Advisors on both sides of the US-Canada border are doing a happy dance after American Airlines backed down on its highly unpopular plan to stop issuing loyalty points on travel agent bookings.
Angry agents claim the move is a way to force agencies to adopt American’s NDC or get consumers to bypass advisors by booking directly with the airline.
"This latest development doubles down on American Airlines' clear agenda since last year to force the travel agency industry to adopt immature technology, monopolize distribution channels, and squeeze channel partners and customers for cost-cutting and profit," ASTA said earlier this year. “American’s behavior is monopolistic and should be concerning to lawmakers who value consumer choice."
Speaking at a financial conference Wednesday, American Airlines CEO Robert Isom said that the airline was scrapping the plan as part of a broader effort to pull back on its recent distribution strategy. That strategy was meant to encourage customers to book directly with the airline, meaning the carrier would not have to share a cut with a travel agent or booking service, thepointsguy.com reports.