Rethinking Regulation: Where Common Sense Meets Traveler Rights
By Jungho Suh Assistant Professor of Management, The George Washington University School of Business | May 2025
For many years, scholars have recognized privatization as a strategy to improve efficiency, foster innovation, and elevate customer service by applying market-oriented approaches to areas typically governed by public entities.
Despite numerous initiatives over the past several decades in the United States, the outcomes have yielded mixed results, especially in essential services like air travel, healthcare, and public transportation. While private sector involvement has spurred advancements in some areas, it has also underscored the tension between profit-driven goals and the well-being of the public.
This tension is especially evident in the air travel sector. According to the World Economic Forum, the U.S. is one of the largest air travel markets in the world, yet it shows mediocrity in travel and tourism policy and conditions and sustainability when compared to other developed economies. This deficiency leads to flight delays, inadequate service for customers, and a noticeable decline in overall traveler satisfaction. The disparity appears even more pronounced when examined through the lens of socioeconomic inequality. The wealth gap results in significantly varied travel experiences—those who can afford premium services enjoy comfort and reliability, while others face hidden fees, overcrowded airports, and inferior service quality.
These inequities are further amplified by systemic issues within the industry. Airlines have encountered backlash regarding their response to operational disruptions, exemplified by Delta’s IT outage or
The implications of privatization for traveler rights are extensive, affecting not only airlines but also the whole travel industry. Hidden fees for hotel bookings, inadequate public transportation options to and from airports, and a lack of transparency in pricing further diminish consumer trust. At its core, this situation reflects a misalignment between the goals of privatized entities and the needs of everyday travelers.
The introduction of regulatory measures, such as the Department of Transportation’s proposal for passenger compensation during cancellations or significant delays, signals a critical shift. These policies aim to restore balance by emphasizing the importance of safeguarding consumers rather than allowing market dynamics to operate without restraint. The travel industry now faces a pivotal moment, with an opportunity to redefine its approach to efficiency—one that integrates equity and accessibility as foundational principles rather than secondary considerations.
Where We Are Now
To understand the current state of traveler rights and industry practices, it’s essential to trace the trajectory of deregulation and privatization in the United States. While these strategies were introduced to streamline operations and reduce government burdens, their unintended consequences have created an uneven playing field that disadvantages everyday travelers.
The Airline Deregulation Act of 1978 marked a pivotal moment in the U.S. aviation industry. By removing federal control over fares, routes, and market entry for new airlines, the act aimed to foster competition and lower costs for consumers. While the industry saw a boom in innovation and expansion, the deregulation also set the stage for a race to the bottom in customer service. Airlines slashed prices but introduced hidden fees and cut corners on the traveler experience, leading to a degradation of overall service quality. Fast forward to the 21st century, and the privatization ethos has permeated nearly all aspects of the travel ecosystem. Airports, once public institutions, have increasingly relied on private partnerships for funding and management. The result is a patchwork system where profitability often outweighs public interest, leaving travelers to bear the brunt of inefficiencies and inequities.
The ripple effects of privatization are glaring in the challenges faced by the U.S. aviation industry today. Recent events, such as Delta Airlines’ IT outage and Southwest Airlines’ holiday season debacle, are stark reminders of systemic vulnerabilities. In both cases, travelers experienced widespread cancellations, delays, and confusion, underscoring the industry’s lack of preparedness for large-scale disruptions. The fallout was not only logistical but deeply personal, as millions of holiday plans and business commitments were upended. The Federal Aviation Administration (FAA) has also flagged serious concerns about air traffic control staffing, which poses safety risks and exacerbates delays. The New York Times recently highlighted these vulnerabilities, reporting on an overstressed workforce and outdated infrastructure. This not only impacts operational efficiency but also erodes public trust in the aviation system.
