American Airlines plans to soon begin selling dynamically priced fares in New Distribution Capability (NDC) channels. The carrier also will introduce bundled fares and ancillaries that will be NDC-exclusive.
The coming moves were laid out by the airline in an email to travel agencies on June 11. American also informed agencies that it has begun returning fare content to legacy GDSs. American had removed fares during its failed effort to coerce agencies into using NDC. However, basic economy fares will continue to be available only in NDC.
The measures align with the strategy change announced in late May by American CEO Robert Isom, who said the airline would reverse course and begin taking a carrot-driven approach to driving NDC conversion among travel agencies.
American also appears to be borrowing from United's NDC strategy. Last year, United pulled basic economy fares from legacy GDSs. United also offers dynamic fares via NDC that aren't available via the legacy reservation systems of Amadeus, Sabre and Travelport.
As of last summer, approximately 40% of United's NDC fares were generated dynamically. The legacy systems, which rely on the alphabet-based booking codes that are so familiar to experienced travel advisors, cannot accommodate the unlimited price points that can be generated through continuously priced dynamic fares.
To date, United has been able to implement its NDC strategy without facing meaningful pushback from travel agencies and corporate travel managers.
In its email to agencies, American did not set a timeline for its introduction of dynamic fares and other NDC products. The airline also has not delved into specifics on the bundles and ancillaries it will offer. American said more details will be provided in the coming months.
American kicked off a revamped incentive program for NDC bookings last week, paying commissions on sales of its three NDC bundles: Main Plus, Main Select and Flagship Business Plus. The carrier is also offering incentives for ancillary bookings of paid seats.