The Association Of Canadian Travel Agencies (ACTA) has released a list of best practice recommendations for suppliers regarding future travel vouchers, credit card chargebacks and commission protection.
Recognizing the negative impact COVID-19 has had on the travel economy, the association believes the industry will be stronger by working together with more efficient and consistent best practices in place.
ACTA says it consulted with global travel agency associations and Canadian travel agency members to produce the list.
Over the past several weeks, ACTA has had regular meetings with the ACTA Board of Directors, the Canadian Corporate Travel Association (CCTA), and senior leaders from consortia, host agencies and ACTA’s 30 largest travel agency members, forming the ACTA COVID-19 Travel Agency Leaders Advisory Committee.
During these advisory committee calls, as well as from feedback from members coast to coast, the association learned of the many challenges faced by members with respect to future travel vouchers, credit card chargebacks and the need for commission protection, during this new COVID-19 reality.
ACTA has also been taking part in discussions with the World Travel Agency Associations Alliance (WTAAA), a network of global Travel Agency Association, comparing best practices in other jurisdictions.
The association recognizes that travel agents must follow the terms and conditions of suppliers as legally, they are the agents of suppliers.
If a supplier has chosen to provide a voucher, ACTA -- working with a task force from the advisory committee -- has developed Best Practices recommendations for travel suppliers globally to follow.
Whether it is tour operators, airlines or cruise lines, the challenges are similar for travel agencies having to deal with several different and ever-evolving policies and procedures. There is a need for consistency where possible.
ACTA has established a smaller task force to focus specifically on group bookings as it was revealed that groups have their own unique issues which will require additional consideration. More details on groups will follow soon.
ACTA is calling on all travel suppliers to do the following:
1. Future Travel Vouchers (FTV)
i. Provide Travel Agencies with written FTV within 14 days of booking cancellation
ii. Have an expiry date of 24 months from the original travel date
iii. Be honoured at the same value, at minimum
iv. Offer any residual value in the form of a credit, or provide as a cash refund
v. Not define a particular destination, airline class, category of hotel or category of cruise line
vi. Allow for transfer to another person or the corporate buyer. The Booking Agent should be able to access and manage the transferability of the FTV
vii. Accessible and manageable via the GDS or other booking software
viii. Issuance and redemption of vouchers should be without additional costs imposed
ix. Ensure that all policies are the same whether the booking is made direct by the consumer or with a Travel Agent
x. Be refundable upon the term of the expiry date (24 months)
xi. Advocate to governments to protect FTVs with a Federal Government Guarantee to ensure that consumers will be guaranteed a refund due to the insolvency of an airline, tour operator, cruise line, Travel Agency or travel related business.
2. Work to resolve Credit Card Chargebacks as the Merchant and
i. Do not pass any COVID-19 related credit card chargebacks to the Travel Agency
ii. Do not pass along any Debit Memos as it relates to a COVID-19 credit card chargeback or refund
iii. Share relevant information with Travel Agency to enable them to assist with a credit card chargeback.
3. Protect and Pay Commission to the Travel Agency
i. At the time of deposit and/or when the file is paid in full, regardless of travel date
ii. If the travel is rebooked, cancelled or refunded (and definitely if the supplier has retained partial payment)
iii. On any fees applied
iv. Respect confidentiality on a Travel Agent’s mark-up.
4. Support the Travel Agent with clarity on the details of policy changes and coverage
i. Provide documentation in writing and in a format that is in plain language and can be easily shared with consumers.
ii. Once a policy has been determined, refrain from changing it.