American Airlines has implemented a policy that requires a significant portion of bookings to be made through their New Distribution Capability (NDC) platform in order for travel agencies to maintain their status as “preferred” agencies. This poses a dilemma for agencies who are not currently utilizing NDC for their bookings, as it may impact their ability to offer certain benefits to their clients.
One possible solution to this challenge is for agencies to consider affiliating with a larger agency that is likely to meet the preferred status requirements set by American Airlines. By partnering with a larger agency, smaller agencies can leverage their resources and expertise in navigating the NDC system. However, it is crucial to carefully structure such a relationship in order to ensure mutual benefit for both parties.
There are several ways in which a smaller agency can form a partnership with a larger agency to meet the NDC requirements. One option is to have a ticketing agreement where the smaller agency continues to handle the booking process and then sends the ticketing message to the larger agency for processing. This arrangement allows the smaller agency to maintain some control over the booking process while complying with American Airlines’ requirements.
Considering Alternative Approaches
Another approach is for the smaller agency to become an authorized location under the larger agency’s Global Distribution System (GDS) agreement. This would involve the smaller agency having its own pseudo-city code under the larger agency’s GDS contract, enabling them to issue American Airlines tickets through the preferred agency’s system. However, this option requires both agencies to use the same GDS.
For agencies that require a more formal affiliation, it may be necessary for the smaller agency to become a branch or associate branch office under the larger agency’s Airlines Reporting Corporation (ARC) rules. This arrangement would allow the smaller agency to appear as part of the larger agency for ticketing purposes, meeting the requirements set by American Airlines for preferred status.
In some cases, the preferred agency may choose to acquire the assets or stock of the smaller agency, effectively merging the two entities into one. This comprehensive integration would involve the smaller agency operating under the umbrella of the larger agency, with a shared agreement outlining the terms of their relationship. However, this option comes with potential risks for the preferred agency, particularly in terms of liability for any fraudulent activities carried out by the smaller agency.
Navigating American Airlines’ NDC requirements can be a complex process for smaller travel agencies. By exploring potential partnerships with larger agencies and structuring these relationships strategically, agencies can potentially meet the requirements for preferred status while continuing to serve their clients effectively. It is essential for agencies to carefully consider the implications of each option and to establish clear agreements outlining the terms of their partnership to ensure a successful and mutually beneficial relationship.