Reviews are crucial to the travel industry, helping consumers choose between competing options. With the advent of generative AI, efforts to police the authenticity of such reviews have become far more challenging.
While deceptive reviews have always been illegal, last month, the Federal Trade Commission issued a final rule spelling out clearly deceptive practices, strengthening enforcement actions, and banning AI-generated fake reviews.
Join Travel Tech on Tuesday, September 17th, 2024, at 1:00 pm for a free webinar featuring attorneys Stephen Conley, Duane Pozza, and Kathleen Scott of Wiley for a deep dive into the FTC’s new final rule and what it means for you and your travel tech company.
“Travel Tech is pleased the FTC adopted our recommendation regarding the “knew or should have known” standard for review hosting platforms. Doing so reflects that the rule is targeting bad actors that intend to commit fraud through fake reviews,” saidLaura Chadwick, President and CEO of the Travel Technology Association.
“The integrity of reviews is essential to maintaining the trust and confidence of customers as they plan their travel near and far. Travel Tech members invest significant resources in robust trust and safety operations to protect the reliability of the reviews appearing on their platforms.”
Last year, Travel Tech submitted comments in response to the FTC’s then-proposed rule, urging the Commission to revise its “know or could have known” standard to avoid unduly burdening review platforms. In the Final Rule, the Commission wrote that “…the most appropriate standard for imposing liability under § 465.2(b)…is the “knew or should have known standard.” As discussed above, those paragraphs were not intended to apply to consumer review hosting and § 465.2(d)(2) now contains an explicit exemption for consumer review hosting.”
The FTC’s Final Rule also prohibits the sale or purchase of fake or deceptive reviews and allows the agency to seek civil penalties against knowing violators. It bans company-controlled review websites, review suppression, insider reviews and consumer testimonials, and misuse of fake social media indicators, among other provisions.
Travel Tech will host a free industry webinar, “#1 Five Star Webinar: Unpacking the New FTC Rule on Fake and Deceptive Reviews” on Tuesday, September 17th featuring attorneys Stephen Conley, Duane Pozza, and Kathleen Scott of Wiley. Register here.
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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.
August 15, 2024 – Today, Laura Chadwick, President and CEO of the Travel Technology Association, released the following statement in response to the recent decision in the United States v. Google LLC case, which found that Google violated Section 2 of the Sherman Antitrust Act:
“This landmark ruling from U.S. District Court Judge Amit Mehta proves what the travel technology industry already knew: Google abuses dominance in the search engine market. In doing so, it has an outsized impact on travel by suppressing competition and transparent choice for consumers.
“The Travel Technology Association is grateful that the U.S. Department of Justice pursued this case. While we fully expect Google to appeal this decision and understand the case will continue to move through the court system, we are hopeful that the court’s potential remedies will limit Google’s overall ability to suppress consumer choice and restore competition to the search market.”
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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.
Join the Travel Technology Association for the second annual Soapbox Industry Debate at the Phocuswright Conference in Phoenix, AZ held on November 19-21, 2024.
The Soapbox is a forum for travel technology innovators to voice their thoughts and opinions on the hot button policy issues of the day and learn about advocacy efforts in the industry.
This year’s session will unpack the impact of the U.S. elections on the travel technology industry. An expert panel will kick off the debate followed by an interactive discussion covering issues like AI regulation, concerns about big tech, data privacy, “junk” fees, support for startups and more.
Join Laura Chadwick, President and CEO, Travel Technology Association, Lara Tennyson, Head of US Federal Affairs, Booking Holdings, Emmett O’Keefe, Director of Federal & State Government Relations, Sabre Inc., and Jason Scism, Founder and CEO, DreamGuest as we debate these critical industry topics.
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.
Legislation includes key provision to protect intermediaries when hotels provide inaccurate resort fee information
Wednesday, July 30, 2024 – The Travel Technology Association (Travel Tech) issued a letter of endorsement for an amendment to S.2498, the Hotel Fees Transparency Act of 2024, offered by Senator Amy Klobuchar (D-MN) and supported by Senator Jerry Moran (R-KS). The amended bill was reported favorably by U.S. Senate Commerce Committee today.
