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Congress members request repeal of refund rule affecting travel advisors
Congress members request repeal of refund rule affecting travel advisors

Travel Weekly

timea day ago

  • Business
  • Travel Weekly

Congress members request repeal of refund rule affecting travel advisors

ASTA on Monday shared its support of a letter that nine members of Congress sent to the Department of Transportation, urging the DOT to review its airline ticket refund policy. The Society has lobbied against the policy, which requires the merchant of record for airline tickets to refund customers if flights are canceled, regardless of whether they have the funds. While agencies are not often not the merchant of record for air sales, they are when they buy blocks of seats at wholesale prices and resell them with a markup. Nine Republican members of the House of Representatives signed a letter to DOT secretary Sean Duffy urging a review of the policy. They are Beth Van Duyne (Texas), Mike Bost (Illinois), Scott DeJarlais (Tennessee), French Hill (Arkansas), Kimberlyn King-Hinds (Commonwealth of the Northern Mariana Islands), Rich McCormick (Georgia), Maria Elvira Salazar (Florida), Pete Stauber (Minnesota) and Daniel Webster (Florida). In the letter, the lawmakers wrote that since the rule went into effect last October, "travel agencies have been accountable for financial compliance in a situation they have no control over." Constituents have reported the rule is "a substantial hardship for their small businesses," they added. "Travel advisors and agencies often operate on slim margins and the rule requires them to front capital they often do not have." ASTA president and CEO Zane Kerby said, "Requiring small business travel advisors to extend credit from their own pockets to pay airline refunds is a gross misplacement of responsibility that must be rectified, and I applaud these members of Congress for recognizing this inequity and taking our plight to new leadership at the DOT. "Fixing this misguided rule remains ASTA's top policy priority, and the support of Congress will go a long way toward that goal."

ASTA survey shows weakness in international travel
ASTA survey shows weakness in international travel

Travel Weekly

time5 days ago

  • Business
  • Travel Weekly

ASTA survey shows weakness in international travel

While business continues to thrive for some travel agencies, others are facing headwinds because of decreased consumer demand and uncertainty, according to a new survey from ASTA. ASTA surveyed members in March and again in June. In both surveys, advisors said they were concerned about economic instability, misinformation and fears surrounding international safety and immigration policies. "However, tone and urgency shifted notably from March to June," ASTA said. "Many advisors are 'anxiously reactive,' noting the mounting sense of burnout, client frustration and realignment of business models." While the full survey results are a benefit for ASTA Premium Members, the Society released some key statistics. From the March survey to the June survey, the proportion of agencies experiencing a significant drop in demand was flat, ASTA said. However, those seeing a slight fall in demand increased from 32.5% to 38.8%. International travel has been the most affected, according to ASTA. In the June survey, postponements of international travel were up compared to March, though cancellations slightly decreased. Most advisors, 69.2%, said in June that international leisure travel has been the hardest-hit segment of the business. That figure was up 9.2 percentage points from March. ASTA also asked advisors about key factors affecting their businesses. More pointed to tariffs (27.9%) and travel bans (12.4%) in June than they did in March (23.1% and 8.3%, respectively). "Our members expressed their views plainly in our most recent national survey," ASTA president and CEO Zane Kerby said. "They are seeing hesitation in their clients, cancellations in their bookings and fear in their conversations. They are shouldering the burden of misinformation and working overtime to educate and protect the travelers who count on them most. "For some, business is still thriving," Kerby added. "For others, survival demands a pivot toward new markets, safer regions, more flexible pricing and above all, a clear-eyed strategy."

ASTA lauds two measures in Trump's Big Beautiful Bill
ASTA lauds two measures in Trump's Big Beautiful Bill

Travel Weekly

time07-07-2025

  • Business
  • Travel Weekly

ASTA lauds two measures in Trump's Big Beautiful Bill

While ASTA offered no overall position on the Trump administration's budget bill signed into law on July 4, the Society pointed to two victories it had been lobbying for: a tax break for advisors was made permanent and flexibility was increased for education savings accounts. The bill makes permanent a tax break known as the Section 199A deduction. Small businesses can deduct 20% of their qualified business income. The tax break was originally set to expire at the end of the year. According to ASTA, the law has been updated to raise income limits to $75,000 for individuals or $150,000 for couples filing jointly. It also guarantees a minimum deduction of $400 for those earning at least $1,000 in business income. ASTA said the deduction is applicable to many advisors. In a survey conducted earlier this year, 87% of respondents said it was moderately or very significant to reduce their tax liability. "Travel advisors pour their profits into customer service, technology and education. Making the tax deduction permanent provides certainty so they can keep innovating for travelers," said ASTA vice president of advocacy Jessica Klement. Text from the Freedom to Invest in Tomorrow's Workforce Act was also included in the bill, expanding the approved uses of 529 savings plans. Previously, the funds could be applied to a U.S. college or university or an apprenticeship program. Now, funds can be used for postsecondary training and credentialing, like ASTA's Verified Travel Advisor certification. Klement called it "a common-sense update," noting that "professionals can choose the training that best suits their goals."

