Tourism Business, Licensing & Registration

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MOTAC Licensing

If you are a practitioner in the tourism industry, we provide promotional related advisory on tourism and hospitality industry from statistical information to guidance on how to apply for the requisite licences from the Ministry of Tourism and Culture.

The Ministry client charter

  • to provide quality and timely tourism services
  • to provide quality tourism activities/programmes in order to promote the involvement and appreciation of society for the tourism industry
  • to provide high quality and viable tourism infrastructures throughout the country
  • to promote the country as a premier tourist destination at domestic and international levels

Registration

The Ministry of Tourism and Culture is the authority that enforce and implement provisions in the Tourism Industry Act, Tourism Vehicles Licensing Act including regulations made thereunder. Operators are required by law to register and/or licensed before beginning tourism related business activities. These include licensing of Tourist Accommodation Premises, Registration of Tourism Project, administration of Malaysia Tourism Quality Assurance (MyTQA), National Library Membership Registration, Museum Volunteers Registration, Craft Entreprenuers Registration, Craft Members Registration among others.

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Starting a Travel Agency Business in Malaysia

  • Starting a Travel Agency Business…

travel agency registration malaysia

What is a travel agency?

As the name implies, travel agency offers a variety of services, which include purchasing airline tickets, making hotel reservations, creating itineraries for tour (or cruise packages) and providing information about specific destinations.

How to start a travel agency business in Malaysia?

Starting a travel agency business in Malaysia follows the general company incorporation procedure . However, there are certain laws and regulations that differentiate the travel agency business from other types of business available in Malaysia. To summarise, below are a few points that could help anyone interested to start a travel agency in Malaysia.

1. Understand the laws and regulations

The Ministry of Tourism and Culture Malaysia enforced the following acts and regulations in the tourism industry:

a) Tourism Industry Act 1992;

b) Tourism Industry (Tour Operating Business and Travel Agency Business) Regulations 1992;

c) Tourism Industry (Licensing and Control of Tourist Guides) Regulations 1992;

d) Tourism Industry (Licensing of Tourism Training Institutions) Regulations 1994;

e) Tourism Industry (Compounding of Offences) Regulations 1992;

f) Tourism Vehicles Licensing Act 1999; and

g) Tourism Vehicles (Licensing and Control of Tourism Vehicles) Regulations 2000.

2. Get the appropriate licenses and permit

Companies setup in the tourism industry in Malaysia is required to obtain several business permits before they start doing business. The ministry has issued several guidelines and checklists to ease the hassles and red tape involved in the application procedures.

Here are a few steps you need to do throughout your application:

a) Make sure you have all the travel agency related guidelines on your fingertips and try to go through the guidelines from cover to cover.

b) Secondly, you need to fill in Form 1 – Application for Licence to Carry on or Operate a Tour Operating Business and Travel Agency Business and submit it together with a processing fee of RM100.00. Several documents must be submitted as stated in the application checklist .

c) If you are applying for an excursion bus/hire and drive car licence, make sure you have completed Form 1 – New Application for Excursion Bus Licence or Form 2 – New Application for Hire and Drive Car Licence with a processing fee of RM50.00. You are also required to submit the documents as listed in the application checklist . You may refer to the guidelines to know more about the procedures and other documents needed for this application.

3. Register a company in Malaysia

Running a travel agency business is like doing any other business in the country. Another important thing to do before you kick start any business plan is to get your company registered and incorporated . In addition to this, you will need a corporate account for your business transaction, a good accounting service as well as tax accounting service to make sure your business is running smoothly.

Starting a Travel Agency Business in Malaysia

On a final note, starting a travel agency business from scratch is not easy. If you plan to start one and you are unsure of the procedures, be it the company incorporation, or licensing application, feel free to contact us today!

Contact Us

how to open travel agency malaysia

The Ultimate Guide To Opening A Travel Agency In Malaysia [2024]

Tourism has historically been a lucrative industry in Malaysia, and recent news reports of  48.6 million domestic and 4.5 million international tourists in Q1 2023 alone suggests no signs of it slowing down.

As a demographic, tourists are willing to pay for convenience and leisure, leading to a demand for travel agencies that help plan their journey. In fact, as of writing this post, according to the  Ministry of Tourism, Arts, and Culture’s records , there are 4629 travel agencies across Malaysia!

tour guide working for a travel agency in malaysia

If you too would like to open a tour or travel agency of your own, this article will guide you on just how to do that (and a pitch at the end to let MISHU handle it for you!).

