American Airlines’ new corporate loyalty programme, AAdvantage Business, appears to have the intention of putting more distance than ever between TMCs and the airline. The loyalty programme will not allow businesses that book via a TMC to participate and earn rewards.
AAdvantage Business replaces AABusiness Extra, and only clients who book directly with the airline can join the new programme. The only spend that earns on the new programme has to be done via aa.com, in the AA app, or telephonically via American’s reservations. Travel agency bookings are strictly excluded.
The airline says the reason for the change is that the new programme provides quicker status accrual of business travellers and that it falls in line with their commitment to making it easier for its travellers to transact directly within airline channels.
American Airlines faced criticism from TMCs in April by the bold move of pulling 40% of its flight inventory from GDS channels overnight and reducing its resources for corporates with managed travel programmes.
Customer-centric?
In a LinkedIn article, Jeff Klee, CEO of AmTrav Technology, said: “To be clear, I think it’s great that American is taking some of the benefits that were previously offered only in indirect channels and bringing them into their direct channels, like being able to use a corporate discount or participate in a business rewards programme. Businesses who want to book direct should absolutely get the best possible experience. But so should businesses who value the savings, support, visibility, control, and the efficiency of a TMC!”
Klee believes that the smartest business decision is usually the one that’s best for your customer.
“This restriction, which ties their hands and limits their choices – clearly is not in that category. Although it otherwise sounds like a good programme, it is a step backwards for the airline.”
Kyle Olsen, writing for The Points Guy, says that the new accruals in the programme are a bonus but that the changes are unlikely to pique the interest of businesses looking to maximise American Airlines because AAdvantage Business doesn’t provide the same level of customisability as AABusiness Extra.
“By aligning the programme closely with American’s two existing currencies (redeemable AAdvantage miles and elite-qualifying Loyalty Points), the airline is aiming to simplify its approach to engaging businesses directly. Unfortunately, those individual travellers who frequently maximise their rewards with Business Extra may find this new approach to be a negative switch.”
Alienating TMCs
On the new programme, accruals increase by one loyalty point per dollar spent for the traveller. Additionally, the business earns one mile per dollar for flights booked.
Asked for her opinion by Travel News, an experienced South African travel consultant who chose to remain anonymous, said AA’s move was no surprise.
“Airlines, and AA more specifically, seem to be doing their best to alienate agents and TMCs and cut them out of airline bookings one step at a time. I cannot remember a time when anti-airline sentiment in the retail travel community was at such a high level,” she said.
The official retirement date for AABusiness Extra is 15 December 2023, and clients must redeem all AABusiness Extra points by 31 January 2024. After 15 December, clients can convert AABusiness Extra points to AAdvantage miles at a 1:6 ratio.
AA clients will immediately stop earning points with Business Extra when they sign up for AAdvantage Business.
AABusiness Extra points must be redeemed or converted into AAdvantage miles by January 31, 2024 or they will be lost.
