Travel Tech president and CEO Laura Chadwick testified at the DOT’s Public Hearing today on Airline Ticket Refunds and Consumer Protections. Her remarks are below:
Thank you for the opportunity to speak today on the Department of Transportation’s (DOT) Notice of Proposed Rulemaking (NPRM) on “Airline Ticket Refunds and Consumer Protections.”
My name is Laura Chadwick and I lead the Travel Technology Association. Travel Tech is the voice of the travel technology industry, advocating for public policy that promotes transparency and competition in the marketplace to encourage innovation and preserve consumer choice. Travel Tech represents the leading innovators in travel technology, including global distribution systems, online travel agencies and metasearch companies, travel management companies, and short-term rental platforms.
As we wrote in our comments, Travel Tech welcomes the Department’s decision to define what constitutes a ‘canceled flight’ and ‘significant change to flight itinerary.’ These definitions will bring much-needed uniformity and clarity to what have been fraught and stressful experiences for travelers facing weather or airline staffing issues. Great customer service, whether before, during, or after a trip, is key to the value Travel Tech members offer. These definitions will help online travel agents better support their customers in navigating frustrating flight cancellations and the labyrinth of airline customer service systems.
With regard to the question at hand — how to determine whether a downgrade of amenities or travel experiences qualifies as a “significant change of flight itinerary,” I must note that Travel Tech did not in its comments address this particular point. We are, however, and as I noted previously, very supportive of the DOT’s efforts to provide uniformity and clarity over what triggers a refund. This helps ticket agents help their customers. That being said, we do find merit in the issues raised by the airlines in their comments and at this hearing over the inherent difficulty in determining whether a downgrade of amenities or travel experiences constitutes a “significant change of flight itinerary.”
Ticket agents rely on the airlines to make refunds or credit determinations. Ticket agents, in essence, enforce airlines’ decisions on these matters. As such, confusion over what a downgrade of amenities or travel experiences qualifies as a “significant change of flight itinerary” by airlines will likewise create confusion for ticket agents in explaining these determinations to customers.
I do also want to take a moment to address Travel Tech’s concerns about the change included in the proposed rule regarding the timing of refunds to customers by ticket agents. In its draft rule, the Department proposes that customers receive refunds within seven days. However, it takes up to eleven days for ticket agents to secure refunds from airlines’ payment and refund systems.
To require refunds before the funds are returned by the airline – as the proposed rule currently demands – would impose an undue financial burden and risk on ticket agents. We encourage the Department to revise this part of its proposal to reflect that airlines’ payment and refund systems are beyond the control of ticket agents.
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About Travel Tech
The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy promoting marketplace transparency and competition. Travel Tech represents the leading innovators in travel technology, including global distribution systems, online travel agencies, metasearch companies, travel management companies, and short-term rental platforms.
To schedule an interview with a Travel Tech spokesperson, contact Dan Rene of kglobal at 202-329-8357 or daniel.rene@kglobal.com.
