Travel Advisor Groups Around the World Sound the Alarm Over American Airlines' Sales Strategy

American Airlines planes lined up at their gates.

The American Society of Travel Advisors (ASTA) isn’t alone in its opposition to American Airlines’ strategy to drive all of its bookings to direct channels.

The World Travel Agents Associations Alliance (WTAAA), Association of Canadian Travel Agencies and Travel Advisors (ACTA), and Foro Latinoamericano de Turismo (FOLATUR) have joined ASTA in pushing back against the airline and expressing concern for not only travel advisors but their clients.

Starting May 1, American will no longer award AAdvantage rewards to passengers unless they book directly with the carrier or through its preferred channels. The organizations believe this will result in reduced consumer choice and higher airfares down the road.

“There is a clear consensus among travel professionals around the world that American’s action will have a detrimental impact on the travel industry globally,” said ASTA President and CEO Zane Kerby.

“American is operating in bad faith, looking to pad its bottom line at the expense of our valued members and the millions of consumers who trust and rely on them to secure the best price, value and peace of mind when it comes to their business and personal travel.”

“American is actively discouraging travelers from booking through the travel agency channel. This heavy-handed tactic will fragment distribution, drive up costs, and reduce transparency for consumers who seek to compare offerings across multiple airlines,” the WTAAA stated. “It also demonstrates a troubling disregard for the critical role that travel agencies play in serving travelers, especially in the wake of the COVID-19 pandemic when their expertise and personalized service were more valuable than ever.”

“Restricting the ability to earn loyalty points through these channels will undoubtedly disadvantage consumers who value booking through their trusted travel partners,” echoed ACTA President Wendy Paradis. “Furthermore, this decision will have far-reaching consequences for the openness and competitiveness of the travel marketplace.”

“By leveraging its position to restrict consumer choice, American Airlines is engaging in practices that will lead to higher prices, stifled innovation, and a less dynamic travel industry,” she added.

Meanwhile, FOLATUR warned that “If undeterred, AA will continue with its ever-increasing discriminating pattern, and other airlines in the oligopolistic air transportation market will certainly follow. Both air passengers in the U.S. and foreign markets are and will increasingly be negatively affected by these anticompetitive business practices.”

WTAAA, ACTA and FOLATUR represent hundreds of thousands of travel advisors in more than 75 countries across the globe.

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