American Airlines recently admitted its misstep in focusing too heavily on direct distribution and neglecting the importance of travel management companies (TMCs) and agencies in its revenue stream. This acknowledgment was made during a Q2 earnings call by American CEO Robert Isom. The airline now aims to rebuild positive relationships with travel advisors, seeking to re-engage with the travel trade that it had previously alienated. The shift in strategy comes after a failed attempt that could potentially cost American up to $1.5 billion in revenue this year.
Optimism from TMCs
Despite the rocky past, some large TMCs in the U.S. are cautiously optimistic about the re-engagement efforts from American Airlines. Initial feedback indicates that relationship rebuilding has already begun, with assigned American representatives to larger TMC partners. Executives from these companies express hope that American can fully rebuild trust and regain their confidence. While sentiment towards the carrier is tentatively positive, there is a general consensus that it will take time for the relationship to be fully restored.
Building Trust
Various CEOs of TMCs, such as Mike Cameron of Christopherson Andavo Travel and Paul Glenn of Executive Travel, emphasize the importance of re-earning trust not only from the agency community but also from consumers. The impact of American’s previous actions was felt by both travel advisors and their clients, making the trust-rebuilding process crucial. American Airlines has taken steps towards this goal by hiring new account managers for corporate customers and working on incentive-based agreements for agencies. These efforts have been well received so far.
Paul Abbott, CEO of American Express Global Business Travel, has praised American Airlines’ recent changes, notably the restoration of content to Global Distribution Systems (GDSs) and the airline’s renewed recognition of the importance of the travel trade. The efforts made by American Airlines to work collaboratively with customers and distributors have been commended, signaling a step in the right direction for the airline’s relationship with TMCs.
Chardell Robinson of Cadence Travel highlights several positive developments from American Airlines, including the reinstatement of benefits for AAdvantage Business participants and the reassignment of dedicated American representatives to TMCs. These actions demonstrate a commitment from the airline to improve its partnerships and provide value to its clients. While some TMCs are still awaiting the assignment of new representatives, there is an overall sense of optimism regarding the future of collaboration with American Airlines.
Reflecting on the past, TMCs like Christopherson Andavo Travel have had a rollercoaster experience with American Airlines. While the partnership had shown promise in the past, a sudden shift in strategy led to a breakdown in the relationship. As American Airlines strives to regain trust and rebuild partnerships, TMCs are cautiously optimistic but also wary of potential setbacks. The importance of open communication, mutual respect, and trust cannot be understated in fostering successful collaborations between airlines and travel management companies.
As American Airlines extends its olive branch to TMCs and acknowledges its past mistakes, the future of their relationship remains uncertain yet hopeful. By prioritizing transparency, communication, and mutual benefit, both parties can work towards a more sustainable and mutually beneficial partnership in the long run. The travel industry thrives on strong relationships and trust, and American Airlines’ efforts to reconnect with TMCs signal a step in the right direction towards rebuilding these essential foundations.