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.

If you’re planning to go to France, I’ve got an idea for you. First, let’s define our terms. The US airline industry is an oligopoly.

An oligopoly is “a state of limited competition, in which a market is shared by a small number of producers or sellers.” In the US airline market, four airlines control 82 percent of the $194.7 billion market. That’s nice for them. It’s a big pot of gold for them to divvy up. For the passengers, maybe it’s not so nice, because choices are extremely limited. In contrast, the entire European airline market is valued at $67.81 billion, about a third of the size of the U.S. market, and 195 airlines are competing for that market. Just by calculating the basic math, it’s undeniable that the European airline market is many times more competitive than the American market Read the rest of this entry »

The Biden-Harris Administration yesterday announced a new US Department of Transportation (DOT) ruling that promises to speed up and simplify travelers’ refunds for canceled flights and lost luggage.

When a passenger cancels a flight after it is delayed more than three hours for a domestic flight or six for an international flight, or its arrival or departure airport is changed, the new ruling requires that airlines issue an automatic credit card refund for the fare and taxes within seven days, without any action required by the passenger. Passengers who pay in cash must be compensated within 20 days.

Also covered are refunds for cancellations due to passengers being downgraded to a lower class of service or put on a plane that is less accessible, or if they do not get the promised Wi-Fi, seat selection or inflight entertainment.

Passengers who file a mishandled baggage report, meanwhile, will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.

Airlines must provide “prompt notifications to consumers affected by a cancelled or significantly changed flight of their right to a refund of the ticket and extra service fees, as well as any related policies.”

And in instances where consumers are restricted by a government or advised by a medical professional not to travel to, from, or within the United States due to a serious communicable disease, the rule requires airlines to provide transferrable travel credits or vouchers good for at least five years.

“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” said US Transportation Secretary Pete Buttigieg.

All 10 major US airlines already guarantee free rebooking and meals, and nine guarantee hotel accommodations, when an airline issue causes a significant delay or cancellation. And while your flight might have been canceled, the flight cancellation rate in the United States hit a record low of 1.2% in 2023, the lowest rate in more than 10 years despite a record amount of air travel.

The Biden administration also is working on proposals to ban extra fees for family seating (already guaranteed by four airlines) and to expand the rights of passengers who use wheelchairs.

The final rule on refunds can be found at https://www.transportation.gov/airconsumer/latest-news and at regulations.gov, docket number DOT-OST-2022-0089. Information about airline passenger rights, as well as DOT’s rules, guidance and orders, can be found at https://www.transportation.gov/airconsumer. And information on travelers rights is available at flightrights.gov.

In the latest step toward pushing customers to book direct, American Airlines today announced that it will only grant AAdvantage® miles and loyalty points to customers who book through an AA or partner site, a corporate account, or a “preferred agency” that books at least 30% of its trips through the American Airlines NDC.

At the same time, the company raised fees on baggage checking and pets in the cabin.

The NDC ruling takes effect May 1, 2024. Customers can receive points only if they book through AA or its partner airlines, are an AAdvantage Business™ member or have a contracted corporate travel account, or book through an “eligible preferred travel agency.”

“All agencies on a 2024 contracted incentive agreement issued by American are eligible to qualify into the preferred agency program at American’s sole discretion, which enables travelers booking through your agency to continue earning AAdvantage^® miles and Loyalty Points,” the company website now states (Preferred agency program – American Airlines Global Sales (exploreamerican.com). “Agencies will be evaluated on the criteria outlined below, which focus on the use of Modern Retailing technology to provide the best possible traveler experience when booking and servicing tickets. Agencies must be approved by American Airlines to qualify as a preferred agency, and agencies should contact their Modern Retailing business manager to discuss their individual approval process and timeline.”

