The recent reversal of American Airlines’ distribution strategy, which was vehemently opposed by the travel agency community, has been hailed as a hard-fought victory for ASTA after a yearlong battle. The announcement of American Airlines abandoning its plans to withhold loyalty points for bookings from non-preferred travel agencies and to stop removing content from GDSs has been met with a collective sigh of relief by agencies at ASTA’s Travel Advisor Conference in Dallas. However, while this news may signal a positive shift, it leaves many questions regarding the future direction of American Airlines’ relationship with travel advisors.
Dave Hershberger, president of Prestige Travel Leaders, emphasized that American Airlines has a significant amount of ground to cover to regain trust and goodwill among travel agencies. The past year has seen the carrier make several changes that have left the agency community feeling alienated, such as pulling corporate contracts, salespeople, and agency commissions. Hershberger stressed the importance of American Airlines acting swiftly to restore these relationships by making a decisive about-turn in their approach.
The rift between ASTA and American Airlines began over a year ago when the carrier decided to shift nearly half of its fares from traditional GDS channels to NDC channels. The use of NDC technology posed significant challenges for travel agencies, notably in terms of servicing capabilities. Jay Ellenby, president of Safe Harbors Business Travel, highlighted the inadequacies of American Airlines’ NDC technology, particularly when it came to managing and changing bookings. This lack of functionality not only increased anxiety among agencies but also incurred additional costs in servicing clients.
Olga Ramudo, senior vice president of Gray Dawes/Express Travel, pointed out the negative impact of American Airlines’ policies on travel advisors and their relationship with the carrier. These policies not only created additional work for advisors in servicing customers but also strained the agency’s partnership with American Airlines. The restrictions on miles and points also led to dissatisfaction among customers, who chose to support their agents by avoiding direct bookings.
ASTA’s campaign against American Airlines’ policies played a crucial role in influencing the carrier’s decision to reverse its distribution strategy. CEO Zane Kerby credited the efforts of travel agencies and their clients for mobilizing support and highlighting the importance of miles and points for all bookings. The grassroots campaign, which involved thousands of messages to legislators, demonstrated the strength of the travel agency community in advocating for their interests.
Despite the victory in persuading American Airlines to change its approach, travel advisors remain cautious about the future. It is imperative for American Airlines to address the fallout from its previous strategies, including rebuilding relationships with a disenchanted travel agency community. The sincerity and seriousness with which American Airlines approaches this task will determine the level of support and trust it can regain from travel advisors.
The reversal of American Airlines’ distribution strategy marks a significant milestone in the ongoing battle between the carrier and the travel agency community. While this decision is a positive step forward, there is still work to be done in repairing relationships, addressing technological challenges, and restoring trust and goodwill. The future direction of American Airlines’ NDC strategy will be closely watched by travel advisors, who are keen to see a more collaborative and supportive approach from the carrier.