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.
Interested in participating in next year’s Showcase event? Learn more about joining Travel Tech.
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.
If you’re a Travel Tech member, download the clickable seal to demonstrate your travel tech industry leadership proudly. For non-members, consider joining the Travel Tech Association and gaining access to this exclusive benefit.
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.
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:
If all short-term rental units in Maui County are phased out, the following annual economic and fiscal losses could occur:
If all short-term rental units throughout the state are phased out by the counties, the following annual economic and fiscal losses could occur:
“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.”
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.
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.
June 5, 2024, Washington, DC – Travel Tech recently hosted its inaugural Policy & Innovation Showcase on Capitol Hill. Travel technology stalwarts like Sabre, Booking Holdings, Travelport, Chase Travel Group, and Amadeus were joined by Travel Tech’s Advocate-level members.
In her welcome remarks, Travel Tech President and CEO Laura Chadwick noted, “We’re especially excited to welcome several of our newest advocate members. These startups are addressing unique travel challenges in innovative ways.”
AirHelp, DreamGuest, and Group Travel Odyssey – three leading innovators in the travel technology space – demonstrated the cutting-edge technologies they’re using to revolutionize travel. Alongside other Travel Tech member companies, they had the opportunity to engage with Members of Congress, policymakers, and key stakeholders in the travel industry. Each of these organizations brings a unique perspective to the conversation around travel in Washington, DC and throughout the country.
AirHelp is the world’s largest tech company helping passengers navigate flight disruptions, taking the hassle out of applying for compensation. “By joining Travel Tech, we’re able to increase awareness of traveler rights and raise the voice of travelers with policymakers and regulators,” said CEO Tomasz Pawliszyn.
Group Travel Odyssey applies technology to streamline the group travel experience. By consolidating all aspects of group travel – from marketing and accounting to tour operations and on-the-road management – into one convenient, easy-to-use package, GTO puts trip information at travelers’ fingertips.
“It may sound corny, but I’ve seen enough of the world to know that the U.S. gets a lot of things right,” said GTO Director Kory Vrieze. “I’m excited to add GTO’s voice to Travel Tech’s efforts in Washington, DC. It’s critical that our industry educates lawmakers on the immense power technology holds to open up the world of travel to everyone.”
DreamGuest is a first-of-its-kind program that allows hosts to screen, incentivize, and reward considerate guests. By providing tools and opportunities for property owners to prevent disruptive individuals from staying at their homes and other facilities, they serve as a safeguard that empowers hosts to make informed decisions and reward good behavior.
“Throughout my career, I’ve witnessed the power of trade associations to bring together diverse interests to achieve common goals,” said DreamGuest co-founder Jason Scism. “I was eager to join the Travel Technology Association to start working with my peers to combine smart policies with new and innovative travel solutions.”
More than 200 attendees, including Rep. Sam Graves (R, MO-6), Rep. Dina Titus (D, NV-1), Rep. Darren Soto (D, FL-9), and Rep. Darrell Issa (R, CA-48) attended the Innovation & Policy Showcase.
Late last year Travel Tech expanded its membership eligibility for the first time in 25 years to include small and mid-sized companies. Participation at the Innovation & Policy Showcase is just one of the many benefits Advocate-level members can take advantage of.
Learn more about the Advocate-level membership: https://traveltech.org/join-us/
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.
May 29, 2024 — In recognition of its 25th anniversary, the Travel Technology Association (Travel Tech) held its first-ever Policy & Innovation Showcase last week 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 and learn about their work to make the travel experience more transparent, competitive, and innovative for consumers.
During the Showcase, Travel Tech member companies demonstrated how they are revolutionizing the travel industry by modernizing digital retail, using scalable technology, and embracing AI tools.
“For 25 years, Travel Tech members have consistently been at the forefront of travel innovation,” said Laura Chadwick, President & CEO of Travel Tech, during her remarks. “They changed how travelers access information, compare options, and shop for travel. Travel Tech has supported our members in bringing greater transparency and choice to the travel marketplace, and we continue to advocate for public policies to empower traveler choice.”
This year, Travel Tech presented its first annual Innovation Leadership Award to two Congressional champions – Congressman Sam Graves (R, MO-6), Chairman of the U.S. House Transportation and Infrastructure Committee, and Congresswoman Dina Titus (D, NV-1), Co-Chair of the Congressional Travel and Tourism Caucus.
“We applaud Chairman Graves and Congresswoman Titus’s significant contributions and dedication to improving the travel experience, from research and booking to take-off and landing, and beyond,” Chadwick said.
We applaud their significant contributions and dedication to improving the travel experience, from research and booking to take-off and landing, and beyond.
Rep. Darren Soto (D, FL-9) and Rep. Darrell Issa (R, CA-48) were among the more than 200 Hill attendees who had the benefit of learning first-hand the impact of travel technology companies.
