The World Travel Agents Associations Alliance (WTAAA) says it is "deeply concerned by American Airlines’ recent decision to impose punitive measures against travel agencies that choose to use third-party booking platforms."
The American Airlines policy announced in February of this year stated that effective 01MAY 2024, only direct bookings with American Airlines and selected partner airlines, along with a specific list of “preferred travel agencies,” would qualify for earning traveller loyalty points.
According to WTAAA, airline loyalty programs incentivize "repeat business and customer satisfaction."
"American’s new policy undermines this mutually beneficial relationship, threatening to alienate loyal customers and disrupt the balance of the travel distribution ecosystem," WTAAA stated.
"This heavy-handed tactic will fragment distribution, drive up costs, and reduce transparency for consumers who seek to compare offerings across multiple airlines. It also demonstrates a troubling disregard for the critical role that travel agencies play in serving travellers, especially in the wake of the COVID-19 pandemic when their expertise and personalised service were more valuable than ever."
"WTAAA calls on American Airlines to reconsider this counterproductive policy and reaffirm its commitment to maintaining an open and equitable distribution landscape that serves the best interests of all industry stakeholders, including travel agencies and, most importantly, the travelling public."
"We urge the airline to engage in constructive dialogue with travel agency associations and other partners to find solutions that preserve consumer choice and uphold the principles of fair competition."
As previously reported by Open Jaw, ACTA says American Airlines’ controversial policy will not only hurt travel advisors, but restricts consumer choice and will lead to higher prices.
“After having time to fully understand American Airlines’ position and to investigate further,” ACTA on 10APR issued a statement condemning the policy.
ACTA “strongly opposes American Airlines' decision to block loyalty points earnings for bookings made through ‘non-preferred’ channels,” association president Wendy Paradis said. “This 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. “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.
“Consumers depend on travel agencies and advisors to provide expert guidance, unbiased advice, and a wide array of travel options tailored to their individual needs and preferences. Restricting the ability to earn loyalty points through these channels will undoubtedly disadvantage consumers who value booking through their trusted travel partners.
“Furthermore, this decision will have far-reaching consequences for the openness and competitiveness of the travel marketplace. By leveraging its position to restrict consumer choice, American Airlines is engaging in practices that will lead to higher prices, stifled innovation, and a less dynamic travel industry,” said Paradis.
WTAAA concluded, "The travel industry thrives on collaboration, and WTAAA stands ready to work with American Airlines to develop policies that foster innovation, strengthen loyalty programmes, and ensure a bright future for the entire sector."
