American Airlines pressures travel agencies with new rules for loyalty points: Travel Weekly
American Airlines will stop awarding AAdvantage points for bookings through many travel agencies starting May 1. The exception will be agencies that qualify as “preferred” under a new policy.
American has also increased its checked-bag fees, effective immediately for new bookings.
The new rules for AAdvantage accrual eligibility are American’s latest move toward increasing direct bookings and agency bookings enabled by New Distribution Capability (NDC) technology.
By the end of last year, American had removed more than half of its fares from traditional Edifact-enabled GDS channels. One result was that in the fourth quarter, American said 80% of bookings came through direct or NDC channels, up from 69% a year earlier. CEO Robert Isom said last month that American’s ultimate goal is to sell 100% of its fares and ancillary products through direct or NDC channels.
Under the new AAdvantage accrual policy, American will discontinue accruals for basic economy tickets for all travel agency bookings. The only basic economy tickets that will earn loyalty points will be those booked directly with American or an American airline partner.
For the remaining tickets, American will continue to offer AAdvantage point accrual on bookings with preferred partner agencies as well as bookings made by a contracted corporate traveler or a member of the AAdvantage Business program for unmanaged business travel.
American says it will publish a list of eligible preferred agencies on its website in late April. To be eligible, a travel agency must have a 2024 incentive agreement with the airline — the number of agencies with an incentive agreement diminished last May when the airline did a round of corporate incentive contract eliminations.
Agencies that do have American incentive contracts must take additional steps to get on the preferred list. In particular, they must book through American NDC channels, meeting progressive thresholds set by the airline.
Agencies must sell 30% of their American tickets via NDC by April 21. That number will increase to 50% by Oct. 31 and to 70% by April 30, 2025.
Travel agencies will also have to meet America’s display requirements within their booking tools to make the preferred agency list, including complying with a new requirement that they clearly indicate tickets that are eligible to earn AAdvantage points.
AA’s increase in checked-bag fees
American will now charge $35 for the first checked bag on domestic flights and $45 for the second checked bag, an increase of $5 for each fee. First checked bags purchased at the airport will cost an additional $5, bringing the charge to $40.
The fee for in-cabin pets is now $150, up from $125.
Effective for bookings from April 17, American will reduce the cost of slightly oversized baggage. For example, bags weighing between 50 and 53 pounds will cost $30 extra, instead of between $100 and $200 extra.
With the increase in checked-bag fees, American joins Alaska Airlines and JetBlue as full-service US airlines that are now charging at least $35 for the first checked bag.
Delta and United still charge $30 (United charges $35 when flyers pay at the airport). Southwest has no charge for the first two checked bags.