New American Airlines strategy leaves agencies with dramatically higher airfares

Corporate travel agencies are now seeing wide discrepancies in airfares after the American Airlines overhauled its ticket distribution strategy. On April 3, the carrier moved 40% of its airfares to its “owned channel” as well as New Distribution Capability-enabled channels, and in the process stopping their sale through what it calls third-party legacy technology platforms (that use decades-old EDIFACT technology.) This includes EDIFACT technology and communications through global distribution systems, which most corporate travel agencies use. However, all three major global distribution systems (Amadeus, Sabre and Travelport) can also now provide access to American Airlines’ New Distribution Capability-enabled fares. Sabre was the last one to join party, just about, on March 29. While in Europe several major airlines have already aggressively pushed their direct retailing strategies, American Airlines is the first carrier in the U.S. to move ahead, perhaps reflecting its acknowledgement of fewer pure business trips being flown. And back in September, American Airlines said that its lower fares would no longer be available through third-party legacy technology channels. Corporate travel agency AmTrav said 35% of its itineraries had “lower fares in New Distribution Capability,” with average savings of $164 on those itineraries. For 13 percent of itineraries, the company was finding savings of more than $100, said CEO Jeff Klee in a LinkedIn post on Wednesday Another agency, DCM Elite Travel Planners, based in Baton Rouge, Louisiana, has also seen big gaps.<br/>