American Airlines last month activated a new online portal for corporate clients that includes booking, tracking, travel policy and data aggregation functions. The site, branded CorporateAAccess, is the latest in a string of similar online channels for the corporate community that provide direct access to published airfares, Web fares and any negotiated corporate rates. It is powered by a corporate booking engine from Accenture subsidiary Navitaire, which also provides refund and exchange capabilities, and represents another avenue for airline distribution cost savings.
"We proceeded down this path not as quickly as we might have because of the limitations of this type of tool," said AA vice president of sales Craig Kreeger. "Now we see a wide range of clients interested, and any corporate client with an upfront discount is a candidate."
CorporateAAccess charges a $10 bundled transaction fee covering booking, ticketing, refunds and exchanges, traveler phone support and travel management reports. Comparable sites, such as Southwest's Swabiz and Northwest's CorpNet Direct, do not include fees. "We can charge a fee because the product still saves corporations money," Kreeger said. "Also, we have a very effective refund and exchange process that other sites don't." CorpNet Direct also provides refund and exchange capabilities, and Swabiz features reuse functions.
CorporateAAccess also requires an implementation fee for clients ranging up to $1,000, "based on the requirements of each customer," which Kreeger suggested could be tied to the level of complexity of the preferred relationship.
CorporateAAccess represents a next-generation offering from American, following online booking capabilities previously developed on aa.com for BusinessExtrAA accounts, which do not have upfront corporate discounts. AA.com bookings, including consumer reservations, are handled by the Orbitz booking engine, but AA opted to "leverage the full suite" from Navitaire for CorporateAAccess. Navitaire DirectNet technology also is used by Carlson Wagonlit Travel for direct connections with American, Continental, Delta and United airlines.
"While we have a reputation for doing things ourselves, we saw it would be less expensive and quicker to market if we capitalized on Navitaire's corporate booking tool," Kreeger said. Ticketing is instantaneous through the Navitaire system and handled directly by American.
Once their company registers, corporate travelers can shop for any domestic AA flight by schedule, price or ticket type. International functionality may be introduced in a later version. Other features include seat assignments, electronic upgrade requests and links to such other customer service features as flight status notification and Internet checkin.
Agencies also can execute transactions on behalf of clients and collect data. Credits for all corporate bookings made on the site are tracked and applied toward contract goals. Travel managers can access monthly online reports and set "limited travel controls," which include cabin restrictions and lowest-fare searches within a designated time window.
CorporateAAccess also provides links to preferred hotel and car rental rates via aa.vacations. According to Kreeger, that direct channel can provide both discounted rates negotiated by American and individual corporate rates, accessed by using a corporate identification number. Despite such features, airline channels like CorporateAAccess present several difficulties to travel managers seeking a consolidated solution, according to Norm Rose, president of Travel Tech Consulting in Belmont, Calif. "It is a further sign of a fragmenting marketplace and a breakdown of the GDS as a single source," he said. "Is AA's goal to simply reduce GDS fees, or has there been an underlying strategy to bypass agency fulfillment, agency settlement and overrides?"
Although it is providing various travel services for a fee—the basic role of a travel agent—AA insists it is not trying to replace travel management companies. "First, this product can be combined with a client's agency of record to handle the bookings," Kreeger said. "Second, we are all about options, and we are trying to provide a self-service tool."
Rose, however, said CorporateAAccess "is a clear sign that American wants to become a retailer. It is a battle over ownership of the customer."