ASTA applauded the September reintroduction of legislation that would keep travel agencies off the hook from paying airline refunds when they aren't in possession of the funds.
The Flight Refund Fairness Act was introduced by Rep. Maria Salazar (R-Fla.) last month.
Currently, travel agencies could be forced to pay consumers refunds for canceled or significantly altered flights even if they don't have the funds. This applies when the agency is considered the ticketing agent. While this often isn't the case, it does affect some, especially group travel specialists that buy airline seats in bulk.
The legislation would require airlines to take full responsibility for refunds. If passed, airlines would be required to give ticketing agents the funds within seven days, the same time period applicable to consumer reimbursements.
"Travel advisors are consumer advocates," ASTA president and CEO Zane Kerby said. "But the current regulatory structure threatens the financial viability of many travel agencies -- 95% of which are small businesses -- by placing the refund burdens on agencies. We applaud the original cosponsors of this legislation, led by Rep. Maria Salazar, for recognizing this inequity."
The legislation has bipartisan support. It will be ASTA's top priority next week at Legislative Day, its annual fly-in where members meet with lawmakers and staffers on Capitol Hill.