08/22/2022
Last Thursday, we were notified by the U.S. Transportation Department (DOT) that DWHSA was one of three travel groups selected to present comments this morning to the DOT committee that's working on those proposed regulations we told you about last week - new rules that would require U.S.-based agents to be responsible equally with the airlines for giving consumers refunds on canceled/severely delayed air tickets. This new rule would apply primarily to ARC-appointed agencies but could spill over to affect other agents as well (e.g., if you booked air for clients through your host agency's air program or a cruise line's air/sea program or if you book charter air or consolidator tickets).
Ridiculous, right? I can assure you after sitting through today's hearing that it's no joke. U.S. regulators are seriously considering this new rule.
ASTA, a business travel group, and DWHSA spoke today (we had 3 minutes apiece), and we have the right to file much more detailed written comments by Nov. 22. To its credit, ASTA did its usual amazing job pounding home the fact that we agents can't "front" refunds for billion-dollar airlines this way. I'll paste DWHSA's comments below.
We had to drop everything the past few days to prepare for that hearing today, but we'll get the newsletter out to you in the morning. We have an Iberostar webinar set for Thursday (Aug. 26 - 4 pm EDT).
Re these new regulations, we'll keep you posted - at some time this fall, ASTA will ask all U.S. agents to send letters, make calls, or do something to demonstrate our opposition, and when that happens we will need your help!
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DWHSA's 3-minute comments:
Good morning! Our group, DWHSA, represents more than 800 U.S. small business owners who sell romance travel - destination weddings, honeymoons, vow renewals, anniversary trips, proposal trips, elopements, babymoons, familymoons ... any type of trip with love involved.
And, almost all of those trips require domestic or international airline tickets.
We're very concerned that the Department is upending decades of policy regarding who's responsible and liable for the remitting of refunds when things go wrong. As recently as the spring of 2020 - when the COVID-19 pandemic started - the Department stated clearly that CARRIERS have a longstanding obligation to provide prompt refunds to ticketed passengers when they cancel or significantly change flights. And, it said ticket agents are not required to make those refunds ourselves if we do not possess the passengers' funds.
Respectfully, we ask the Department to keep those rules in place in the new regulations by specifically exempting ticket agents who don't possess passenger funds from being on the hook in any way for refunds.
The vast majority of airline tickets sold in the United States by leisure travel advisors aren't processed through our bank accounts. Instead, they're processed through the merchant accounts of the Airlines Reporting Corporation, the settlement house that the airlines control. We never touch the money, and our agency names don't generally appear on consumers' financial statements. So, it's extremely unreasonable to force us to return money we never got in the first place. (This will only cause more confusion!)
To reduce confusion on this issue, we'll gladly do our part teaching consumers how future air refunds will work. If you require carriers to set up new refund forms, web pages, and contact phone numbers, we'll share that with all future clients. It's in everyone's best interests to have informed, empowered air travel consumers who feel confident about flying.
Again, we're asking the Department to include language in the new regulations specifically exempting ticket agents who never accept or possess passengers' funds from providing refunds. Thanks for your time.