Airlines must now “promptly” return consumers’ funds to ticket agents
August 6, 2024, Washington, DC – The Travel Technology Association (Travel Tech) applauds the U.S. Department of Transportation (DOT) for revising its final rule on ticket and fee refunds, which DOT announced earlier this week. This revision addresses situations when consumers are due a refund from an airline for a delayed or canceled flight, but the ticket agent is the merchant of record. Travel Tech sent a letter to DOT Secretary Pete Buttigieg last month, calling for this change.
Per DOT’s newly-released revision, airlines must now “promptly” return consumers’ funds to ticket agents. DOT previously declined to require airlines to do so in the original version of its final Refund rule, which placed an unfair financial burden on ticket agents.
“Ticket agents’ core purpose is to serve consumers and act on their behalf in merchant-of-record situations,” said Laura Chadwick, Travel Tech President & CEO. “When refunds are required, consumers are due back their money from airlines and no one else. We are thankful the U.S. Department of Transportation quickly heeded our request to protect consumers and ticket agents alike.”
Travel Tech first raised its concerns about the DOT’s proposed changes to the refund timeline regarding when airlines return consumer funds to ticket agents when ticket agents are the merchant of record in its comments submitted in December 2022. Chadwick also testified on this matter at DOT’s Public Hearing on Airline Ticket Refunds and Consumer Protections held on March 21, 2023.
Travel Tech released a statement about the DOT’s final Refund rule, expressing its disappointment that such a provision was not included. Subsequently, Travel Tech supported an amendment clarifying the timing of ticket agent-issued refunds to the recently passed Federal Aviation Administration (FAA) Reauthorization Act of 2024 (H.R. 3935).
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.
