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ASTA's alternate airline ticket settlement task force ends
Wednesday, May 21, 2008

ASTA announced that its Alternate Airline Ticket Settlement Task Force had held its last meeting, having concluded that no alternative to the current settlement system as provided by the Airlines Reporting Corp. (ARC) was feasible unless accepted by all major air carriers and that at present there was no indication to suggest carriers would.

"Travel agents today face a quandary when it comes to airline ticket settlement in that the current system is untenable and yet there is no viable alternative," said ASTA President and CEO Cheryl Hudak, CTC. "ARC is a monopoly—it has no competition and accordingly there are no options for an integrated airline ticket settlement system. We had hoped to lay the groundwork for an alternative settlement mechanism, but it has become clear to us that without acceptance by the legacy airlines this, for the present, is an exercise in futility."

The task force, formed last year in the wake of ARC's announcement that it would be increasing travel agents' annual fees by 172 percent. The task force met three times over the past six months. This fee increase is the first of a series of fee hikes that will lead to a 500-percent fee increase paid by agents by 2011.

Theodore Koumelis - Wednesday, May 21, 2008
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Poll
How do you expect luxury travel to perform in times of economic downturn?.

Providers of luxury travel products are going to witness shorter stays by their customers and an increase in seasonality.

People are going to become more value conscious and will opt for those luxury offers that represent a convincing value-for-money proposition. Providers of overpriced services are those to feel the pinch.

Both people paying for their personal trips and firms paying for their top executives' business trips will cut back on travel expenses, thus affecting all luxury travel providers.

It is going to be business as usual. Those people opting for high-end travel products are not going to be affected by the looming crisis.

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