American Airlines' round one... ding ding ding

Diane Clarkson | July 17, 2006, 05:26 PM

Ah, the travel industy is abuzz today talking about American Airlines’ announcement that it will be charging travel agencies a “booking source premium” of $3.50 per segment for all bookings through AA's non-preferred GDS programs.

This decision has been met with a press release from the American Society of Travel Agents announcing that chaos looms over the industry.

I feel for the travel agents. I spent many years on that side of the industry, and there are fewer places in business less enviable than being a middleman with declining power.

ASTA charges that “American’s announcement tells every travel agency in America: if you want to sell us, run your business the way we tell you or you’ll be forced to pay us for the privilege of booking our services.” Though I have to wonder how much of the reverse is true: travel agents want to say “if you want us to sell you, run your business the way we tell you and be forced to pay for the distribution channel of our choice”.

The situation is made worse fortravel agencies because there is a lack of information available to evaluate their options.

The next days will likely be filled with travel agency responses that will surely exend beyond the “it’s not fair” cries reflected in the responses posted on TravelMole to the story. (“American Airlines you can bite me” is my favorite among the eloquent rebuffs.)

For a good overview of the situation as of today, check out Dennis Schaal’s article in Travel Weekly. (registration required)