Jamie Baker: Okay. That’s helpful. And then second, Vasu, as you approach the date at which certain agency bookings will no longer accrue advantaged credit, I guess 2 questions. First, what percentage of revenue currently comes through those affected channels that you’re going to cut off — or not cut off, modify? And second, what are your sort of underlying assumptions as to how that plays out?
So do you assume that your change will drive passengers one-on-one from an OTA to american.com, or do you model for some type of net loss in total bookings? Does ancillary upsell offset that? Just wondering what you’re modeling in terms of the consumer behavior.
Vasu Raja: Absolutely, Jamie. I’m extremely happy that you asked that question. To give you the best answer is it worth it to understand where we’ve been to understand where we’re going and how — as we call it the preferred agency program fits into it. So if you look at it for a long time, we endeavor to go and do things like maximize share — agency share or corporate share, but that isn’t necessarily optimizing revenue per se.
And we were in a world and certainly as we came out of the pandemic, where a lot of the agency are corporate-related bookings that we were doing, we’re coming at relatively low revenue values but sitting in the premium cabin. And so a lot of what our strategy is to reframe around how do we go and create more value for the end customer who’s choosing travel. And how do we go do it in a really economical way? And what we planned over and over again is they want a great product, they want it delivered well, they want to be rewarded, and they want to be able to shop and service digitally and be able to compare products.
So a lot of our transition has been undoing so many things that we’ve done, which we’re not really creating value for the customer nor creating profit for American Airlines. And we’ve done that over the course of the last year. We’ve reduced a lot of it. And interestingly, as you see it today, if — maybe there were more junior and maybe [indiscernible] version of all of us, Jamie, we would have thought when we embarked on this thing that it would come at a real risk to business revenues.
But if you just look at what we’ve reported today, our business revenues are growing at a greater rate than capacity. Unmanaged is on the higher end of that contract in corporates which would presumably be the most affected are just slightly on the lower end of that. But we’re doing it at 7% less in distribution expense. 60% of customers are Advantage customers, and they produce 2/3 of our revenue. So what we’ve seen happen is a lot of those customers are actually leading the agency and coming to us directly on their own.
And this is a really important thing because this is where we are, but where we go is a very different thing. And there’s really 3 things that we’re focused on as we go and optimize our distribution strategy. The first is exactly what you pointed out with preferred agencies. And we actually pushed the release rightly because we were all pleasantly surprised how many people are taking it. The vast majority of our agencies are currently in an NDC transition, roughly about, the agencies that constitute about 30% to 40% of our revenue are already doing more than 30% of their bookings through NDC and are on a path to be, in some cases, close to 100 by the end of the year.
And there’s even more agencies, a lot of big agencies who are signing on for it because they realize the customer utility and having a digital selling and servicing experience and frankly, they see there’s an opportunity to go compete against other agencies, which is great for customers. So we’ve pushed our preferred agency program to bring more people into it because we see — pleasantly see the amount of take rate. But we can do other things in the near term, which even as we speak we are doing.
The second thing is we can do a lot to simply go and create more products on the shelves for contracted business customers that are there. And we see more ways to do it through the booking tools that are there right now, and we have the ability to go and offer a direct connect any corporate traveler that’s there, including JPMorgan Chase, should they be interested.
And the last thing that’s very critical for us is what we have learned through this is we have a number of ways to go generate volume and the top on that list is being able to create more redemption for Advantage customers. But by no means do we have to go back into a world where we endeavor to raise expenses without creating value for the customer.
Our expenses rise, it should turn into something where there’s real incremental revenue. And so now I’ll very directly state your question. So with our preferred agency program, we actually anticipate that the majority of our agencies will be in it by the time we roll it out.
Operator: Our next question comes from the line of Stephen Trent of Citi.
Stephen Trent: I believe I heard in Bob’s prepared remarks that 61% of revenue now comes from outside of Main Cabin. Could you give us a high-level view as to what this mix looked like 5 years ago?
