In February, ACTA issued a response to American Airlines’ decision to limit traveller loyalty
points accrual to direct bookings and a select group of travel agencies.

The American Airlines policy announced in February of this year stated that effective May 1, 2024, only
direct bookings with American Airlines and selected partner airlines, along with a specific list of
‘preferred travel agencies’ would qualify for earning traveller loyalty points.

After having time to fully understand American Airlines’ position and to investigate further, ACTA has
released the following statement:

“ACTA statement on American Airlines’ new policy re loyalty points

The Association of Canadian Travel Agencies and Travel Advisors (ACTA), representing Canada’s travel
agency and independent travel advisor community, strongly opposes American Airlines’ decision to block
loyalty points earnings for bookings made through “non-preferred” channels effective May 1st, 2024. This
move directly restricts consumer choice and undermines the critical role of travel agencies and advisors
in the industry value chain.

By tying loyalty rewards to direct bookings or bookings through a limited number of preferred agencies,
American Airlines is severely limiting the channels through which consumers can earn loyalty points. This
decision will inevitably steer customers away from travel agencies and advisors who are uniquely
positioned to advocate for their interests and provide comprehensive, competitive travel options.

Consumers depend on travel agencies and advisors to provide expert guidance, unbiased advice, and a
wide array of travel options tailored to their individual needs and preferences. Restricting the ability to
earn loyalty points through these channels will undoubtedly disadvantage consumers who value booking
through their trusted travel partners.

Furthermore, this decision will have far-reaching consequences for the openness and competitiveness of
the travel marketplace. By leveraging its position to restrict consumer choice, American Airlines is
engaging in practices that will lead to higher prices, stifled innovation, and a less dynamic travel industry.

AA policy on NDC usage thresholds “not feasible”

In addition to the concerns regarding loyalty points, ACTA asserts that American Airlines’ attempt to force
the adoption of New Distribution Capability (NDC) on the travel industry will have severe unintended
consequences for travel agencies, advisors, and consumers. While ACTA recognizes the potential benefits
of NDC and supports technological advancements in the travel industry, we have grave concerns about
the way American Airlines is implementing this change.

Moreover, the requirements set by American Airlines for agencies to achieve “preferred” status are
excessively stringent and fail to consider the diverse capabilities and resources of travel agencies across
the country. The expectation of a 30% NDC usage threshold by April 21st, 2024, and 70% by April 30th,
2025, is simply not feasible for many travel agencies and advisors, particularly smaller independent
businesses, to meet within the specified timeframe. This move will disproportionately impact agencies
that lack the technological infrastructure or resources to comply with these onerous requirements.

Appeal to AA to reconsider and discuss

ACTA urges American Airlines to reconsider this decision and engage in a meaningful dialogue with the
retail travel community to find a more balanced approach to NDC implementation and loyalty program
changes. We firmly believe that any changes must be a collaborative process that considers the needs and
concerns of all stakeholders, rather than a unilateral mandate.

Our organization remains steadfast in its commitment to working with all parties involved to develop
solutions that promote innovation, efficiency, and customer satisfaction while maintaining a fair and
competitive marketplace. However, we vehemently oppose any action that disregards the interests of
travel agencies, advisors, and consumers. Only by working together can we forge a path forward that
protects consumer choice, embraces technological advancements, and ensures a thriving and competitive
travel industry for all Canadians.”

Wendy Paradis, President
Association of Canadian Travel Agencies and Travel Advisors 

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