ASTA Reveals Its Plans for Washington

One of ASTA’s major priorities is its advocacy efforts both in Washington D.C. and at the state level on behalf of travel agents.

The association has scored numerous successes protecting agents’ businesses, and those achievements are especially impressive given that it’s outgunned compared to the number of lobbyists representing other travel industry segments.

Eben Peck, who was recently promoted to ASTA’s executive vice president of advocacy—he had served as senior vice president, government & public affairs—illustrated that point at the Ensemble Travel Group’s recent annual conference.

“We’re a small trade association,” said Peck, noting the number of lobbyists for airlines is 187; 61 for lodging and tourism, and 17 for cruise lines. As for travel agents (which defines as non-OTA agents and associations) that would be one: ASTA and its political action committee, ASTAPAC.

ASTA also relies on grassroots campaigns fueled by its members—who act as “citizen lobbyists”—to pitch in on fostering legislation that helps agents’ businesses and defeating legislation that’s harmful.

As always, ASTA has its work cut out for it currently with a full agenda of legislation it’s working to repeal along with a bill it’s supporting.

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FAA Reauthorization

The FAA Modernization and Reform Act of 2012, which sets the federal government’s aviation policy, was set to expire Sept. 30, 2017, but the House passed a short-term extension through March 2018.

Peck said the legislation has a potentially powerful impact on travel agents.

“There are multiple issues in play here that impact ASTA members, from full-fare advertising to in-flight voice calls to new disclosures agents have to make when selling air travel, which is the biggest pain point for us,” he said.

There are up to seven different disclosures agents are required to make, among them airline code-share agreements and information on hazardous materials, according to Peck. Agents can make some on the phone, but some have to be done in person.

“Congress is not willing to regulate the airlines so any ‘bad behavior’ [on the part of airlines] that consumers need to know about goes to the disclosures agents have to make,” he added.

The Department of Transportation (DOT) has been extremely aggressive in fining agents who don’t make these disclosures, and it has the authority to impose fines of up to $32,000 per transaction for non-compliance, Peck said. “You can see why we worry about this.”

“We’re not against disclosures in a vacuum, but agents could spend ten minutes on the phone telling clients about these disclosures,” he added. “We’re especially trying to get rid of the disclosures that are required in phone transactions, meaning those that agents have to disclose to clients and, instead, have a uniform way—like a website—where all these disclosures can be accessed.”

The Travel Agent Retail Fairness Act

This legislation, introduced in the House in March, comes in response to a Department of Labor (DOL) regulatory blacklist that blocks travel agents from using an exemption from federal overtime rules designed for retail businesses.

The bill now has 11 bipartisan cosponsors.

“If an employee makes more than 50 percent commission, you don’t have to pay them overtime; this is the exemption that’s been on the books since the 1930’s,” Peck said.

“However, the DOL has included travel agents on a list [the black list] of businesses that aren’t considered retail, meaning they can’t claim the exemption,” he added. “There’s no rhyme or reason why agents should be on this list; agents are a retail business.”

READ MORE: ASTA Shows Support for TSA Modernization ACT

ASTA took a lot of work to get Congress to focus on an issue like this, specific to agents.

“This will be a focus of ours for the rest of the year, and you can help,” Peck said. “You can go to Congress.gov to see if your Member of Congress is a co-sponsor. If not, ASTA’s Government Affairs team will tell you how to make the case to get them to sign on [to the bill].”