Earlier this month, American Airlines announced that starting May 1, it will require travelers to book directly with the airline, partner airlines or “preferred travel agencies” in order to receive points in the rewards program.
The unprecedented move confused many travelers who wanted to protect their currency in miles, prompting posts like this to X: “@AmericanAir your news about earning miles/reward points is a bit concerning — we’re loyal to you no matter who we book!”
In an email, a spokesman for the airline said the approved list of travel agents would not be published until April.
While much remains to be determined about the new policy, a battle for customers has emerged between the airline and third-party ticket sellers, which includes online travel agencies like Orbitz. Here’s what travelers need to know before booking their next flight.
What are the new points rules at American?
Currently, the major domestic carriers — including Delta Air Lines, United Airlines, Southwest Airlines and American — award loyalty program members points and miles on most tickets, regardless of where they are sold.
American’s new rules state that in order to receive miles and points, travelers must book through its website, a Oneworld partner airline or approved travel agents (with exceptions for those enrolled in its business program, which is in small companies or with a corporate contract) .
Also, starting May 1, passengers booking basic economy fares, the airline’s cheapest fares, can earn points only by booking through American’s website or its airline partners.
What’s behind the switch?
According to analysts, this is largely a behind-the-scenes battle over technology.
Travel agencies have long used distribution systems such as Saber and Amadeus to sell airline tickets. However, many airlines are interested in using an emerging channel developed by the International Air Transport Association called New Distribution Capability. It offers airlines a more direct means of communicating with passengers, whom they can target with personalized fares or group offers not available in traditional systems, providing opportunities to upsell services.
The “preferred” agencies that American said it will announce in April will be those that make a significant number of bookings on the new platform.
“American is dead set on being a more efficient airline and reducing its cost of sales, so they issued this new edict, and travel agents who choose not to follow will be on the losing end,” said Henry Harteveldt. . travel industry analyst and founder of the Atmosphere Research Group.
Many travel agents object to the speed of adoption of a technology they say is still buggy. In a recent letter to the 18,000 member agencies of the American Society of Travel Advisors, the trade organization’s president and CEO Zane Kerby called it “an underdeveloped technology,” with “basic service” issues that include problems with cancellations, multi-person bookings itinerary and rebooking.
Mr Kerby cited an increased risk for most business travelers who use external agencies to make their bookings. “It appears that American Airlines is disenfranchised or willing to disenfranchise its most profitable and profitable segment, which is the frequent business traveler,” he said.
In American’s new requirement that they book economy flights directly with the airline to earn miles, Brian Sumers, who writes the Airline Observer newsletter, sees a play for greater loyalty from economy travelers at a time when many airlines companies have abandoned them. Delta, for example, no longer awards points to basic economy passengers. United limits basic economy flyers to one personal item carried on the plane when flying domestically.
American wants those basic economy passengers, Mr. Summers said. “The ultimate goal is to get people excited about having AAdvantage points and using them all the time, because that’s where they make money.”
How should I book to make sure I get miles on American flights?
If you are used to booking online directly with the airline, there is no risk of earning miles.
If you use a travel agency, including online sites like Expedia or Orbitz, check the list of approved agencies when it’s published in April.
But even for travelers accustomed to DIY bookings, American’s new policy poses a threat to earning miles. If you’re using a travel agent to plan a more complex trip—for example, an African safari or a trip to Machu Picchu in Peru—make sure the agent is American-approved, or you’re prepared to book it yourself to earn miles.
“American is banking on the fact that travelers who engage with AAdvantage will want to stay engaged, so if their travel agent isn’t on board, the customer will find a different travel agent or choose to book direct,” said Mr. Harteveldt.
Will other airlines follow suit?
Experts say commercial aviation is a copycat industry. If one policy is successful, others are likely to follow. But it may not happen quickly in this case.
“There are some very expensive tickets going through using the older system,” Mr. Summers said, describing other airlines as “taking a watch-and-wait approach” to see if any defections from former American customers boost their business.
