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Press Release
Jan 24, 2023
FOR IMMEDIATE RELEASE
CONTACT: Katie Grant Drew
Washington, DC – Yesterday, the Travel Management Coalition, representing six of the largest travel management companies (TMCs), submitted comments in response to the Department of Transportation’s proposed rulemaking on enhancing the transparency of airline ancillary fees. In their response, the Coalition called for corporate travel agencies to be exempted from the rule.
The Coalition emphasized their support for DOT’s goal of strengthening consumer protections and enhancing transparency. They explain that an exemption makes sense because, “the requirements, as proposed, do not reflect the unique role of corporate travel agents in the marketplace. Corporate travel agents facilitate transactions between airlines and corporate customers, not the general public.”
Because the types of customers served are fundamentally different, the Coalition argues that subjecting corporate travel agencies to this rule doesn’t further DOT’s goals. They argue: “Subjecting corporate travel agents to this rule does nothing to achieve DOT’s goal of enhancing protections for the occasional leisure traveler in the general public, and could frustrate the frequent business traveler by requiring certain information to be presented in a way that is not contemplated in the corporate travel contract and not applicable, needed or wanted by the customer.”
The Coalition goes on to highlight the difference between a business traveler, who is often using a booking tool where ancillary fees are already provided and clearly visible, and a member of the general public, stating: “There is no harm alleged; it is quite different from a traveler searching a public site with no leverage to affect what he or she may see upon search – the circumstance that DOT is referencing to justify the need for the rulemaking based on consumer complaints to the Department.”
In their letter, the Coalition points out that the U.S. Congress recognized the distinction between “ticket agents that sell to the general public, and ticket agents that sell to corporate customers, in writing the Federal Aviation Administration (FAA) Reauthorization Act of 2018” and that “other governments and regulatory bodies, including the European Commission, Germany and the United Kingdom, recognize the distinction between a business and leisure traveler in the marketplace.”
The Coalition also responded to several other questions from DOT regarding the proposed rule. In their letter, the Coalition:
Expressed support for an “opt-out” option for travelers who choose not to have the ancillary fee information required under the rulemaking displayed when searching for travel, while adding that an “opt-out” option should not be in lieu of an exemption for corporate travel agents.
Supported requiring airlines to provide ancillary fee information to ticket agents, saying, “having consistent fee information through the [Global Distribution System] GDS, as well as other entities to which airlines provide fee and fare information, would help agents provide better customer service when such information is requested by the corporate traveler.”
Click here to read the full comments from the Travel Management Coalition.