S.2498, the Hotel Fees Transparency Act, as amended, will provide much-needed transparency about resort and other mandatory fees directly benefiting American consumers. It will require consumers to be shown the total price for hotel rooms and other places of short-term lodging, including the nightly rate and all mandatory fees, for the first time in federal law. This consistency is critical since consumers very often search for options across state lines.
“Travel Tech strongly supports the amended Hotel Fees Transparency Act. This legislation will provide consumers with complete and consistent pricing details—not only the room rate but also the mandatory fees set and assessed by the hotel—no matter where they live and how they shop for lodging,” stated Laura Chadwick, President and CEO of Travel Tech. “Promoting transparency is a top priority of Travel Tech and its members. S.2498 will enable travelers to plan more effectively while promoting fair marketplace competition.”
S.2498, the Hotel Fees Transparency Act, as amended, includes an important provision sought by Travel Tech to protect the indirect distribution channel when hotels provide inaccurate resort fee information. The bill provides intermediaries with a “rebuttable presumption of compliance”
“Travel Tech is grateful to have worked with Senators Klobuchar and Moran, Chairwoman Cantwell, and Ranking Member Cruz on this important, bipartisan common-sense provision,” said Chadwick. “Only hotels know if their resort fees are accurate. S.2498, as amended, rightly requires them to provide accurate resort fee information to consumers shopping for travel in the direct and indirect channels.”
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.
Tax has a disproportionate and outsized impact on travel tech industry
July 24, 2024 – Today, Travel Tech sent a formal letter to Ambassador Katherine Tai, the United States Trade Representative, strongly urging the Biden Administration to take decisive action in response to Canada’s newly implemented digital services tax (DST), given its outsized impact on the travel technology industry.
The Canada digital service tax applies to companies providing digital services, including online marketplaces, with an annual global revenue threshold of at least €750 million and revenue of at least CAD $20 million from digital services provided to Canadian users and does so retroactively to January 2022.
“Our members are at the forefront of digital innovation in travel, connecting consumers with travel service suppliers,” stated Laura Chadwick, President & CEO of Travel Tech. “The unequal impact of Canada’s DST threatens to undermine transparency and distort competition in the travel industry, ultimately harming consumers.”
Travel Tech’s letter details how Canada’s bluntly applied digital services tax on online marketplaces only impacts travel technology industry members but not individual travel service suppliers like hotels and airlines, even though they are selling the same exact rooms and airline tickets.
The letter also addresses Travel Tech’s significant objections to Canada’s methodology of taxing gross revenue rather than net income for digital services. It points out that while digital service companies may earn the same gross revenue, they may have a different cost base resulting in very different margins. For example, even though most of the revenue collected by Online Travel Agents is conveyed to individual travel service suppliers, they will still be responsible for the tax on the full revenue amount.
Travel Tech also expresses its concern about the dangerous precedent of Canada’s digital services tax. Canada’s unilateral action will undermine ongoing international efforts, led by the OECD and G20, to establish a consensus on global digital taxation standards.
“We urge a swift and robust response to Canada’s DST,” Chadwick concluded. “By leveraging USTR’s authority, the United States can advocate for a resolution that upholds fairness, transparency, and the principles of international cooperation in taxation.”
About 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.
Video highlights Travel Tech members, large and small, advocating for the travel tech industry with Congressional policymakers
In May 2024, Travel Tech held its first annual Policy & Innovation Showcase on Capitol Hill. Culminating in more than 200 attendees, the event provided an opportunity for policymakers, their staff, and members of the media to interact with Travel Tech member companies, both large and small, and learn about their work to make the travel experience more transparent, competitive, and innovative for consumers.
Check out Travel Tech’s recap video for highlights from the event:
Save the Date: Travel Tech Policy & Innovation Showcase, May 2025
Travel Tech is excited to announce that preparations are already underway for next year’s Showcase event. Mark your calendars for the Travel Tech Policy & Innovation Showcase in May 2025, where member companies will have the opportunity to interact with policymakers, their staff, and media as well as participate in panel discussions and meet with their Congressional representatives.
Seal identifies member companies, both large and small, as travel tech industry leaders
Monday, July 1st, 2024 — Today, the Travel Technology Association (Travel Tech) introduced a web-verified Membership Seal for its members’ exclusive use. This seal identifies each Travel Tech member company as a leader supporting the travel technology industry through education and advocacy.
