The American Society of Travel Advisors (ASTA) is applauding the reintroduction of bipartisan legislation to protect travel agencies from unfair airline ticket refund liabilities. The Flight Refund Fairness Act (H.R. 5555) was introduced by Representative Maria Salazar in September with strong bipartisan support. This, however, was before the government shutdown, which will delay any progress on passing the bill for an indefinite amount of time.
Under current Department of Transportation rules, travel agencies can be forced to issue refunds when airlines cancel or significantly alter flights—even though these agencies have no control over the decision to cancel or change a flight and are not in possession of the funds. The Flight Refund Fairness Act would correct this imbalance by requiring airlines to assume full responsibility for refunds and remit funds back to ticket agents on the same timeline (seven days) that applies to consumer reimbursements.
By ensuring that airlines, not travel advisors, bear responsibility for refunds when flights are canceled or significantly changed, H.R. 5556 protects small businesses from unrecoverable costs while preserving consumer rights.
“Travel advisors are consumer advocates. They navigate complex rules and fight for rightful refunds for their clients,” said ASTA President and CEO Zane Kerby. “But the current regulatory structure threatens the financial viability of many travel agencies—95 percent of which are small businesses—by placing the refund burdens on agencies. We applaud the original cosponsors of this legislation, led by Representative Maria Salazar, for recognizing this inequity.”
Other original cosponsors include Representatives Mark Alford, Dina Titus, Jimmy Panetta, Beth Van Duyne and Daniel Webster.
In Other ASTA News
Last month, ASTA announced plans to tackle the challenges of no- and slow-paying suppliers. That website is now live. It is designed to collect and escalate advisor concerns directly with hotel partners, shining a light on the scope of late or missing payments.
Why this matters:Hotel commissions are a vital source of revenue for travel advisors. Payment delays can disrupt cash flow, erode trust and add unnecessary administrative burdens. For too long, advisors have absorbed the frustration of inconsistent or late commission payments without a clear avenue for redress.
This new tool, ASTA said, provides a significant step forward in empowering advisors and raising the collective voice of the travel agency community. By aggregating data and surfacing patterns of late payment, ASTA can more effectively advocate with hotel partners and industry stakeholders to ensure advisors are compensated fairly and promptly.
In time, hotel partners that continue to fail to comply will be broadcast on ASTA’s watchlist.
