ASTA Calls on US Department of Transportation to Reform Airline Refund and Disclosure Rules - Get updated on what's happening in tourism!

The submission addresses the DOT’s Request for Information (RFI) and aims to ease regulations that disproportionately affect small business ticket agents while maintaining transparency and consumer protection in the airline sector.

Challenging Ticket Refund Obligations

One of ASTA's primary concerns is the current regulation requiring ticket agents to issue refunds when airlines cancel or significantly change flights. The rule, established in April 2024, mandates that agents refund consumers within seven days, even if the agents do not have access to the funds. This practice has led to severe cash flow issues for small businesses.

Zane Kerby, ASTA President and CEO, emphasized the unfairness of the rule:

"The DOT has saddled the nation's travel agencies with providing refunds when airlines experience travel disruptions. This misappropriation of responsibility needs to be fixed. Our members shouldn't be forced to cover refunds for flights they didn't cancel."

ASTA argues that ticket agents lack control over airline funds and real-time cancellation data, making it unreasonable to impose refund obligations. The organization is advocating for a complete repeal of this requirement, as it poses significant financial risks to small travel businesses.

Modernizing Offline Ticket Sales Disclosures

In accordance with the 2024 FAA Reauthorization Act, ASTA is also urging the DOT to update disclosure requirements for offline ticket sales, such as those made over the phone or in person. Currently, advisors must make up to seven separate disclosures per transaction, which is both time-consuming and legally risky.

ASTA recommends allowing these disclosures to be made through referrals to airline and DOT websites, simplifying compliance while ensuring consumers receive the necessary information. This approach balances regulatory demands with the practical realities of offline customer interactions.

Removing Outdated Disclosure Requirements

ASTA also calls for the removal of unnecessary disclosure requirements related to aircraft insecticide use and code share flights. The organization points out that current regulations demand advisors disclose insecticide use for all flights to 36 countries, regardless of whether the flight is treated. Additionally, code share disclosure requirements are often redundant, demanding repeated notifications across multiple communication channels.

“These regulations impose significant costs and risks on small travel businesses with little added value to consumers,” stated 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."

ASTA’s complete comments are available on its official website, ASTA.org. The organization will continue to update its members as more information becomes available.

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