“The travel technology industry now and in the future will be greatly impacted by public policy, whether it’s federal, state and local, or international. And it’s no longer limited to traditional travel issues but new and sweeping tech policies, too,” said Laura Chadwick, Travel Tech President & CEO. “Travel Tech members, both large and small, have made the commitment to ensure the travel tech industry’s voice is heard and heeded by policymakers.”
Travel Tech’s new membership seal helps policymakers and the public to identify genuine Travel Tech members. The seal is an exclusive benefit for Travel Tech members and can only be downloaded by them.
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.
Study shows short-term rentals generated $2.2 billion in economic activity for Maui and $11.3 billion across Hawaii in 2023
June 13, 2024, in KAHULUI – Today, the Travel Technology Association and Hawaii economic consultant Kloninger & Sims released a study on the economic and fiscal impacts of the short-term rental market in Maui County and across the state.
According to the report, under Mayor Richard Bissen’s proposal to phase out approximately 7,000 short-term rentals on the Minatoya list, Maui County could lose up to $91.8 million in annual tax revenue and up to $280.9 million in total tax losses if all short-term rentals are discontinued in the county. If other counties followed suit and phased out short-term rentals, the State could lose as much as $554 million in annual tax revenue.
The study also underscores the significant economic activity short-term rentals contribute to Maui and Hawaii yearly. The analysis found that short-term rental guests in Maui County directly spent $2.2 billion in 2023, resulting in $4 billion in economic activity. Across Hawaii, short-term rentals generated $11.3 billion in economic activity in 2023 and 66,000 jobs.
Key Findings:
If all short-term rental units on the Minatoya List are phased out, Maui County could incur the following annual economic and fiscal losses:
$53.3 to $91.8 million in real property (RPT), transient accommodations (TAT), and general excise tax (GET) to Maui County
$1.3 billion in economic output
7,800 jobs
If all short-term rental units in Maui County are phased out, the following annual economic and fiscal losses could occur:
$128.3 to $280.9 million in RPT, TAT and GET to Maui County
$2.2 billion in economic output
23,000 jobs
If all short-term rental units throughout the state are phased out by the counties, the following annual economic and fiscal losses could occur:
$803.3 to $955.9 million in taxes to the State and Counties, that includes:
$554 million in State TAT and GET
$121 million in all county GET and TAT surcharges
$128.3 to $280.9 in Maui RPT
$11.3 billion in economic output
66,000 jobs
“Roughly a third of all visitors to Hawaii use short-term rentals. On Maui, that ratio is even higher,” said Erik Kloninger, economist and partner of Kloninger & Sims. “Reducing the number of short-term rentals would limit accommodation options and likely lead to a decrease in visitors, resulting in job losses across various sectors of the economy and a significant shortfall in tax revenue for Maui County and the State.”
“Short-term vacation rentals have been a staple of the Maui economy for decades,” said Laura Chadwick, President and CEO of Travel Tech. “They’ve opened the island’s beauty to countless visitors and provided jobs and tax revenue to support the local community. We hope Maui and Hawaii leaders will consider other options to balance the economic benefits of short-term rentals and housing needs of the community.”
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.
About Kloninger & Sims Consulting, LLC
Kloninger & Sims is led by principals Erik Kloninger and Mimi Sims. The firm focuses primarily on market and financial analyses for Hawaii’s hospitality and real estate industries. Kloninger & Sims has worked on various projects in the private, non-profit, and government sectors including projects for the Hawaii Tourism Authority (HTA), Hawaii State Department of Business Economic Development and Tourism (DBEDT), major hotel brands, ali‘i trusts, and many others.
Travel Tech Releases New Economic Analysis on Costs of Phasing Out Legal Short-Term Rentals on Maui
August 21, 2024 – Today, the Travel Technology Association (Travel Tech) released the following statement following the release of the Federal Trade Commission’s (FTC) final rule prohibiting fake and deceptive reviews: “Travel Tech is pleased the FTC adopted our recommendation regarding the “knew or should have known” standard for review hosting platforms. Doing so reflects […]
