BrokenCustomer Service

Robert Isom, CEO: “American's new direct distribution strategy through NDC will benefit customers with the best fares and loyalty rewards a...”

American · January 25, 2024 · Q4 2023 Earnings Call

The Promise

“American's new direct distribution strategy through NDC will benefit customers with the best fares and loyalty rewards available only through preferred channels.”
Robert Isom, CEO · January 25, 2024 · Q4 2023 Earnings Call · Source

Target

Metric: Revenue impact of NDC strategy

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What Actually Happened

Verdict:Broken

The NDC strategy was a disaster. American pulled 40% of its lowest fares from traditional booking channels, slashed agency sales staff, and canceled corporate incentive contracts. ASTA called it 'a clear abuse of market power.' The strategy cost American an estimated $1.5 billion in lost revenue in 2024 as corporate clients booked elsewhere. Isom reversed course in May 2024, restoring GDS content and AAdvantage points for non-NDC bookings.

Actual result: $1.5 billion in lost revenue; strategy reversed
Source: Travel Weekly, Cranky Flier, ASTA (checked Oct 2024)

Timeline

January 25, 2024
Promise made by Robert Isom, CEO via Q4 2023 Earnings Call
October 2024
Evidence checked — Broken

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