Earlier this month American Airlines announced that from May 1, travelers must book directly with the airline, partner airlines or “preferred travel agents” to receive loyalty program points.
The unprecedented move confused many travelers in search of to guard their mileage currency, prompting posts like This one here to
In an email, an airline representative said the approved list of travel agents wouldn’t be released until April.
While much stays to be clarified in regards to the recent policy, a battle for purchasers has emerged between the airline and third-party ticketing providers, which include online travel agencies resembling Orbitz. Here’s what travelers should know before booking their next flight.
What are the brand new points rules at American?
Currently, the biggest domestic airlines are – amongst them Delta Airlines, United Airlines, Southwest Airlines and American – award points and miles to members of their loyalty programs on most tickets, no matter where they’re sold.
Americans recent Regulate state that travelers must book through their website to earn miles and points, a One World Partner airline or approved travel agents (apart from those registered with them). Business Program aimed toward small businesses or with an enterprise contract).
Also starting May 1, passengers booking Basic Economy fares, the airline’s most cost-effective fares, will have the opportunity to earn points only after they book through American’s website or its airline partners.
What’s behind the switch?
Analysts say it’s largely a behind-the-scenes technology dispute.
Travel agencies have long used distribution systems resembling Saber and Amadeus to sell airline tickets. However, many airlines are thinking about using a brand new channel developed by the International Air Transport Association New sales function. It offers airlines a more direct method to communicate with passengers, whom they’ll goal with personalized fares or bundled offers not available in the normal systems, thereby providing the chance to sell more services.
The “preferred” agencies that American plans to announce in April will likely be people who make a major variety of bookings on the brand new platform.
“American is committed to being a more efficient airline and reducing its cost of revenue. That’s why they issued this new decree, and travel agents who decide not to participate will be on the losing side in the end of the fight,” said Henry Harteveldt. a travel industry analyst and founding father of Atmosphere Research Group.
Many travel agents object to the speed of adoption of a technology they are saying still has flaws. In a recent letter to the 18,000 member agencies American Society of Travel AdvisorsThe trade organization’s president and chief executive Zane Kerby called it “an underdeveloped technology” with “basic maintenance issues” that include problems with cancellations, booking multiple people on the identical itinerary and rebookings.
Mr Kerby cited an increased risk for many business travelers who use external agencies to make their bookings. “It feels like American Airlines is disenfranchising or willing to disenfranchise its most profitable and lucrative segment, which is frequent travelers,” he said.
In American’s recent requirement that basic economy flyers book directly with the airline to earn miles, writes Brian Sumers the Airline Observer Newsletter, sees an try and increase the loyalty of frugal travelers at a time when many airlines have abandoned them. deltaFor example, airlines now not award points to passengers in basic economy class. United Restricts Basic Economy class passengers from bringing one personal item on domestic flights.
“American wants those basic economy passengers,” Mr. Sumers said. “The end goal is to get people excited enough to have AAdvantage points and use them all the time because that’s how they make money.”
How do I book to make sure I receive miles for American flights?
If you’re used to booking directly online with the airline, earning miles isn’t in danger.
If you employ a travel agent, including online sites like Expedia or Orbitz, check the list of approved travel agents when it’s released in April.
But even for travelers who’re used to booking on their very own, the brand new American policy poses some danger to earning miles. If you employ a travel agent to plan a more complicated trip – say an African safari or a hike to Machu Picchu in Peru – be certain that the travel agent is approved by American, or be prepared to make the booking yourself to earn miles.
“American understands that travelers who work with AAdvantage will want to remain engaged, so if their travel agent is not on board, the customer will find another travel agent or choose to book direct,” Harteveldt said.
Will other airlines follow suit?
Experts say business aviation is a copycat industry; If one policy is successful, others are more likely to follow. But on this case it might not be quick.
“There are some very expensive tickets that are processed through the older system,” Mr. Sumers said, describing other airlines as taking a “wait-and-see approach” to see if defections from former American customers boost their business.
“This piece is far from over,” Harteveldt said. “We’re in the first part of the first act.”
