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ASTA Urges Disney to Revert to 2024 Agency Designation Agreement Terms

by Daniel McCarthy  December 03, 2024
ASTA logo

Photo: ASTA

The American Society of Travel Advisors (ASTA) on Monday called on Disney to reverse changes made in its 2025 Travel Agency Designation Agreement.

ASTA says the new requirements, particularly enhanced insurance coverage, place undue burdens on smaller travel agencies, making it harder for them to sell or build businesses around Disney products.

The updated agreement includes higher minimum policy coverages that ASTA says are “excessive and unduly burdensome,” and do not consider an agency’s size, sales, or volume. Unlike previous agreements, the 2025 version also no longer exempts agencies without storefronts from insurance requirements.

ASTA also pointed to other updates that increase costs and complexity, such as mandates for policies to be primary, non-contributory, and inclusive of an expansive list of Disney-insured entities. The agreement also requires waivers of subrogation and strict policy rating minimums, which ASTA says exceed industry norms.

ASTA emphasized it is “unaware” of any “heightened legal claim risk associated with Disney vacations” that would justify the changes. Travel Market Report has reached out to Disney for comment.

“As partners in your mission to create magic, ASTA respectfully calls on Disney to revert to the 2024 insurance requirements, which, in our view, better reflect the true level of business risk to be managed in light of the diverse needs and capacities of its valued travel agency partners,” ASTA said. “Doing so will foster a stronger working relationship with the advisor community while ensuring a sustainable path for agencies of all sizes to continue delivering Disney’s world-class experiences to their clients.”

  
  
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