The Controversial Fix That Could Change Airport Security Forever
The Controversial Fix That Could Change Airport Security Forever
Candy Retriever/Shutterstock
https://www.fodors.com/news/news/airport-chaos-exposes-the-truth-about-privatized-tsa-during-government-shutdown
Airports with a private screening contract have a loophole in government shutdown chaos–here’s how the system works and why its in the spotlight.
The lines didn’t just snake through terminals. People spilled out onto sidewalks, stalled curbside drop-offs, and turned airport floors into makeshift camps. In the early days of the latest government shutdown, TSA checkpoints became the country’s most visible pressure point: three-hour waits, missed flights, and passengers refusing to leave the security line even after rebooking, afraid they’d never make it back through. Around the country, the presence of deployed ICE agents, however lackadaisical, added anxiety. In Houston, someone started pouring vodka shots to lift spirits. It felt less like travel and more like a slow-moving standoff.
There was no way around it: if you want to fly, you have to go through TSA.
It’s easy to forget that the Transportation Security Administration is relatively young, born in the aftermath of the September 11, 2001 attacks as part of federalized reform of airport security. Before then, screening had largely been handled by private companies hired by airlines–an approach widely criticized after the attacks for inconsistent training standards and high turnover.
Today, the TSA is the first pressure point most Americans feel when Congress fails to pass a budget. Thanks to last fall’s government shutdown and (as of this writing) the still lingering partial shutdown, TSA workers have gone without a steady paycheck for half of the fiscal year. No one blamed them for needing to leave their posts after the multiple missed paydays to find other fast work to pay the bills.
But that wasn’t true for all airport screeners. In a little-known corner of the system, 20 U.S. airports–including international airports like San Francisco, Orlando, and Kansas City–already operate outside the traditional TSA staffing model. They outsource screening operations to private contractors through what’s known as the Screening Partnership Program, or SPP.
And in the midst of the peak madness, employees who worked for those contractors kept getting paid–and kept showing up.
As the call to privatize TSA grows louder, Fodor’s has all the details on what “privatized TSA” actually means, how it works, who pays for it, and what’s behind the controversy.
How Privatized Screening Actually Works
Despite the shorthand, “privatized TSA,” it is something of a misnomer. The federal government still sits at the center of the system.
Under the SPP structure, the TSA—within the Department of Homeland Security—issues contracts to a pool of approved private vendors. Airports initiate the process by submitting an application to TSA, which typically takes 60 days to review. TSA then accepts bids and awards a contract to a qualified vendor. Those vendors, like VMD Corp., are responsible for hiring, training, and managing screening personnel, while local TSA leadership monitors performance and ensures compliance with federal standards.
“The airport still works with TSA,” said Marta Czarnecki, Vice President of Communications at VMD. “The difference is TSA’s role shifts to regulation and oversight, while the vendor handles operations.”
The typical travelers’ experience—ID checks, bag screening, body scanners—looks virtually identical whether the person administering them is a federal employee or a contractor. The same rules apply. The same prohibited items are confiscated. And according to studies since 2005, the same level of security.
Who Pays? (Pssst, It’s You, But Not How You Think)
Most passengers’ pressing question is whether privatized screening changes the cost of flying. The short answer: it doesn’t.
Security costs are already largely funded through the 9/11 Security Fee embedded in airline tickets, and then additional federal appropriations. Whether an airport uses federal TSA staff or a private contractor, that fee remains the same. Airlines—not airports or security providers—set ticket prices.
Behind the scenes, the finances are more nuanced. The federal government pays SPP contractors, but those payments don’t always align neatly with day-to-day operations. Vendors are expected to maintain payroll and staffing regardless of delays in federal funding.
That distinction became particularly visible during government shutdowns, when federally employed TSA agents were required to work without pay while private contractors continued issuing paychecks without interruption.
“Regardless of circumstances in D.C., if employees work, they should be paid,” Czarnecki said, noting that obligated contract funding and access to credit allow VMD to keep up with paychecks.
The Tension Around Expanding Private Contractors
If the Screening Partnership Program has quietly expanded over the past two decades, the idea of scaling it nationwide has been anything but quiet in the last few months. For those standing in line for hours, the grass definitely looked greener on the private side of the fence.
“Our screeners are still getting paid, they’re still working what their expected shifts are,” Jackson Overstreet, public information officer for Kansas City’s Aviation Department, told reporters at the start of the panic. “So, in a situation like this during spring break, we’re able to operate, essentially as any other day, despite the shutdown, because it’s a different financial setup.”
Yet for the union representing more than 47,000 federal employees, the prospect of broader privatization is a disaster. While the American Federation of Government Employees (AFGE) did not respond to a request for comment, the organization reports that the move would endanger travelers. It cites a history of high turnover and short staffing with contractors, alleging that for-profit companies prioritize cost-cutting over security and workers’ well-being.
“Of about 400 airports, only 5% of them opted to join SPP,” the AFGE newsletter reports. “We need to invest in TSA, not destroy it.”
