In 2024, the Department of Transportation (DOT) finalized a rule regarding refunds for cancelled or significantly altered flights. In some cases, travel agencies could be responsible for providing the refund to clients. This would put you on the hook for potentially thousands of dollars while waiting for the airline to repay you.
The rule requires the merchant of record, possibly the travel advisor who made the booking on behalf of clients, to provide a refund if a flight is cancelled or significantly altered within seven days. However, the rules do not specify how quickly the airline must reimburse the travel agency, only stating that it must be done “promptly,” thus leaving the travel advisor responsible for bankrolling the airline. For small businesses in particular, this is detrimental.
Working with ASTA, Rep. Maria Salazar (R-FL) introduced the Flight Refund Fairness Act (H.R. 5556) which would require the airlines to refund the merchant of record in seven days, and provides for an additional seven days for the merchant of record to refund its client. This allows travel advisors to continue to operate without the worry of paying thousands of dollars for the airline’s mistake.
Recently, your fellow advisors advocated for H.R. 5556 during ASTA’s Legislative Day on Capitol Hill. You can help continue the dialogue by contacting your congressional offices. Please use the letter to the right to email your Representatives and ask them to consider cosponsoring this legislation. As always, personal letters are more compelling - please take a moment to add your own story of how one refund for an airline’s shortcomings could endanger your business.
If you have any questions, please contact us at GovtAffairs@asta.org. Thank you!