This week, American Society of Travel Advisors (ASTA) sent a six-page letter to president-elect Donald Trump, stating its priorities and requests for the new administration to address in order to aid the travel advisor community.
The trade organization’s president and CEO, Zane Kerby, began by saying that ASTA shares Trump’s vision for fewer government regulations, which he posited will enable businesses of all sizes to thrive. He also emphasized the critical role of travel agencies in the U.S. travel and tourism economy.
Representing nearly 200,000 travel advisors, ASTA highlighted the industry’s predominantly small business structure (98 percent), pointed out the fact that these are largely women-owned (80 percent), and stated its significant contributions, including annual revenues of $17.7 billion, $5.5 billion in annual payroll and gross bookings exceeding $115 billion.
In the letter, ASTA calls for changes to several key policies, pointing out that these regulatory challenges currently impede the growth and success of travel agencies.
In April 2024, the Department of Transportation (DOT) introduced a rule requiring travel agencies to issue refunds to consumers for canceled or significantly changed flights, even if the agency does not hold the funds at that time. ASTA strongly opposes this policy, noting that it places a serious financial burden on small businesses, especially those handling large group bookings. Travel agencies, it argues, should not be expected to refund clients before receiving reimbursement from airlines. It Trump to revise this regulation to ensure airlines refund ticket agents within seven days, allowing agencies to refund their clients promptly.
ASTA supports the 2021 Department of Labor (DOL) rule that streamlined worker classification, focusing on two key factors: the level of control an individual has over their work, and their opportunity for profit or loss. However, the Biden Administration’s withdrawal of this rule in January 2024 has created confusion around worker classification and the potential for misinterpretation due to various federal regulations. ASTA urged Trump to restore the 2021 rule to provide greater clarity and consistency for businesses in classifying workers as either independent contractors or employees.
ASTA welcomed a recent court ruling that invalidated the Department of Labor’s April 2024 final rule on overtime, a controversial policy that would have raised the minimum salary threshold for overtime-exempt workers to $43,888 in 2024 and $58,656 by 2025. The court decision returns the threshold to 2019 levels of $35,568, which ASTA sees as a victory for small businesses. Therefore, it asked that Trump to abandon the DOL’s appeal of this decision when he takes office.
The FAA reauthorization legislation included the creation of a Passenger Experience Advisory Committee, designed to advise the DOT on improving air travel for passengers. ASTA calls for a representative from the travel advisor community to serve on this committee, pointing out that travel advisors account for 40 percent of all air ticket sales. Additionally, ASTA supports the legislation’s provisions for streamlining “offline disclosures” for travelers who book air travel through travel agencies by means other than electronic. ASTA asked that the incoming administration implement these changes swiftly.
ASTA has called for the nomination of an Assistant Secretary for Travel and Tourism at the Department of Commerce. Created under the Visit America Act, which President Biden signed into law in 2022, this position would focus on improving federal oversight and support for the travel industry. The travel sector faced significant problems during the COVID-19 pandemic due to inconsistent guidance from multiple federal agencies. ASTA believes that creating a high-level leadership role within a single federal agency would help mitigate any such setbacks in the future.
ASTA also raised concerns about potential future travel bans or complicated restrictions on travel, warning that such measures could severely impact the U.S. travel and tourism economy. The organization requested that Trump eschew the imposition of any travel bans, since it would severely harm the industry’s growth and global competitiveness.
ASTA expressed its support for recent rulemaking by the Federal Trade Commission (FTC) to address “junk fees” in lodging and event-based sales, but raised concerns about the lack of protections for intermediaries and third-party sellers, such as travel advisors. ASTA therefore called for specific exemptions or “safe harbor” provisions for travel agencies that rely on inaccurate information provided by hotels or other entities charging such fees. It pointed out that the Federal Trade Commission (FTC) had already committed to further examination of such “nuanced situations”. The organization also asked for different regulations to apply for Travel Management Companies (TMCs), which handle corporate clients quite differently from how travel advisors serve their leisure travel clients.
