One On One With ASTA President Zane Kerby
by Richard D'Ambrosio /Travel Market Report and ASTA president Zane Kerby spent some time chatting about the themes he will be addressing throughout ASTA Global this week.
TMR: So far, 2016 has been a very busy year for ASTA. How would you rate the organization’s performance so far?
ZK: Yes, 2016 has been busy—and very successful. ASTA and its members successfully fought six new proposed disclosures travel agents would have had to make to consumers buying air tickets. The rules, initially in the Federal Aviation Administration (FAA) reauthorization bill, would have cost agents $56 million per year in “talk time,” training and other costs.
After years of pressure, the U.S. Department of Transportation took a proposal to require large travel agencies to adopt minimum customer service standards “off the table” in the course of a broader legislative discussion. We’ve also continued to fight for agencies to be removed from the U.S. Department of Labor “blacklist,” blocking agents from using an exemption from overtime rules. We filed a petition this summer.
As a founding member of the Engage Cuba coalition, ASTA and its members continued to push for lifting the Cuba travel ban, work that resulted in 51 U.S. Senators – more than half of the Senate – signing onto the Freedom to Travel to Cuba Act. Also, ASTA and its members successfully opposed legislation to crack down on travel agencies’ use of independent contractors.
In Pennsylvania, ASTA and its members successfully opposed proposals that would have subjected agency gross sales and service fees to state sales tax, costing our industry more than $17 million per year in new taxes. And in Washington, ASTA worked with the ASTA Pacific Northwest Chapter (led by president Robert Roach) and NACTA Seattle chapter president Dan Smith to kill a Washington state proposal to increase the tax rate on commission income, saving Washington agencies $14.3 million over two years.
TMR: Do you have any insight about the presidential candidates heading into the November elections?
ZK: Neither candidate has commented directly or to any extent on issues we care about. In October 2015, then-Secretary Hillary Clinton commented on oil prices and airline tickets and fees, echoing many of ASTA’s concerns about industry concentration and how airfares weren’t coming down with the price of aviation fuel.
This May, Secretary Clinton came out in opposition to Norwegian Air International’s (NAI) entry into the U.S. market. Her campaign’s labor director said workers in the U.S. airline industry might be harmed by NAI’s entry. This is contrary to the position ASTA and other industry stakeholders have taken. NAI should be allowed to operate given the dearth of competition, particularly on trans-Atlantic routes.
Mr. Trump hasn’t said much on travel issues, though several observers at a June hotel conference in New York expressed concern about his rhetoric. Loews Hotels & Resorts chairman Jonathan Tisch warned that taking what he called the “Fortress America” approach, making it harder for overseas travelers to enter the United States, and could hurt the industry.
TMR: Organizations like ASTA use cash for fuel. What has ASTA been doing to fund its programs and legislative initiatives?
ZK: Consortia programs, membership partnerships (with Virtuoso and Signature) and membership agreements have put the association on stable financial ground. I’ve said it many times before, somewhat in jest—“being part of ASTA is your patriotic duty.” In the past five years, ASTAPAC has increased participation by 142%.
Truth be told, the only lasting contribution to ASTA’s success is your support. This support goes beyond attending an event or even paying your dues each year. I encourage you to maintain your ASTA membership and attend one (or all) of our educational events, but to be a true patriot, you must believe that ASTA is, and always will be, the only association that represents the interests of your business, of our industry, at the highest level.