Urges Government of Canada to Modify Actions per Travel Technology Industry Concerns
The Travel Technology Association (Travel Tech) submitted comments in response to the Canadian Government’s proposed Digital Services Tax Act (“DSTA”), which would impose a new, unilateral, and retroactive tax on travel technology industry members, negatively impacting their operations and ability to empower traveler choice and marketplace competition.
“In its current state, the proposed DSTA threatens the still-active recovery of the global travel tech marketplace with ambiguous and confusing language,” wrote Laura Chadwick, President and CEO of Travel Tech. “We are eager to work with the Government of Canada to ensure the companies who are required to comply can comply.”
Travel Tech’s comments detail how the proposed DSTA should be modified:
First, the Government of Canada should increase the DSTA threshold to align with OECD Pillar One, Amount A (i.e., EUR 20BN revenue and 10% Profit Before Tax margin). In an industry based on price comparisons, this will ensure companies can maintain their critical price competitiveness.
Second, the Government of Canada should allow a credit for DST, or any similar tax, paid in another jurisdiction to avoid double taxation. As written, the language regarding revenue sourcing rules is ambiguous and confusing, therefore, this addition will ensure clarity about taxation categories.
Finally, the Government of Canada should remove the two-year retroactivity of the DST and apply it only to revenues occurred on or after the date of enactment. A tax of this magnitude should not be backward-looking, especially after years of good-faith negotiation.
Canada is pursuing a 3 percent tax on the revenues of large technology companies as OECD-member nations continue to negotiate a global approach to digital services taxes.
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.
As part of its mission to promote transparency and competition in the travel marketplace through education and advocacy, the Travel Technology Association has developed an infographic demonstrating how different travel tech industry segments empower traveler choice.
Travel Tech’s new infographic was released as part of the organization’s updated website launch. The site now features a new, modernized Travel Tech logo, in-depth policy briefs on Travel Tech priority issues, and a new Policy Action Center, which provides industry members with a tool to communicate directly with their elected representatives.
Ahead of the return of Congress to Washington, D.C. next week, Travel Tech has met with U.S. Senate offices to discuss the airline refund obligations of ticket agents. Late last year, the U.S. Department of Transportation (DOT), in its proposed Airline Ticket Refunds and Consumer Protections rulemaking, sought to require ticket agents to refund customers within seven days, even if the airline had not yet returned the funds.
Travel Tech successfully advocated for bill language included in the U.S. House of Representatives-passed FAA Reauthorization that would require a refund only when such ticket agent possesses, or has access to, the funds of a passenger.
“Simply put: our members can only refund what they have in their possession. The DOT’s proposed rule on the timing of refunds places ticket agents in a precarious financial position, no matter their size, having to make refunds without first receiving the customers’ funds back from airlines,” said Laura Chadwick, president & CEO of Travel Tech.
“We were pleased the House Transportation and Infrastructure Committee heard us and included this sensible provision in their bill,” Chadwick continued. “We are continuing our efforts to secure a similar provision in the U.S. Senate’s FAA Reauthorization.”
As it stands today, the authorization for the Federal Aviation Administration (FAA) will expire on September 30, 2023. The Senate Commerce, Science and Transportation Committee has not yet considered or cleared its FAA Reauthorization legislation due to an ongoing impasse over pilot training requirements.
Travel Tech Will Share How Industry Members Can Advocate for Pro-Innovation Public Policies
The Travel Technology Association (Travel Tech), the voice of the travel technology industry and consistent advocate for public policy that supports a competitive and transparent marketplace, will sponsor the annual Phocuswright Conference, being held in Ft. Lauderdale, Florida, from November 13-16. This year’s theme — “You, Me & The Machine” — was recently announced.
“We are so pleased to be a part of the Phocuswright Conference this year and welcome its focus on artificial intelligence,” said Laura Chadwick, president & CEO of Travel Tech. “Policymakers in Washington, DC are seeking to regulate this technology in ways that will directly impact the travel sector. We will be at the conference to share how industry members can advocate for pro-innovation public policies on this topic and others.”
As part of its sponsorship, Travel Tech will host a booth in the Exhibit Showcase. Let us know if you will be attending Phocuswright and are interested in learning how to advocate for pro-innovation public policies for the travel tech industry:
Advancing Policy Priorities for Industry Supporting Ticket Agents and Traveler Choice
[Arlington, VA] [August 23, 2023] – The Travel Technology Association (Travel Tech), the voice of the travel technology industry and consistent advocate for public policy that supports a competitive and transparent marketplace, announced Sabre Corporation has rejoined the organization as a board member. Sabre Corporation is a travel technology company based in Southlake, Texas. It is the largest global distribution systems provider in North America.
