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Nebraska decides not to charge sales tax that would have hurt advisors
Nebraska decides not to charge sales tax that would have hurt advisors

Travel Weekly

time3 days ago

  • Business
  • Travel Weekly

Nebraska decides not to charge sales tax that would have hurt advisors

There will be no new sales taxes on travel packages in Nebraska, including travel advisors' professional fees. Senators in the state had initially sought to remove the state's sales tax exemption on "nonessential" goods and services to offset a decrease in property taxes, according to ASTA. That would have resulted in a sales tax of up to 7.5% on travel sold in the state. • Related: ASTA celebrates a legislative win in Louisiana As an example, the Society said, a $3,500 cruise vacation would be subject to a $262 tax. ASTA activated a grassroots campaign with advisors in the state who called and emailed their legislators, expressing the concern that travelers would simply seek an out-of-state advisor to book their travel instead of paying the tax. ASTA attributed its victory in Nebraska to those efforts alongside its lobbying work. Jessica Klement, ASTA's vice president of advocacy, said the tax would have had "serious financial consequences for both Nebraska travelers and travel advisors. "Nebraska legislators narrowly averted driving all travel booking from their state and harming small Nebraska businesses with this unfair and misguided proposal," Klement added. "I applaud the efforts of the travel advisors in Nebraska to successfully fight against this sales tax, protecting both consumers and their small businesses."

At its annual conference, ASTA continues to highlight advocacy efforts
At its annual conference, ASTA continues to highlight advocacy efforts

Travel Weekly

time22-05-2025

  • Business
  • Travel Weekly

At its annual conference, ASTA continues to highlight advocacy efforts

SALT LAKE CITY -- A key message of the 2025 ASTA Travel Advisor Conference was the importance of advocacy, with travel agencies facing hurdles from federal regulations and a changing tech landscape. ASTA president and CEO Zane Kerby said this year's conference "doubled down" on education and strengthening advocacy efforts. He referenced challenges the industry is facing, with the rise of AI and direct bookings, and applauded advisor efforts to adapt. "There are lots of forces pushing on our profession," he said. "New battles are already forming. More regulation is coming. More book-direct schemes are being tested. More AI chatbots are sending your potential clients to a two-star hotel and telling them it's the Ritz. More scam artists are dragging down our collective reputation. So we must continue to stand shoulder to shoulder together." Though Kerby said that AI is no replacement for the human touch of a travel advisor, he said that advisors who harness the technology are likely to outpace those that resist it. He said advisors that use it to lighten their workload are "energized by their ability to have something like this that does take away a lot of the grunt work." Vice president of advocacy Jessica Klement outlined the organization's advocacy goals, including pushing for the repeal of the "merchant of record" rule for refunding airline passengers, which requires the merchant of record to refund customers if their flights are canceled. Most agencies are not the merchant of record for air sales, but they might be if they specialize in group travel, buying blocks of airline seats at wholesale prices and reselling them with a mark-up. The federal rule does not stipulate a time frame for airlines to refund travel agencies, which are often small businesses that don't have a lot of cash on hand. ASTA took the issue to Rep. Maria Elvira Salazar, a Republican representing Florida's 27th district, who introduced the Flight Refund Fairness Act in September, which would exempt small travel agencies from the rule. Klement also discussed ASTA's support of extending the Section 199A tax deduction, which lessens the tax liability for independent contractors. Around half of all advisors qualify for the deduction. The organization is also ramping up its focus on connecting consumers with advisors. ASTA is renewing its focus on promoting VeriVacation, an online platform for consumers to connect with verified travel advisors. In coming weeks, ASTA will strengthen its promotion of the site, with consumer-awareness campaigns earmarked in the organization's budget, Kerby said. The platform highlights ASTA Verified Travel Advisors and aims to fight against travel scams and give consumers peace of mind about who they are working with. ASTA welcomed nearly 1,300 travel advisors to the conference, where advisors on Wednesday heard from travel industry leaders and a powerful message from motivational speaker Aron Ralston, a mountaineer and best-selling author whose survival story inspired the movie "127 Hours."

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