There are three qualifying criteria:

1. Agencies must be on a 2024 incentive agreement issued by American at American’s sole discretion. If, at any point, their incentive agreement with American ends, the agency will no longer be able to participate in the preferred agency program.
2. Agencies must adopt and implement American’s NDC and shop and book through American’s NDC connections, meeting the progressive NDC thresholds below. Shopping and booking must be done in accordance with American’s connection and capacity requirements.

3. As customers consider purchasing an American Airlines offer, fare rules, product attributes, and fare restrictions should be fully displayed and clearly communicated. A new product attribute of American’s offers is the ability to earn AAdvantage^® For an agency to be considered preferred, they 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 finalized.Agencies must contact their Modern Retailing business manager to begin the review and approval process on display criteria.

   The deadline for the display qualification criteria is July 1, 2024, to allow time for the completion of any necessary updates.

   If an agency meets the criteria for the first NDC threshold on April 21, 2024, customers with tickets issued by the preferred agency between April 21 and June 30 will earn miles and Loyalty Points. In order for customers purchasing a ticket July 1, 2024, and beyond to earn, however, the agency must meet the display criteria.

Basic Economy fare tickets will only earn when booked directly with American and eligible partner airlines.

“We want to make it more convenient for customers to enjoy the value and magic of travel,” said Vasu Raja, American’s Chief Commercial Officer. “Not only does booking directly with American provide the best possible experience, it’s also where we offer the best fares and it’s most rewarding for our AAdvantage members.”

Baggage Fees on the rise

Also in the announcement were new rates for baggage on trips booked beginning tomorrow.

The new fee for domestic flights including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands, as well as Canada and short-haul international flights, is $35 for the first checked bag if purchased online or $40 at the airport. A second bag will cost $45 whether purchased online or at the airport.

AAdvantage® status members, customers in premium cabins, active-duty U.S. military personnel and most AAdvantage® credit cardmembers flying domestically will continue to receive complimentary bags.

The fee for oversize bags that are only slightly larger than heavier than regular bags will be lower, however. Bags that weigh less than 70 pounds currently cost $100, but will be charged just $30 effective April 17.

The pet-in-cabin fee was raised to $150.

Celebrity Cruises is taking extraordinary steps to keep its Galapagos customers safe. Silversea is canceling a cruise in the Red Sea. From South America to the Middle East, political unrest continued to keep the cruise industry—and the travel advisors who sell its products—on their toes last week.

Celebrity, last week, issued an advisory asking guests booked on Galapagos cruises on Celebrity Flora, Celebrity Xploration and Celebrity Xpedition to not arrive in the country until the day before their sailing.

c, the pre-departure arrival point for many guests, is considered its most dangerous, as its ports have become a hub for drug smuggling. Ecuador’s President Daniel Noboa has declared a state of “internal armed conflict” and imposed a nationwide state of emergency and nighttime curfew after a wave of gang violence in which armed men interrupted a live TV broadcast and took more than 100 prison staff hostage.

Lindblad Expeditions has cancelled two cruises in the region that were scheduled to sail on January 12 and 13, National Geographic Endeavour II and Islander II “out of an abundance of caution,” and noting a “lack of clarity” regarding air travel. Celebrity Cruises is taking extraordinary steps to keep its customers safe. Silversea canceled a call in Manta, Ecuador, on Silver Nova, which is sailing a 71-day roundtrip sailing around South America, and Azamara canceled a stop as well. Intrepid and G Adventures posted travel alerts on their websites informing travelers of the 60-day state of emergency and noted they are monitoring the situation carefully.

Celebrity issued an advisory asking guests booked on Celebrity Flora, Celebrity Xploration and Celebrity Xpedition to not arrive in the country until the day before their sailing.

In a letter sent January 10, Celebrity stressed that cruises are not cancelled But, guests who feel uncomfortable can cancel their bookings with a full refund and have the opportunity for price protection on future voyages when they book a new cruise before 2025. Celebrity Cruises also will reimburse guests for any fees they incur for changing their inbound flights.

