In the aviation industry, trust between airlines and travel management companies (TMCs) is essential for maintaining positive relationships and maximizing revenue potential. The recent olive branch extended by American Airlines’ CEO Robert Isom to rebuild positive relationships with travel advisors highlights the importance of strategic partnerships in the travel trade.
American Airlines’ aggressive move towards direct distribution and its push for sellers to use NDC channels proved to be a failed strategy, potentially costing the airline up to $1.5 billion in revenue. The acknowledgment of this misstep by Isom during the Q2 earnings call reflects a willingness to reassess the airline’s approach and to prioritize rebuilding trust with TMCs and agencies.
Interviews with leading TMCs in the U.S. reveal cautious optimism about American Airlines’ efforts to re-engage with the trade. The appointment of American representatives to larger TMC partners signals a step towards relationship rebuilding. While sentiment towards the carrier is improving, executives emphasize the need for American to fully regain trust and demonstrate a commitment to collaboration.
Isom’s announcement of hiring new account managers for corporate customers and working on incentive-based agreements for agencies demonstrates a proactive approach to rebuilding partnerships. The positive reception of these efforts by industry leaders such as American Express Global Business Travel (Amex GBT) indicates a willingness to collaborate towards mutual benefits.
Recent initiatives by American Airlines, such as enabling AAdvantage Business participants to earn points on agency bookings and returning content to GDSs, have been welcomed by TMCs. The reassignment of dedicated American representatives to TMCs signifies a renewed focus on relationship management and value creation for clients.
The history of American Airlines’ relationship with TMCs underscores the challenges of maintaining trust and market share in a competitive industry. While it may be easier for TMCs to partner with other airlines, American Airlines remains an important vendor and is actively working to regain trust and strengthen partnerships.
As American Airlines navigates the journey towards rebuilding trust with TMCs, strategic initiatives and positive developments indicate a commitment to collaboration and value creation. By learning from past mistakes and prioritizing relationship management, American Airlines is poised to strengthen its position in the travel trade and enhance partnerships with TMCs for mutual success.