In a response to a federal request for input on regulatory reform, the American Society of Travel Advisors (ASTA) has called on the U.S. Department of Transportation (DOT) to revise or eliminate several rules that the organization says unfairly burden small travel businesses while providing little value to consumers.
ASTA, which represents over 190,000 travel professionals across the country, submitted its comments in response to a DOT Request for Information (RFI) on regulatory reform. The organization’s recommendations aim to ease the strain of current rules on travel agencies without compromising transparency or consumer protection.
"The DOT has saddled the nation's travel agencies with providing refunds when airlines experience travel disruptions,” said Zane Kerby ASTA President and CEO. “This misappropriation of responsibility needs to be fixed. Our members shouldn't be forced to cover refunds for flights they didn't cancel."
In its comments, ASTA pressed the DOT to reconsider three key regulatory areas that place an undue burden on travel advisors. Chief among them are refund obligations, and mandatory disclosures required during phone and in-person bookings.
Repeal Refund Requirements for Ticket Agents
ASTA is pushing for the reversal of a rule finalized in April 2024 , which requires ticket agents who serve as the merchant of record to return funds to consumers within seven days when an airline cancels or substantially changes a flight. ASTA argues this rule creates a major financial liability, especially for agencies that have not have received the funds from the airline in the first place.
The organization pointed out that travel advisors do not control airline funds, nor do they always have immediate access to information about flight cancellations or changes. Though the DOT included language requiring airlines to “promptly transfer” funds back to agents, ASTA described that provision as vague and insufficient.
Simplify Disclosures for Offline Bookings
In alignment with the FAA Reauthorization Act of 2024, ASTA is pressing the DOT to streamline the disclosures required when consumers book airline tickets by phone or in person. Current regulations compel agents to deliver up to seven separate disclosures per transaction, a process that ASTA says is both time-consuming and legally risky.
ASTA supports the Act’s provision permitting travel advisors to direct customers to airline and DOT websites for information on policies and fees. It views this method as a practical compromise that balances regulatory compliance with practicality of practice.
Remove Unnecessary Disclosure Rules
Finally, ASTA is seeking the elimination of disclosure mandates it deems excessive, including those related to aircraft insecticide usage and code-share flight arrangements. Currently, agents must inform customers about the possible use of insecticides on flights to 36 countries, even if those flights are not treated. Additionally, complex code-share rules require agents to repeatedly disclose the operating airline in various communications, a process ASTA views as redundant and inefficient.
“These regulations impose significant costs and risks on small travel businesses with little added value to consumers,” said Peter Lobasso, ASTA’s General Counsel and Senior Vice President of Industry Affairs. “Our members need a fair regulatory environment that acknowledges their important but limited role in the transaction chain and supports their continued ability to serve travelers effectively.”
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