Guests who are sailing on the three ships will be housed at the new Holiday Inn, in a secure area near the airport, and are asked not to leave the hotel. Celebrity staffers will escort guests as they transfer to the hotel and on to their flights to Baltra.

All pre- and post-cruise excursions in Ecuador have been suspended.

“Any Celebrity pre- or post-cruise packages in Ecuador will be cancelled and refunded, as these will no longer take place. For independently purchased pre- or post-cruise purchases, we recommend you cancel these, and we will review refund requests,” Celebrity Cruises said in the letter.

Celebrity says it is closely monitoring the situation and may still cancel cruises if the situation deteriorates.

Mariscal Sucre Quito International Airport in Quito and José Joaquín de Olmedo International Airport in Guayaquil remain fully operational, but American Airlines, JetBlue, Spirit Airlines and United Airlines all have canceled some flights, and American, Delta, LATAM and United have issued waivers for travel to the country.

In the Middle East, meanwhile, trouble in the Red Sea and Yemen has more cruise ships scrambling to find alternative routes.

After making changes to the itinerary of the last sailing, Silversea last week canceled Silver Moon’s January 16-26 sailing of the Silver Moon Muscat-Dubai itinerary and is “in the process of informing affected guests and their travel agents of the reprotection options. Our global security team continues to closely monitor the situation in the region and will make any additional changes if required,” a spokesperson told TRO.

The cruise was scheduled to visit several destinations in the Middle East, including Saudi Arabia, Bahrein, Qatar and the United Arab Emirates.

Affected passengers will receive different compensations, including refund of the fate of the cancelled cruise portion, and Future Cruise Credits (FCCs).

But the January 26-February 11 sailing remains scheduled, as are future voyages.

MSC Cruises, meanwhile, has rerouted MSC Poesia’s 115-day world cruise, which now will circumnavigate Africa instead of passing through the Suez Canal and the Red Sea.

Storms are getting bigger, airplane parts are hard to come by, and the aviation industry is understaffed. So what’s a travel advisor to do when air travel is one big snafu and less dependable than ever?

To a certain extent, it depends on where your customer base is. In New York, for example, Laurie and Paul Bahna, owners of a Dream Vacations franchise in Plainview, found an easy option for taking the flying out of the equation altogether: cruising out of your home port.

“Paul and I truly believe that people are really tired of the airline cancellations,” Laurie says. “So many customers are saying that airline prices are very high and the airlines are just not consistent Read the rest of this entry »

Even as President Biden promises to crack down on tacked-on fees in the travel industry, American Airlines has rolled out a new one.

Effective immediately, travelers on international flights booked in basic economy now will be charged $75 for the first checked bag, $100 for the second, and $200 for the third. The fee applies “per person, each way, even if you purchase or get an upgrade that includes free checked bags,” the AA website notes Checked bag policy − Travel information − American Airlines (aa.com).

American partner British Airways also no longer allows a free bag in basic economy. Flying a code-share Qatar flight on AA will not help either; Qatar’s website notes that “where a code-share or interline flight is part of an itinerary that begins or ends in the USA or Canada, baggage allowances applicable at the itinerary’s origin will apply throughout.”

So far, United and Delta have not changed their policies, and still offer one free checked bag on international flights.

If you can avoid traveling through London’s Heathrow Airport on weekends this summer, go for another option. More than 2,000 security officers will be staging walkouts at Terminals 3 and 5 every weekend except one this summer, running from June 24 through August 27.

The strike schedule is:

• June 24-25, 28-30.
• July 14-16, 21-24 and 28-31.
• August 4-7, 11-14, 18-20 and 24-27

Aviation analytics firm Cirium estimates that about 4 million passengers, on 20,000 flights, are scheduled to depart Heathrow’s four terminals on the strike dates.

While no airlines have announced cancellations yet, a strike by security officers at Terminal 5 over the Easter holidays resulted in British Airways canceling hundreds of flights on short notice. And the strike this summer also will include Terminal 3, gateway to flights by American, Delta and United, Emirates, Qatar and Virgin.

