite years of efforts to educate members of Congress and the Department of Transportation, this final rule shows a complete lack of understanding of how the ASTA community, which is largely made up of small businesses, sells tickets. It shows that
Mr. Kirby provided the following detailed statement regarding the DOT’s decision.
“For too long, we agree with the DOT that consumers have borne the brunt of airline fraud. Fortunately, those who use Travel Advisor We know there are people who will work hard to get you a refund when plans go awry, but putting that refund on the small business seller of record would be devastating to our industry. For many small agencies in our industry, especially those specializing in group travel, seller transactions are an important part of their business.”
“This is a clear case of a federal agency over-fixing a problem. Now more than ever, we urge House and Senate leaders to preserve Section 710 of the House bill that reauthorizes the FAA. I urge you. [H.R. 3935] This ensures that ticket agents, nearly 80% of whom are women small business owners, are not responsible for making refunds to airlines if they do not have the funds in their possession. ”
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