Thursday, September 12, 2024 — Earlier this week, Travel Tech CEO Laura Chadwick participated in panel discussion organized by the National Consumers League (NCL) about Flight Delay Compensation in the U.S. The panel was led by moderator John Breyault from the NCL. The panel also included Michael Negron, Special Assistant to the President for Economic Policy at the White House, Teresa Murray from the Public Interest Research Group, and Tomasz Pawliszyn from AirHelp, a Travel Tech Advocate member company. At the event, U.S. Senator Ed Markey (D-MA) provided remarks about his efforts to eliminate hidden fees and expand travelers’ rights.
The panel discussed the prospect and impact of the U.S. Department of Transportation (DOT) proposing rules requiring airlines to compensate passengers of disrupted flights, bringing the U.S. in line with policies found in the E.U., Canada, and other and other jurisdictions.
Travel Tech President & CEO Laura Chadwick’s remarks centered on keeping the responsibility for flight delay compensation, should these policies be proposed and adopted by the DOT, on the airlines and no other entity, including ticket agents.
“When it comes to flight delay compensation, only airlines should be held responsible for controllable flight delays, like crew shortages, scheduling errors, or aircraft maintenance issues. The same principle applies when travelers are bumped by airlines from their flights and no one else; the same should apply here,” said Chadwick.
Tomasz Pawliszyn, CEO of Travel Tech member company Airhelp, discussed how flight delay compensation works in the European Union and how Airhelp helped over 4 million passengers last year, putting money back in the pockets of travelers.
“We see that families are the ones who apply for compensation more than anyone else because then you have the whole family with you and you have to cover the cost of four or five people, and you are missing work and the kids are missing school and you have to rent a car to go back to the hotel maybe for another night, and so that’s why the compensation is there and why it was brought into Europe and other countries…for the families and people with a smaller wallet,” Pawliszyn said.
In May 2023, the DOT announced plans to initiate a rulemaking to require U.S. and foreign air carriers to adopt and adhere to customer service plans identifying essential services (meals, rebooking, hotel, transportation to or from hotel, timely customer service) and compensation which airlines would be required to provide to mitigate passenger inconveniences when the cause of a cancellation or delay for flights to, within and from the United States due to circumstances within the airline’s control. To date, the DOT has not yet released this proposed rule but does maintain a online dashboard to hold airlines accountable to passengers when airline-caused delays or cancellations occur.
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The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy that promotes marketplace transparency and competition. Travel Tech represents travel technology innovators ranging from dynamic startups, small, and midsize businesses to leading online travel agencies, metasearch engines, short-term rental platforms, global distribution systems, and travel management companies.
To schedule an interview with a Travel Tech spokesperson, contact Bradford Williamson of Glen Echo Group at 202.870.3234 or bwilliamson@glenechogroup.com.
Airlines must now “promptly” return consumers’ funds to ticket agents
Per DOT’s newly-released revision, airlines must now “promptly” return consumers’ funds to ticket agents. DOT previously declined to require airlines to do so in the original version of its final Refund rule, which placed an unfair financial burden on ticket agents.
“Ticket agents’ core purpose is to serve consumers and act on their behalf in merchant-of-record situations,” said Laura Chadwick, Travel Tech President & CEO. “When refunds are required, consumers are due back their money from airlines and no one else. We are thankful the U.S. Department of Transportation quickly heeded our request to protect consumers and ticket agents alike.”
Travel Tech first raised its concerns about the DOT’s proposed changes to the refund timeline regarding when airlines return consumer funds to ticket agents when ticket agents are the merchant of record in its comments submitted in December 2022. Chadwick also testified on this matter at DOT’s Public Hearing on Airline Ticket Refunds and Consumer Protections held on March 21, 2023.
Travel Tech released a statement about the DOT’s final Refund rule, expressing its disappointment that such a provision was not included. Subsequently, Travel Tech supported an amendment clarifying the timing of ticket agent-issued refunds to the recently passed Federal Aviation Administration (FAA) Reauthorization Act of 2024 (H.R. 3935).