**Update as of June 13th, 2023**

In some rare good news for travelers to Europe this summer, security workers at Heathrow Airport have called off the first in a series of strikes they had announced for the next two months.

The canceled strike, by more than 2,000 security officers, was scheduled for Heathrow’s Terminals Three and Five on June 24 and 25. It now has been put on hold while the union members consider a new and improved offer from airport authorities.

“Following extensive talks with the workers’ union Unite last week, an improved pay offer was made by HAL and, as a gesture of goodwill by the union, the initial strikes were called off,” the union said. But the rest of the series of strikes, scheduled for 29 days over every weekend but one in July and August, will proceed if this offer is rejected.

The current strike schedule is:

• June 28-30
• July 14-16, 21-24 and 28-31
• August 4-7, 11-14, 18-20 and 24-27

Unite members at Glasgow airport, meanwhile, have approved a deal that grants them a 7% increase in basic salary and allowances and a one-time payment of £1,000.
French air traffic control strikes

Union workers in France, meanwhile, marched on the headquarters of the Paris Olympics and slowed traffic at Orly Airport last week over changes to the national social security program, which would raise retirement age from 62 to 64.

Fewer protestors turned out than for previous actions, the media reported, but a third of flights at Orly Airport, and 10% of trains around France, were disrupted.

A federal judge has ruled that American Airlines and JetBlue must end their Northeast Alliance because it is anti-competitive.

Formed in 2021, the partnership allows the two carriers to coordinate schedules, swap slots and share revenues at JFK, LaGuardia and Newark Airports in the New York metropolitan area, and Logan Airport in Boston.

U.S. District Judge Leo Sorokin ruled in favor of the Justice Department, which had brought the suit in partnership with six states. Combining two of the four largest US airlines, the Northeast Alliance has decreased the number of flights at the four airports, and violates the Sherman Antitrust Act.

The Alliance “makes the two airlines partners, each having a substantial interest in the success of their joint and individual efforts, instead of vigorous, arms-length rivals regularly challenging each other in the marketplace of competition. Though the defendants claim their bigger-is-better collaboration will benefit the flying public, they produced minimal objectively credible proof to support that claim. Whatever the benefits to American and JetBlue of becoming more powerful—in the northeast generally, or in their shared rivalry with Delta—such benefits arise from a naked agreement not to compete with one another,” Judge Sorokin wrote in his decision.

The Boston Globe called the ruling “a major victory for the Biden administration, which has used aggressive enforcement of antitrust laws to fight against mergers and other arrangements between large corporations,” noting that an economist predicted it would cost consumers more than $700 million a year extra if American and JetBlue stopped competing in the Northeast.

There were four interesting takeaways from the Travel Leaders Network press conference in New York last week, but this one really caught my eye: An air booking system, already in beta testing at new TLN member Avoya Travel, that holds the promise of increasing airline commissions and making it possible to build and price your own resort packages.

Also on the agenda were membership numbers that keep on growing, a new cruise booking tool, and more education around potentially profitable niches.

Today, as never before, your clients’ price for travel purchases largely depends on when you buy them. It used to be that clients could be roughly placed in one of two groups: One that accepts the first offer before other buyers see it; and one that defers purchase decisions as long as possible.

• Those who follow the “buy it now” strategy know that when products are heavily promoted and advertised, the first offer is usually the best, and buyers who trail the pack won’t receive the same benefits or prices.
• Those that avoid making financial decisions feel that better opportunities are always available, if someone is willing to ferret them out.

If you’re looking to fly to Paris on a brand-new airplane at a fair price, French bee might just have a seat for you. The little sister of Air Caraïbes has been flying a fleet of Airbus A350s since 2018; last month it added LA and this week it begin selling tickets to Miami, for flights beginning in December. Read the rest of this entry »

The unprecedented lack of staffing in the hospital industry is creating ongoing service issues for travelers.

