American Airlines is retreating from the managed corporate travel market and erasing its tracks. According to a World Travel Inc. newsletter, the airline from April 1 will stop providing discounts to companies with less than $1.5 million in annual AA spending. Also as of that date, AA’s corporate accounts “will be provided with points for…
In light of American Airlines’ plan to move upwards of 40 percent of its fares to direct or NDC-enabled channels as of April, it’s worth re-examining one of the primary motivations: better tailoring products and services for flyers. As described by its developer, the International Air Transport Association, the NDC program enables “personalized service based…
Despite strong underlying demand, slowly recovering business travel, constrained capacity and rising costs, business airfares slipped in 2022. There are indications that fare growth in 2023 will be modest, at least in North America. American Express Global Business Travel in December said it anticipated a roughly 3 percent increase for corporate airfares within the region…
The business travel recovery is slipping as the year winds down. After a flattening in the spring and a pop in early fall, industry data in recent weeks showed declining volumes relative to 2019’s baseline. The rapid rebound in early 2022 is a memory and corporate volumes remain well below the peak from three years…
Airline industry folks including a top consultant and tech provider saw American Airlines’ distribution strategy revealed Monday as progress. Corporate travel management company leaders? Not as much. “This AA announcement appears to remove current content, in the name of NDC, while also limiting other content, which brings confusion to the booking process,” according to a…
Amidst a remarkable repositioning of corporate travel strategy including the closure of AirPass and reduction of corporate discounts and agency incentives, American Airlines in October tightened up agency benefits related to its company-based loyalty program. “On October 3, 2022, the Business Extra system will begin excluding any unpublished fare tickets, including travel agency private fares, from…
American Airlines’ decision to wind down the 41-year-old AirPass prepaid program is a small piece of a grand strategy to alter relationships with the corporate travel community. AA during the past several weeks told corporate clients that it would reduce discounts and scrutinize underperforming accounts, according to people familiar with the company’s plans. The airline…
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