Mark Pestronk
Q: I understand that the DOT has issued new rules to protect consumers. Do those regulations impose new obligations on travel agencies, travel-management companies, tour operators, wholesalers and consolidators, or do they only apply to airlines?
A: While most of the new consumer-protection rules affect only airlines, two of them impose new requirements on agencies and other travel companies that market air travel. One rule applies only to agencies that offer online booking, but the other applies to every company that sells air travel.
The first rule prohibits bias in online displays of availability bias unless the bias is prominently disclosed or unless a corporate account requests bias. The prohibition extends to displays "on a website marketed to consumers in the United States or on a proprietary display available to travel agents, business entities or a limited segment of consumers of air transportation in the United States."
The DOT has been concerned with issues of display bias for 30 years, ever since it promulgated the first GDS regulations in 1985, which effectively outlawed bias. Since the GDS rules were repealed a decade ago, any GDS or booking website has been somewhat free to bias the results in favor of carriers preferred by the website owner without disclosing there was bias.
Under the new rules, websites can still bias their displays, but they "must clearly and conspicuously disclose that fact at the top of the first search-result page presented to the user in response to the user-selected search criteria. The notice must state that the flights are not displayed in neutral order and that certain airlines' fare, schedule or availability information is given preferential treatment in how it is displayed."
The second rule beefs up the existing codeshare disclosure rule. As you know, under the current rule, when offering a codeshare flight, the agent must disclose the identity of the marketing carrier, the legal name of the operating carrier and any marketing name that the operating carrier uses. For example, the agent must state orally and in writing that, "Delta Flight 9876 is operated by SkyWest doing business as Delta Connection."
Now, disclosure must be made upfront "on the first display of the website following ... a search, in a format that is easily visible to a viewer."
The other beefed-up provision of the codeshare rule deals with oral quotes on the phone, in person and email exchanges. The DOT will now require "that the codeshare information be provided the first time a codeshare flight is offered to a consumer or, if no such offer was made, the first time a consumer inquires about such a flight." The previous rule simply required such disclosure before a purchase is made.
As you probably know, the DOT is very serious about enforcing its codeshare disclosure rules, and it has fined travel agencies tens of thousands of dollars for violations committed by agents during phone conversations. Therefore, it is vital that agency owners and managers train their front-line staff to comply in every phone conversation or email exchange.
The rules become effective 30 days after they are published in the Federal Register.