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.
The American Privacy Rights Act could be the first step in enacting national data privacy reform
April 17, 2024—Today, the House Committee on Energy & Commerce held a hearing on the American Privacy Rights Act of 2024 (APRA), a draft bipartisan, bicameral bill that seeks to create a unified data privacy standard across the United States.
The Travel Technology Association (Travel Tech) has advocated for a single, uniform national privacy law that will protect traveler data and privacy no matter where they live and provide businesses certainty about their responsibilities.
Following the hearing, Laura Chadwick, President and CEO of Travel Tech said:
“A national data privacy standard will provide clarity and consistency for companies and consumers, improving compliance and leading to greater protection for travelers. Most travel companies by their very nature – from hotels to airlines to online travel agents and travel management companies – manage consumer data and could be impacted by such a law. We look forward to working with Members of Congress who are engaged in pushing forward a national standard.”
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.
“On behalf of members of the Travel Technology Association, we express our thanks to congressional leaders for including funding for the Assistant Secretary of Travel and Tourism office, and for the leadership of Rep. Dina Titus (NV-01), Senator Jacky Rosen (D-NV) and Senator Roger Wicker (R-MI) in its creation,” said Travel Tech President & CEO Laura Chadwick. “Travel Tech and our member companies stand ready to support the new Assistant Secretary and its important mission.”
“We congratulate Geoff Freeman and the team at the U.S. Travel Association along with other travel stakeholders for their tireless advocacy to secure this funding,” Chadwick added.
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.
Laura Chadwick attends Global Travel Tech launch event at the largest travel trade show
March 6, 2024 ― This week, the Travel Technology Association (Travel Tech)’s President & CEO Laura Chadwick is in Berlin for the launch of a new global travel association, Global Travel Tech (GTT) at ITB Berlin. Chadwick joined a panel discussion about Global Travel Tech with Emmanuel Mounier, Global Travel Tech Secretary General, and Mark Chan, Secretariat for ATTIA.
“Global Travel Tech was established to represent the travel tech industry on the global stage. It will elevate our key priority issues – transparency, competition, and sustainability – to ensure technology empowers travelers worldwide,” said Chadwick. “I commend our shared member companies under the leadership of Emmanuel Mounier in pursuing this essential work for our industry.”
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.
The Association Launches Online Resource to Highlight Its New Advocate Members and Others
February 28, 2024 – Today, the Travel Technology Association (Travel Tech) launched its “Innovate” page to highlight the contributions and efforts of its member companies working to empower traveler choice and pioneer new technologies and tools to improve the travel experience.
The page launches with profiles featuring the association’s Advocate members, including its newest member AirHelp. As part of Travel Tech’s first-ever member expansion, the new Advocate member tier is aimed at startups and small and medium-sized travel technology companies.
“Our Advocate members are working at the cutting edge of travel technology, developing new innovations to support both consumers and travel industry partners,” said Laura Chadwick, President and CEO of Travel Tech. “I am excited to highlight these companies and the vibrancy of our industry segment as a whole.”
In the months to come, Travel Tech will share more member profiles on its Innovate page, adding new stories about their work to innovate the travel experience through new technology and digital tools.
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 Celebrates Members’ Commitment to Innovation
December 21, 2024 – Laura Chadwick, President and CEO of the Travel Technology Association, released the following statement regarding the removal of the Hotel Fees Transparency Act (S.2498) along with other commerce-related bills from the Continuing Resolution passed by Congress late Friday night: “Travel Tech is disappointed that Congress did not include the Hotel Fees […]
