In an unexpected twist that’s sure to delight frequent flyers, American Airlines has reversed a previously announced decision that would have limited the way travellers earn loyalty points. The policy change, originally slated to take effect next month, would have restricted the accumulation of AAdvantage Miles to bookings made directly through the airline or specific approved agents. However, in a significant backtrack, American Airlines will now allow travelers to continue earning miles, regardless of where they book their tickets.
American Airlines CEO Reverses Loyalty Program Changes
During a recent industry conference, American Airlines CEO, Robert Isom, revealed the pivot away from the planned changes, emphasizing the airline’s commitment to customer satisfaction. “Next month, we were going to differentiate who earned Advantage Miles and who didn’t, based on where they booked. That’s off,” Isom announced. He further explained, “We’re not doing that because it would create confusion and disruption for our end customer, and we’re going to make sure that we take care. We’re listening to feedback.”
This decision marks a significant departure from the airline’s previous strategy to encourage direct bookings. American Airlines had intended to establish a system of “preferred” booking agencies, which would have been the only third-party avenues through which customers could earn points.
Embracing Modern Retailing While Valuing Customer Input
Despite the rollback on restrictions, American Airlines is not abandoning its broader strategy to enhance direct customer interactions and streamline its booking process through modern retailing. The New Distribution Capability (NDC) is at the heart of this strategy, which Isom highlighted as a key component in providing a superior customer experience. “We’re learning and adapting,” Isom stated. “We know that NDC, modern retailing provides a better experience for the end customer. And we know that we will get there over time, but we have to go about it differently.”
Enhancements in Loyalty Benefits and Peer Responses
This backtrack occurs amid American Airlines‘ ongoing efforts to enhance its loyalty program. Recent introductions include exclusive “members-only” benefits such as free same-day standby for earlier domestic flights and extended validity of trip credits from six to twelve months for members.
American Airlines is not alone in responding to customer feedback on loyalty program changes. Last year, Delta Air Lines also revised its plans for the SkyMiles program after facing widespread criticism from its frequent flyers. This trend underscores the importance of customer feedback in shaping corporate policies in the airline industry.
The decision by the airline to maintain its current AAdvantage Miles earning structure is a clear indication that the airline values its customer base and is responsive to their needs. By prioritizing customer feedback and adapting policies accordingly, American Airlines not only averts potential customer dissatisfaction but also strengthens loyalty among its passengers.
