American Airlines recently announced that they would no longer be implementing a plan that would have prevented flyers from earning AAdvantage Miles when purchasing tickets through certain booking sites. This decision came after facing resistance from both online and offline travel agencies. The airline had initially planned to designate “preferred agencies” who met certain criteria, such as booking a minimum percentage of flights through American’s New Distribution Capability. Customers of these preferred agencies would have still been able to earn AAdvantage Miles, while others would have had to book directly through American or a preferred agency.
This decision to backtrack on their direct-booking strategy came as American Airlines faced challenges in their financial outlook, as well as softness in close-in bookings. CEO Robert Isom acknowledged the confusion and disruption that would have been caused by the initial plan, stating that they are listening to feedback from their customers. The reversal was welcomed by many travel agencies, including the American Society of Travel Advisors, who had been advocating against the airline’s distribution policies. CEO Zane Kerby praised American Airlines for recognizing the essential role that travel advisors play in the airline distribution channel.
While the airline has abandoned this specific plan, they have not given up on direct distribution entirely. Isom stated that they are still committed to modern retailing and providing a better experience for their customers through the New Distribution Capability. He emphasized the importance of learning, adapting, and bringing all stakeholders along with them in this transition. The decision to retract the plan was made just as the American Society of Travel Advisors was holding their annual national conference in Dallas, near the airline’s headquarters.
American Airlines’ shift in strategy highlights the challenges that airlines face in trying to revolutionize the distribution landscape within the industry. While they remain committed to modernizing their approach, they have recognized the importance of working collaboratively with travel agencies and other partners. The decision to abandon the plan to withhold AAdvantage points and miles for agency bookings is seen as a step in the right direction towards a more customer-centric approach. As the airline continues to navigate these changes, they are focused on making the process easier and executing a more successful implementation of their New Distribution Capability program.