The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy that promotes marketplace transparency and competition. Travel Tech represents travel technology innovators ranging from dynamic startups, small, and midsize businesses to leading online travel agencies, metasearch engines, short-term rental platforms, global distribution systems, and travel management companies.
To schedule an interview with a Travel Tech spokesperson, contact Bradford Williamson of Glen Echo Group at 202.870.3234 or bwilliamson@glenechogroup.com.
Recent FAA Reauthorization bill directs DOT to address issues with its Refunds and Other Consumer Protections final rule
“Ticket agents’ core purpose is to serve consumers and act on their behalf in merchant-of-record situations,” said Laura Chadwick, Travel Tech President & CEO. “When refunds are required, consumers are due back their money from airlines and no one else. We are thankful Congress has directed DOT to take up this new rulemaking to protect consumers and ticket agents alike.”
In its Refunds and Other Consumer Protections final rule, published on April 26, 2024, DOT declined to require airlines to provide prompt refunds to consumers when ticket agents serve as the merchant of record. This will create situations wherein ticket agents must provide refunds to consumers without first receiving consumers’ funds back from the airlines.
To rectify DOT’s decision, at Travel Tech’s urging, Congress included a provision in the Securing Growth and Robust Leadership in American Aviation Act that states, “(2) TRANSFER OF FUNDS.—The Secretary shall issue regulations requiring air carriers and foreign air carriers to promptly transfer funds to a ticket agent if—“(A) the Secretary has determined that the ticket agent is responsible for providing the refund; and “(B) the ticket agent does not possess the funds of the passenger. (Sec. 503, Refunds)
The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy that promotes marketplace transparency and competition. Travel Tech represents travel technology innovators ranging from dynamic startups, small, and midsize businesses to leading online travel agencies, metasearch engines, short-term rental platforms, global distribution systems, and travel management companies.
To schedule an interview with a Travel Tech spokesperson, contact Bradford Williamson of Glen Echo Group at 202.870.3234 or bwilliamson@glenechogroup.com.
On Wednesday, May 8th, Travel Tech hosted airline industry attorneys Jol A. Silversmith and Barbara Marrin of KMA Zuckert to outline the “Top 7 Takeaways on the New U.S. DOT Ancillary Fee and Refunds Rules.”
As discussed in the webinar, both rules have serious implications for both large and small travel technology businesses.
Did you miss the live webinar but still want to learn more about how these new rules will impact your business?
Fill out the form below to receive the link to the webinar and a PDF summary of the top seven takeaways:
Disclaimer: The Travel Technology Association is providing this webinar and the accompanying document as educational materials and not as legal advice. You must consult your own legal counsel for specific interpretation and applicability of these rules to you or your company.
Amendment #1954 ensures the fiscal solvency of ticket agents, large and small
May 6, 2024 —The Travel Technology Association (Travel Tech) issued a letter in support of an amendment to the FAA reauthorization bill currently under consideration by the U.S. Senate. Amendment #1954, sponsored by Senator Rand Paul (R-KY), instructs the U.S. Department of Transportation to issue a new regulation within six months to clarify that “a ticket agent shall provide a refund only when such a ticket agent possesses, or has access to, the funds of a passenger.” Similar language was included in H.R. 3935, Securing Growth and Robust Leadership in American Aviation Act, the House-passed FAA reauthorization bill in July 2023.
The U.S. Department of Transportation recently issued its final Refund rule, which requires airlines to automatically provide refunds to passengers who book through their platforms. Per the final rule, ticket agents must make refunds to customers within seven business days when they are the merchant of record. However, the final Refund rule makes no provision on when airlines must provide refunds to ticket agents. As a result, ticket agents will be unfairly forced to make refunds without first having the customers’ funds returned by airlines.
“Senator Paul’s Amendment is of utmost importance to ensure the solvency of ticket agents large and small, especially during massive refund events like winter storms and hurricanes,” said Laura Chadwick, President and CEO of Travel Tech. “Ticket agents play no role in airline delays or cancellations yet will be held financially responsible for them, perhaps indefinitely. The U.S. Senate should adopt Amendment #1954 and require the Department to issue a new rule to protect ticket agents when they are the merchant of record.”
