American Airlines has announced the latest move in its distribution strategy, limiting the way members of its loyalty programme can earn benefits as a means to push more customers through direct and NDC-based booking channels.
From May 1 members of the AAdvantage loyalty programme will only earn miles or credits if booking direct with the airline or its partners, if their company is a contracted corporate customer or enrolled in the AAdvantage Business, or by booking with a "preferred" travel agency, the carrier announced on Tuesday.
"If you are booking through the AAdvantage Business programme regardless of how you book through it, or if you are booking through one of our corporate contracts, you will earn miles," American SVP of revenue management and loyalty Scott Chandler told BTN. "Otherwise, you need to be booking direct, or booking through somebody who is in the agency preferred programme."
An exception is American's Basic Economy tickets, which will earn miles or points only when booked directly with American and eligible partner airlines.
An agency will qualify as "preferred" if as of April 21 it books at least 30 per cent of its American Airlines volume through New Distribution Capability-enabled channels, Chandler said. "It's pretty simple."
American managing director of retailing Neil Geurin called the change "one more incentive for travel agencies to develop better technology, which will make it easier for the corporate customer themselves to know what products and services are available to them and to have better clarity and understanding of what their options are."
According to an update from the airline, in order to be considered for inclusion on American's preferred agency programme, intermediaries must be on a 2024 contracted incentive agreement issued by the airline and must meet fare display and NDC adoption deadlines. The airline will publish a list of its preferred agencies in April.
By 1 July, agencies must "must demonstrate their
ability to clearly communicate to customers when they earn AAdvantage miles in the online booking tool throughout the booking flow before a purchase is finalised".
The initial threshold of booking at least 30 per cent of AA volume through NDC channels by 21 April rises to 50 per cent by 31 October and to 70 per cent by 30 April 2025.
Baggage fee increases
American also announced increased fees for checked baggage on domestic flights, including Puerto Rico and the US Virgin Islands, effective from 20 February.
The fee for the first bag booked online has increased to $35 from $30. If checked at the airport, the cost is now $40, up from $30. The fee for a second checked bag has increased to $45 from $40, whether booked online or at the airport.
Bag fees for South America, transatlantic and transpacific routes remain the same, according to American.
AAdvantage status members will continue to receive complimentary bags on American flights, and most AAdvantage credit card members also get their first eligible checked-bag free on domestic American itineraries, according to the carrier.