by Lacey Pfalz
Last updated: 12:20 PM ET, Wed June 12, 2024
American Airlines has launched a commission program offering 10 percent commission for New Distribution Capability (NDC) bookings.
According to The Beat (via TravelWeekly), several travel agencies were sent a memo from American Airlines introducing the program, which will last through the third quarter of 2024. The 10 percent commission will be paid on NDC-enabled bookings of the air carrier’s Main Plus, Main Select and Flagship Business Plus bundles.
The last 13 months have seen some big changes in American Airlines’ relationship with travel advisors. It’s been driving bookings away from legacy GDS technology and toward NDCs, but it also earned the ire of the American Society of Travel Advisors for encouraging travelers to book airfare directly on the airline’s website, even going so far as to announce it wouldn’t allow AAdvantage loyalty members to earn miles through booking with some travel agencies.
On May 29, amid tumbling stocks and lower profit forecasts for the rest of the year, CEO Robert Isom announced they were considering changes to the already proposed new rules. Instead of discouraging travelers from booking with agencies, they would encourage and reward travel agencies that book with NDC.
“I’m grateful for American Airlines’ renewed recognition of the essential role that travel advisors play in facilitating air travel for our shared customers,” Zane Kerby, ASTA's president and CEO, said in a statement about the changes. “I want to extend my thanks to American Airlines CEO Robert Isom for acknowledging its previous approach was flawed. Reversing the decision to withhold AAdvantage points and miles for agency bookings is a testament to the firm position that travel agencies hold in the airline distribution channel.”
Vasu Raja, chief commercial officer for American Airlines and the one who proposed the new distribution strategy, announced his leave from the company on May 28 ahead of the announcement the airline would scrap the strategy.
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