The Fight Against American Airlines’ Distribution Strategy

Recently, ASTA has gained international support in its battle against American Airlines’ distribution strategy. The World Travel Agents Associations Alliance (WTAAA), Association of Canadian Travel Agencies and Travel Advisors (ACTA), and Foro Latinoamericano de Turismo (FOLATUR) have all issued statements against American Airlines.

One of the main issues that ASTA has with American Airlines is the removal of certain fares from legacy distribution systems. These fares are now only available through New Distribution Capability (NDC) connections. Additionally, American Airlines is requiring travel agencies to achieve preferred status before their customers’ bookings can earn loyalty points.

To combat American Airlines’ strategy, ASTA has launched a consumer-facing website. This website allows advisors and their clients to send messages to legislators, urging them to conduct a congressional investigation into American Airlines.

The WTAAA has criticized American Airlines for fragmenting distribution, driving up costs, and reducing transparency for consumers. They also stated that American Airlines is showing a “disregard” for travel agencies and the service they provide to consumers. ACTA president Wendy Paradis has expressed concerns that restricting loyalty point eligibility from many agency bookings will harm consumers.

ASTA president and CEO Zane Kerby has highlighted the consensus among travel professionals worldwide that American Airlines’ actions will have a detrimental impact on the travel industry. The move to restrict loyalty point eligibility, the shift to NDC connections, and the requirement for preferred status all contribute to the concerns shared by industry groups and professionals.

The fight against American Airlines’ distribution strategy has gained momentum with international support and criticisms from industry groups. The impact of these actions on travel agencies, consumers, and the travel industry as a whole cannot be understated. It remains to be seen how American Airlines will respond to these criticisms and whether any changes will be made to address the concerns raised by ASTA and other industry stakeholders.

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