American Airlines Announces $2 Commission For Bookings Made Through NDC Channels

by Barbara Peterson
American Airlines Announces $2 Commission For Bookings Made Through NDC Channels

AA joins the trend to induce agents to book directly with airline channels – and, by implication, away from Global Distribution Systems.


In the latest industry move to induce agents to book directly with airline channels – and, by implication, away from Global Distribution Systems – American Airlines said it will pay travel agents a $2 commission on flights booked through an approved NDC, or New Distribution Capability, connection. 

The new NDC incentive program will give agents access to the widest range of published fares and to a slew of ancillary services, the carrier said. As such, it fits with a wider airline industry embrace of IATA’s NDC data standard, which is laying the foundation for airlines to sell ancillary services to agents.  

As part of this evolution, airlines have been rolling out new booking portals for travel agencies and other sellers.  American said agents who meet its criteria will need to utilize a carrier-approved NDC connection. In addition to its own channel and web tool, it will offer agents several other options; they can develop their own NDC connection in-house, or use an approved third-party link.

The new program represents a shift away from the approach taken by major international lines, including Lufthansa and British Airways, which charge agents a fee of up to $18 (in the German carrier’s case) for bookings made through major GDSs.  Those airlines said the fee is meant to cover the higher expense of distributing their product through those platforms. But there, too, agents can avoid the fee by setting up a direct booking channel with the airline.

With its incentive program, American is effectively choosing the carrot over the stick. Travel agencies that meet American’s requirements will earn the commission on all flight books that are marketed as the carrier’s own, with no minimums or caps.  

  0
  12
Daily Top List

Travel Tends for 2019

1. Getting off the Instagram trail

2. Solo travel is an undeniable force.

3. “Wokeness” and travel collide.

4. The continued return of destinations hit hard by political and natural disasters.

5. The mode of travel helps define your trip.

Source: UpRoxx

TMR THIS WEEK
http://services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=54ea58dc-0718-e911-800f-782bcb667b27

National Parks Make Headlines, Serve as Reminder to Travel Advisors to Ready Clients for Peak Season

Despite the current shutdown disruptions, the time for travel to these natural wonders will soon be upon us once more. Tour operators are at the ready, which means now is the time for travel advisors to think ahead.

TMR Recommendations
Top Stories
Airport Security Lines See Hour-Long Wait Times Amid Government Shutdown
Airport Security Lines See Hour-Long Wait Times Amid Government Shutdown

The TSA said it is working with airports and airlines nationwide to consolidate operations and get the most out of resources.

Machu Picchu Adopts New, Stricter Ticket Policy
Machu Picchu Adopts New, Stricter Ticket Policy

Three daily time slots are available for visitors to choose from, and they must arrive on time or they will not be admitted.

More Airports Close Security Checkpoints Because of TSA Staff Shortages
More Airports Close Security Checkpoints Because of TSA Staff Shortages

The TSA has maintained that security standards have not been compromised.

Japan Follows Trend, Adds Departure Tax
Japan Follows Trend, Adds Departure Tax

The new ‘sayonara tax’ is added to the air and sea travel fares of passengers visiting Japan, regardless of nationality.

Judge Blocks New York City Law Aimed at Cracking Down on Airbnb
Judge Blocks New York City Law Aimed at Cracking Down on Airbnb

It would have required Airbnb and other home-sharing sites to disclose its hosts’ personal information.

Concerns Mount Over Impact of Government Shutdown on Travel
Concerns Mount Over Impact of Government Shutdown on Travel

Among the more than 400,000 federal workers who are working without pay are employees who have a direct involvement in aviation and air travel.

News Briefs
TMR Report Cards & Outlooks
Advertiser's Voice
Advertiser's Voice: Tauck