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.
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:
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.
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.
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.
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.
February 8, 2024 — The Travel Technology Association (Travel Tech) filed comments on the FTC’s Trade Regulation Rule on Unfair or Deceptive Fees NPRM. Travel Tech expressed support for the Commission’s continued efforts to enhance competition and pricing transparency for consumers but advocated that revisions be made about who should be held liable when inaccurate mandatory fee information is provided by travel service providers, including hotels.
Travel Tech provided detailed information in its comments about the indirect distribution channel, where millions of price points are transmitted from hotels and other travel service providers to Travel Tech member companies and other intermediaries. This complex process is critical to enabling the price and quality comparison tools consumers rely on.
“Travel Tech is committed to enhancing the consumer travel experience through transparency and competition,” said Laura Chadwick, President and CEO of Travel Tech. “However, the FTC’s proposed rule assumes that hotels will pass along its mandatory fee information – charges only they know and possess – but this is not always the case.”
Travel Tech strongly urged the Commission to revise its proposed rule to make clear that Intermediaries are not liable when Travel Service Providers fail to provide accurate, complete, and timely mandatory fee information as long as Intermediaries make reasonable efforts to receive such information.
Six years ago, Congress passed a law that held that intermediaries cannot be found liable when air carriers operating in the United States fail to provide information or data is required for intermediaries to comply with a rule about customer service information (FAA Reauthorization Act of 2018, Pub. L. No. 115-254 § 427, 132 Stat. 3340.). In addition, thirty-nine states have similar laws in place when sellers provide inaccurate sales tax information to marketplaces. In its comments, Travel Tech argued that the FTC should apply similar standards in its final rule.
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.
Major Activity Anticipated by Congress, Regulatory Agencies, and State Legislatures in 2024
January 10, 2024 — With Members of Congress returning to Capitol Hill this week, Travel Tech released a briefing on the state of play for public policy impacting the travel industry. As interest in travel continues to rebound with consumers and policymakers, the association is keyed into ongoing legislative and regulatory fights on behalf of travel tech companies.
Advocating for One National Mandatory Fee Price Transparency Law and Enforcement Fairness for Travel Tech Companies
Policymakers on both the federal and state levels continue to pursue efforts to hold hotels accountable when they withhold information about their mandatory fees from travelers. Travel Tech supports a single, national standard and a common-sense provision to account for situations when hotels fail to provide accurate and complete information to price comparison sites.
Action Areas: Federal Trade Commission’s Trade Regulation Rule on Unfair or Deceptive Fees proposed rule (NPRM) (comments due February 7, 2024), S. 2498, the Hotel Transparency Act of 2023, and H.R. 6543, the No Hidden Fees on Extra Expenses for Stays (FEES) Act.
Anticipating Final Rules on Refunds and Ancillary Fee Transparency by the U.S. Department of Transportation (DOT) in February and March
According to the federal government’s Unified Regulatory Agenda, the DOT will issue its final rules on Airline Ticket Refunds and Consumer Protections in February and Enhancing Transparency of Airline Ancillary Service Fees in March of this year. Travel Tech filed comprehensive comments on both proposed rules, as each will majorly impact the travel technology industry.
Action Areas: DOT’s Airline Ticket Refunds and Consumer Protections and Enhancing Transparency of Airline Ancillary Service Fees Notice of Proposed Rulemakings
Securing Travel Tech’s Priorities in the Long-Term Reauthorization of the Federal Aviation Administration (FAA) by Congress
The second extension of the FAA expires on Friday, March 8, 2024. The U.S. Senate Commerce Committee will likely soon schedule a markup of S. 1939, the FAA Reauthorization Act of 2023. In July 2023, the U.S. House of Representatives passed H.R. 3935, the Securing Growth and Robust Leadership in American Aviation Act. Both pieces of legislation include major Travel Tech priorities, and the association continues to advocate actively for provisions included in S.1939.
Action Areas: S. 1939, the FAA Reauthorization Act of 2023 and H.R. 3935, the Securing Growth and Robust Leadership in American Aviation Act
American Innovation and Choice Online Act
Travel Tech supports S.2033, the American Innovation and Choice Online Act (AICOA) to address the vast inequities resulting from extremely large search platforms, like Google, abusing their dominant position and undermining competition.
Action Areas: S.2033, the American Innovation and Choice Online Act (AICOA)
Ensuring the Responsible Use of AI in Travel
Both state and federal policymakers are grappling with how AI tools should be regulated. Given the concerns about inaccurate or outdated information and recommendations, copyright issues, ethical risks and more, the use of AI in travel may soon be a focal point in such discussions. Travel Tech will engage with policymakers on the responsible use of AI in the travel sector.
