ASTA: Suppliers Retroactively Changing Policies “Egregious,” “Unethical”

ASTA: Suppliers Retroactively Changing Policies “Egregious,” “Unethical”


The American Society of Travel Advisors (ASTA) lately addressed the necessity for airways to make adjustments to their current guidelines governing refunds and cancellations on account of the COVID-19 (coronavirus) pandemic. It experiences that progress is being made on that entrance, albeit slowly. One signal of this progress was the discover issued earlier this month by the U.S. Department of Transportation clarifying that airways stay obligated to refund passengers whose flights are cancelled by the airline, even when the flight disruption is outdoors of the service’s management. Many carriers are actually easing different insurance policies the place ASTA says it has pushed for change. 

In addition to airways, many vacationers and journey advisors are struggling financially on account of excursions, cruises and different ground- and sea-based journey which are cancelled by the provider for myriad causes related to the worldwide pandemic however fully outdoors of the vacationers’ management.

“While this is painful enough, what is far more egregious from ASTA’s perspective is the growing number of suppliers that have elected to change their refund, cancellation and commission policies retroactively, overwhelmingly to the detriment of advisors and consumers alike,” ASTA stated in an announcement. “Withholding or denying refunds in breach of the terms and conditions that were in effect at the time of booking breaks the supplier’s contract with the consumer. Similarly, withholding, delaying or denying outright an earned travel agency commission in breach of the policy in effect at time of booking is a violation of the contract with the advisor as well.”

Free Luxury Travel Newsletter

Like this story? Subscribe to The Dossier

Luxury Travel Advisor’s solely publication, masking distinctive locations and product information for prosperous vacationers. Delivered each Tuesday & Thursday.

On a name with media Thursday morning, ASTA president and CEO Zane Kerby stated they’re working with any such corporations which are ASTA members behind the scenes; nevertheless, the “ground swell” of comparable incidents by suppliers made it essential to make a public assertion.

“The supplier’s failure to honor its own cancellation, rebooking and refund policies also unfairly exposes the travel advisor to legal liability from the advisor’s client and, in many cases, constitutes a clear violation of state and federal consumer protection laws,” the assertion continues.

ASTA provides that “nearly every day since the crisis began,” it has realized of circumstances the place tour operators have been retaining traveler deposits, withholding company commissions and limiting compensation to credit score for a future journey—”one which, in lots of circumstances, won’t ever be taken.” It additionally notes that some tour operators and consolidators are flat-out refusing to refund vacationers the price of air tickets for flights that have been cancelled by the service and already refunded to the provider.

“We recognize that many suppliers, particularly the smaller ones, are facing unprecedented financial stress due to the crisis and ASTA is not unsympathetic to their plight. That being said, the practices being reported are simply unethical, and the outrage and frustration felt by both the traveling public and travel advisors in response is intense, and rightly so,” ASTA stated.

ASTA is looking on all journey suppliers globally to:

  • Ensure that each one journey elements are totally refundable and never merely credited for future journey
  • Honor the unique company commissions on all bookings if the journey is rebooked and, if the journey is refunded, think about a partial fee cost
  • Honor company commissions at time of deposit and/or at time of ultimate cost
  • Forgo the observe of assessing cancellation charges on rebooked or refunded itineraries and be certain that journey credit are a minimum of equal to the value the shopper paid
  • Set no time restrict on any credit score issued for cancelled bookings when taken in lieu of an provided refund or, alternatively, make the credit score good for no less than two years from the unique departure date

ASTA’s assertion concluded, “For those suppliers who have already chosen to do the right thing at this most difficult time, again, we applaud you, and we are confident that your actions will be richly rewarded by loyal consumers and advisors alike when the crisis finally abates and we are all able to start traveling once again.”

This article initially appeared on

Related Articles

Luxury Travel Advisor’s ULTRA Summit Postponed

U.S. Rep. Titus Asks Congress for More Travel Industry Support

Travel Edge EVP: Luxury Clients to Pick Up Where They Left Off

International Travel, Cruising Could Be Segments to Return Last


The Source

Leave a Reply