More on American’s AAdvantage Move: ASTA and ACTA React, Preferred Terms Released

The move by American Airlines this week to limit AAdvantage loyalty point earnings to only those booking direct with American or through preferred agencies is a continuation of American’s disregard for the travel advisor channel.

That’s according to the American Society of Travel Advisors (ASTA), which, along with its counterpart ACTA in Canada, reacted this week to the news.

ASTA president Zane Kerby, in a message to members, said that ASTA’s frustrations with American began with its “slapdash implementation” of NDC, which it forced upon advisors last August. The AAdvantage news is another step to push advisors into NDC, even though American itself is unprepared, Kerby said.

“Nearly a year after its self-imposed NDC launch date, problems associated with basic servicing functions such as comparative shopping, split tickets, limitations on cancellations, booking multiple people on the same itinerary, and rebooking remain, creating extraordinary challenges for agencies and their travelers as they attempt to distribute American Airlines’ services to the traveling public,” Kerby wrote.  

ASTA has long maintained that it is not opposed to progress or new merchandise models, a criticism that American lobbed at the association last year. Instead, it was opposed to American making its members, and consumers, pay for the change.

“What we’re opposed to is monopolists abusing their market power to force change that no one, including AA itself, is ready for. And, because of their monopoly power, making everyone else pay – including the consumer – the price for said change,” Kerby said.

Preferred terms
According to terms seen by TMR this week, American’s criteria for becoming a preferred agency needs to be met and finalized by March 31 to be considered for preferred status starting on May 1. The terms most notably include mandatory percentages of NDC sales, which American is calling “modern retailing targets.”

Those percentages will only increase over the next 16 months, going from 30% by April 21, 2024, to 50% by the end of October, and 70% by April 30, 2025. If an agency drops below those thresholds, they could have their status as Preferred revoked with 30 days’ notice.

ASTA, for its part, called that first 30% requirement an “unreasonable NDC adoption threshold.”

ACTA reacts
The Association of Canadian Travel Agencies (ACTA) said this week that American’s move “undermines the principle of fair competition” that is supposed to govern the market.

“This move undermines the principle of fair competition and creates an uneven playing field, disadvantaging both consumers and many travel agencies,” said Wendy Paradis, ACTA president. “ACTA strongly objects to the recent policy change announced by American Airlines.”

“ACTA views this change as a significant departure from equitable business practices and a direct threat to the healthy competitive environment that has long benefitted consumers and the travel industry alike,” Paradis said.

What’s next
Both ASTA and ACTA are urging American to reconsider the policy.

ASTA is also asking for any members, or non-members, who are considered a preferred agency under the current American policies but are in fear of losing status to email its government affairs office. Any agency that is unclear on the new criteria, or has been adversely impacted by the NDC adoption, is also welcome to contact ASTA.