American Airlines recently made headlines with its decision to scrap plans to limit how AAdvantage loyalty program members can earn miles or points based on booking channels. While this move was seen as a win for consumers, the carrier is still moving forward with its plans to reward agencies designated as “preferred.”
In emails sent by American Airlines’ senior vice president of partnerships and retailing, Scott Laurence, details about the preferred-agency program were outlined. While specific information was not provided, the emails indicated that agencies would receive additional information about the program and upcoming incentives for those who continue to utilize New Distribution Capability technology.
The emails also mentioned that corporate clients would be informed about the preferred agency program, as well as the carrier’s sales and distribution strategy. This indicates that American Airlines is placing a significant emphasis on working closely with both agencies and corporate clients to streamline the booking process.
Initially announced in February, the preferred-agency program was scheduled to begin on May 1 but was ultimately postponed to July 11. The program would require agencies to book a certain percentage of their American volume through NDC channels to qualify as preferred. The threshold started at 30% by April 21, with gradual increases to 50% by Oct. 31 and eventually reaching 70% by April 30, 2025.
American Airlines’ decision to focus on rewarding preferred agencies demonstrates a shift towards promoting the use of NDC technology and streamlining the booking process for both agencies and corporate clients. While the changes may present challenges for some agencies, the long-term benefits of being designated as “preferred” could outweigh any initial obstacles. It will be interesting to see how the program unfolds and the impact it has on the travel industry as a whole.