One of the most troubling consequences of privatization is the stark disparity it creates between socioeconomic groups. The wealth gap is mirrored in the travel experience: those who can afford premium services enjoy priority boarding, more comfortable seating, and exclusive lounges, while the majority of travelers contend with cramped economy seats, hidden fees, and a lack of transparency in pricing. This two-tiered system is emblematic of broader societal inequalities, where access to quality services is increasingly tied to wealth. Beyond the airlines, public transportation to and from airports is another area where privatization has fallen short. In many cities, affordable and reliable options are scarce, forcing travelers to rely on expensive private services or inconvenient alternatives. This further marginalizes those without the means to navigate the high costs associated with air travel.
The pursuit of efficiency has often been cited as a justification for privatization. However, efficiency in this context frequently prioritizes corporate profits over consumer satisfaction. Airlines have perfected the art of unbundling services, charging for everything from checked luggage to seat selection, which has turned travel into a series of transactional exchanges rather than a seamless experience. While these practices generate revenue for airlines, they chip away at the trust and loyalty of travelers.
As these issues converge, they paint a picture of an industry that has prioritized short-term gains over long-term sustainability. Without intervention, these systemic problems will continue to deepen, further alienating the everyday traveler. Therefore, it is valuable to consider how thoughtful policies and industry best practices can address these challenges and begin to rebuild a travel ecosystem that works for everyone.
Course Corrections and Empowering Travelers: A Path to Equitable Travel
The challenges in today’s travel ecosystem demand a dual approach: implementing best practices to protect everyday travelers and empowering them through transparent policies and actionable information. These efforts are not just about addressing current inefficiencies but about creating a framework that restores trust and equity to an industry that serves as a critical public utility.
One of the most visible and frustrating aspects of modern air travel is the proliferation of hidden fees. From baggage charges to seat selection fees, these “junk fees” disproportionately affect budget-conscious travelers and undermine trust in airlines and booking platforms. The recent rule banning these fees in ticketing and hotel bookings exemplifies how targeted interventions can level the playing field. By requiring upfront pricing, this measure ensures that travelers can make informed choices without being blindsided by unexpected costs. This transparency is a critical first step in building a fairer system.
For travelers to feel secure, they need robust safeguards that address common pain points, such as flight cancellations, significant delays, and poor service. Clear guidelines on refunds and compensation are essential. For example, the Transportation Department’s Aviation Consumer Protection page offers practical tools and information on filing complaints, understanding refund policies, and navigating disruptions. Travelers who are well-informed about these protections can advocate for their rights and minimize financial and emotional stress during disruptions.
In addition to regulatory clarity, a compensation framework for disrupted services can incentivize airlines to prioritize reliability. Policies that require airlines to provide refunds or compensations when flights are canceled or significantly delayed create accountability. This ensures that operational efficiency is not achieved at the expense of the traveler’s experience.
Technology can serve as a powerful ally in improving the travel experience. Real-time flight tracking apps such as Flightradar24 and FlightAware have revolutionized how travelers stay informed about their itineraries. These tools provide valuable updates on flight status, delays, and cancellations, enabling passengers to make timely decisions and adjustments. Airlines can enhance this experience by improving their own apps and communication channels to ensure accurate and immediate updates. However, the onus is not solely on travelers to seek out this information. The travel industry must actively promote these tools and integrate user-friendly features that make them accessible to all demographics, including less tech-savvy passengers. Investments in digital literacy campaigns or in-app tutorials could further empower users to take advantage of available resources.
Beyond fees and technology, the broader infrastructure surrounding travel requires attention. Many travelers rely on public transportation to access airports, but the availability and quality of these services vary widely. Ensuring that affordable and efficient transit options are accessible to all can significantly improve the overall travel experience and reduce the financial burden on low-income passengers. Partnerships between municipalities, transportation authorities, and airlines could facilitate these improvements while promoting sustainability.
Rebuilding trust in the travel industry requires more than regulations and tools—it demands a cultural shift within airlines and other stakeholders. Customer-centric policies, proactive communication, and a commitment to fairness must become the norm rather than the exception. Airlines that prioritize transparency and customer satisfaction will be better positioned to foster loyalty and weather future challenges. For example, offering proactive compensation for inconveniences or providing clear, consistent communication during disruptions can transform a potentially negative experience into one that reinforces trust. Airlines should also consider how their internal practices—such as scheduling, staffing, and infrastructure investments—impact their ability to meet consumer expectations. These changes enhance the traveler experience and position the industry for long-term success.
