The Impact of American Airlines’ New Distribution Capability on Travel Agencies

The Impact of American Airlines’ New Distribution Capability on Travel Agencies

The recent move by American Airlines to implement New Distribution Capability (NDC) technology has sparked concern among members of the American Society of Travel Advisors (ASTA). The airline announced that starting May 1, it will no longer award AAdvantage miles and loyalty accrual points through agencies that are not designated as “preferred.” This means that agencies must have a 2024 incentive agreement with the airline or book through American NDC channels and meet specific sales thresholds by certain deadlines.

In response to American Airlines’ decision, ASTA president and CEO Zane Kerby expressed strong disapproval, stating that it demonstrates the airline’s disregard for travel agencies that distribute its services. This move follows American’s previous decision to limit certain fares to NDC channels, which ASTA has actively opposed. Kerby has raised concerns about the functionality of NDC technology and the challenges faced by many travel agencies in meeting American’s NDC booking requirements.

Kerby highlighted the difficulties that travel agencies will encounter in meeting American’s deadline for NDC bookings, particularly as the airline’s latest actions put pressure on agencies using loyalty points as leverage. ASTA has convened meetings with its Corporate Advisory Council to address these concerns and explore potential solutions. The Society is urging agencies to voice their worries and share their experiences with the impact of NDC technology on their operations.

Call to Action

ASTA is calling on preferred agencies at risk of losing their status, agencies struggling to meet the criteria for preferred status, agencies facing ambiguity in the eligibility criteria, and agencies adversely affected by NDC to come forward and provide feedback. The Society is committed to advocating for the interests of travel agencies and pushing for solutions that ensure a fair and equitable distribution system.

Overall, American Airlines’ implementation of NDC technology has raised significant challenges for travel agencies, prompting ASTA to take proactive measures in response to the airline’s actions. By amplifying the voices of its members and advocating for their concerns, ASTA is striving to protect the interests of travel agencies and ensure a more transparent and inclusive distribution system in the industry.

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