“I am proud to welcome back Sabre as a Travel Tech board member,” stated Laura Chadwick, president and CEO of Travel Tech. “Given the resurgence of interest in travel post-pandemic by both consumers and policymakers alike, our advocacy on behalf of the travel technology industry has become all the more essential to empower traveler choice.”
“The Sabre team looks forward to working alongside travel tech pioneers and policymakers to promote the growth and continued success of the travel technology industry,” stated Ann Bruder, executive vice president and chief legal officer of Sabre. “Travel Tech’s education and advocacy efforts are key to ensuring public policy supports a competitive, transparent, and innovative travel marketplace.”
Global distribution systems (GDSs) are the travel industry data networks that connect service providers (airlines, hotels, cruises, car rental companies, tour companies) with travel agents. Through real-time, automated transactions, these companies help consumers book more than 60 million hotel rooms, 50% of all flights worldwide, and countless cruises, car rentals, and tours. These companies also provide IT services to airlines, airports, hotels, and other hospitality organizations.
In October 2023, Travel Tech will make a special announcement about its plan to expand its membership. More information on this and other industry insights are available by subscribing to Travel Tech’s free, weekly Passport Newsletter.
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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 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 Dan Rene of kglobal at 202-329-8357 or daniel.rene@kglobal.com.
About Sabre Corporation
Sabre Corporation is a leading software and technology company that powers the global travel industry, serving a wide range of travel companies including airlines, hoteliers, travel agencies and other suppliers. The company provides retailing, distribution and fulfilment solutions that help its customers operate more efficiently, drive revenue and offer personalized traveler experiences. Through its leading travel marketplace, Sabre connects travel suppliers with buyers from around the globe. Sabre’s technology platform manages more than $260B worth of global travel spend annually. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world.
Advocating for Federal Legislation Creating Uniform National Privacy Standards
[Arlington, VA] [August 15, 2023] — The Travel Technology Association (Travel Tech), the voice of the travel technology industry and consistent advocate for public policy that supports a competitive and transparent marketplace, announced it has joined the United for Privacy: End the Patchwork coalition. The purpose of the coalition is to advocate for comprehensive federal privacy legislation that creates a uniform national standard, preempts state law, and ends the privacy patchwork of various state regulations.
“Travel Tech’s members are committed to protecting the personal information of their customers. Trust and transparency are critical in the online travel marketplace, and our members strive every day to meet and surpass consumers’ expectations regarding the use of their personal information,” stated Laura Chadwick, president and CEO of Travel Tech. “However, without clarity and consistency of policy or regulation, innovation is disrupted and marketplace confusion results.”
“We look forward to working with the United for Privacy coalition to advocate for Congress to pass a national framework, consistent across all states and jurisdictions, that effectively preempts state consumer privacy and data security laws,” Chadwick continued. “A comprehensive national data privacy framework will allow businesses and consumers to transact more safely, effectively, fairly, and efficiently.”
Travel Tech joins several leading trade associations in support of the United for Privacy coalition, including the Business Roundtable, US Chamber of Commerce, Consumer Technology Association, NetChoice, and others.
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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 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 Dan Rene of kglobal at 202-329-8357 or daniel.rene@kglobal.com.
With the recent debut of Apple’s Vision Pro, its new long-awaited augmented and virtual reality headset, interest in the use of immersive technologies – collectively known as “XR” — to support travelers and travel companies alike continues to grow. This cutting-edge technology has the potential to:
In this special Travel Tech webinar, learn more from Cortney Harding, a leading authority on emerging technologies and CEO of the award-winning Friends with Holograms XR creative agency. Harding introduces augmented and virtual reality, how she’s seen the technology grow and develop over the past few years and discusses the potential for XR in the travel industry.
Fill out this form to access the recording:
Adding “Ticket Agents” to the U.S. Department of Transportation’s Aviation Consumer Protection Advisory Committee (ACPAC) is high on the Travel Technology Association’s federal legislative advocacy priority list.
“Ensuring our member companies have a seat at the policymaking table is core to Travel Tech’s mission as the industry’s trade association,” said Laura Chadwick, president & CEO. “Whether it’s at the U.S. Department of Transportation, in the halls of Congress or across the country with state and local policymakers, we make our members’ voices heard as legislation and regulations are developed.”
