There was plenty going on this week—from China’s reopening, to a domestic air travel meltdown, to big announcements in the cruise world. But the top news might be the U.S. Department of Labor’s proposed rule to, again, reclassify how employees and independent contractors are defined—a decision that could affect upwards of 40 percent of travel advisors.
A 2021 IC Rule simplified the terms for determining an independent contractor but the DOL is already looking to rescind that rule, noting it “does not fully comport with the [Fair Labor Standards Act’s (FLSA)] text.” The American Society of Travel Advisors (ASTA), along with a slew of 44-plus Senate and House members, are urging the DOL to reconsider.
“For decades, the usage of independent contractors in our industry has grown steadily because it provides substantial benefits for both workers and agencies in situations where a traditional employment relationship doesn’t make sense,” said Zane Kerby, ASTA president and CEO. Peter Lobasso, ASTA SVP and general counsel, added that going back to the former method “ensures that the decades-long confusion among stakeholders and inconsistency among the federal circuits … will only continue.”
In other news, President Joe Biden has ordered an investigation into the Federal Aviation Administration after a corrupted file on a 30-year-old software caused thousands of flights to be grounded on Wednesday this week. The FAA was able to get planes up and running within seven hours of the shutdown, but, according to NBC News, investigators are working to determine if human error or intention is to blame.
Silver linings: One of the “positives” to come from the COVID pandemic is it showed travelers the importance of travel insurance. According to a recent VisitorsCoverage survey, 79 percent of respondents said insurance continues to be a top priority for them. Only half of respondents had purchased travel insurance in the past.
Elsewhere, China has officially dropped many of its “Zero COVID” travel restrictions, opening the country to international and domestic travel for essentially the first time in three years. Travel Agent spoke with a couple tour operators who said they aren’t sending any travelers to the country at the moment. The decision to drop COVID restrictions also comes at a time when cases are being locally reported as skyrocketing in the country—all while being underreported by the federal government.
Travel Agency Network Events
Back on the agency side of things, Ensemble announced the schedule for a series of newly branded annual member events for 2023. Uncharted will be held virtually on April 26, Summit will take place June 4-7 at the Stein Eriksen Lodge in Park City, UT, Beyond—“the pinnacle of recognition for members”—will take place aboard the new Explora I August 1-8, and Horizons will take place November 2-6 at the Paris Las Vegas.
Internova Travel Group, as well, unveiled plans to host its first-ever Internova PLUS event, taking place January 17-20 at the Fairmont Grand Del Mar in San Diego. There will be think-tank sessions, one-to-one meetings and structured networking events.
Big News in Cruise
Several years after being revitalized by Accor Group, Orient Express has shared plans to launch the world’s largest sailing ship in 2026. Created in partnership with leading shipbuilding company Chantiers de l'Atlantique, Orient Express Silenseas will have 54 suites measuring on average 751 square feet. There will also be, two swimming pools (including a lap pool), two restaurants and a speakeasy bar, as well as a wellness concept both on board and on land.
Good to know: Accor this week also began its global leadership restructuring. The Group says the change will allow it to accelerate growth and better address market developments, deliver the highest possible levels of service for all its stakeholders, facilitate accurate and effective fulfillment of guest needs and expectations, and provide clarity and performance to its partners.
In addition, four former Crystal Cruises ships have found a new home. Riverside Luxury Cruises has expanded its fleet with the acquisition of MS Bach, MS Ravel, MS Mahler and MS Debussy, joining Riverside Mozart—which the company acquired late last year. The vessels will start sailing beginning April 2023 on the Danube.
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