SPP proponents counter that the program has evolved far beyond the pre-9/11 structure. Private contractors today operate under the same federal standards, use identical equipment, and are subject to continuous audits and oversight. They also argue that competition and the performance incentives built into SPP contracts drive innovation in ways a centralized federal workforce cannot.
Before the recent budgetary shutdown, most people had no idea private airport screening contracts existed. Now it’s one of the latest flashpoints in a much larger political conversation about the role of government. Conservative and libertarian advocates want security decentralized to reduce government costs, including a proposal in the right-wing manifesto Project 2025. Critics of this see a dangerous dismantling of a post-9/11 security structure in favor of a system that would destroy unions and increase kickbacks. President Trump recently announced another proposal to cut TSA funding and move to privatization.
For travelers inching forward in security lines, those debates are distant. The questions feel more immediate: How long will this take? Will I make my flight? Why does this line seem longer than the last time?
The answers very well may depend on who is getting paid.
RevPAR was flat at Wyndham in Q1. Its AI push was not.
https://hotelsmag.com/news/revpar-was-flat-at-wyndham-in-q1-its-ai-push-was-not/?
by David Eisen
RevPAR at Wyndham Hotels & Resorts in the first quarter at its U.S. hotels was flat versus the same time a year ago. Outside the U.S., RevPAR was down 1% (expectations were that it would be down as much as 3%).
It was not an unexpected result: the majority of hotels in the segments that Wyndham operates have struggled as consumers pull back in their travel spend. Still, there continue to be pockets of growth for the hotel franchisor, especially on the technology side.
System-wide rooms grew 4% YOY, while Wyndham’s development pipeline grew 3% YOY to a record of more than 259,000 rooms and more than 2,200 hotels. Approximately 43% of the pipeline is in the U.S., while around 77% of the pipeline is new construction and, of those, 35% have broken ground.
Net income remained flat YOY at $61 million, while ancillary revenues increased 21%, much of it tied to Wyndham’s credit card program. In March of last year, Wyndham renewed its credit card agreement with Barclay,
“We delivered a strong start to the year, highlighted by record-level first-quarter openings and a continued expansion of our development pipeline,” said Geoff Ballotti, president and chief executive officer. “As U.S. RevPAR in our economy and midscale segments continues to recover ahead of expectations, we approach the peak leisure summer season with increasing optimism. We’ve never been more confident in our ability to drive sustained long-term value creation for franchisees, guests, and shareholders by adding high-quality, FeePAR-accretive hotels to our portfolio, growing ancillary revenues, and scaling AI to further differentiate our industry-leading technology platform.”
Wyndham continues to make hay on the technology side, including partnerships with Salesforce, as part of a more than $450-million investment. Wyndham is making a concerted investment in AI. Its agentic AI solutions interact with guests in real-time to answer questions, make bookings, check them in, offer upsells, and increase service levels, all in the pursuit to save owners money and generate more.
On a call with analysts, Ballotti underscored the contribution of Wyndham Connect, its guest engagement and operations software platform that uses AI to increase revenue and streamline operations. It’s now available in more than 1,100 hotels. “We are taking millions and millions of dollars of costs out of these hotels,” he said. “We’re taking millions of guest calls, millions of questions away from people that would have to answer them, and we’re autonomously handling those labor-intensive tasks. That’s what’s saving the money and resulting in better interaction with guests.”
For instance, AI has helped eliminate dropped calls and increased handle times by 25%, he said.
The upshot of increased reliance on AI is a decrease in the labor force. “We’re looking at everything we can do to drive incremental revenue to hotels, at how much margin we can drive by taking a guest service agent off of the payroll and allowing them to free up staff,” Ballotti said. “We’re looking at the percentage that we’re able to drive to the hotel from a direct-booking basis because the call wasn’t dropped or wasn’t lost. Our job is to make sure that these small business owners are engaged with these tools that can drive hundreds of thousands of dollars.”
Ballotti said that Wyndham Connect is responsible for adding 300 basis points of increased direct contribution.
Wyndham continues to navigate the insolvency of its largest European franchisee, Revo Hospitality Group, which led to a $160 million charge in early 2026. Revo operated, but did not own, over 260 properties, with significant exposure in Germany and Austria. Wyndham said it is exercising “all available remedies to recoup our investments.” It foreclosed and took ownership of two properties, which are expected to contribute about $10 million in revenue. “Our plan is to stabilize and improve the profitability of these two assets as we explore strategic options for them,” said Amit Sripathi, CFO of Wyndham Hotels & Resorts.
Don’t Get Stuck Without Cash in These 10 Travel Hotspots
Valery Bareta/Shutterstock
https://www.fodors.com/news/photos/these-countries-still-rely-on-cash-travelers-should-be-prepared
Traveling abroad soon? These countries still rely heavily on cash, meaning credit cards may not work for everyday purchases.
One of the bigger planning items for international travelers is currency. Does one need to exchange currency and get some paper money, or are card payments standard in that country? Are exchange houses and ATMs common, or should a traveler plan to order foreign currency before they depart?
Payment provider DeCard has compiled a list of the most cash-dependent countries in the world for travelers. They compiled the number of ATMs, bank branches, and credit card point of sale (POS) terminals per resident, plus the percentage of the population that owns payment cards.