Here’s how we’ll break it down:

  • We’ll begin with the list of requirements that must be met
  • We’ll cover what a typical registration process should look like (timeline included)
  • We’ll provide fees when available so you can plan accordingly

P.S. if you’re the rare person who enjoys reading government statutes, most of the information below has been condensed from the Tourism Industry Act 1992 , so if you want more details, here’s your extra credit reading assignment.

To normal human beings, let’s start!

Capital requirements

State motac premise inspection wait times, 🔑 key takeaways:.

  • There are strict requirements regarding your agency’s name and director’s background.
  • At least one key agency employee must attend a MOTAC certified course.
  • All agency guides and vehicles must be registered.
  • The minimum start-up capital can be as high as RM200,000.
  • It can take up to four months to get your travel agency fully operational.
  • Your travel agency must be a member of at least one MOTAC approved association.
  • Keep in mind that your license type will determine if you can only deal with inbound (domestic) or outbound (international) destinations.
  • You must have a physical premise which will be inspected by MOTAC personel to ensure it meets their minimum requirements.
  • Save yourself the headache of navigating government regulations by engaging MISHU to help secure necessary licenses

Minimum requirements for a travel agency

We’ll break this down into three sections: company, shareholder, director, and capital requirements.

Company requirements

Pardon us for stating the obvious, but you will need to first incorporate a company that meets the conditions set by the Ministry of Tourism, Arts, and Culture (MOTAC):

  • Must have a company name that clearly shows the nature of the business (for example, including terms like ‘ travel’, ‘tours’, ‘holiday’, ‘vacation’, and ‘adventure’)
  • Must specifically use ‘To carry business in Tour Operating Business and / or Travel Agency Business’ as the business activity description on e-SSM
  • Must meet minimum paid up capital requirements
  • Must be free from penalties under the Tourism Industry Act 1992
  • Must have suitable premises to perform recruitment activities
  • Must have at least one key employee attend a Travel and Tour Management Course and posess a valid certificate
  • Must register all employed tour guides , drivers, and tour vehicles

Shareholder requirements

  • Cannot hold shares in other tourism operating companies
  • Must have minimum three years’ experience in the tourism industry
  • Cannot be current employee of the federal or state level Ministry of Tourism Licensing Department

Director requirements

Depending on the specific business activities, location, and residency status of shareholders, travel agencies fall under several categories, each with different paid-up capital requirements as shown in the table below.

Note: There is an additional RM100 processing fee for each license application.

A location is considered ‘within city limits’ if it falls under the authority of a City Council such as Dewan Bandaraya Kuala Lumpur.

It’s considered outside city limits if it falls under the authority of a District Council such as Lembaga Bandaran Sabak Bernam.

You can find a full list of City and District Councils in Malaysia here.

Process & Timeline

While there may be slight variances on a case-by-case basis, consider the following steps, respective timelines, and the documents/fees required. 

Fortunately, MOTAC has digitalised their document submissions and license application process via their online portal TOURLIST . 

Remember how we said it can take up to 14 – 60 working days to have your premises inspected by MOTAC? The different states are split into three zones, each with a different schedule.

List of associations recognised by MOTAC

For your convenience, we’ve added hyperlinks to the websites of MOTAC-approved organisations.

  • MATTA – Malaysia Association of Tour & Travel Agent
  • BUMITRA – Bumiputera Travel And Tour Agents Association of Malaysia
  • MCTA – Malaysia Chinese Tourism Association
  • MITTA – Malaysia Indian Tour & Travel Association
  • MITA – Malaysia Inbound Tourism Association
  • CRAM – Car Rental Association of Malaysia
  • MSDA – Malaysia Scuba Diving Association
  • PAPUH – Persatuan Agensi Pelancongan Umrah Dan Haji

Obviously, pick the association that will be most relevant to your business niche, and there’s nothing against becoming a member of more than one.

Is that everything you need to know?

Well, yes and no.

Keep in mind this is a guide to opening a tour or travel agency in Malaysia.

