Earlier this month, American Airlines announced that beginning May 1, it will require travelers to book directly with the airline, partner airlines or “preferred travel agencies” in order to receive points in its loyalty program.
The unprecedented move confused many travelers eager to protect their mileage currency, prompting posts like this one on X: “@AmericanAir your news about earning miles/loyalty points is a bit concerning — we’re loyal to you no matter who we book through!”
In an email, a representative of the airline said that the approved list of travel agencies would not be published until April.
While there is much to be determined about the new policy, a battle for customers between the airline and third-party ticket sellers, which includes online travel agencies like Orbitz, has emerged. Here’s what travelers should know before booking their next flight.
What are the new points rules at American?
Currently, the biggest domestic carriers — including Delta Air Lines, United Airlines, Southwest Airlines and American — award points and miles to members of their loyalty programs 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 agencies (with exceptions for those enrolled in its business program, which targets small companies, or with a corporate contract).
Also beginning May 1, fliers booking basic economy fares, the airline’s cheapest fares, may only earn points 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 fight over technology.
Travel agencies have long used distribution systems like Sabre and Amadeus to sell airline tickets. But 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 bundled offers not available in the traditional systems, providing opportunities to sell more services.
The “preferred” agencies that American said it will announce in April will be those making a substantial 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 have issued this new edict and…
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