The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy that promotes marketplace transparency and competition. Travel Tech represents travel technology innovators ranging from dynamic startups, small, and midsize businesses to leading online travel agencies, metasearch engines, short-term rental platforms, global distribution systems, and travel management companies.
To schedule an interview with a Travel Tech spokesperson, contact Bradford Williamson of Glen Echo Group at 202.870.3234 or bwilliamson@glenechogroup.com.
Monday, April 29, 2024 — Last week, the U.S. Department of Transportation announced its final regulations on the transparency of airline ancillary service fees and refunds to customers for delayed and canceled flights.
What do the rules mean and how will they impact your business?
Join Travel Tech on Wednesday, May 8th, 2024, at 1:00 pm for a free webinar featuring airline industry attorneys Jol A. Silversmith and Barbara Marrin of KMA Zuckert.
Airline industry attorneys Jol A. Silversmith and Barbara Marrin will outline the top seven takeaways about these new regulations and answer your questions. Following the webinar, all registrants will receive a written memo about these seven takeaways.
April 24, 2024 — Today, the Department of Transportation issued two final rules impacting the travel tech industry: the transparency of airline ancillary service fees and refunds of airline tickets for delayed or canceled flights.
“Travel Tech has long supported the Department of Transportation’s goals to provide greater transparency to airline consumers on ancillary fees and clear guidelines on how and when refunds are made. Regrettably, today’s final rules fail to account for how these goals can technically be achieved, adding unnecessary costs and confusion for consumers,” said Laura Chadwick, President & CEO of the Travel Technology Association (Travel Tech).
In its ancillary fee comments, Travel Tech strongly advocated that airlines be required to provide critical ancillary fee information to all ticket agents and intermediaries, including GDSs, and not only to consumer-facing ticket agents as proposed by the Department of Transportation. Many ticket agents rely on GDSs to access airline schedules, fares, and availability information. Unfortunately, in the final ancillary fee rule, the Department declined to alter its proposal.
“Unfortunately, by not including GDSs, the very purpose of this rulemaking will be undermined, making it harder for ticket agents to inform consumers about the cost of ancillary services,” said Chadwick. “Had airlines been required to provide ancillary fee data to all ticket agents, transparency for consumers could have been achieved in months, not years. Consumer advocates cited this reason in their comments for supporting Travel Tech’s position.”
The Department’s final refund rule requires airlines and ticket agents (when acting as the merchant of record) to provide refunds to consumers within seven business days. While the rule requires airlines to notify ticket agents “without delay” when a consumer is eligible for a refund, it will still create situations in which ticket agents must provide refunds without first receiving the consumers’ funds back from the airlines.
“The final refund rule will render ticket agents as airlines’ de facto banks, forcing agents to float airlines’ refunds potentially indefinitely. Doing so unfairly places ticket agents in a precarious financial position that risks their ability to provide comparison shopping tools for consumers in the first place.”
The Travel Technology Association calls on Congress to pass its FAA reauthorization legislation. House and Senate versions of the bill include provisions supported by Travel Tech that provide sensible relief from some aspects of the Department’s final ancillary fee and refund rules.
The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy that promotes marketplace transparency and competition. Travel Tech represents travel technology innovators ranging from dynamic startups, small, and midsize businesses to leading online travel agencies, metasearch engines, short-term rental platforms, global distribution systems, and travel management companies.
To schedule an interview with a Travel Tech spokesperson, contact Bradford Williamson of Glen Echo Group at 202.870.3234 or bwilliamson@glenechogroup.com.
April 1, 2024 – Travel Tech, together with the American Society of Travel Advisors (ASTA) and the Travel Management Coalition, sent letters to the U.S. Senate Committee on Commerce, Science, and Transportation and the U.S. House Committee on Transportation & Infrastructure to highlight the provisions in the House and Senate FAA Reauthorization bills that apply to Travel Management Companies (TMCs) and request amendments and exemptions.
