American Airlines’ relationship with travel management companies (TMCs) took a hit when they shifted their focus towards direct distribution and away from traditional GDS channels. This move was seen as a failure, potentially costing the airline up to $1.5 billion in revenue. However, during the Q2 earnings call, American CEO Robert Isom acknowledged the need to rebuild positive relationships with travel advisors.
Interviews with some large TMCs in the U.S. revealed cautious optimism regarding American Airlines’ efforts to re-engage with the trade. Relationship rebuilding has begun, with American representatives being newly assigned to larger TMC partners. While sentiment towards the carrier is tentatively positive, there is a hope that trust can be fully rebuilt.
TMC executives emphasize the importance of trust between American Airlines and the agency community. Re-earning trust from both agencies and consumers is crucial for the airline’s success. By working closely with travel advisors, American aims to rebuild trust and credibility within the industry.
American Airlines has taken several steps towards rebuilding relationships with TMCs. This includes hiring new account managers for corporate customers and working on incentive-based agreements for agencies. Efforts in this direction have been well received by the industry.
Leaders in the travel management industry, such as Amex GBT and Cadence Travel, have welcomed American Airlines’ strategy shift. The restoration of content to GDSs and the airline’s recognition of the trade’s importance has been positively received. Collaboration between airlines, TMCs, and distributors is seen as key to driving necessary changes in the industry.
While challenges remain, such as the need to fully regain trust and rebuild relationships, American Airlines is making progress. TMCs like Christopherson and Executive Travel are optimistic about the potential for improved partnerships with the airline. By focusing on collaboration and communication, American Airlines aims to strengthen its position within the travel management industry.
Overall, the shift in strategy towards rebuilding relationships with TMCs indicates a positive step forward for American Airlines. By recognizing the importance of partnerships and trust within the industry, the airline is working towards regaining the confidence of both travel advisors and consumers. The road to recovery may be challenging, but with continued efforts and collaboration, American Airlines has the opportunity to rebuild its reputation within the travel management community.