Group schedules 'Online Travel Day': Travel Weekly

Group schedules 'Online Travel Day'

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WASHINGTON -- The Interactive Travel Services Association (ITSA) scheduled its first Online Travel Day in Washington for March 14 to educate Congress, federal agencies and the Washington press corps about the on-line travel industry.

John Raffetto, executive director of the Washington-based trade group, said the goal of the event, which is open only to ITSA members, is to lay the groundwork for heading off any potential new taxes or regulations that could harm the burgeoning on-line travel industry.

One fear is that state and local governments may be granted power to impose new taxes on Internet businesses, perhaps including those involved in travel, Raffetto said.

State and local governments contend their revenues are eroding as a result of a shift from brick-and-mortar commerce to "click-and-mortar," and they are "eager to insert themselves into the [Internet] transaction chain," he said.

The tax issue will be a hot one in March because a commission established by Congress to study Internet taxation is due to announce its recommendations in April, Raffetto said.

The report will be completed by the time ITSA gets to Capitol Hill, Raffetto said, but as Congress considers the findings, it will look to a wide array of sources for additional information, and the association wants to make sure it is one of them.

The agenda for the Online Travel Day is still being worked out, but it will likely be preceded by a dinner and organizational meeting on March 13.

Raffetto said another idea is to hold an "expo" for members of Congress as part of the schedule on March 14 to demonstrate on-line travel applications.

If Congress makes any moves to adopt new consumer protection regulations for Internet commerce, then ITSA wants to make sure that the business interests of the on-line travel community are protected as well, Raffetto said.

"We need to demonstrate to policymakers and the press that we are responsible with consumers' data and money. If we can demonstrate that we're a responsible industry, the desire to regulate us further will be diminished," he said.

As for its media outreach efforts, ITSA hopes that by talking to Washington-based reporters, it can make its case to a group other than the trade press or the "San Francisco-based techie reporters," Raffetto said.

The Washington press corps is interested in policymaking actions as well as in the new Internet economy, and "they are hungry for information."

"As one of the largest industries on the Internet, we have something to say," Raffetto said.

The ITSA membership list includes Preview Travel, Lowestfare.com, Carlson Wagonlit Travel and America Online, among others. Although the association was launched with an orientation to on-line travel agencies, it is now attempting to diversify its membership base to include, among others, airlines and hotels.

An informational and recruiting meeting at the recent PhoCusWright Live99 conference in Miami Beach drew about 40 people representing 35 companies, including suppliers and on-line intermediaries who might be potential members, he said. "We talked about the issues and the importance of joining together. We need a broad membership to undertake a broad agenda," he said.

ITSA dues levels begin at $1,000 for individuals and then rise to between $5,000 and $20,000 on a sliding scale based on gross bookings.

Membership applications and information about the organization can be found on the Web at www.interactivetravel.org, and Raffetto can be contacted by e-mail at [email protected].

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