American Airlines recently announced the extension of the deadline for travel agencies to reach preferred status with the airline, a move that has been positively received by the industry. The initial deadline set for non-preferred agencies’ bookings to no longer be awarded AAdvantage points was May 1, but American Airlines has now extended this deadline to July 11. Additionally, the deadline for agencies to achieve a 30% threshold of New Distribution Capability (NDC) bookings was also extended from April 21 to June 5, a critical condition for becoming a preferred agency.
The American Society of Travel Advisors (ASTA) has expressed its satisfaction with the decision to postpone the deadline, acknowledging that it provides agencies and advisors with more time to prepare for the transition. ASTA’s president and CEO, Zane Kerby, highlighted the importance of the extended deadline in allowing the travel industry to adapt to the changes brought about by American Airlines’ preferred travel agency program. While the fundamentals of the program remain unchanged, the postponement has been welcomed as a positive development for the industry.
ASTA has been embroiled in a public dispute with American Airlines since the launch of the airline’s new distribution strategy last April. The strategy involved the removal of fares from systems using legacy technology in an effort to encourage agencies to adopt NDC connections. Throughout this period, ASTA has raised concerns about the shortcomings of American’s NDC bookings, citing significant servicing issues. ASTA has even gone so far as to request the Department of Transportation’s intervention to reinstate fares in legacy systems.
In response to the recent deadline extension, Zane Kerby noted that American Airlines’ acknowledgment of the underdevelopment of its NDC technology and the unrealistic nature of its implementation deadlines is a significant step forward. By recognizing these shortcomings, American Airlines has taken a positive step towards addressing the concerns raised by ASTA and the travel industry. The airline’s emphasis on the positive response from agencies and the increasing number of preferred retailer status achievers also reflects a willingness to engage with stakeholders and respond to feedback.
The extension of the preferred status deadline by American Airlines has been met with approval from ASTA and the travel industry as a whole. The additional time provided to agencies to meet the requirements for preferred status is seen as a constructive move that allows for better preparation and adaptation. As the industry navigates the evolving landscape of travel distribution, collaboration between airlines and travel advisors will be crucial in ensuring a smooth transition and optimal service delivery for travelers.
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