ASTA Blasts American’s Loyalty Program Changes with Consumer Campaign
ASTA is upping the ante in its fight against what it deems unfair treatment of advisors by American Airlines.
The society this week launched a campaign to stop what it calls “anti-consumer, anti-competitive” moves by American. The campaign includes an ad in Politico magazine, one of the most widely-read publications in U.S. political circles. ASTA also has set up a website for advisors and agents, called SaveMyMiles.com which the ad links to.
Last month, American announced that only consumers who book directly or with preferred agencies will be able to collect AAdvantage loyalty points. Angry agents claim the move is a way to force agencies to adopt American’s NDC or get consumers to bypass advisors by booking directly with the airline.
Following the announcement, ACTA issued a strongly worded statement, objecting to AA’s direct play, "American Airlines' decision to limit traveller loyalty points accrual to direct bookings and a select group of travel agencies effectively marginalizes a vast number of travel agencies and travel advisors."
"This move undermines the principle of fair competition and creates an uneven playing field, disadvantaging both consumers and many travel agencies," said Wendy Paradis, ACTA president.
ASTA has now stated that they are "fighting back.”
"This latest development doubles down on American Airlines' clear agenda since last year to force the travel agency industry to adopt immature technology, monopolize distribution channels, and squeeze channel partners and customers for cost-cutting and profit,"
"Congress, don't let American Airlines eliminate consumer choice," the ASTA ad states.
“American’s behavior is monopolistic and should be concerning to lawmakers who value consumer choice,” ASTA says on the travel advisor area of the SaveMyMiles site.
The site provides a template of comments for agents to make to U.S. lawmakers, including this one: “As a travel advisor and small business owner in your district, I am writing to express my concern regarding American Airlines’ recently announced changes to its rewards program and restricted availability of its full range of fares, which will have devastating impacts on my business and my customers.”
ASTA also is hoping to get consumers to show their rage.
“If you book flights with a travel agency, or even an online agency, you could lose your right to earn miles,” it says on the SaveMyMiles site.
ASTA has been publicly feuding with American since last spring, when the U.S. giant brought in a new distribution strategy. Reports say American took a number of fares out of the legacy GDS’s to try to shift bookings to NDC connections.
ASTA claims there are service problems in the NDC system and has asked the U.S. Department of Transportation to force the airline to reinstate fares in the GDS.
Skift.com last year said American Airlines “has used carrots and sticks to get agents to adopt NDC. Earlier this year, it pulled about 40% of its fare inventory out of the old system.”
“American Airlines is wielding its considerable market power to condition the way miles and loyalty points are awarded and, in the process, disenfranchising customers who prefer to — or have to — book through a travel agency,” ASTA states on SaveMyMiles.
“Starting May 1, the burden is now on the traveler to make sure their agency is preferred, and jump through even more hoops, just to obtain their loyalty points.”
American last fall suggested ASTA’s resistance to the airline’s NDC shows agencies are reluctant to invest in new technologies, Skift reports.
“ASTA’s complaint is not an effort to protect consumers: it is an effort to protect certain agencies,” the airline said. “It is a plea to the government, on behalf of some travel agencies, to slow the pace of innovation for those agencies that have not invested in new technologies or adjusted old ways of doing business.”
