DOT’s Passenger Rules Place Greater Burden on Travel Agents

ASTA is working to arm travel agents to meet a major, and growing, challenge – compliance with airline consumer protection regulations.

Since the Department of Transportation (DOT) began implementing its latest set of airline passenger protection rules in 2011, the “burden” on travel agents has increased, said John Pittman, ASTA’s vice president of industry affairs.

“We’ve seen more enforcement, and not just of the large OTAs, which seemed to receive the bulk of attention a few years ago. We’re now seeing fines and penalties against smaller agencies and traditional agencies,” Pittman said.

Rules affecting agents
Aimed at protecting consumers and prohibiting “unfair and deceptive practices” in the airline industry, the DOT’s Enhancing Airline Passenger Protection II rule affects not only airlines but travel sellers.

The latest set of regulations were released in April 2011, with some requirements taking effect in August 2011 and others in January 2012.

While the new DOT rule contains a host of complex regulations, for travel agents “two rise to the top,” in terms of the DOT’s active enforcement efforts, Pittman said.

One is a regulation requiring agents to disclose all the airline names associated with code-share flights, including marketing partners, operating carriers and any other airline name associated with a flight sold to the public.

The other is a rule requiring agents to disclose in advertisements the full and final price the customer will pay for air, including for air travel that’s part of a tour or cruise package.

DOT audits agents
“I would say the No. 1 rule DOT is enforcing is the code-share regulation,” Pittman said.

Last year, the DOT extended its enforcement efforts on code-share disclosure to travel agencies, by making test calls to audit “assisted reservations.” Assisted reservations are those made over the phone with an agent, as opposed to an online reservation, Pittman said.

“That has impacted traditional agents,” he said.

Pittman said certain “nuances” also make a complex issue even more complicated.

What does an agent do, for instance, when a tour or cruise package includes airfare but the airline isn’t specified at the time the client makes a purchase? he asked.

The penalties
In 2011, out of a total of 12 enforcement actions against agents, eight were for code-share violations, with a total of $385,000 in fines, and four were for advertising violations, with $64,000 total fines, according to Pittman.

In 2012, agents were fined 14 times – $340,000 in fines for six code share violations and $315,000 for seven advertising violations. (The fourteenth fine involved another regulation.)

In 2013, agents were fined for 12 violations – seven code share violations, with total fines of $460,000, and five advertising violations, with fines totaling $156,000.

Price advertising rule
Regarding the DOT’s price advertising rules, Pittman said that although the DOT has had regulations governing advertising of prices before, the 2011 rule changed things dramatically,.

Previously, travel sellers were allowed to advertise a price with an asterisk highlighting additional charges, including government taxes, mandatory fees and optional charges.

Pittman said the rule goes beyond advertising of prices in that it applies to travel sellers’ presentation of price to clients. That includes an offer in person as well as in any advertising, including print and online.

Insecticide disclosure rule
Agents also will have to contend with a variety of other DOT disclosure rules, some of them unexpected, Pittman said.

An insecticide rule requires agents to refer a ticket purchaser to the DOT’s disinfection website if that client is traveling to countries that require aircraft to be treated with insecticides either prior to a flight or while the plane is occupied.

“The requirement is simple but the implication is not,” said Pittman. “How do you comply with that?”

Hazardous materials
Another regulation requires agents to disclose to clients all of the hazardous materials they’re not allowed to take onboard. The rule includes a list about two paragraphs long detailing these materials.

Pittman said the rule requires agents to not only make the disclosure but to obtain the client’s acknowledgement.

ASTA is working to have the regulation revised so that it won’t require agents to disclose this information prior to ticketing and also won’t apply to ticketing through an assisted reservation.