BY THE WAY ( A PSA )
POLICY UPDATE : WHAT ADVISORS SHOULD KNOW FOR 2023
New proposals could impact travel advisors and their businesses .
WORDS / KATE SMITH
PHILLIP B . ESPINASSE / SHUTTERSTOCK . COM
Several proposals that will impact travel advisors are being considered by the departments of transportation and labor ( DOT and DOL ). Here ’ s what you need to know .
• Two of the proposals under consideration from the DOT would require airlines to provide enhanced disclosures around refunds and ancillary fees .
• The DOL is considering a proposal that would return the definition of independent contractor to the one used during the Obama administration and could provide clarity for travel advisors .
The American Society of Travel Advisors ( ASTA ) is pushing for changes to several of the proposals . The goal of these efforts is to make it easier for travel advisors to service clients .
“ Travel advisors face competition in every direction , from suppliers trying to drive direct bookings to the do-it-yourself narrative we see so often in the media to online players ,” said Eben Peck , executive vice president of advocacy for ASTA . “ The last thing they need is the government putting up additional barriers to success . On each of these proposals , we have a strong case for regulators to do what we ’ re suggesting and are cautiously optimistic that we ’ ll be able to live with the final outcome .”
DEFINITIONS AND DISCLOSURES The proposed refund rule from the DOT would make it easier for passengers to get refunds if their tickets have been “ significantly changed ” and they are unable to fly .
Types of significant changes include the following :
• The departure and / or arrival times of a flight being delayed by three hours or more for a domestic flight or six hours or more for an international flight
• Changes to the departure or arrival airport
• Added stops within a trip
• A significant downgrade in plane amenities
ASTA is working to make sure travel advisors aren ’ t responsible for paying these refunds and that they come from the carriers . A decision is expected in early 2023 .
A second DOT proposal would add clarity around ancillary fees charged by airlines . Under the proposal , certain fees , such as
18 / THE COMPASS / SPRING 2023 vaxvacationaccess . com / thecompass