In that regard, yes, you know everything you need to start.

readers can now start a travel agency in malaysia

However, successfully running and growing your agency is another matter, and involves a great deal of statutory knowledge above the usual statutory requirements of less regulated industries.

In that sense, no, you probably don’t know everything you need to know.

We’re big believers in just-in-time learning, but perhaps this is something you should plan for even before starting to ensure smooth growth over the long-term.

Let MISHU open your travel agency for you

HOBD Adrian

MISHU’s team of statutory and business license experts can help make setting up an employment agency effortless for you. Tell us what you need and we will do our best to assist you – get in touch!

FAQs About Starting a Travel Agency in Malaysia:

  • What are the requirements to open a travel agency in Malaysia? 💡There are simply too many to list here. Please click here to jump to the corresponding section of the article where we list of the requirements.
  • How much capital is needed to open a travel agency in Malaysia? 💡Paid up capital requirements vary depending on your location and whether your agency deals with inbound or outbound destinations, but range from RM150,000 – RM200,000.
  • How long does it take to open a travel agency in Malaysia 💡Again, it varies by location as there is a physical premise inspection that must be done by MOTAC officers but allocate up to 4 months.
  • What is the difference between inbound and outbound travel agencies? 💡Inbound travel agencies deal with domestic holiday destinations and packages while outbound agencies can include international destinations.
  • What is the Travel and Tours Management Course? 💡It’s a mandatory course by MOTAC to ensure travel agencies are up to date on their knowledge and serve tourists to a standard of excellence. It’s a two day training course and costs RM800 per person.
  • What is ticketing for a travel agency? 💡It’s when you sell tickets for busses, trains, and flights. As this can play a huge role in a tourist’s experience, it is a regulated part of operating a travel agency in Malaysia.

3 thoughts on “ The Ultimate Guide To Opening A Travel Agency In Malaysia [2024] ”

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We apologise as our team will only be back in the office on the 13 February due to Chinese New Year, but rest assured we’ll get in touch with you asap!

Sincerely, The MISHU Editorial Team

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Starting a travel agency business in Malaysia

travel agency registration malaysia

The growth of tourism has grabbed the attention of the government as one of the primary business areas driving the Malaysian economy. Malaysia has experienced an influx of approximately 6 million tourists annually in recent years, the majority of them are from China and India. All of these phenomena have undoubtedly had a positive influence on the tourist sector, and many entrepreneurs have recognised this potential opportunity. Travel agencies have drawn the attention of everyone, and many businesspeople have begun to create waves in the growth of the sector. 

What services do travel agencies provide?  

Travel agencies offer various services relating to travel, including hotel reservations, airline ticket purchases, trip planning, and information about specific destinations. 

travel agency registration malaysia

A guide to start a travel agency business in Malaysia  

The company registration process must be followed to start a travel agency in Malaysia. However, there are certain distinctions between the rules and regulations that apply to travel agencies and other type of businesses in Malaysia. The following is some useful information if you are planning to start a travel agency: 

a. Understand the laws and regulations

The Ministry of Tourism and Culture of Malaysia has implemented the following Acts and Regulations for the tourist industry:  

  • Tourism Industry Act 1992; 
  • Tourism Industry (Tour Operating Business and Travel Agency Business) Regulations 1992; 
  • Tourism Industry (Licensing and Control of Tourist Guides) Regulations 1992; 
  • Tourism Industry (Licensing of Tourism Training Institutions) Regulations 1994; 
  • Tourism Industry (Compounding of Offences) Regulations 1992; 
  • Tourism Vehicles Licensing Act 1999; and 
  • Tourism Vehicles (Licensing and Control of Tourism Vehicles) Regulations 2000. 

b. Acquire the appropriate licences and permits  

Tourism companies must apply for several business licenses before starting a business in Malaysia. The government has established guidelines and checklists to cut through the inconvenience and red tape of the application procedure. 

There are a few steps you need to comply with throughout the application process: 

  • Ensure that you are aware of all the travel agency related guidelines and fully comprehend each requirement. 
  • Next, you must fill in Form 1 (Application for a License to Conduct or Operate a Tourism and Travel Agency) and an RM100.00 processing fee. Any required documents listed on the checklist must be provided simultaneously. 
  • If you are applying for a tourist vehicle license, ensure that you have filled out Form 1 (New Tourist Vehicle License Application) or Form 2 (New Car Rental License Application) with a processing fee of RM50.00. Likewise, you will need to submit all the documents as listed on the checklist. You can find out more about the application procedures and other required documents by referring to the guidelines. 

c. Register a company in Malaysia  

It is no different from other businesses in Malaysia. You must ensure that you have registered and incorporated the company before running a travel agency. In addition, you will need a corporate account to conduct all commercial transactions for your company, as well as outstanding accounting and tax administration to guarantee that your business runs smoothly. 

