Monday, June 30, 2025 — Today, Laura Chadwick, President and CEO of the Travel Technology Association, released a statement following Canada’s decision to rescind the proposed Digital Services Tax (DST):
“Travel Tech welcomes Canada’s decision to rescind the retroactive Digital Services Tax (DST) previously set to take effect today. This move signals a positive step toward renewed trade negotiations.”
“While this is meaningful progress, continued dialogue between the U.S. and global partners is essential to ensure international tax policy does not unfairly burden the travel technology industry. This includes continued opposition to DSTs across jurisdictions. DSTs create complex overlapping liabilities, subjecting a single transaction to multiple jurisdictions, resulting in double or even triple taxation and higher compliance costs that deter market expansion.”
“Travel Tech encouraged by Canada’s decision to drop the DST and return to the negotiation table. We thank President Trump for his leadership in opposing the Canadian DST and for his ongoing efforts to push back against other discriminatory digital tax proposals around the world. Travel Tech remains committed to supporting fair, consistent, and innovation-friendly tax policies across borders.”
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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 Bradford Williamson of Glen Echo Group at 202.870.3234 or bwilliamson@glenechogroup.com.
Wednesday, March 11, 2025 — Yesterday, the Travel Technology Association (Travel Tech), a non-profit dedicated to promoting and protecting the travel technology industry, sent a letter to U.S. Trade Representative Jamieson Greer in response to a request for comments included in President Trump’s Memorandum Defending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties issued on February 21, 2025.
Travel Tech’s comments emphasize the discriminatory and non-reciprocal nature of DSTs imposed by certain foreign jurisdictions. Since DSTs are imposed on marketplace activity and not companies selling directly to customers, U.S.-headquartered travel comparison platforms are disproportionately affected by these taxes, which distort competition, hinder growth, and raise travelers’ costs.
“Travel Tech’s member companies connect millions of travelers with hundreds of thousands travel service providers across the globe. They support travel service providers in the sale of their quickly-expiring goods, such as hotel rooms or airline tickets on a particular day and time,” said Laura Chadwick, President & CEO of Travel Tech. “Yet Digital Services Taxes are only imposed on travel comparison platforms, not the travel service providers, even though they are selling the same exact goods. DSTs unfairly undermine the transparency and competition that Travel Tech members offer to travelers.”
The letter also highlights Travel Tech’s concerns about DSTs, including double taxation, compliance challenges, financial burden, lost revenue, and opportunities for American innovation.
These comments follow Travel Tech’s recent letter to the Trump Administration emphasizing the impacts of Global DSTs on travel technology companies, as well as another letter sent by Travel Tech to the former U.S. Trade Representative on Canada’s DST tax.
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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.
Friday, February 7, 2025 — The Travel Technology Association (Travel Tech), a non-profit dedicated to promoting and protecting the travel technology industry, sent a letter to the U.S. Department of the Treasury and the Office of the U.S. Trade Representative emphasizing the impacts of Global Digital Services Taxes (DSTs) on travel technology companies and the travel industry at large.
Travel Tech’s letter urges the Trump Administration to leverage all available tools to counteract DSTs, which unfairly target travel tech companies utilizing “digital interfaces” such as online travel agencies (OTAs), short-term rental platforms, global distribution systems (GDSs), and travel management companies. This letter follows an earlier letter sent by Travel Tech to the former U.S. Trade Representative in response to Canada implementing the DST last year.
“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 DSTs on travel marketplaces threatens to undermine transparency and distort competition in the travel industry, ultimately harming consumers.”
In its letter, Travel Tech highlights how DSTs disproportionately impact travel technology companies by taxing revenue rather than net income, disregarding differences in business models and cost structures. Travel Tech members typically operate on slim profit margins, facilitating transactions between service providers and consumers, as well as service provider-to-service provider or B2B transactions – without retaining the majority of revenue. This tax model risks pushing many companies from profitability into loss, undermining their ability to compete globally.
Travel Tech also highlights the risk of double taxation, where multiple jurisdictions impose taxes on the same revenue streams, creating confusion and inefficiency. Furthermore, the introduction of DSTs requires new tools and metrics to track and calculate taxes based on user location – information that may not be easily accessible for B2B travel technology providers and may conflict with existing data protection standards. This not only burdens the companies themselves but also trickles down to consumers, who face higher costs for travel services as companies attempt to absorb these taxes.
Read Travel Tech’s full letter 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 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.
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.
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