ASTA Announces Operation CARE in Response to Commission Cuts

In an emergency session Wednesday 22 August 2001, the Board of Directors of the American Society of Travel Agents (ASTA) approved Operation CARE (Campaign for Agent Rights and Equality). The campaign was ASTA's response to an Aug. 18 commission reduction by American Airlines and TWA Airlines which was matched by United Airlines and Delta Airlines on Aug. 23.

In a previous meeting Tuesday, the Executive Committee of the ASTA Board took the following actions, which were ratified by the full ASTA Board in the emergency session:

1. ASTA will seek relief from the anti-trust laws to permit travel agents to respond collectively to airline market power that is being used against them and against consumers;

2. ASTA expelled American Airlines and TWA from ASTA membership effective immediately.

"The government is permitting airlines to act collectively in ways that are directly harmful to our businesses and to the traveling public. The time has come that we be allowed to collectively respond to what the airlines are doing," said Richard M. Copland, CTC, ASTA president and CEO. "We intend to file papers with the Department of Justice and the Department of Transportation, and we will lobby for equal rights for travel agents on Capitol Hill."

"The bottom line is this: travel agents deserve fair compensation for their labors," said Copland. "The airlines have declared war against their distribution system and we intend to make the public aware of this outrage."

Immediately following the American announcement, ASTA issued a statement strongly condemning the cut as an anti-consumer act, calling it a "back door price increase." ASTA followed up the statement with an all-member communication advising its members of their rights in light of the action. The communication advised agents that they have the right to take individual business action including choosing what individual carriers they sell and what service charges to assess.

The Board of Directors also approved Operation CARE (Campaign for Agent Rights and Equality). The elements of that program are:

1. To seek a meeting with the Secretary of Transportation and expedited appointment of the final three members of the National Commission to Ensure Consumer Information and Choice in the Airline Industry. When the appointments are completed the Commission will begin its mission to investigate airline marketing practices that harm consumers and travel agents.

2. To assist members seeking relief from CRS contract terms. ASTA is in talks with SABRE and intends to work with other CRS's in a similar fashion.

3. To seek immediate resumption and expedited conclusion of the CRS Rulemaking at DOT. The rules expired more than three years ago. ASTA has repeatedly asked the DOT to resume the rulemaking. Among ASTA's goals in the proceeding are the following: (a) require CRS vendors to offer short term contracts, with prices commercially reasonable in relation to longer term contracts, (b) stop airlines from buying computer records showing individual agency-generated transactions on competing airlines, (c) provide relief from productivity clauses that hamper agents' ability to switch bookings to the Internet and (d) apply the anti-bias rules to multi-carrier displays on the Internet.

4. To meet with cruise lines and tour operators about opportunities for agents. "ASTA intends to aggressively seeks ways to help travel agents sell more leisure products more efficiently and more profitably than ever," said Copland.

5. To present, on ASTAnet (www.astanet.com), a commission cut economic impact analysis with suggested strategies and "Best Practices" for agents.

6. To launch, at no charge to members, a "Business Transition Planning" teleconference series, to be held once a week for four weeks.

7. To call for a Nationwide Day of Awareness on Thursday, Aug. 30, 2001. ASTA will ask all U.S. agents, not just ASTA members, to close their offices for two hours from 1 to 3 p.m. EDT. ASTA chapters around the country will participate in political action and consumer awareness events, such as informational picketing at airports and visits to Congressional representatives in their home offices. "The purpose of this action is to raise awareness of the airlines' attempt to deprive consumers of their preferred method of purchasing air transportation and their only source of neutral price and service options," said Copland. The theme of the Day of Awareness will be "Without a travel agent, you're on your own."®

About ASTA
The mission of the American Society of Travel Agents and its affiliate organizations is to enhance the professionalism and profitability of members worldwide through effective representation in industry and government affairs, education and training, and by identifying and meeting the needs of the traveling public. The Society is the world's largest and most influential travel trade association with over 26,000 members in more than 170 countries.