Showcase event sponsors and exhibitors included Sabre, Booking Holdings, Travelport, Chase Travel Group, Amadeus, Tripadvisor, Expedia Group, and Airbnb. Travel Tech advocate members were also in attendance as exhibitors, including AirHelp, DreamGuest, and Group Travel Odyssey. Phocuswright served as the event media partner.
The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy that promotes marketplace transparency and competition. Travel Tech represents the leading innovators in travel technology, including 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.
May 20, 2024 — In recognition of its 25th anniversary, the Travel Technology Association (Travel Tech) will hold its first-ever Policy & Innovation Showcase event on Capitol Hill on Wednesday, May 22nd, 2024 from 5:00 to 7:00 pm.
This widely-attended event will be held in the Rayburn House Office Building foyer, overlooking the U.S. Capitol, during National Travel & Tourism Week. Policymakers, their staff, and members of the media will have the opportunity to interact with Travel Tech member companies and learn about their work to make the travel experience more transparent, competitive, and innovative for consumers.
Event sponsors and exhibitors include Sabre, Booking Holdings, Travelport, Chase Travel Group, Amadeus, Tripadvisor, Expedia Group, and Airbnb. Other exhibitors include AirHelp, DreamGuest, and Group Travel Odyssey. Phocuswright will also be attending the event as the media partner.
At the Showcase, policymakers and congressional staff will learn how Travel Tech member companies are ushering in the future of travel by modernizing digital retail, using scalable technology, and embracing AI tools.
The event will feature remarks by Travel Tech President & CEO Laura Chadwick, who will present Travel Tech’s Innovation Leadership Award to members of Congress selected by the Travel Tech Board of Directors. We are honoring the U.S. House of Representatives Committee on Transportation and Infrastructure Chairman Sam Graves (R, MO-6) and the Congressional Travel and Tourism Caucus Co-Chair Dina Titus (D, NV-1), for their achievements in empowering traveler choice and championing travel innovation.
“Twenty-five years ago, our industry pioneers knew public policy supporting transparency, competition, and innovation would be essential to innovating the travel sector,” said Chadwick. “These same issues are as relevant today as they were back then. We look forward to celebrating both our history and our future at our Policy & Innovation Showcase.”
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.
May 16, 2024, Washington, DC – Today, the Travel Technology Association (Travel Tech) applauded the signing of the Federal Aviation Administration (FAA) Reauthorization Act of 2024 (H.R. 3935) into law by President Joe Biden. This new law is the result of a comprehensive, bipartisan effort to reauthorize the FAA and aviation infrastructure and safety programs for five years.
“Congressional leaders worked tirelessly to pass this legislation and we appreciate their consideration and inclusion of many of Travel Tech’s priorities,” said Laura Chadwick President and CEO of Travel Tech. “By giving Travel Tech members a voice in important policymaking efforts at the U.S. Department of Transportation, our industry can work to expand the transparency and choice travelers have come to expect.”
Several of Travel Tech’s legislative priorities were reflected in the final version of the bill. Ticket agents, including online travel agents, Global Distribution Systems, and travel management companies, are a critical part of the travel ecosystem. The new law requires that ticket agents must now be consulted as appropriate by the U.S. Department of Transportation’s (DOT) Aviation Consumer Protection Advisory Committee (ACPAC), a critical body responsible for evaluating and providing recommendations on consumer protection programs in the aviation industry. (see Sec. 508)
Ticket agents will now be able to provide valuable insights about the indirect distribution channel not currently reflected in the advisory committee and help policymakers meet their mission. This is a significant step forward that will enhance the role of ticket agents and improve the overall travel experience for consumers. A Ticket Agent representative has also been included in the law’s new Passenger Experience Advisory Committee, which is tasked with advising the Secretary and the Administrator in carrying out activities relating to the improvement of the passenger experience in air transportation customer service. (see Sec. 517)
Travel Tech also commends Congress for directing the DOT to begin the rulemaking process on refund requirements between airlines and ticket agents. Ticket Agents are not in a financial position to provide refunds without first receiving the passengers’ funds back from the airlines, and it is crucial that the Secretary of Transportation begin to set this standard as quickly as possible. (see Sec. 503, Application to Ticket Agents)
Finally, the new law will keep intact the DOT’s Full Fare Advertising Rule (FFAR), a critical policy that requires the entire price for airfare, including government-assessed taxes and fees, be disclosed to consumers in the first instance following an itinerary search. The FFAR was to be repealed per the House-passed version of the bill. The FFAR allows consumers to effectively compare and shop for the best airline ticket options 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.
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.”
Over 100 amendments, including #1954, have been filed in the U.S. Senate ahead of consideration of the newly released bipartisan, bicameral bill to reauthorize the Federal Aviation Administration (FAA). The current authorization for the Federal Aviation Administration ends on May 10, 2024.
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 […]