Like all federal advisory committees, ACPAC provides leaders at the U.S. Department of Transportation (DOT) with access to information and advice on a broad range of issues affecting federal policies and programs. ACPAC was established by Section 411 of the 2012 FAA Reauthorization Act to “advise the Secretary in carrying out activities relating to airline customer service improvements.” Learn more about ACPAC’s past meetings and recommendations.
Membership on ACPAC is set by statute and requires an act of Congress to add a new member. Current membership is limited to a representative from four different groups: air carriers; airport operators; state or local governments with expertise in consumer protection matters; and nonprofit public interest groups with expertise in consumer protection matters.
However, one major group involved in the sale of air transportation and associated consumer protection issues – ticket agents – was inexplicably omitted when the ACPAC was established.
Adding ticket agents to ACPAC will better equip the advisory committee to address growing airline customer service issues. Online ticket agents sell approximately 50% of all airline tickets to consumers every year, putting them in the distinctive position to share a deep knowledge and understanding of refunds, ancillary fees, and cutting-edge technology.
Travel Technology Industry Advocates for Transparency, Supporting Traveler Choice
[Arlington, VA] [July 26, 2023] — The Travel Technology Association (Travel Tech), the voice of the travel technology industry and consistent advocate for public policy that supports a competitive and transparent marketplace, welcomed legislation introduced by Senator Amy Klobuchar and Senator Jerry Moran establishing federal guidelines regarding resort fees.
“Promoting transparency is a top priority for the Travel Technology Association and its members. It is essential that travelers make informed decisions without hidden surprises or unexpected expenses. When travelers have complete pricing details, they can accurately compare different options and make choices that align with their preferences and budget,” stated Laura Chadwick, President and CEO of Travel Tech.
“Public policy that supports clear and upfront information about the total cost of travel early in the planning process and across all booking and advertising channels encourages competitive pricing practices. There should be a single national standard that will create uniformity and certainty for lodging operators, travel technology companies, and most of all, travelers, who will have a better understanding of what is included in advertised prices.
“We look forward to working with Senators Klobuchar and Moran on the Hotel Fees Transparency Act to ensure travelers have the ability to accurately compare different options and make choices that best suit their preferences.”
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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 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 Dan Rene of kglobal at 202-329-8357 or daniel.rene@kglobal.com.
Inclusion of Travel Technology Industry Priorities Support Travelers and Industry Members
On Thursday, July 20th, the Travel Technology Association (Travel Tech), the voice of the travel technology industry and consistent advocate for public policy that supports a competitive and transparent marketplace, praised legislators for advancing H.R. 3935, the Securing Growth and Robust Leadership in American Aviation Act through the U.S. House of Representatives.
“We thank the leaders of the House Transportation & Infrastructure Committee for their exceptional efforts on the FAA Reauthorization,” stated Laura Chadwick, President and CEO of Travel Tech. “H.R. 3935, the Securing Growth and Robust Leadership in American Aviation Act, includes key priorities for which Travel Tech expressly advocated to better support travelers and the Travel Tech member companies that serve them.”
“We are also especially grateful to Rep. Dina Titus and Rep. Gus Bilirakis, chairs of the House Travel & Tourism Caucus, along with Reps. John Garamendi, Marco Molinaro, and Susan Brownley for introducing H.R. 3780, the ACPAC Modernization Act,” said Chadwick. “Due to Rep. Titus’s leadership, ticket agents are one step closer to being able to offer their unique expertise on improving airline customer service.”
H.R. 3780, the ACPAC Modernization Act, was merged into the House-passed FAA Reauthorization bill (H.R. 3935). It will add a ticket agent representative to the U.S. Department of Transportation’s (DOT) Aviation Consumer Protection Advisory Committee (ACPAC).
Prior to the House vote on H.R. 3935, Travel Tech sent a letter to Congress to express its support for the legislation. Travel Tech’s letter, however, noted its opposition to the inclusion of Section 701 of the bill, which repeals the DOT’s long-standing Full Fare Advertising Rule. This rule requires that the entire price for airfare, including taxes and fees, be disclosed to consumers in the first instance following an itinerary search.
Laura Chadwick, Travel Tech’s President & CEO, argued that “Its repeal will undermine consumers’ ability to effectively comparison shop and choose the best travel option to meet their needs and budget.”
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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 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 Dan Rene of kglobal at 202-329-8357 or daniel.rene@kglobal.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 […]