Read on to learn more about which countries you’ll be most likely to need cash for your transactions.
PHOTO: Tamoumen | Dreamstime.com
1 OF 10
Algeria
Whether you’re taking to the Mediterranean beaches or seeing the world’s tallest minaret at the Great Mosque in Algiers, you’re more likely to need cash in Algeria than in any other country in the survey. Financial institution outlets are thin on the ground here, with just 12 ATMs per 100,000 people, and 5.3 commercial bank branches, and just over 2% of the population have credit cards.
PHOTO: AlexAnton/Shutterstock
2 OF 10
Egypt
Egypt has no shortage of places to spend money—from narrow-alleyed souks to vendors pulling up alongside Nile River cruise boats, but for each of these, you generally need cash. There are 30 ATMs per 100,000 people (mostly within banks and hotels), but banks can be hard to find, with just 6.2 commercial bank branches (although many international hotels also have full-service branches, especially in Cairo). Just under 3% of the population have credit cards.
PHOTO: DAVID BOKUCHAVA/DREAMSTIME
3 OF 10
Vietnam
Don’t plan on using a card for that bánh mì or steaming bowl of pho from a street vendor. Vietnam is also short on ATMs (27 per 100k), but POS terminals are slightly more common, with 310 per 100k. Credit card ownership is still low, at around 5.6%. Major hotels, cruise lines, and urban shops are most likely to take cards, but overall their acceptance rate is low, particularly for small vendors.
PHOTO: RADIOKAFKA/SHUTTERSTOCK
4 OF 10
India
Electronic payments are quickly growing in India, but it’s still largely cash-dependent for many transactions, except hotels and upscale restaurants, so plan on using cash for small merchants and tuk-tuks. ATMs are still relatively uncommon (27 per 100k) and those are mostly in urban centers and tourist areas. Credit cards are still uncommon among the population, which mostly prefers to transact in rupees. When credit cards are accepted, mobile wallet payments like Apple Pay are generally not supported.
PHOTO: THP Creative / iStock
5 OF 10
Jordan
Jordan has the most POS terminals in the top ten, with 388 per 100k, and credit cards (in some cases even mobile wallet payments) are more accepted in cities, particularly in large hotels, tourist attractions, and supermarkets. Cash is still king, however, for taxis and small vendors like those found in souks. Less than 3% of the population has credit cards.
PHOTO: WALTER ERIC SY/DREAMSTIME.COM
6 OF 10
Philippines
The Philippines has the highest number of credit card owners in the top ten—8% of the population—but card payments remain less common in the country, particularly outside cities. Contactless payments are rare, but growing in popularity, and POS terminals are slightly more prevalent, with 220 per 100k. As in many countries, cash is still the only method of payment for smaller merchants and those outside major cities. Local eateries and most local transport methods are also cash-only.
PHOTO: MARIANNA IANOVSKA/SHUTTERSTOCK
7 OF 10
Morocco
Morocco, like many other countries in the survey, is reliant on cash for transport, in souks, and for tips, but credit cards are more commonly accepted for large purchases (particularly in the shops selling argan oils and other cosmetics). Luckily, commercial bank branches are more common (20.9 per 100k). Credit card ownership, however, is among the lowest among all countries, with just 1% of the population having one. Morocco also ranked the lowest for the number of POS terminals, with just 89 per 100k.
PHOTO: Jeff Cagle
8 OF 10
Cambodia
Credit cards are virtually unused by the local population, with a fraction of a percent owning one. As with most countries, cards are accepted by tourism-focused businesses like hotels in Phnom Penh and Siem Reap, but in more rural areas, it’s all cash. Many vendors will accept payments in local Riel or US Dollars, and it’s not uncommon for those that do accept credit cards to tack on a surcharge for card payments, so it can be helpful to have cash handy even if cards are accepted. ATMs are more common in Cambodia than in any other country in the top ten (46.5 per 100k), and many of them dispense US Dollars or Riel.
PHOTO: VALERY BARETA/SHUTTERSTOCK
9 OF 10
Tunisia
Travelers to Tunisia’s glittering Mediterranean resorts will want to hit up the ATM at some point during their stay. There are 32.7 per 100k in population—somewhat better than the higher-ranking cash countries in the survey. The country also fared better than its peers on the number of commercial bank branches, but has a relatively small number of credit card owners (2%) and POS terminals (150). Even when merchants do accept credit cards (indicated by a sign or a visible POS), many of them may still prefer cash and discourage card payments. As in many other countries, cash is king in souks and with other local vendors; even many gas stations are cash-only.
PHOTO: MILOSK50/SHUTTERSTOCK
10 OF 10
Albania
Albanian Lek is the best form of payment for taxis, local shops, markets, and rural vendors, but card payments are quickly becoming more common, particularly in hotels, supermarkets in larger cities such as Tirana, and tourist venues. Albania has a good number of ATMs (40.1 per 100k) compared to most other countries in the top ten, and a good number of POS terminals (283.3 per 100k), but many users have reported that vendors who have them can be hesitant to use them, or claim they’re broken.
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