As the United States braces for the potential shifts that a new Trump administration could bring, the American Society of Travel Advisors (ASTA) has proactively voiced its priorities to ensure that the travel industry remains stable and competitive. Among its main concerns are the possible reinstatement of travel bans, airline ticket refund policies, independent contractor regulations, and a range of consumer protection issues.
One of ASTA’s most significant concerns centers around the idea of reintroducing travel bans, a move previously discussed by former President Donald Trump during his 2016 campaign. His administration’s 2017 travel ban targeted seven Muslim-majority countries, which had a profound impact on international tourism. While the ban was eventually overturned by the U.S. District Court and later revised by the Supreme Court, its ramifications on the travel sector were undeniable. ASTA, under CEO Zane Kerby, expressed that such bans create “tremendous uncertainty” in an industry that is already vulnerable to unpredictable circumstances. The association worries that any new restrictions, especially on refugees from conflict zones like Gaza, would not only harm the tourism industry but also undermine the country’s ability to compete in the global travel market.
In addition to travel bans, ASTA has urged the incoming administration to address airline ticket refund practices that have raised concerns among travel agencies. A rule introduced by the Department of Transportation (DOT) on October 28, 2023, mandates that the merchant of record for airline ticket sales must issue refunds when flights are canceled or significantly altered. However, ASTA argues that travel agencies, especially those that purchase tickets in bulk for groups, are placed at risk under this rule. These agencies may not have the necessary funds to pay refunds to customers without receiving reimbursement from the airlines. The organization has called for clarification and modification of this rule, recommending a 14-day timeline for airlines to remit payment to agencies, followed by another 7-day window for the agencies to refund customers.
Another critical issue on ASTA’s radar is the classification of workers as employees or independent contractors (ICs). The travel industry relies heavily on ICs, with approximately 85,000 ICs working in the U.S. travel sector. In January 2024, the Department of Labor released new rules on IC classification that ASTA believes have caused confusion and inconsistency. The organization is advocating for a return to the 2021 regulations, which focused on two main factors: the degree of control an individual has over their work and the opportunity for profit or loss. ASTA has also emphasized the importance of a unified standard for determining worker status across all federal agencies to reduce bureaucratic complexity.
The issue of hotel junk fees has also caught ASTA’s attention. These hidden fees, often revealed at the last moment, have been a point of frustration for consumers. The Federal Trade Commission (FTC) has introduced rules that allow consumers to file complaints against travel agencies for inaccurate hotel pricing information. However, ASTA is requesting that travel intermediaries be granted protection from enforcement in cases where they receive incorrect information from hotels. The organization believes that travel management companies, whose booking systems operate behind the scenes, should be exempt from such penalties.
Finally, ASTA has called for the creation of a Passenger Experience Advisory Committee within the Department of Transportation, which would include a seat for a travel advisor. This recommendation reflects the association’s concern that travel advisors, who account for a significant portion of air ticket sales, are often left out of crucial discussions about air travel regulations. ASTA also advocates for the nomination of a travel professional to serve as the assistant secretary for travel and tourism at the Department of Commerce, a role created under the Biden administration in 2022.
In conclusion, as the Trump administration prepares for its next term, ASTA’s letter to the incoming leadership underscores the need for thoughtful, balanced policies that consider both the health of the travel industry and the needs of consumers. From advocating for fair refund rules to calling for protection from unfair fees, ASTA remains committed to ensuring that travel agencies and their clients are not sidelined in the push for new regulations. By addressing these concerns, the incoming administration can help pave the way for a more stable and prosperous future for the U.S. travel industry.
