Reid presses effort to protect travel agencies from airlines

Mark D. Preston

Friday, May 22, 1998 | 9:53 a.m.

WASHINGTON -- Consumers would pay higher prices and small business owners would be forced to close if major airlines are allowed to withhold flight information from travel agencies, Sen. Harry Reid said Thursday.

"The backbone of this country is small business, and there is not a better example of small business than travel agents," said Reid, D-Nev., at a Capitol Hill reception where he was honored by two travel agency-related groups.

Reid was joined by Rosa Dominguez, owner of Discovery Travel of Las Vegas, when he received the award from the Coalition for Travel Industry Parity and the American Society of Travel Agents.

Reid has co-authored legislation with Sen. Alfonse D'Amato, D-N.Y., to investigate discriminatory practices by major airlines he accuses of withholding flight information in an effort to drive travel agencies out of business.

"What the airlines are trying to do is get rid of them, and I want to protect them against predatory practices of the airline industry," Reid said, adding that 75 percent of travel agencies are owned by women or minorities.

The legislation instructs the secretary of transportation to conduct a study and issue a report to Congress about alleged discriminatory practices by major airlines, such as withholding discount and schedule information from travel agents.

Representatives from the Air Transport Association could not be reached for comment. Joel Abels, editor and publisher of Travel Trade Publications, said travel agents make $16 on a $200 round-trip plane ticket reservation. He said travel agents only make a profit on large bookings and this is where the larger airlines are trying to "squeeze travel agents out."

Reid said he thinks the legislation will pass as a stand-alone bill. If it doesn't, he said he would attach it to one of this year's appropriations bills.