It is not easy to develop a travel agency business; get help from professionals if you have any questions. If you wish to contact your travel agency registration Sdn Bhd, please contact Boss Boleh’s team; we offer you with one-stop service which allows you to save time and the lowest price !  

Please visit the following official website to learn more  👉 Licensing – Ministry of Tourism, Arts and Culture Official Portal ( motac.gov.my ) or contact this number . 

Want to know more about starting a Sdn Bhd? What’s the best way to start one, and what should you be mindful of? Register and find out in our upcoming webinar!

travel agency registration malaysia

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Membership Application Select Membership Category

Active Membership is open to all locally incorporated tour operators or travel agencies licensed by the Ministry of Tourism, Arts and Culture Malaysia (MOTAC).

Travel agencies that are in the process of applying for their license and who already have a letter of support from MoTaC are also encouraged to apply.

Existing Members that have branch operations licensed by MoTaC may apply for Branch Membership which entitles their branch offices to enjoy the benefits of being a Member and to participate in MATTA activities.

Affiliate Membership is open to all travel and tourism industry associations registered in Malaysia or by the relevant authorities in their respective countries.

Associate Membership is open to any business establishment which is not a tour operator or travel agency.

  • Oct 23, 2020

Travel Agency License

Updated: Aug 15, 2023

How do I set up a tour and travel business? What's the difference between travel agency and tour operator? How do I start a travel agency business? Is a travel agency a retailing business?

Travel Agency License | Bestar

Tour Operating Business & Travel Agency Business (TOBTAB) Licence Application

Application requirements.

(a) Private limited company with the issued paid-up capital and equity limit requirements as set out in Appendix A (Companies having foreign equity exceeding 51% equity are not permitted to hold the tourism vehicle licence in the case of companies in Sabah, Sarawak and the Federal Territory of Labuan).

The name of the company shall signify a company undertaking the tour operating business and travel agency business (travel, tours, holiday, vacation, adventure, etc.). The Memorandum and Articles of Association or Form 11 (Notice of Resolution) shall state that the business conducted is the tour operating business and travel agency business (“To carry on business in tour operating business and travel agency business”).

(b) Shareholders (foreign company) shall have been in operation in their countries of origin for at least 5 years. Shareholders shall not have any interest (share equity) in any other tourism agency company.

At least one (1) representative of the company shall have attended the Travel and Tour Management Course (TTMC) organised by a tourism training institution licensed by the Ministry of Tourism and Culture as following:

i. A member of the Board of Directors; and

ii. An employee holding a position in the company’s top management (example: Chief Executive Officer / Chief Operating Officer / General Manager, etc.).

(c) Draft of the proposed tour packages that will be offered, in the case of application for Inbound / Outbound licence. Working paper containing business planning, target numbers of tourist arrivals in Malaysia and short-term revenue for companies with shareholders that are foreign companies. Letter of business cooperation with foreign tourism agency, in the case of application for Outbound licence.

(d) Premises floor space requirement in accordance with Appendix B; The head office premises must be situated within a structure and shall have a permanent address; The premises must not be shared with any other businesses other than the business for which it is licensed; and the premises must be within a commercial area and not in a residential area.

(e) Free from any compound.

Documents Required

(a) Memorandum and Articles of Association (MAA);

(b) Form 9 (Certificate of Incorporation of Private Company);

(c) Form 11 (Notice of Resolution); – if applicable

(d) Form 13 (Certificate of Incorporation on Change of Name of Company); – if applicable

(e) Form 24 (Return of Allotment of Shares);

(f) Form 32A (Form of Transfer of Securities); – if applicable

(g) Form 44 (Notice of Situation of Registered Office and Office Hours and Particulars of Changes);

(h) Form 49 (Return Giving Particulars in Register of Directors, Managers and Change of Particulars);

(i) MyKads (Malaysian citizen) / Passports (non-Malaysian citizen) of shareholders and members of the Board of Directors;

(j) Proof of Work Experience:

Letter of confirmation of work experience from previous or current employer for shareholders / members of the Board of Directors /staff.

