An announcement this week from American Airlines created widespread concern and confusion in the travel advisor community. Once again, as with the NDC fare roll-out, we have a half-baked, significant policy change released to the marketplace without fully thinking through the ramifications or fully communicating specifically how advisors would be impacted.
Not lost in the mix of the initial chaos, is yet another hugely important supplier whose “go-to” business strategy is to tilt the field in their favor to the detriment of the travel advisor community. I personally find this baffling, as by and large, the airlines have an amazing deal.
They have a vast and highly reliable army of smart and dedicated people selling their products and servicing their customers, essentially for free.
What exactly is happening in the mindset of airline executives who look at that scenario and think killing the golden goose is the way to go? As we all painfully know too well, this is nothing new as refusal to pay commissions, cutting sales and customer service support, and generally treating the advisor community with disdain is pretty much standard operating procedure.
Sadly, the airlines have proven time and time again that they don’t understand, respect or appreciate the travel advisor community. This latest decision is just another example.
American Airlines planes at Miami International Airport. (photo by Patrick Clarke)
Never mind that last month, advisors set an all-time sales record with $8.9 billion in airline passenger sales. In any “normal” business relationship, you would expect this performance and contribution to be celebrated, revered and nurtured. To the contrary, our thanks from American Airlines, and surely others to quickly follow suit, is a giant middle finger essentially trying to cut us out of their distribution equation using frequent flyer mile accrual as the chainsaw. Essentially, we are putting a wedge between us and our clients that we have worked so hard to acquire and maintain.
And, for what purposes?
Yes, to drive customers away from advisors and apparently to gain greater adoption for the flailing brainchild that is NDC fares. Maybe, it would be wiser to consider the merits of the NDC product vs. trying to leverage advisors into distributing a product that the consumer doesn’t really seem to want.
Honestly, outside of our relationship with Apple Leisure Group and our package vacation business, I would be happy to never sell another airline ticket. It is the least profitable and most problematic aspect of our business. For many of us, maybe it is a blessing as we can all focus on other more profitable and reliable products and leave the airlines to deal with their own messes.
Or, it is also likely that many of our clients will decide that they value our service and expertise more than a few inconsequential frequent flyer miles, which seemingly continue to be worth less and less as the airlines, and their allied credit card partners, continue to game the consumer.
Finally, I have always said, and it has repeatedly been shown, that the airlines are horrible at managing their business in times of prosperity.
With that, I rest my case.
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