ACTA says American Airlines’ controversial policy that limits traveller loyalty points will not only hurt travel advisors, but restricts consumer choice and will lead to higher prices.
The American Airlines policy announced in February of this year stated that, effective 01MAY 2024, only direct bookings with American Airlines and selected partner airlines, along with a specific list of “preferred travel agencies,” would qualify for earning traveller loyalty points.
“After having time to fully understand American Airlines’ position and to investigate further,” ACTA on 10APR issued a statement condemning the policy.
ACTA “strongly opposes American Airlines’ decision to block loyalty points earnings for bookings made through ‘non-preferred’ channels,” association president Wendy Paradis said. “This move directly restricts consumer choice and undermines the critical role of travel agencies and advisors in the industry value chain.
“By tying loyalty rewards to direct bookings or bookings through a limited number of preferred agencies, American Airlines is severely limiting the channels through which consumers can earn loyalty points,” Paradis said. “This decision will inevitably steer customers away from travel agencies and advisors who are uniquely positioned to advocate for their interests and provide comprehensive, competitive travel options.
“Consumers depend on travel agencies and advisors to provide expert guidance, unbiased advice, and a wide array of travel options tailored to their individual needs and preferences. Restricting the ability to earn loyalty points through these channels will undoubtedly disadvantage consumers who value booking through their trusted travel partners.
“Furthermore, this decision will have far-reaching consequences for the openness and competitiveness of the travel marketplace. By leveraging its position to restrict consumer choice, American Airlines is engaging in practices that will lead to higher prices, stifled innovation, and a less dynamic travel industry.”
ACTA also said it’s very worried about American Airlines’ NDC policy.
“In addition to the concerns regarding loyalty points, ACTA asserts that American Airlines’ attempt to force the adoption of New Distribution Capability (NDC) on the travel industry will have severe unintended consequences for travel agencies, advisors, and consumers,” Paradis said. “While ACTA recognizes the potential benefits of NDC and supports technological advancements in the travel industry, we have grave concerns about the way American Airlines is implementing this change.
“Moreover, the requirements set by American Airlines for agencies to achieve ‘preferred’ status are excessively stringent and fail to consider the diverse capabilities and resources of travel agencies across the country. The expectation of a 30% NDC usage threshold by April 21st, 2024, and 70% by April 30th, 2025, is simply not feasible for many travel agencies and advisors, particularly smaller independent businesses, to meet within the specified timeframe.
“This move will disproportionately impact agencies that lack the technological infrastructure or resources to comply with these onerous requirements,” ACTA said.
Appeal to AA
ACTA said it’s urging American Airlines to reconsider this decision and engage in a meaningful dialogue with the retail travel community to find a more balanced approach to NDC implementation and loyalty program changes.
“ We firmly believe that any changes must be a collaborative process that considers the needs and concerns of all stakeholders, rather than a unilateral mandate,” Paradis said.
“Our organization remains steadfast in its commitment to working with all parties involved to develop solutions that promote innovation, efficiency, and customer satisfaction while maintaining a fair and competitive marketplace.
“However, we vehemently oppose any action that disregards the interests of travel agencies, advisors, and consumers. Only by working together can we forge a path forward that protects consumer choice, embraces technological advancements, and ensures a thriving and competitive travel industry for all Canadians.”
In the U.S., ASTA last month began a public campaign to stop American’s program, which it calls “anti-consumer” and “anti-competitive.”
ASTA also has set up a website for advisors and agents called SaveMyMiles.com.
Angry agents claim the move is a way to force agencies to adopt American’s NDC or get consumers to bypass advisors by booking directly with the airline.
“This latest development doubles down on American Airlines’ clear agenda since last year to force the travel agency industry to adopt immature technology, monopolize distribution channels, and squeeze channel partners and customers for cost-cutting and profit,” ASTA said. “American’s behavior is monopolistic and should be concerning to lawmakers who value consumer choice.”