Resume for shareholders / members of the Board of Directors / staff.

Form 24 & Form 49 & the registration of the relevant company if the Director and shareholder are owners / directors of other companies; and

MAA & Form 24 & Form 49 & company profile if the shareholder is a corporation.

(k) A copy of the Certificate of Registration of Company and company licence in case the shareholder is a foreign company. Such copy of the document shall be verified by the Malaysia Tourism Promotion Board (Tourism Malaysia) / Embassy of Malaysia / Office of the High Commissioner of Malaysia in the relevant country.

(l) Academic certificates in the field of tourism/business of the shareholders / members of the Board of Directors / employees (if any).

Approved Application

The licence number will be stated in the letter of approval, the company shall:

(a) Prepare its business premises and submit the following documents for purposes of inspection of premises within the period of two (2) months of the date of the letter of approval:

A copy of the tenancy agreement of the premises which shall be for at least one (1) year or a copy of the sales & purchase agreement if the premises are owned by the company; A sketch of the floor plan; Photographs (in colour) of the interior and exterior of the premises.

(b) Submit a copy of the Certificate of Membership of a Tourism Association recognised by the Ministry of Tourism and Culture as per Appendix C.

(c) Submit a copy of the TTMC Certificate:

(d) Pay the licence fee:

Upon receipt of the letter notifying that the relevant premises fulfil the criteria set by the ministry and upon compliance of all the criteria set (if applicable), the company shall receive the licence and sticker.

Processing Fee

RM100.00: Online payment or in the form of postal order / bank draft / money order made payable to the PESURUHJAYA PELANCONGAN (Commissioner of Tourism) for each application.

License Fee

Inbound = Domestic tour operating business

Outbound = Overseas tour operating business

Ticketing = Travel agency business

Foreign company = Tourism agency enterprise licensed outside Malaysia

Shareholder, Equity Limit and Paid-Up Capital Requirements

Urban category if the business premises are located within areas under the jurisdiction of the City Council or Municipal Council

Rural category if the business premises are located within areas under the jurisdiction of the District Council

Premises Floor Space Requirement

Urban (city council & municipal council), master licence (head office), supplementary licence (branch office), rural (district council), floor space exemption (no minimum floor space requirement).

Ticket / Tour counters at airports, tourist jetties and bus terminals

Tour desks at hotel lobbies

Kiosks / Booths in shopping complexes

List of Tourism Associations Recognised by the Ministry of Tourism and Culture of Malaysia

Malaysian Association of Tour & Travel Agents (MATTA)

Bumiputera Travel and Tour Agents Association of Malaysia (BUMITRA)

Malaysian Chinese Tourism Association (MCTA)

Malaysian Indian Tour & Travel Association (MITA)

Malaysian Inbound Tourism Association (MiTA)

Car Rental Association of Malaysia (CRAM)

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Rule makes it easy to get money back for cancelled or significantly changed flights, significantly delayed checked bags, and additional services not provided  

WASHINGTON – The Biden-Harris Administration today announced that the U.S. Department of Transportation (DOT) has issued a final rule that requires airlines to promptly provide passengers with automatic cash refunds when owed. The new rule makes it easy for passengers to obtain refunds when airlines cancel or significantly change their flights, significantly delay their checked bags, or fail to provide the extra services they purchased.

“Passengers deserve to get their money back when an airline owes them - without headaches or haggling,” said U.S. Transportation Secretary Pete Buttigieg . “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”  

The final rule creates certainty for consumers by defining the specific circumstances in which airlines must provide refunds. Prior to this rule, airlines were permitted to set their own standards for what kind of flight changes warranted a refund. As a result, refund policies differed from airline to airline, which made it difficult for passengers to know or assert their refund rights. DOT also received complaints of some airlines revising and applying less consumer-friendly refund policies during spikes in flight cancellations and changes. 

