Rebuilding Trust: American Airlines’ Relationship with Travel Management Companies

Rebuilding Trust: American Airlines’ Relationship with Travel Management Companies

American Airlines recently made a significant move during its Q2 earnings call when CEO Robert Isom acknowledged the need to rebuild positive relationships with travel advisors. This came after an aggressive push for direct distribution that backfired, potentially costing the airline up to $1.5 billion in revenue. Isom admitted the mistake, stating the importance of re-engaging with TMCs and agencies to tap into the richer pool of indirect revenue.

Interviews with prominent TMCs in the U.S. revealed cautious optimism about an American Airlines comeback. Relationship rebuilding efforts have begun, with American assigning new representatives to larger TMC partners. While sentiment towards the carrier is improving, executives stress the importance of fully regaining trust. Mike Cameron of Christopherson Andavo Travel emphasized the need for American to rebuild trust, acknowledging that it will take time.

Paul Glenn, CEO of Executive Travel, highlighted that American is starting to realize the necessity of rebuilding trust with both agencies and consumers. By focusing on travel advisors, American aims to regain trust among consumers as well. Isom mentioned hiring new account managers for corporate customers and working on incentive-based agreements for agencies, efforts that have been positively received.

Industry leaders such as Paul Abbott from American Express Global Business Travel have welcomed American’s strategy and efforts towards collaboration. Amex GBT’s CEO noted that American’s recognition of the importance of working with customers and distributors is a step in the right direction. Chardell Robinson from Cadence Travel commended American for recent positive changes, such as allowing AAdvantage Business participants to earn points on agency bookings again.

Robinson also emphasized the benefits of direct access provided by American and the importance of bringing value to clients. Discussions between American and TMCs have been marked as positive progress towards rebuilding relationships. While Executive Travel is yet to be assigned a new American representative, there is optimism that it will happen soon. Christopherson Andavo Travel, on the other hand, already has a new American rep on board.

Cameron from Christopherson reflected on American’s history with the TMC, citing a period of progress before a strained relationship led to a loss of market share to United and Delta. Despite the setback, Cameron acknowledged American as a crucial partner and highlighted ongoing efforts to regain trust. American’s significance to TMCs, independent contractors, and corporate clients remains a driving force behind rebuilding the relationship.

Through introspection and proactive steps towards rebuilding trust with TMCs and agencies, American Airlines is on a path to redemption. The airline’s acknowledgment of past mistakes and commitment to stronger relationships with industry partners signal a positive shift in its approach. As American continues to foster these connections and rebuild trust, it aims to secure its position as a trusted vendor and partner within the travel industry.

Airlines

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