|March 14, 2023|
American Airlines Change In Fare Distribution
On April 3, 2023 American Airlines is removing up to 40% of its fares, mostly for business travel, and only offering them in what is called New Distribution Capability (NDC) channels such as its own website and other NDC-powered technology. NDC is built to allow enhanced merchandising, such as bundling ancillaries like priority boarding, seats, bags, wi-fi, etc.
However, major problems exist for companies purchasing these fares and for Travel Management Companies (TMC) charged with presenting full-content to its clients. Companies will lose visibility into travelers buying decisions as comparison shopping will be lost. Additionally, problems exist regarding data-flow, managing unused tickets, and tracking fares – how will this affect contract fulfillment, booking codeshare flights, etc. For TMCs, the new NDC fares will not allow for the normal service of bookings, help with changes, or assistance in resolving problems. These problems affect all Travel Management Companies.
Travel One will have access to all American Airlines fares through our technology partners by using what are called “direct connects” and “plug-ins”. The online booking tools (Concur an Deem) present another layer of complexity. All TMCs will be very limited in the services provided for reservations started online. Along with every other TMC, Travel One will be working through the inefficiencies and added costs outlined above.
If you have any questions about this change that starts on April 3, 2023, please contact your Account Manager at Travel One.