American Airlines is extending the deadline for its controversial loyalty initiative which bypasses the trade unless they are preferred.
Previously, the airline stated that only those travellers who made bookings through preferred agencies would be eligible to earn loyalty points from 01MAY. Thereby encouraging direct bookings.
However, the deadline has now been extended to 11JUL.
American also granted agencies more time to meet the initial 30% NDC threshold to be considered preferred, moving the deadline from 21APR to 05JUN.
Skift reports, "Some agencies told the airline that they needed more time between learning that they qualified to be a preferred agency and the implementation deadline, and that was part of the thinking behind the extension."
An airline spokesperson stated, “While we’re happy with the response we’ve seen so far, we anticipate even more agencies are close to meeting the threshold very soon.
"As a result, we’re extending the first qualification window, including the publication of our preferred agency list, to June 5, 2024. This new timeline gives additional agencies more time and the opportunity to meet NDC thresholds."
According to Travel Market Report, "While the deadline extension is good news for agencies who are struggling to meet that 30% NDC number, that threshold is only going to increase over the next 16 months.
"According to terms seen by TMR, American is going to push that threshold from 30% to 50% by the end of October, and 70% by the end of April 2025, as American continues its NDC rollout strategy."
As previously reported by Open Jaw, the new policy has prompted full mobilization from associations in Canada and the U.S.
ACTA says American Airlines’ controversial policy will not only hurt travel advisors but also restrict consumer choice and will lead to higher prices.
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."
On 17APR, The World Travel Agents Associations Alliance (WTAAA) responded to the program change, saying it was "deeply concerned by American Airlines’ recent decision to impose punitive measures against travel agencies that choose to use third-party booking platforms.
"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.
