CRS changes ‘would hurt agents’
Proposed CRS rule changes which the US Department of Transportation office sent to the White House this week could be very costly to travel agents, warns the top official of the American Society of Travel Agents.
“We don’t know how much, but it could be millions,” William Maloney, executive vice president and CEO of ASTA, told TravelMole.
Under the proposed rules, airlines would have the option not to post information. The result is that agents would have to check several sites, and even then not be sure they had the best rates. Among other changes, CRSs would be forbidden from paying productivity incentives to travel agents to acquire or use their services.
The issue has remained unresolved since 1995, a condition Mr. Maloney termed “ridiculous.”
“The DOT is clearly attempting to bail out the airline industry”, he added.
After reviewing the DOT findings, the White House has until the end of the year to reach a decision. If the rules are adopted, Mr Maloney said the fight would not end. ASTA would then lobby the US Congress to overturn the proposed rules, he said.
Consumers as well as agents would be adversely impacted by the proposed changes, according to Mr Maloney. He cited a just-released survey conducted by ASTA which gave failing grades of “D” or “F” to the DOT for its failure to look out for the best interests of consumers. The survey found 78% of ASTA respondents believed the DOT’s proposed changes to the CRS rules are biased in favor of the major airlines.
Other findings included: More than three quarters of agents (85%) disagreed with the DOT’s assertion that changes need to be made to provide airlines more negotiating leverage in travel distrubution. More than two-thirds (67%) say the incentive payments that the DOT is proposed to eliminate are an extremely important source of income for their business. More than two-thirds of respondents (69%) oppose DOT regulation of contracts between travel agents and suppliers.
And most travel agents surveyed (87%) said if CRS rules are retained, they also should apply to the airline-owned Orbitz. Concluded Mr Maloney: “A free market wells best for everyone.”
See our previous story:
22 Sep 2003: D-day for proposed new GDS rules draws near
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements
Singapore to forbid entry to undesirable travelers with new no-boarding directive