Services provided by contract to TMC customers include duty of care, management of complex itineraries involving larger groups of employees, and of course, changes, cancellations, and re-bookings. TMCs also manage travel for federal government agencies, including our nation’s military. TMC customers do not book or manage travel using online travel platforms available to the general public.
“Travel Tech thanks the leadership of the Senate and House committees for their work to advance the FAA Reauthorization,” said Travel Tech President & CEO Laura Chadwick. “We now ask that you recognize that Travel Management Companies, who do not book or manage travel using online platforms available to the general public, should be exempted from provisions intended for the general public.”
In the letter, the following requests were outlined:
With respect to ancillary fees, exempting from compliance any travel subject to a corporate or government contract.
Unless exempted, the proposed requirement would be problematic and unnecessary for corporate agencies, as the systems that TMCs and their business customers use for booking business travel differ from an airline website or online travel agency (OTA) site accessible to the general public.
Aligning the Senate and House bills with regard to Ticket Agent refund obligations to ensure Agents’ fiscal solvency.
Sec. 702 of the Senate bill directs the Secretary of Transportation to issue a final rule to apply refund requirements to Ticket Agents in the case of canceled or significantly delayed flights. However, Ticket Agents are not in a fiscal position to provide refunds without first receiving the passengers’ funds back from the airlines. The House bill clarifies this provision and should be fully adopted.
Clarify Ticket Agent responsibilities with regard to refund portal provision, and exempt Ticket Agents that provide services pursuant to a corporate or government contract.
Section 702 of S. 1939 requires Ticket Agents to prominently display on their websites a link that passengers eligible for a refund may use to make a request. This provision would require ticket agents, such as TMCs, who do not serve the general public but have a public website, to comply. However, Travel Management Companies already have specific refund obligations under their contracts. Accordingly, the refund portal provision should exempt ticket agents who provide travel services pursuant to corporate or government contracts.
The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy that promotes marketplace transparency and competition. Travel Tech represents travel technology innovators ranging from dynamic startups, small, and midsize businesses to leading online travel agencies, metasearch engines, short-term rental platforms, global distribution systems, and travel management companies.
To schedule an interview with a Travel Tech spokesperson, contact Bradford Williamson of Glen Echo Group at 202.870.3234 or bwilliamson@glenechogroup.com.
Final bill may be considered before the expiration of the FAA’s authorization extension on May 10th
March 27, 2024 – This week, Travel Tech sent letters to the U.S. Senate Committee on Commerce, Science, and Transportation and the U.S. House Committee on Transportation & Infrastructure as they work to align H.R. 3935, the Securing Growth and Robust Leadership in American Aviation Act of 2023 and S. 1939, the FAA Reauthorization Act of 2023 into one FAA reauthorization bill to be considered by both the House and Senate. Travel Tech’s letters highlighted its preferred changes to best support consumers as they purchase airline tickets.
“Travel Tech appreciates Congressional leaders for their hard work to get this critical legislation across the line,” said Travel Tech President & CEO, Laura Chadwick. “It is now critical that this bill is finalized in a way that gives travelers the transparency and choice they deserve.”
Travel Tech’s priorities for the final FAA Reauthorization bill include:
Adding Ticket Agents to the U.S. Department of Transportation’s Advisory Committee for Aviation Consumer Protection
Ticket Agents are the largest travel industry segment not represented on this key advisory committee. Allowing them to become members will provide valuable insights currently not reflected in the committee, helping the Department of Transportation meet its consumer protection mission.
Aligning the Senate and House bills with regard to Ticket Agent refund obligations to ensure Agents’ fiscal solvency
Sec. 702 of the Senate bill directs the Secretary of Transportation to issue a final rule to apply refund requirements to Ticket Agents in the case of canceled or significantly delayed flights. However, Ticket Agents are not in a fiscal position to provide refunds without first receiving the passengers’ funds back from the airlines. The House bill clarifies this provision and should be fully adopted.
