American Airlines declares war on travel agents and cuts frequent flyer benefits
To date, the only airline that has waged war on OTAs (Online Travel Agency) has been Ryanair, a [...]
American Airlines
Oneworld
To date, the only airline that has waged war on OTAs (Online Travel Agency) has been Ryanair, a battle also recently won in court And that put an end to years of skirmishing. Obviously, the motivation is hard cash. The Irish low-cost uses the excuse that these sites charge more for ancillary services, but in reality it is the lack of opportunity for FR to sell other services such as rentals and hotels Where he obviously makes a lot of money.
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Now, however, Ryanair is no longer alone; since May, the first major airline has also arrived, indeed the world's largest airline: American Airlines.
AAdvantage reduces miles and loyalty points on non-direct bookings
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As of May 1, 2024, American will change requirements for earning AAdvantage miles (those needed to earn status) and loyalty points (those used to redeem award tickets) for American Airlines flights. The new requirements will be:
- Direct booking with American or eligible partner airline
- Booking as an AAdvantage Business member or corporate traveler with a contract
- Booking through an authorized travel agency, something similar precisely to what Ryanair is doing, at the moment, however, American has not yet announced which agencies will be considered partners
While FR only wages war on OTAs, In this case AA goes further by putting the entire world of travel agencies in the crosshairs, including physical ones, and this could be for markets like Italy a real drain on those who turn to travel consultants for airline reservations.
In addition to this if you book a ticket in Basic Economy you will not accrue AAdvantage miles or loyalty points if you book through a partner travel agency.
What does this move by AA mean
If you are not a frequent flyer and you have no interest in collecting points or status nothing changes, but if you want to accumulate you will have to book directly on the company's website.
In a nutshell AA, but you can bet that other global airlines will soon follow suit, decides to copy the rules of hotel chains, which have always treated customers differently based on which booking channel they used. Historically, airlines have never made this distinction, so American's adoption of this change could have significant long-term implications for the industry.
Why this choice by the company
Of course, the reason is only one: money. Less cost to the company, also less risk of having to pay for problems (read error make). Personally won't change my habits much. I book 9 times out of 10 on the American Express travel site or alternatively on the company's site, very rarely on OTA because in case of problems you are left to your own devices or almost.
