ORLANDO -- "How many of you have had trouble collecting hotel commissions?" ASTA president and CEO Zane Kerby asked a room full of advisors at American Marketing Group's Travel Market 2025 here -- and throughout the room, advisors vocalized their agreement.
"It's a big problem," Kerby said, "and it's something ASTA has taken very, very seriously."
ASTA two years ago published a list of suppliers who pay commissions within 30 days of an advisor remitting payment. While he didn't provide further details, Kerby said ASTA is gearing up to take on the suppliers who aren't on that list.
"We're going to really start calling out those people who do not pay commissions on time, because that's a problem for the industry," he said to applause. "It's a problem for you; it's a problem for us."
Kerby was part of an on-stage discussion about advocacy alongside Wendy Paradis, president of the Association of Canadian Travel Agencies (ACTA).
Kerby highlighted some of ASTA's other advocacy efforts of late, including its battle to repeal the rule requiring the merchant of record, in some cases agents, to refund airline passengers even if they don't possess the funds; a recently won tax battle in Nebraska; and a fight against a new 11% tax on bookings for cruises in Hawaiian waters.
For Canadian agencies, a focus on tariffs
In Canada, the No. 1 issue for travel agencies is the potential impact of tariffs implemented by the U.S., Paradis said. Right now, agencies are mostly in wait-and-see mode, but the implications of tariffs could be great.
ACTA has done forecasting regarding tariffs and what would happen if they stayed in place, as is, for any length of time.
For people to travel, they need to have jobs and disposable income, and if the tariffs sap jobs and income of Canadian advisors' clients, advisor business would be affected. "Should they stay in place, the impact on Ontario and Quebec, which are
the largest travel industry provinces in Canada, is much worse than the
pandemic," she said.
But the effects would take "months and months to unfold," Paradis said. In the meantime, ACTA continues to advocate on behalf of Canada and the travel industry.
Travel advisors working with an older clientele will likely fare better, she said: Baby Boomers are the largest group of travelers in Canada right now, and for the most part they are empty-nesters with paid-off mortgages. Millennials and Gen X travelers, by contrast, are likely less resilient.