Clarify Ticket Agent responsibilities with regard to refund portal provision, and exempt metasearch engines and other Ticket Agents that provide services pursuant to a corporate or government contract
Section 702 of S. 1939 requires Ticket Agents to prominently display on their websites a link that passengers eligible for a refund may use to make a request. However, because many Online Travel Agents offer services beyond airfare comparison shopping and booking on their sites, these links will likely cause confusion among consumers seeking refunds for hotels, car rentals, or other services. Furthermore, Travel Management Companies that do not sell to the public already have specific refund obligations under their contracts. Finally, metasearch engines that direct customers to other sites have no record of which flight a customer ultimately purchased and should be similarly exempt.
Allow flexibility for Ticket Agents and air carriers to design the appropriate display of ancillary fees for customers, and similarly distinguish between Agents that provide services under corporate or government contracts and those that engage with the public
Remove the inclusion of Section 701 in H.R. 3935 that repeals the DOT’s Full Fare Advertising Rule.
The Full Fare Advertising Rule requires that the entire price for airfare, including taxes and fees, be disclosed to consumers in the first instance following an itinerary search. Its repeal will undermine consumers’ ability to effectively comparison shop and choose the best travel option to meet their needs and budget.
The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy that promotes marketplace transparency and competition. Travel Tech represents travel technology innovators ranging from dynamic startups, small, and midsize businesses to leading online travel agencies, metasearch engines, short-term rental platforms, global distribution systems, and travel management companies.
To schedule an interview with a Travel Tech spokesperson, contact Bradford Williamson of Glen Echo Group at 202.870.3234 or bwilliamson@glenechogroup.com.
Association Puts Forth Recommendations to the Senate That Reflect Ticket Agents’ Role in the Travel Marketplace
February 8, 2024 – The Travel Technology Association (Travel Tech) submitted a letter to the Senate Committee on Commerce, Science, & Transportation concerning S. 1939, the FAA Reauthorization Act of 2023. The letter provides recommendations for the committee to consider ahead of the bill’s markup, including:
Sec. 701: Advisory Committee for Aviation Consumer Protection. Travel Tech supports Senator Rosen’s amendment incorporated into the Manager’s Amendment that adds Ticket Agents to the U.S. Department of Transportation’s Advisory Committee for Aviation Consumer Protection. Currently, Ticket Agents are the largest travel industry segment not represented on this key advisory committee.
Sec. 703: Refunds. Ticket Agents should only be required to provide a refund when such ticket agent possesses, or have access to, the funds of a Passenger. Travel Tech asks that the Senate amend S.1939 by replacing the current language with the House-passed provision.
Refund portal. Many Ticket Agents offer services beyond airfare comparison shopping and booking on their sites. Requiring them to place a refund link exclusively for airline refunds at the top of their public internet website, as the legislation currently does, will likely cause confusion among consumers seeking refunds for hotel, car rental, or tour operators. The Committee should amend this provision to achieve its intended goals.
Disclosure of Ancillary Fees. Travel Tech strongly supports Sec. 705 as it provides Ticket Agents and air carriers flexibility in the design of appropriate displays of ancillary fees. Travel Tech also strongly supports that an additional provision should be added to Sec. 705 to continue to recognize the distinction between ticket agents that provide services pursuant to a corporate or government contract and other types of ticket agents.
“We urge the Committee to adopt our recommendations to support travelers and the Travel Tech member companies that serve them,” said Laura Chadwick, President and CEO of Travel Tech.
The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy that promotes marketplace transparency and competition. Travel Tech represents travel technology innovators ranging from dynamic startups, small, and midsize businesses to leading online travel agencies, metasearch engines, short-term rental platforms, global distribution systems, and travel management companies.
To schedule an interview with a Travel Tech spokesperson, contact Bradford Williamson of Glen Echo Group at 202.870.3234 or bwilliamson@glenechogroup.com.
Travel Tech Issues Letter on the FAA Reauthorization Act of 2023
December 18, 2024 – Today, Laura Chadwick, President and CEO of the Travel Technology Association, released the following statement in response to the issuance of the Federal Trade Commission’s final Junk Fee rule and the inclusion of S.2498, the Hotel Fees Transparency Act in the Continuing Resolution to be passed by Congress by the end […]