Under the rule, passengers are entitled to a refund for:

  • Canceled or significantly changed flights: Passengers will be entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered. For the first time, the rule defines “significant change.” Significant changes to a flight include departure or arrival times that are more than 3 hours domestically and 6 hours internationally; departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.  
  • Significantly delayed baggage return: Passengers who file a mishandled baggage report will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.  
  • Extra services not provided: Passengers will be entitled to a refund for the fee they paid for an extra service — such as Wi-Fi, seat selection, or inflight entertainment — if an airline fails to provide this service.

DOT’s final rule also makes it simple and straightforward for passengers to receive the money they are owed. Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund — searching through airline websites to figure out how make the request, filling out extra “digital paperwork,” or at times waiting for hours on the phone. In addition, passengers would receive a travel credit or voucher by default from some airlines instead of getting their money back, so they could not use their refund to rebook on another airline when their flight was changed or cancelled without navigating a cumbersome request process.  

The final rule improves the passenger experience by requiring refunds to be:

  • Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.   
  • Prompt: 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.  
  • Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.    
  • Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.

The final rule also requires airlines to provide prompt notifications to consumers affected by a cancelled or significantly changed flight of their right to a refund of the ticket and extra service fees, as well as any related policies.

In addition, in instances where consumers are restricted by a government or advised by a medical professional not to travel to, from, or within the United States due to a serious communicable disease, the final rule requires that airlines must provide travel credits or vouchers. Consumers may be required to provide documentary evidence to support their request. Travel vouchers or credits provided by airlines must be transferrable and valid for at least five years from the date of issuance.

The Department received a significant number of complaints against airlines and ticket agents for refusing to provide a refund or for delaying processing of refunds during and after the COVID-19 pandemic. At the height of the pandemic in 2020, refund complaints peaked at 87 percent of all air travel service complaints received by DOT. Refund problems continue to make up a substantial share of the complaints that DOT receives.

DOT’s Historic Record of Consumer Protection Under the Biden-Harris Administration

Under the Biden-Harris Administration and Secretary Buttigieg, DOT has advanced the largest expansion of airline passenger rights, issued the biggest fines against airlines for failing consumers, and returned more money to passengers in refunds and reimbursements than ever before in the Department’s history.

  • Thanks to pressure from Secretary Buttigieg and DOT’s flightrights.gov dashboard, all 10 major U.S. airlines guarantee free rebooking and meals, and nine guarantee hotel accommodations when an airline issue causes a significant delay or cancellation. These are new commitments the airlines added to their customer service plans that DOT can legally ensure they adhere to and are displayed on flightrights.gov .  
  • Since President Biden took office, DOT has helped return more than $3 billion in refunds and reimbursements owed to airline passengers – including over $600 million to passengers affected by the Southwest Airlines holiday meltdown in 2022.   
  • Under Secretary Buttigieg, DOT has issued over $164 million in penalties against airlines for consumer protection violations. Between 1996 and 2020, DOT collectively issued less than $71 million in penalties against airlines for consumer protection violations.  
  • DOT recently launched a new partnership with a bipartisan group of state attorneys general to fast-track the review of consumer complaints, hold airlines accountable, and protect the rights of the traveling public.  
  • In 2023, the flight cancellation rate in the U.S. was a record low at under 1.2% — the lowest rate of flight cancellations in over 10 years despite a record amount of air travel.  
  • DOT is undertaking its first ever industry-wide review of airline privacy practices and its first review of airline loyalty programs.

In addition to finalizing the rules to require automatic refunds and protect against surprise fees, DOT is also pursuing rulemakings that would:

  • Propose to ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. Before President Biden and Secretary Buttigieg pressed airlines last year, no airline committed to guaranteeing fee-free family seating. Now, four airlines guarantee fee-free family seating, and the Department is working on its family seating junk fee ban proposal.  
  • Propose to make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations.   
  • Expand the rights for passengers who use wheelchairs and ensure that they can travel safely and with dignity . The comment period on this proposed rule closes on May 13, 2024.

The final rule on refunds can be found at https://www.transportation.gov/airconsumer/latest-news and at regulations.gov , docket number DOT-OST-2022-0089. There are different implementation periods in this final rule ranging from six months for airlines to provide automatic refunds when owed to 12 months for airlines to provide transferable travel vouchers or credits when consumers are unable to travel for reasons related to a serious communicable disease. 

Information about airline passenger rights, as well as DOT’s rules, guidance and orders, can be found at   https://www.transportation.gov/airconsumer .

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