Three takeaways from DOT airline passengers’ rights rule

Jul 23, 2024 | Aon

 

Earlier this year, the Department of Transportation (DOT) finalized a new rule that requires airlines to automatically provide a cash refund to passengers when airlines cancel or significantly change their flights, significantly delay their checked bags, or fail to provide the extra services they purchased such as in-flight Wi-Fi. While there are mixed feelings across the industry on the new regulation, here are three key takeaways to be aware of:

  1. Implementation might be bumpy. The final rule was issued in April 2024 and went into effect earlier this summer in late June. Airlines and other travel industry players like small business travel agencies are having to align their policies and practices – for example, augmenting tech capabilities to notify passengers and issue refunds – with the new requirements.
  2. Standardization will provide clarity. Until this rule, what constituted a “significantly” delayed flight was left up to airlines to define as well as any corresponding compensation. Now, the DOT has established clear criteria: when departure or arrival is delayed by three hours for domestic flights and six hours for international flights. This standardization ensures that passengers have a clear understanding of their rights and the compensation they are entitled to.
  3. Travel agencies should review certain policies and procedures. The new rule, per the DOT, “stipulates that airlines and ticket agents must issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.” The American Society of Travel Advisors (ASTA) has issued a statement saying that requiring travel agencies, many of which are small businesses, to issue refunds indicates a lack of understanding from the DOT about merchant of record sales and could ultimately put these agencies in a precarious financial position. Agencies should ensure they are well-informed about the specifics of the rule and update their policies and procedures where necessary.

The Aon Travel Takeaway

“This new DOT rule represents a significant shift in airline passengers’ rights, aiming to enhance consumer protection and establish guidelines for both the travel industry and passengers,” said Beth Godlin, president of Aon Affinity Travel Practice. “As the industry adapts to these changes, it is important for passengers to understand their rights and critical for travel professionals to recognize how these changes will impact their businesses.”

 

 

More Blog Posts

Travel Tips:
The Evolution of Luxury Travel
Traveler Beware: Why Relying Solely on the DOT Rule for Protection isn’t Enough
Top Travel Troubles and The Role of Insurance
Smooth Sailing: Three Reasons Why You Should Purchase Insurance Through Your Cruise Line
Three takeaways from DOT airline passengers’ rights rule
2024 Summer Travel Trends: Destination Dupes, Adventure Escapades and More
Three ways tour operators can ride the ‘silver tsunami’
Wanderlust for Words: Five Destinations for Book Lovers
Lights, Camera, Boarding – What to Know When Traveling to Movie and Show-Inspired Locales
Rest & Relaxation: Worldwide Wellness Destinations
Five Destinations for Every History Buff
Four Ways the Cruise Industry is Leading the Way in Responsible Tourism
The Kick-Off to Summer Travel: A One-on-One with our President Beth Godlin
Summer Travel: What the Industry Should Expect
Weather Impact Data Underlines Importance of Customizing Travel Insurance
Dive into Tour Operator Industry Trends with USTOA Data
Five Reasons to Book an Expedition Cruise
Ride Wave Season Like a Pro
Why You Should Consider Working with a Travel Insurance Broker
Top Four Spots for Music Lovers
Top Five Kid-Friendly Vacation Destinations
Cruising: Family Style
When Not to Buy Travel Insurance
Travel Insurance During Hurricane Season: Your Questions Answered
Five Trips for the Adventure Seeker
How travel insurance is evolving to meet customization demands
MythBusters: The Top Four Myths About Travel Insurance
Five Places to Visit If You Love Wine
Avoiding the Crowds: Five Unspoiled Wonders to Visit in 2022
Travel Looks Forward to 2022
Five Travel Experiences to Check off Your Bucket List in 2022
Post-Departure Benefits: Did You Know Your Travel Insurance Does This?!
Five International Destinations for a Non-Traditional Thanksgiving
Fall Traditions Around the World
Safety at Sea
Adventure Awaits: Five Unforgettable National Park Experiences
Top Spots Abroad to Visit Off-Peak
All Aboard for the North American Rail Renaissance
Revenge Travel’s Must Have Accessory: Travel Protection for International Journeys
Experience European Charm Sans Passport
The Boomers are Back and They’re Helping Fuel a Summer Travel Surge
Be Travel Ready with These Five Tips
The Future of International Travel: Recovery and Beyond
Staying Stateside for Your Next Trip? Here’s What You Need to Know About Travel Insurance
Travel Insurance Trend: Medical Benefits are In-Demand
Travel Protection and Your Credit Cards
How to Read the Fine Print of Your Travel Insurance Policy
Leisure travel insurance purchase trends
Holiday Travel Safety Advice

Insider Insights:
Three Things We Learned This Year
Filing a claim doesn’t have to be difficult. Here’s why.
Taking Your Postponed Honeymoon? Tips Travelers Need to Know
Honeymoon Travel Advice
Where to Soak in a Long Weekend - 4th of July Destinations
4 Cruise Experiences at any Budget
20 for 20: The tech travel tips we've tried, tested and learned

Travel Primer:
Greatest Risks to Big Summer Travel
24/7 Access – The On-Call Travel Insurance Claims Process
Top Events that Trigger Travel Insurance
Will My Health Insurance Cover It?
Top Travel Protection Terms

Destination Spotlight:
Unforgettable Winter Sports Getaways
Five international destinations for food lovers
Grand Advent Festivities Await in Austria
Colorful Cues in Europe
Spook-tacular Halloween Travel Destinations

Real Life:
Severe Weather, Serious Protection
Wellness-Driven Travel Trends
How to Make 2018 the Year for Travel
Home Care Checklist Before Traveling
Study Abroad Smarts for Today’s Student Travelers
First-Time Cruisers: What to Know Before Packing a Bag
Should I Buy Travel Insurance?
Planning the Ultimate Bucket List Trip

Ask Aon:
Your Travel Protection Questions, Answered by the Pros