Sign up for Travel Tech’s Passport newsletter and stay in the know about news and public policy impacting the travel tech industry. Delivered every Wednesday, Passport keeps industry leaders up-to-date on current and emerging issues and advocacy efforts.
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, December 6th, the House Committee on Energy and Commerce considered H.R. 6543, the No Hidden Fees on Extra Expenses for Stays (FEES) Act. In advance of the markup, the Travel Technology Association (Travel Tech) submitted a letter to the Members of the House Committee on Energy and Commerce. The committee passed the legislation in a vote of 44-0.
The No Hidden FEES Act will require – for the first time ever in federal law – consumers to be shown the total price for a hotel room (including rate and all mandatory fees). Under this legislation, the total price must be “transparent to and easily understood by the consumer.”
Laura Chadwick, President & CEO of Travel Tech stated, “The No Hidden Fees on Extra Expenses for Stays Act is an important first step to bring much-needed transparency to consumers from hotels to rein in their troubling resort fee practices.”
Travel Tech supports provisions in the bill that will set a single, national standard for the transparency of mandatory fees assessed by hotels. It will create uniformity and certainty for hotels, short-term rentals, online ticket agents, metasearch agents, and others, and most of all, travelers – no matter where they reside in the U.S. – about what is included in advertised pricing for lodging.
“Despite the benefits of this legislation, H.R. 6543, however, lacks a common-sense provision to account for when hotels fail to provide accurate and complete information to price comparison sites,” Chadwick added.
Thirty-nine states have laws in place to protect against situations when inaccurate sales tax information is conveyed from the seller to the marketplace and onto the consumer. These state laws rightly hold the seller – in this case, hotels – responsible in such instances and not the marketplaces like those of Travel Tech member companies. Travel Tech simply seeks the same fair consideration on the federal level regarding mandatory fee information.
Read our full letter.
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.
Association to Submit Comments in Response to Junk Fee Challenges in the Indirect Channel
The U.S. Federal Trade Commission (FTC) recently published its proposed Trade Regulation Rule on Unfair or Deceptive Fees and is currently seeking public comment. If adopted, this wide-sweeping regulation would directly impact companies in the travel tech sector, including those that engage in the indirect sale of hotel rooms or other places of short-term lodging and/or place a surcharge on consumer transactions to cover the cost of payment processing and beyond.
To support travel tech industry members, the Travel Technology Association (Travel Tech) has developed a free regulatory analysis to help companies understand this proposed new regulation. Travel Tech is working with its members to submit comments by the new official due date of February 7, 2024. (Interested in learning more about membership? Learn more here.)
As both federal and state authorities focus on junk fee transparency, Travel Tech has continued to advocate on behalf of the industry. Travel Tech is engaged with members of Congress in both the U.S. House of Representatives and the U.S. Senate specifically focused on legislation on resort fee transparency. It has also published a free legislative analysis of California’s new price transparency laws that go into effect in July 2024. Travel Tech has also submitted comments in response to the U.S. Department of Transportation’s “Enhancing Transparency of Airline Ancillary Service Fees” Notice of Proposed Rulemaking.
“Travel Tech members are committed to operating transparently. It is central to the benefits they provide to consumers,” said Laura Chadwick, President & CEO of Travel Tech. “To protect competition and transparency, any regulations in this area must apply equally to all entities providing travel pricing information, both online and offline.”
Fill out this form to access the document:
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.
Bill’s Safe Harbor Provision is Essential for Pro-Consumer Price Comparison Sites
On Wednesday, November 1st, the House Energy and Commerce Subcommittee on Innovation, Data, and Commerce held a markup on the No Hidden FEES Act of 2023. The Act will require – for the first time ever in federal law – consumers are shown the total price for a hotel room (including rate and all mandatory fees) wherever hotel pricing is available. Under this legislation, the total price must be “transparent to and easily understood by the consumer.”
Travel Tech and its members continue to engage on this important legislation, working with subcommittee staff to incorporate a safe harbor provision similar to those used in many states for sales and occupancy tax collection.
Laura Chadwick, President and CEO of Travel Tech said: “Providing transparent and competitive pricing to consumers is central to price comparison websites’ business models. The safe harbor language ensures that hotels must share their resort fees not only on their own websites but on price comparison sites too.”
