AA to Offer Customers `Web Fares` Via Travel Agencies

26th Sep 2002


In a move that will
make its popular Web fares more widely available to consumers while reducing
its total distribution costs, American Airlines
today announced its innovative
new EveryFare(SM) program.
Under the terms of the new EveryFare program, American will provide
traditional (non-Internet) travel agencies in the U.S. (including Puerto Rico
and U.S. Virgin Islands) and Canada the option to access and sell its Web
fares, which are low fares previously offered only via American`s own Web
site, AA.com
, and select low-cost distribution channels.  In exchange for Web
fare access, travel agencies will provide American with long-term distribution
cost savings through a creative cost-sharing arrangement.
American has also announced that TQ3 Maritz Travel Solutions and Corporate
Travel Management Group (CTMG) have agreed to be launch travel agency partners
for the EveryFare program.
The EveryFare program responds to the desire of corporate travel managers
to gain access to Web fares, though they are not discountable, through the
same travel agencies they use to manage their corporate travel.  At the same
time, the program responds to the desire of travel agencies to expand the
range of services they offer to include Web fares.
“By joining our EveryFare program, travel agencies will bring added value
to our mutual customers, offering a broader range of fares - including our
popular Web fares—and do so in a manner consistent with American`s program
to reduce the cost of selling our product,” said Donald J. Carty, Chairman and
CEO of American Airlines.  “Offering Web fares via the EveryFare program is
one more way we`ve implemented our philosophy to offer Web fares only via low-
cost distribution channels.”
American plans to make these Web Fares available for sale by any
traditional “bricks and mortar” U.S. or Canadian travel agency that signs up
for the EveryFare program, and thus becomes a long term, lower cost
distribution channel.
The innovative EveryFare program provides these Web fares in exchange for
effectively shifting the responsibility for the cost of global distribution
system (GDS) booking fees from American Airlines to the travel agency.
American initially gives travel agencies an allowance credit of approximately
US$4 per flight coupon.  Travel agents then pay to American an amount equal to
their own GDS fees, based upon their own choice of GDS services and products.
The allowance paid agencies gradually declines during the term of the
contract, to allow EveryFare program participants time to seek lower GDS fees.
The result will be lower distribution costs for American on all fares
distributed via participating EveryFare agencies.
“We want all our clients to be able to consider all the fares in the
marketplace - including Web-only fares - to lower travel costs wherever
possible,” said Jack O`Neill, president of TQ3 Maritz Travel Solutions.  “This
agreement and our close partnership with American Airlines helps our clients
do that, lets us do it in a simple, straightforward manner, and ultimately
gets some distribution costs out of the current cost model.  This ground-
breaking agreement will greatly benefit our (TQ3 and American) clients who are
asking for Web fares.”
Later this year, agencies in the EveryFare program may have the option of
booking directly through AA.com, and avoiding the GDS fee entirely.  The
agency would pay a lower fee than current GDS fees, but still receives the
same allowance.
  More information about this innovative program is available online at
http://www.aa.com/everyfare or simply click on “Business & Agency Programs” on
the AA.com homepage.

Related stories on ITN:
(22/08/2002) AA.com Launches Award-Booking for Business Class Travel

(02/07/2002) Book Travel on AA.com to Earn Up To 2,000 AAdvantage Miles

(16/05/2002) Newly Designed AA.com Utilises Totality




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