The Travel Technology Association, which represents major global distribution systems such as Amadeus, Sabre, and Travelport, as well as consumer online travel companies and corporate travel agencies, has expressed concerns about new federal rules regarding airline junk fees and refunds. Laura Chadwick, the president and CEO of the association, believes that while the rules are meant to protect consumers, they overlook the logistical challenges that these changes may bring to travel industry members. Specifically, she is worried about the potential for increased costs for both travel agencies and travelers due to the lack of tools provided for compliance with the new regulations.
One of the key issues highlighted by Chadwick is the lack of information sharing by airlines regarding fees for services such as luggage or ticket changes with global distribution systems. This lack of data could lead to inaccuracies and confusion for consumers trying to book flights through third-party sites like Booking.com. While the Department of Transportation expressed a desire not to interfere with airline-GDS relationships, some airlines have been resistant to sharing ancillary fee data with these systems, creating delays in compliance. The timeline provided for implementation of the new rules is also a concern, as agencies are given up to two years to set up systems for displaying fee data, which could delay transparency for consumers.
In addition to the issues with junk fees, the new rules also require airlines to provide automatic refunds within seven days for certain scenarios, such as significant flight delays or cancellations. Travel agents may also be eligible for refunds if they are considered the merchant of record, though this is less common for single flight bookings. Chadwick points out that while airlines are required to inform agents of refund eligibility, there is no specified timeframe for airlines to reimburse agents. This could lead to financial strain for small travel agencies, as they may have to front the cost of refunds while waiting for reimbursement from airlines.
Chadwick argues that the lack of tools provided by the Department of Transportation for compliance with the new rules could lead to increased costs and confusion for both travel industry members and consumers. She emphasizes the importance of transparency in travel booking processes and believes that consumers deserve accurate and timely information when making purchasing decisions. Despite the concerns raised by the association, some airline representatives have agreed with the Department of Transportation’s approach, stating that they do not wish to interfere with existing business relationships between airlines and global distribution systems.
Overall, the Travel Technology Association is urging the Department of Transportation to reconsider the implementation timeline for the new rules and to provide clearer guidelines for compliance in order to minimize potential disruptions to the travel industry. By addressing the logistical challenges and ensuring that necessary tools are available for members to comply with the regulations, the association believes that the goal of protecting consumers’ rights and enhancing transparency in the travel booking process can be achieved more effectively.
