What Travel Advisors Stand To Gain, Lose From Final FAA Reauthorization Bill

The U.S. government's agreement on a final bill to reauthorize the Federal Aviation Administration (FAA) presents a mixed bag for travel agencies and advisors across the country, according to the American Society of Travel Advisors (ASTA).

The organization was successful in its efforts to secure a provision that streamlines offline disclosures surrounding air travel and establish the Passenger Experience Advisory Committee within the Department of Transportation (DOT) to advise the Secretary and the FAA Administrator on improving the passenger experience in air transportation customer service.

"This will reduce frustration with the air ticket purchase process and lessen the unnecessary burdens on our members' business operations while keeping critical consumer protection intact," said ASTA President and CEO Zane Kerby about the offline disclosure victory.

However, ASTA expressed frustration with DOT's new airfare refund rules that could negatively impact agencies by leaving them on the hook to issue a refund as the "merchant of record" even if they've already passed the funds over to the airline.

"We were thankful when the House originally recognized this important distinction. Unfortunately, the final compromise between the House and Senate kicks this issue back to a DOT that has shown a clear lack of understanding of how travel agencies book air travel," added Kerby.

Travel advisor working from the home office. (Photo Credit: Drs Producoes/E+)

The FAA reauthorization bill requires DOT to issue regulations within one year requiring air carriers to promptly transfer funds to ticket agents in situations where the agent is obligated to refund the consumer but isn't in possession of the funds. Unfortunately, DOT's new rules are set to take effect in as soon as six months.

Additionally, ASTA laments the final bill's language in regard to the Aviation Consumer Protection Advisory Committee (ACPAC), a DOT advisory body. The House bill would have added ticket agents to the committee comprised of one representative each of U.S. airlines, consumer groups, airports and state or local governments. However, the final bill only requires that the ACPAC consult with ticket agents "as appropriate."

"ASTA has appeared before this committee many times and recent final rules from DOT continue to show a clear lack of understanding on the role of travel agencies and advisors in booking air travel," said Kerby. "It is disappointing that when given an opportunity to add the views of the agencies who booked 40 percent of air tickets in 2023, Congress deflected to an unenforceable consultative role."

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