American Airlines recently announced a significant change in its distribution strategy after facing backlash from travel agents and industry advocates. The airline admitted to making mistakes in implementing its New Distribution Capability (NDC) policies, which included removing fares from legacy systems to incentivize the use of new NDC systems for bookings. This move put pressure on agencies and created challenges for agents, leading to a decline in revenue particularly for close-in domestic bookings.
The American Society of Travel Advisors (ASTA) played a pivotal role in influencing American Airlines’ decision to reevaluate its distribution strategy. ASTA CEO Zane Kerby and other officials were vocal in their opposition to the airline’s NDC technology, citing deficiencies and advocating for the return of fares to legacy systems. The organization’s advocacy efforts, including lobbying lawmakers, filing complaints with regulatory bodies, and engaging in grassroots campaigns, proved to be effective in prompting American to reconsider its approach.
Collaborative Approach
Following American Airlines’ announcement of the shift in strategy, ASTA expressed openness to working with the airline to develop a distribution strategy that takes travel agencies into account. However, ASTA emphasized the importance of ensuring that the implementation of any new strategy does not come with arbitrary or unachievable goals. This collaborative approach between ASTA and American Airlines signals a positive development for the travel industry and highlights the significance of industry advocacy in driving change.
ASTA’s campaign against American Airlines was described as one of the organization’s largest to date in terms of engagement. Thousands of travel advisors and clients participated in the campaign, writing to lawmakers and publishing op-ed pieces in influential publications. The multi-tiered approach, which involved direct engagement with lawmakers, media outreach, and targeted advertising, showcased ASTA’s commitment to advocating for the interests of travel advisors and promoting a more agent-friendly distribution environment.
The shift in American Airlines’ distribution strategy serves as a valuable lesson for both airlines and industry stakeholders. It underscores the importance of listening to feedback from travel agencies and corporate customers, as well as the impact of strong advocacy efforts in influencing policy changes. By reassessing its NDC strategy and prioritizing collaboration with industry partners, American Airlines has demonstrated a willingness to adapt to the evolving needs of the travel market.
Overall, the recent developments in American Airlines’ distribution strategy highlight the power of industry advocacy in shaping the future of travel distribution. As the travel landscape continues to evolve, collaboration between airlines, travel agencies, and industry associations will be essential in ensuring a sustainable and mutually beneficial distribution ecosystem. The proactive approach taken by ASTA and its members underscores the importance of unified advocacy in addressing industry challenges and driving positive change for all stakeholders.
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