“Without a safe harbor, price comparison sites would have to engage in costly, time-intensive investigations and contract dispute litigation with the tens of thousands of hotels providing their rates and taxes – but not their mandatory fees – to these sites,” Chadwick added. “Doing so will detract from price comparison sites’ core purpose: providing a transparent and competitive marketplace for consumers to find and book their travel.”
Multiple states have identical safe harbor laws for sales and/or occupancy tax collection. In these cases, if sellers fail to provide accurate tax information to price comparison sites, the sellers are ultimately responsible – not the marketplace. The same should follow on the federal level if a hotel provides inaccurate resort fees to a travel marketplace.
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.
On September 27, 2023, the House Energy and Commerce Subcommittee on Innovation, Data, and Commerce convened a hearing on “Proposals to Enhance Product Safety and Transparency for Americans” where H.R.___, the No Hidden Fees on Extra Expenses for Stays (FEES) was considered. In written testimony, Laura Chadwick, President and CEO of Travel Tech, expressed the organization’s general support for the bill.
“The No Hidden FEES Act is an excellent first step toward setting a national standard for resort fee transparency,” said Laura Chadwick, President and CEO of Travel Tech. “The Travel Technology Association believes travelers should be able to make informed decisions without hidden surprises or unexpected expenses. We will continue to work with Congressional leaders and travel stakeholders to improve the bill.”
Travel Tech worked closely with House Energy and Commerce Subcommittee on Innovation, Data, and Commerce leadership on the development of the legislation to ensure uniformity and certainty for hotels, short-term rentals, online ticket agents, metasearch agents, and most of all, travelers, on what mandatory fees are included in advertised pricing for lodging.
Travel Tech supports a single, national price transparency standard. Without one, a “patchwork” of state regulations, with different regulations and potential penalties, would likely emerge. This would place a significant compliance burden on the travel technology industry.
California is likely to be the first state to adopt price transparency laws since President Biden announced his efforts to end “junk fees” in his 2023 State of the Union Address. Governor Newsom has until October 14th, 2023 to sign CA Senate Bill 478 and CA Assembly Bill 537 into law. In July 2023, Travel Tech sent a letter of opposition to the California State Assembly urging legislators to hold off on taking state action to allow the federal legislative and rulemaking processes to create a uniform standard for consumer protection and lodging price display.
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.
California Governor Newsom Set to Sign Bills Into Law, U.S. Congress to Consider Resort Fees Bill Soon
Following two votes by its state assembly the week of September 11th, California is a step closer to being the first state to adopt price transparency laws – SB 478 and AB 537– since President Biden announced his efforts to end “junk fees” in his 2023 State of the Union Address. Governor Newsom has until October 14th, 2023 to sign the legislation. Travel Tech supports a single, national price transparency standard to create uniformity and certainty for consumers, lodging operators and travel technology companies.
To assist travel technology industry members in understanding this new legislation, Travel Tech has prepared an informational memo regarding SB 478 and AB 537; current and future federal legislative and regulatory efforts regarding price transparency; and Travel Tech’s advocacy efforts on this issue.
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.
Fill out this form to access the document:
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, September 20th, the Travel Technology Association (Travel Tech) submitted supplemental comments in response to supplemental comments by Airlines for America (A4A) regarding the U.S. Department of Transportation’s (DOT) proposed “Enhancing Transparency of Airline Ancillary Service Fees” rulemaking. In these comments, Travel Tech refutes A4A’s assertion that the DOT rulemaking is unnecessary.
“Travel Tech supports the Department’s rulemaking as it has rightly determined that a problem exists for consumers,” said Laura Chadwick, President and CEO, in the comments. “While fees for ancillary services aren’t mandatory, many passengers need to purchase these services. As such, consumers ought to have the ability to know and compare the true cost of their air travel before they purchase it, which includes these critical ancillary fees.”
Furthermore, in response to A4A’s claim that “a healthy market exists today,” Chadwick responds,
“Travel Tech agrees with A4A that contracts between Global Distribution Systems and airlines that include ancillaries are a positive development, but progress has been slow and incomplete and has been happening in the shadow of DOT’s repeated efforts to address the lack of pricing transparency caused by airline unbundling. Travel Tech respectfully urges that now is the time for the Department to act and to effectively address this issue.”
Travel Tech continues to advocate in support of the DOT’s proposed rule, as modified to ensure that all intermediaries who provide fare and schedule data to online ticket and travel agents receive ancillary information from airlines. Doing so will ensure consumers have transparency into the full cost of an airline ticket and won’t be surprised by hidden critical ancillary fees.
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 […]