Berkshire Hathaway Travel Protection is back with 'easy' focus
Berkshire Hathaway Travel Protection is back with 'easy' focus

Travel Weekly

time30-06-2025

  • Business
  • Travel Weekly

Berkshire Hathaway Travel Protection is back with 'easy' focus

Jamie Biesiada When Berkshire Hathaway Travel Protection (BHTP) starts offering its products through the trade again this year, the company's goal is "to make things as easy as possible," said president Dean Sivley. From signing up to sell BHTP's products in a soon-to-come online portal to the claims process, Sivley said he wants his company to be known for being a straightforward and smooth operator. "Those are the things they can look forward to from us: always try and make it easy," he said. "That's definitely our mantra." BHTP is no stranger to the trade. The company has worked with advisors in the past, entering the market in 2014, but backed off a few years after that to focus on developing its products and services through strategic partnerships. Now, though, the company is ready to re-engage with travel advisors. It's building a new platform to do so, Sivley said, which he wants to open "in the very early part of the fourth quarter." That platform is part of BHTP's efforts to make advisors' lives easier. Many things will be automated, like signing up and getting appointed to sell BHTP's products. Another big part of the company's efforts to reach out to the trade anew was the hiring of Bob Ford as chief revenue officer. Ford joined BHTP from AIG Travel Guard last year. Sivley and Ford recently attended the ASTA Travel Advisor Conference, held in May in Salt Lake City, where they networked with advisors and industry executives. One ASTA initiative Sivley is eager to get on board with is its effort to get advisors paid in a timely manner. In a session with suppliers at the conference, he said ASTA CEO Zane Kerby talked about getting advisors paid faster and making the process simpler. "We're committed to try and live up to that mantra that he's stressing," Sivley said. "I think that's important. That's how your partners feel that you're engaged, you're focused on their issues and their priorities, and we're definitely going to do that." Sivley encouraged advisors to sign up for partner updates online to keep up with the latest news. BHTP will also be at several upcoming trade shows to spread the word. "We are committed and really excited," he said. "I think we're going to continue to do what we've done, which is always try and make it simple, and to work well with our partners."

Turkish Airlines Fares Return to Sabre After 10 Month Absence
Turkish Airlines Fares Return to Sabre After 10 Month Absence

Skift

time23-06-2025

  • Business
  • Skift

Turkish Airlines Fares Return to Sabre After 10 Month Absence

It seems that Turkish Airlines' push for direct bookings isn't exactly going to plan. As American Airlines already learned, travel agents aren't keen on fast change. Turkish Airlines fares will once again be available on Sabre after nearly 10 months of negotiations, according to LinkedIn posts from sales managers for both companies. That means travel agents who use the Sabre global distribution system no longer have to look elsewhere to purchase Turkish Airlines flights on behalf of clients, resolving a major headache. Turkish Airlines had removed its flights from the Sabre platform last September and travel agents were forced to book through competitors Amadeus and Travelport. The removal and lack of communication had received strong pushback from the industry. The American Society of Travel Advisors published a statement last November criticizing the airline for the move and a 'lack of clarity' about its plans. ASTA said that U.S. travel sellers use Sabre more than any other platform of its type. ASTA commended the reinstated partnership in a statement on Monday. Mark Meader, executive vice president of ASTA Corporate, said in the statement: 'This development is a welcome outcome for the U.S. travel agency community, which relies heavily on Sabre to access comprehensive, competitive flight options for their clients. ASTA appreciates both parties' efforts to restore this vital connection and encourages continued transparency and collaboration to support the travel advisor channel and the travelers it serves." A Push for Direct Bookings Turkish Airlines pulled its fares ahead of the launch of its TKConnect platform last October, where travel sellers can book flights directly with the airline. In a push for more direct bookings, the airline began imposing a surcharge of $24 per ticket for flights booked through distribution companies. Bookings through TKConnect have no fees. The distribution systems that Amadeus and Sabre provide have been the backbone of airline bookings for decades, but the industry is exploring other options. For airlines, they're often looking to circumvent the growing fees that come with working through an intermediary. The industry is taking some steps to move toward a more modern airfare shopping experience, which is what TKConnect aims to provide. Amadeus, Sabre, and Travelport have been pushing their own versions of this tech. The latest agreement between Turkish Airlines and Sabre includes an integration into Sabre's modern distribution platform, according to the LinkedIn posts. American Airlines had been transitioning to a similar strategy focused on direct bookings and modern retail until it backtracked for what the CEO said was poor execution. American Airlines is still behind on revenue goals because of that attempt, though the company says it's on track to fully recover by the end of the year. Sabre confirmed the agreement but did not provide additional details. Turkish Airlines did not respond to a request for comment.

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