Alexandria, VA, December 2, 2024 — The American Society of Travel Advisors (ASTA) represents the interests of a diverse group of travel agencies, many of whom are strongly committed to promoting Disney’s exceptional products and experiences to their clients. Savvy individuals and families rely on travel advisors to make their Disney memories magical. In that spirit, ASTA is compelled to express concern over certain contract terms in Disney’s 2025 Travel Agency Designation Agreement, particularly, the enhanced insurance coverage requirements.
While ASTA appreciates Disney’s need to mitigate its business risk, the new requirements place disproportionate financial and operational burdens on smaller travel agencies. For example, the new substantially higher minimum policy coverage limits seem excessive and unduly burdensome as they fail to consider an agency’s size, sales volume, or other individualized factors that might impact the likelihood or risk of a claim. And, significantly, the 2025 agreement no longer exempts agencies that do not maintain a storefront location.
Similarly, the additional requirements that the policies be primary, non-contributory, and include an expansive list of additional Disney insured entities significantly drive-up costs and add operational complexity for travel agencies. Further complicating matters, the required waivers of subrogation and strict policy rating minimums exceed the standards typically required in similar agreements across the travel agency industry. Moreover, we are unaware of any heightened legal claim risk associated with Disney vacations that would justify these onerous requirements.
As partners in your mission to create magic, ASTA respectfully calls on Disney to revert to the 2024 insurance requirements which, in our view, better reflect the true level of business risk to be managed in light of the diverse needs and capacities of its valued travel agency partners. Doing so will foster a stronger working relationship with the advisor community while ensuring a sustainable path for agencies of all sizes to continue delivering Disney’s world-class experiences to their clients.
ASTA remains committed to supporting its members and facilitating constructive dialogue between travel advisors and Disney. We are confident that a collaborative revision to these terms can lead to a more equitable allocation of risk that ensures accountability while fostering a more balanced partnership for all stakeholders. To that end, ASTA and its members look forward to engaging in a constructive dialogue and remain committed to supporting Disney’s ongoing success while recognizing the essential role travel advisors play in bringing Disney’s magic to life.
