Airline Cancellations: Travel Advisors Seek Shield from Blame

Airline cancellations are more the norm than the exception these days and often travel advisors are thrust into the middle, between their clients and the DOT.   To that end, the American Society of Travel Advisors (ASTA) this week is urging the U.S. Department of Transportation to reverse course and not require travel advisors to pay client refunds out of pocket for cancells flights when the agency is not in possession of the client’s funds. 

This plea came as part of ASTA’s written comments in response to DOT’s Notice of Proposed Rulemaking on airline ticket refunds and consumer protections issued earlier this year. 

“While we share the Department’s goal of ensuring consumers get the refunds they are entitle to when an airline cancels a flight, putting travel advisors ‘on the hook’ for issuing those refunds is the wrong way to do it,” said Zane Kerby, ASTA President & CEO. “In fact, it will negatively affect consumers in the long run as the financial risk associated with this proposal may lead agencies to stop selling air tickets altogether, depriving consumers of the valuable consultatory services and comparative shopping options advisors provide. We urge DOT to make the changes we’re suggesting.” 

Asta Filing: Airline cancellations

In ASTA’s filing, Peter Lobasso, the Society’s Senior Vice President & General Counsel, urges DOT to decline to impose in the final rule any requirement that travel advisors provide consumers with refunds in connection with cancels or significantly change flights. 

Instead, the agent’s regulatory obligation should limits to making reasonable efforts to assist the affects consumer in securing the refund from the carrier. If this is not feasible, we request that the final rule expressly limit a ticket agent’s obligation to issue a consumer refund only in circumstances where the ticket agent: i) is the merchant of record of the transaction; ii) has receive notice from the airline that the passenger is entitled to receive a refund; and iii) is in possession of the consumer’s funds. 

ASTA’s filing touches on several other elements of the sprawling, 115-page proposal, including DOT’s propose definition of a significant flight change, a requirement to provide non-expiring vouchers, the ability of agencies to charge service fees, and more. 

Modifying the Department’s refund proposal has been ASTA’s top policy priority since it was unveiled in early August. ASTA’s full comments on the DOT proposal can view here. 

Airline Cancellations and Holiday Travel Plans

Meanwhile, more airline cancellations and travel delays are expect to in full force this holiday season, according to a recent report. Still, travel plans must go on. New data from IBS Software reveals that despite more than two thirds (68%) of passengers being inconvenience by disrupte journeys since COVID travel restrictions were lifts and 66% expecting more of the same during upcoming trips, most (83%) still plan on flying for a break in the next six months.

The research, which poll 2000 recent travelers in the UK and US, warns that holiday providers have one more chance to get it right; if holidaymakers experience disruptions again during their upcoming trips, over half (55%) will avoid booking with the airline in the future. When ask who they blame for their poor experiences, 50% said it was the fault of the airlines when flights were delays, with just 13% blaming the airport. However, when it comes to lost luggage the jury is out – 42% say it’s the airport’s responsibility and 40% are seething at the airline. The survey did not ask whether travelers would blame or seek redress through their booking agent. 

Delayed flights or miss connections was the most common holiday hurdle note in the survey, affecting over a third of all passengers (35%), follows closely by waiting in longer than normal queues (31%) and cancells flights (15%). Lost luggage, which dominate the news headlines in the Summer, is confirm by the research as a major annoyance, blighting nearly 1 in 7 passengers’ holidays over the last 18 months.

Final Words

Despite a clear desire to travel, passengers won’t accept more disruption without protest. If passengers find out their journey is going to disrupt, 53% will complain to the airline and 38% will use social media to broadcast their annoyance. And if an airline doesn’t have a reputation for punctuality they’re likely to lose out with 93% of travelers saying this is an important factor when deciding which airline to buy from. 

When flight cancellations or terminal turmoil occurs, passengers can placate by automatic refunds when eligible; proactive customer support to suggest alternative routes; and automatic alerts on their phone when something goes wrong. 

*The survey was conduct online Censuswide between Monday 28th November and Wednesday 30th November. 1000 consumers who have travels by air for leisure in the last 18 months in both the US and UK responded.