The impact of COVID-19 isolation, workers moving to other professions and the mass lay-offs that occurred early in the pandemic have wreaked havoc, creating an ongoing chaotic matrix of cancellations, delays, and service interruptions. Industry leaders are expecting the situation to continue for at least a year and advised travelers who are flying both abroad and domestically to prepare.

Flight tracker FlightAware indicates that in early April, more than 10,000 U.S. flights were canceled or delayed and the situation has continued throughout the month over Easter weekend. Almost all airlines were affected by staff shortages, technology glitches, and resulting logistical issues. Southwest, JetBlue, Alaska Airlines, American Airlines, Frontier, and Spirit all suffered service interruptions, exacerbated by severe weather disturbances across the country at major airports.

Experts recommend travelers anticipate delays and service interruptions and have alternative plans in the event of cancellations, leaving additional time for arriving at any destination for a scheduled event or other travel.

Funny how things change. “Check in” used to mean you had arrived at the airport and were ready to fly. It told the airline you had gotten to the airport on time and hadn’t got stuck in a traffic jam and missed the flight. But now you can check in online the day before your flight. The airline doesn’t know if you have made it to the airport until you have boarded. Or if you check a bag. This time I checked a bag. Later I wished I had gate-checked it.

My flight from Newark to Kansas City was my first in nearly two years. I used to fly about once a month. Since the onset of Covid layoff it’s been a long time of not setting foot in an airport. It was wild to plunge back into the madness. I forgot how mad it is.

I had planned to use Uber to get to the airport, but the app on my phone wasn’t working. It needed an update to even function. And time was fleeting. I updated the app, but then it wouldn’t take my credit card. My account showed an old expiration date, and it wouldn’t let me update the information. “You already have this card on file,” it commanded. “Try another one.” I didn’t want to use another one. But I did. You can’t argue with an app Read the rest of this entry »

​Last week, the CEO of American Airlines, Doug Parker said that checking passengers for proof of vaccination wouldn’t be physically possible on domestic flights without causing enormous delays to the airline system.

It’s tempting to compare Mr. Parker’s statements to similar ones made by tobacco and asbestos CEOs, who insisted that health authorities should not regulate their products. What he probably should have said was,“Without some form of proof that a person is vaxxed, and streamlined airport procedures, it isn’t physically possible for domestic flights to check passengers for proof of vaccination.”

Many of the problems airlines and airports encounter involving COVID-19 could be prevented if passengers couldn’t enter either without verified vaccination credentials and a one-minute COVID antigen swab test, or a breath analyzer test at a TSA security portal. Read the rest of this entry »

Last week, I flew roundtrip from Los Angeles to Oakland to see my grandson and his parents. It was my first time in the air in more than a year. Here’s a report card on how everyone did.

Southwest Airlines: Grade B-

Southwest was nearly the same as it was pre-pandemic. Fast on-time flights, courteous service by flight attendants with a sense of humor, and reasonable prices. Except for wearing masks on the flights, it was like the Delta variant of COVID-19 didn’t exist.

Because my wife and I are both fully vaxxed, but are “Infected Flier Hesitant,” we took an aisle and window seat in the front of the plane and put this sign on the middle seat between us. Read the rest of this entry »

Egypt has always been a draw for travelers. The monuments of ancient civilizations stand as rugged reminders of empires and cultures passed. These grand palaces, temples, and tombs are tremendous feats of engineering – milestones in the history of the world. Which brings us to Luxor. The Luxor Temple and Karnak are sites to behold, to wander about in awe of its hieroglyph-covered walls and columns… a magnificent museum open to the elements.

Read the rest of this entry »

Known around the world for its wine, Mendoza is a jewel of Argentina. Technically considered a desert region, the extensive irrigation system around the city keeps the grapes growing and the wine flowing. Located just east of the Andes, and the highest mountain outside the Himalayas, there are also chances for adventure. From wandering around magnificent fountains in plazas to tastes that will excite the senses—this is Mendoza. Read the rest of this entry »