The American Society of Travel Advisors (ASTA) announced its support for the recent reintroduction of the Flight Refund Fairness Act (H.R. 5556) by Representative Maria Salazar (R-FL) ahead of its annual Legislative Day next week.
The bipartisan legislation is designed to protect travel agencies—the vast majority of which are small businesses—from unfair airline ticket refund liabilities while ensuring consumers maintain clear and reliable reimbursement pathways in the event of a canceled flight.
"Miami is the premier tourism hub and the small businesses that support this industry must be protected," Salazar said in a statement. "I’m proud to reintroduce the bipartisan Flight Refund Fairness Act, which will remove a regulatory hurdle for small travel advisors that may otherwise jeopardize business operations, while ensuring consumers are able to get any potential refund in a timely manner."
Currently, agencies can be forced to issue refunds when airlines cancel or significantly alter flights, even when they are not in possession of the funds. According to ASTA, small travel agencies—80 percent of which are women-owned—focusing on group travel are the most affected by the current Department of Transportation regulations.
If passed into law, the Flight Refund Fairness Act would require airlines to assume full responsibility for refunds and remit funds back to ticket agents on the same seven-day timeline that applies to consumer reimbursements.
"Travel advisors are consumer advocates. They navigate complex rules and fight for rightful refunds for their clients," added ASTA President and CEO Zane Kerby.
"But the current regulatory structure threatens the financial viability of many travel agencies—95 percent of which are small businesses—by placing the refund burdens on agencies. We applaud the original cosponsors of this legislation, led by Representative Maria Salazar, for recognizing this inequity."
In addition to Salazar, representatives Mark Alford (R-MO) and Dina Titus (D-NV) are leading the legislation and are joined by Jimmy Panetta (D-CA), Beth Van Duyne (R-TX) and Daniel Webster (R-FL) as original cosponsors.
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