Travelers play an essential role in shaping the future of the industry. By staying informed about their rights and utilizing available resources, they can hold airlines and other stakeholders accountable. Advocacy groups and consumer organizations can amplify these efforts by providing educational campaigns, simplifying complex regulations, and ensuring that travelers understand how to navigate challenges. Additionally, fostering collaboration between policymakers, industry leaders, and consumer advocates can ensure that the travel ecosystem evolves in a way that benefits all stakeholders. A well-informed, proactive traveler base can act as a catalyst for sustained improvements, pushing the industry toward greater transparency, equity, and reliability.
Equity and Fairness: Redefining the Travel Ecosystem
The intersection of equity and access in the travel industry is more than a logistical concern—it’s a reflection of broader societal values. Travel has long been considered a gateway to opportunity, connection, and cultural exchange, yet the current landscape often denies these benefits to a significant portion of the population. As the industry evolves, it must grapple with the challenge of balancing operational efficiency with a commitment to fairness, ensuring that the rights and needs of all travelers are prioritized.
The travel experience in the U.S. starkly illustrates the effects of income inequality. High-end travelers enjoy the privileges of premium services, private lounges, and expedited processes, while others face long lines, hidden fees, and uncomfortable conditions. These disparities highlight a fundamental imbalance in access to what should be universally available services. Addressing these gaps requires a twofold approach: first, by enacting policies that limit the exploitation of vulnerable consumers, such as banning hidden fees and mandating compensation for disruptions; and second, by rethinking how infrastructure investments are allocated.
For instance, enhancing the economy class experience—such as improving seating comfort and offering better in-flight services—can make air travel more accessible and equitable for a broader range of passengers. Additionally, expanding access to basic amenities, such as free Wi-Fi and charging stations at airports, can improve the travel experience for everyone.
While regulatory measures are crucial, industry stakeholders must also play an active role in fostering equity. Airlines, airports, and other service providers can adopt customer-centric practices that prioritize transparency, accessibility, and inclusivity. For example, simplifying fare structures and clearly communicating the total cost of a trip can empower travelers to make informed decisions without fear of unexpected expenses. Furthermore, airlines can invest in training programs that emphasize empathy and customer service, ensuring that front-line staff are equipped to handle diverse passenger needs. By adopting these measures, the industry can create an environment where all travelers feel valued and respected.
Infrastructure lies at the heart of equitable travel. Investments in modernizing airports, upgrading air traffic control systems, and expanding affordable transportation options are critical for creating a resilient travel ecosystem. These improvements elevate operational efficiency and ensure that the benefits of a robust travel system are accessible to all while operational efficiency is elevated. Sustainability must also be a guiding principle in these efforts. Incorporating green technologies and practices into infrastructure projects can reduce the environmental impact of travel, aligning industry goals with the broader imperative to combat climate change.
Achieving equity in travel does not mean sacrificing efficiency. On the contrary, these goals are mutually reinforcing. A fair and transparent system builds trust among travelers, which in turn drives demand and fosters loyalty. By prioritizing the needs of the everyday traveler, the industry can create a sustainable model that benefits all stakeholders. For policymakers and industry leaders, the path forward involves embracing a holistic perspective that considers both immediate challenges and long-term goals. This includes fostering collaboration across sectors, engaging with consumer advocates, and leveraging technology to enhance the traveler experience. Above all, it requires a commitment to ensuring that the travel ecosystem serves as a bridge, not a barrier, to opportunity and connection.
The future of travel lies in its ability to evolve beyond profit-driven models and embrace a vision of shared prosperity. By addressing systemic inequities, modernizing infrastructure, and empowering travelers, the industry can redefine itself as a beacon of accessibility and fairness. This transformation will require collective effort, but the rewards—a more inclusive and sustainable travel experience—are well worth the investment. In the end, a balanced travel ecosystem is not just a possibility; it is a necessity. By aligning operational efficiency with the principles of equity and fairness, the industry can pave the way for a future where travel is truly a universal right, accessible to all.
Dr. Suh
