American Airlines has pushed the deadline for its AAdvantage change, which will stop awarding frequent flyer miles and loyalty points to customers who don’t book directly with the airline or select partner carriers and “preferred” travel advisors.
The updated policy was supposed to kick in May 1, but that deadline has been extended to July 11, Skift reports.
The airline is also giving travel agencies more time to meet a minimum 30 per cent NDC threshold in order to be considered preferred. The original April 21 deadline has been pushed to June 5.
American Airlines says many travel agencies have qualified for its program. That means customers of qualifying agencies would still be able to earn AAdvantage points.
Travellers whose travel agency doesn’t make the list, however, will have to book their flight directly on AA.com or use a preferred agency to earn loyalty points.
American Airlines hasn’t yet announced which travel agencies have qualified as preferred.
An “unfair policy”
Both the American Society of Travel Advisors (ASTA) and the Association of Canadian Travel Agencies and Travel Advisors (ACTA) have spoken out against this new policy.
In an April 10 statement, Wendy Paradis, ACTA’s president, said American Airlines’ move directly restricts consumer choice and “undermines the critical role of travel agencies and advisors in the industry value chain.”
“By tying loyalty rewards to direct bookings or bookings through a limited number of preferred agencies, American Airlines is severely limiting the channels through which consumers can earn loyalty points,” Paradis said in a news release.
“This decision will inevitably steer customers away from travel agencies and advisors who are uniquely positioned to advocate for their interests and provide comprehensive, competitive travel options.”
ACTA is urging American Airlines to reconsider their decision and discuss it with the retail travel community to find a more balanced approach to NDC implementation and loyalty program changes.
“We firmly believe that any changes must be a collaborative process that considers the needs and concerns of all stakeholders, rather than a unilateral mandate,” Paradis said.
“Our organization remains steadfast in its commitment to working with all parties involved to develop solutions that promote innovation, efficiency, and customer satisfaction while maintaining a fair and competitive marketplace.”
ACTA took to the social media platform X on Wednesday (April 24) to comment on the “harmful” policy, and it’s deadline extension.
“While extra time is appreciated, ACTA remains committed to advocating against this unfair policy that denies loyalty points to customers booking through these channels,” the association wrote.
American Airlines’ move is part of a shift by airlines to move away from using travel advisors – and paying them commissions – and bring ticket sales in-house.
About 60 per cent of American’s ticket sales are made directly through the airline, Scott Chandler, vice-president of revenue management at American Airlines, told the Associated Press.
“The old way of booking a ticket relied on agents having a ton of experience and understanding product attributes,” Chandler said in a previous interview with the outlet. “The old technology doesn’t let us explain things very well, and it is a little more confusing for customers when we introduce new products.”
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