Skift Take

An admirable statement from Transportation Secretary Pete Buttigieg, and the summer chaos certainly put a focus back on to passenger rights, but setting out new laws for refunding delayed bags or Wi-Fi malfunctions will probably end up being a complex and lengthy process.

Matthew Parsons

The U.S. approach to regulating airlines and ensuring passengers are properly treated needs improvements, Transportation Secretary Pete Buttigieg said on Monday.

“We’ve been due for a refresh on a lot of our rules toward airlines and when you get it right, the entire system is better off — certainly passengers are better off,” Buttigieg told Reuters. “(Airlines) have a responsibility to take good care of passengers and we have a responsibility to hold them accountable.”

Last week, the U.S. Transportation Department (USDOT) proposed rules to strengthen airline passenger protection and require airlines to provide vouchers that do not expire when passengers are unable to fly for some pandemic reasons.

Buttigieg said the rule could be the biggest expansion of passenger protections in years.

He also plans to finalize a new rule proposed in July 2021 to require passenger airlines to refund fees for bags that are significantly delayed and for services like onboard Wi-Fi that do not work.

Last month USDOT warned it may prohibit airlines from charging extra fees to allow young children to sit next to accompanying family members.

Buttigieg said U.S. airlines are improving performance since flight woes this year led to tens of thousands of flights being canceled but have more to do. Airlines over the weekend canceled about 3,000 U.S. flights as bad weather snarled traffic.

Buttigieg has urged airlines to set more realistic scheduling and boost staffing to improve performance. He has rejected suggestions from airlines that air traffic control staffing is to blame.

“But I think you can tell that they are not there yet,” Buttigieg said of airlines. “I think this summer provided a lot of reminders of why customers expect our department to have their back.”

Buttigieg noted the U.S. government has completed 10 airline investigations and is pursuing enforcement actions. Last week’s proposal would also codify USDOT’s longstanding interpretation that failing to provide refunds when an airline cancels or significantly changes a U.S. flight constitutes an unfair practice.

“We’re untying our own hands with the update on unfair and deceptive practices,” Buttigieg said.

Airlines for America, a trade group, noted recently that U.S. airlines have also trimmed their summer capacity by 16 percent and adjusted their staffing models to account for the time it takes to hire and train new employees.

(Reporting by David Shepardson; Editing by Leslie Adler and Josie Kao)

This article was written by David Shepardson from Reuters and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to [email protected].

Skift Take

Can nomad visas change the storytelling about beach and party destinations enough to attract long-term and culturally respectful visitors? We are about to find out.

Paula Krizanovic, Skift

Dozens of destinations worldwide are targeting members of the burgeoning digital nomad market with perks such as payments to relocate and exemptions from local income taxes.

But governments view appealing these workers as more than just a way to increase visitor arrival numbers. Destinations increasingly see digital nomads as travelers who will be more invested in the well-being of local communities as well as a group of visitors with large spending power.

Indonesia is one of those locations, having unveiled plans for a special five-year visa for remote workers. Its Tourism Minister Sandiaga Uno cites digital nomads as a key part of its strategy to veer away from being primarily a beach destination.

“In the past, the three S’s were sun, sea and sand,” Uno said. “We’re moving to serenity, spirituality and sustainability. This way, we’re getting better quality and (a) better impact (on) the local economy.”

But even countries like Indonesia doesn’t succeed in largely changing the types of visitors they attract, Olga Hannonen, a University of Eastern Finland-based researcher who has studied digital nomads, believes their efforts to lure remote workers will pay dividends. Hannonen referenced Croatia as a destination that introduced digital nomad visas to increase the number of visitors during its offseason.

Meanwhile, Italy, which passed a law creating a one-year digital nomad visa this March, also stands to benefit from efforts to lure remote workers. The country has invested more than $1 billion in infrastructure and high-speed internet for small rural towns to attract digital nomads. Those locations succeeding in luring digital nomads can’t come soon enough for both nonprofit group Fondazione di Venezia and Venice-based Università Ca’ Foscari. The two entities co-created an online platform named Venywhere that aims help Venice attract remote workers while helping the city, plagued by overtourism, diversify its economy.

Hannonen sees two emerging trends in the large-scale efforts to lure digital nomads. “One is the top-down approach, when a destination markets itself as a digital nomad hub,” she said, listing Madeira and Gran Canaria as examples. “The other one is the bottom-up flow — when nomads are coming to a place without any specific actions from local tourism and marketing organizations.”

“I would say that digital nomad visa scheme belongs to the first trend, but also serves those destinations that belong to the second category.”

Dozens of countries worldwide — including Argentina, Belize, Brazil and Costa Rica — have recently joined the competition to lure remote workers. But the criteria for obtaining a digital nomad visa vary significantly among destinations. Belize requires individuals applying for such a visa to have an annual income of $75,000 while couples and families must earn at least $100,000. And while Brazil demands that digital nomad applicants provide proof of a $1,500 monthly income or bank funds greater than $18,000, Argentina only requires candidates to display evidence of employment.

But Latin America isn’t just seeing countries ramping up efforts to attract remote workers. Authorities in Argentina’s capital Buenos Aires have set a goal of attracting 22,000 digital nomads by 2023, which city officials believe could inject $139 million into the local economy.

“Considering recent developments both in destination infrastructure (and the) growing number of countries launching digital nomad visas, I think that not only nations, but also specific sites will compete for long-term travelers and digital nomads,” Hannonen said.