When a stick doesn’t work, reach for a carrot—and apparently that’s the smart new approach to its travel-agency partners at American Airlines. The carrier has followed up the recall of its highly unpopular NDC booking strategy by promising to pay 10% commission on NDC-enabled bookings of Main Plus, Main Select, and Flagship Business Plus ticket bundles through the third quarter of 2024.
Main Plus NDC bundles include a Main Cabin Extra or preferred seat and a checked bag. Main Select offer refundable fares, same-day flight changes, priority boarding, priority check-in and a choice of any seat in the main cabin at the time of booking, including Main Cabin Extra. Flagship Business Plus includes a business-class seat, access to a private check-in area, expedited security screening, Flagship First dining in a Flagship Lounge and a free third checked bag.
The news comes as a welcome bow to the role of travel advisors in the industry. Just two weeks ago, AA’s CEO Robert Isom canceled a set of proposed procedural changes that would have denied frequent-traveler points to travelers on bookings not made by preferred travel agencies through the NDC direct channel. In a quarterly call on May 29, Isom acknowledged that the changes—meant to push travelers and travel agencies to use direct channels instead of GDSs—had resulted in falling revenues and forced a cut in AA’s profit forecast.
By the next day, Vasu Raja, author of the stick approach, was gone—and Isom apparently already was reaching out to travel advisors, instead offering commissions to reward those who showed support.
The business travel blog The Beat first broke the story that several travel agencies, all of whom requested anonymity per their contracts with AA, received a memo from American Airlines introducing the program on May 30. It will last through the third quarter of 2024.
