American Airlines is making it harder to rack up frequent-flier miles — here’s who will be most affected

American Airlines will restrict earning miles on tickets purchased through most third-party travel websites starting May 1

American Airlines will soon stop letting customers earn frequent-flier miles when they book trips on third-party travel sites — and the change will hurt some road warriors more than others.

The airline announced Tuesday that unless travelers book tickets directly through American’s website or with its “preferred” travel agencies or third-party sites, they will not be able to earn frequent-flier miles on their tickets as they used to.

Starting May 1, American Airlines will introduce a significant change in its frequent-flyer program that could impact many travelers. The airline announced that passengers will no longer be able to earn AAdvantage miles when booking through most third-party travel websites. This new policy aims to drive more bookings directly through American Airlines’ website or through their “preferred” travel agencies and third-party sites.

The new policy will likely have a mixed impact on American Airlines’ customer base. Frequent travelers who rely on earning miles for upgrades, free flights, or other perks will be most affected. These road warriors often use third-party websites to compare prices and book travel conveniently. By restricting mileage accrual to bookings made directly through the airline or preferred channels, American Airlines is pushing these travelers to change their booking habits.

1. Frequent Flyers and Corporate Travelers

Business travelers, who often book flights through corporate travel agencies or third-party sites, may find this change particularly inconvenient. Many corporate travel policies require the use of specific travel booking platforms for cost control and tracking purposes. If these platforms are not on American Airlines’ “preferred” list, employees will either have to book outside their corporate policies to earn miles or forego accumulating miles on their business trips. This could result in dissatisfaction among frequent flyers who value the benefits that come with mileage accrual, such as elite status, priority boarding, and access to premium lounges.

2. Leisure Travelers

Leisure travelers who occasionally fly American Airlines might be less impacted, but they too will need to adapt. Those who book through popular third-party sites like Expedia, Orbitz, or Kayak for vacation packages or family trips will need to reconsider their options. Without the incentive of earning miles, these travelers might opt to book directly with the airline, but they could also choose to explore other airlines that offer more flexible mileage earning policies.

Strategic Motivations Behind the Change

American Airlines’ decision is likely driven by several strategic motivations aimed at enhancing its profitability and customer loyalty.

1. Cost Savings

Third-party travel websites often charge airlines commissions and fees for bookings. By encouraging customers to book directly through its website or preferred channels, American Airlines can save on these costs. This move can potentially improve the airline’s bottom line by reducing expenses associated with third-party bookings.

2. Direct Customer Relationships

By pushing travelers to book directly, American Airlines can build stronger relationships with its customers. Direct bookings allow the airline to gather more detailed customer data, which can be used to tailor marketing efforts, improve customer service, and offer personalized deals. This direct relationship also provides the airline with more control over the booking process and post-purchase interactions.

3. Enhancing Loyalty Programs

Restricting mileage accrual to direct bookings may also enhance the perceived value of the AAdvantage program. By making miles harder to earn through indirect channels, American Airlines can encourage customers to engage more with the airline’s ecosystem. This can lead to increased use of the airline’s website, app, and credit card offerings, further cementing customer loyalty.

Potential Challenges and Criticisms

Despite the potential benefits for American Airlines, this policy change is not without its challenges and criticisms.

1. Customer Dissatisfaction

The most immediate challenge will be customer dissatisfaction. Frequent flyers who are used to earning miles on every flight, regardless of the booking channel, may view this change as a reduction in the value of the AAdvantage program. This could lead to negative feedback and a potential loss of loyalty, especially among those who have been long-time supporters of the airline.

2. Competitive Disadvantage

In a highly competitive airline industry, restrictive policies can put an airline at a disadvantage. Competitors who continue to offer mileage accrual through various booking channels may attract disaffected American Airlines customers. Travelers often make booking decisions based on convenience and rewards, and if they perceive American Airlines’ new policy as too restrictive, they may shift their loyalty to other carriers.

3. Impact on Travel Agencies

Travel agencies, especially smaller ones not on the preferred list, may experience a decline in business from American Airlines customers. This could strain relationships between the airline and these agencies, potentially leading to reduced cooperation and support in the future.

Preparing for the Change

Travelers who wish to continue earning AAdvantage miles will need to adjust their booking strategies. Here are some steps they can take to prepare for the upcoming changes:

1. Book Directly with American Airlines

The most straightforward way to ensure mileage accrual is to book directly through American Airlines’ website or mobile app. Travelers should create an account on the airline’s website to streamline the booking process and take advantage of any exclusive offers available to direct bookers.

2. Use Preferred Travel Agencies

For those who must book through a travel agency, it’s essential to check if the agency is on American Airlines’ preferred list. If not, travelers might consider switching to an agency that is approved by the airline to continue earning miles on their bookings.

3. Stay Informed

Travelers should stay informed about any updates or changes to American Airlines’ policies by regularly checking the airline’s website or subscribing to its newsletters. This will ensure they are aware of any new developments that could affect their travel plans and mileage accrual.

American Airlines’ decision to restrict mileage earning on tickets purchased through most third-party travel websites marks a significant shift in its frequent-flyer program. While the airline aims to drive more direct bookings and strengthen customer relationships, the change may lead to dissatisfaction among frequent travelers and pose challenges for corporate travel policies and third-party agencies. Travelers will need to adapt their booking habits to continue reaping the benefits of the AAdvantage program. As the airline industry continues to evolve, it remains to be seen how this change will affect American Airlines’ competitive standing and customer loyalty in the long run.