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.
