ASTA Members Descend on Capitol Hill

WASHINGTON, D.C. – More than three dozen ASTA members met with congressional assistants on Capitol Hill this week in a drive to educate lawmakers about issues that affect travel agents and the travel consumer.

“It was challenging to pick our top issues for this day, because we have so many to address,” said Eben Peck, ASTA’s head of government affairs, in a morning briefing session during ASTA’s first Legislative Day in years.

Transparent Airfares Act
One issue that was high on everybody’s agenda was the airline-supported Transparent Airfares Act, a House bill that would allow airlines to once again advertise base airfares by themselves and show taxes and fees separately.

“This would undermine comparison shopping for air travel and represents a giant step backwards in terms of transparency on the price of air,” said Peck.

Travel Market Report sat in on a closed-door meeting between the CEO of a corporate travel company with 200 employees and a legislative correspondent for Sen. Mark Udall (D-Col.). The airfares bill, which has not yet been brought to the House floor, was the focus of conversation.

The travel executive highlighted the negative effect the legislation would have on businesses and consumers alike.

Why it should matter to you
ASTA CEO Zane Kerby said the average ASTA member agent should be gravely concerned about the Transparent Airfares Act.

“It is about the balance of power between Congress and the Department of Transportation,” said Kerby. “If Congress can override its primary regulator, it sets a major precedent for the travel industry.”

A bad precedent?
If the airline industry is successful with passing the act, other travel providers could sponsor similar legislation as well.

“The transparency law could set a precedent for airlines and car rental corporations,” said Michael Farrell, vice president of corporate marketing and leisure travel for World Travel Inc. in Exton, Penn.

“Businesses should be upset about these moves, because they are footing the bill [for higher non-transparent costs].”

Farrell attended the event in order to bring the concerns of his corporate travel customers to legislators on Capitol Hill. “We see ourselves as an advocate for our customers,” he said.

Distribution of ancillaries
Another major issue on the docket was the distribution of airline ancillaries, which increased from $30 billion in 2012 to $46 billion in 2013.

The Department of Transportation is due to release a rulemaking that will affect how travel distributors can package ancillaries, including their display in GDSs.

“If airlines are providing base fares, they should also provide core ancillary services to distributors so people have the ability to select, compare and buy services they want,” said Bruce Charendoff, senior vice president of government and external affairs at Sabre Travel Holdings.

“Indications are good [the DOT] will rule strongly for transparency.”

Keeping Brand USA alive
Another issue of concern was the future of Brand USA, which comes up for renewal next year. The bill reauthorizing Brand USA could be held up by legislators concerned about the government’s role in expanding foreign visitation to the U.S.

“The centerpiece of this is the visa waiver program,” said Charendoff. “It is pure gold for stimulating international tourism; 60% of our international visitation is from visa waiver countries.”

Legislators introduced the JOLT Act last year to the House Subcommittee on Immigration and Border Security, in hopes of increasing the availability of visa waivers to citizens of certain countries, including Israel, Poland and Brazil.

“The primary provision of the JOLT Act is to expand the visa waiver program which exists today,” said Peck.