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ICMR Center for Management Research







American Airlines Rainbow TeAAm and its Strategy to Target the
LGBT Segment
This case was written by Debapratim Purkayastha, ICMR Center for Management Research. It
was compiled from published sources, and is intended to be used as a basis for class discussion
rather than to illustrate either effective or ineffective handling of a management situation.
2009 ICMR Center for Management Research

ICMR, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India
Email: info@icmrindia.org.
www.icmrindia.org







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American Airlines Rainbow TeAAm and its Strategy to
Target the LGBT Segment
We know that all passengers, including gays and lesbians, bisexuals and transgender people,
have many choices when it comes to travel. We want your loyal business and we will work to earn
it.
1

- Betty Young
2
and George Carrancho, National Sales and Marketing Managers,
American Airlines Rainbow TeAAm.
Its very easy to advertise but the question to ask is what (is an airline) giving back to the
community? Do they help local charities, gay and lesbian centers or grassroots organizations?
3

- George Carrancho, in 2007.
After many years of discrimination, gays and lesbians are more interested in companies that treat
them with respect and do their best to accommodate them And they have the purchasing power
to show it,
4

- Tom Nibbio, Marketing Manager, International Gay & Lesbian Travel Association
5
, in
2009.
INTRODUCTION
In April 2009, when Logo
6
launched a new travel website dedicated to the LGBT
7
community,
TripOutGayTravel.com, American Airlines (AA), a leading airline carrier, came forward to
become its site-wide sponsor and co-sponsor of the sites sweepstakes
8
.
9
Speaking about the

1
Letter of Nomination: American Airlines, http://travel.gay.com/letter-of-nomination-american-
airlines.html
2
In early 2009, Betty Young was promoted to the position of Director Diverse Segment Marketing.
3
Aefa Mulholland with Ed Salvato, Fly the Gay-friendly Skies: Top 10 Airlines, www.gay.com,
February 23, 2007.
4
Ken Sweet, Corporate America Embracing LGBT Customers, Travel Dollars, www.foxbusiness.com,
April 30, 2008.
5
The International Gay and Lesbian Travel Association (IGLTA), headquartered at Fort Lauderdale,
Florida, USA, is an association of travel agents, tour operators, hotels and guest houses, and other travel-
related enterprises dedicated to gay and lesbian tourism. It was founded in 1983 and as of early 2009, was
the largest such organization with more than 1000 members.
6
Logo is a gay cable channel launched in 2005. It is a unit of Viacom Inc.s MTV Networks.
7
LGBT (or GLBT) is an acronym used to refer collectively to lesbian, gay, bisexual, and transgender
people.
8
Sweepstakes is a type of consumer sales promotions aimed at generating enthusiasm and providing
incentive reactions among customers by enticing consumers to submit free entries into drawings of chance
that are tied to product or service awareness. The featured prizes are given away by sponsoring
companies. In the TripOutGayTravel.com sweepstakes, users entered to win a trip to Fort Lauderdale at
Floridas first W Hotel, and thirty first-place winners received a Fort Lauderdale beach starter kit
including a beach towel, flip flops, and a beachball.
9
Logo Launches TripOutGayTravel.com - The Ultimate Travel Site Featuring the Hottest Destinations for
the LGBT Traveler, http://news.moneycentral.msn.com, April 27, 2009.
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partnership, George Carrancho (Carrancho), National Sales and Marketing Manager of AAs
Rainbow TeAAm, that was the Marketing and Sales team focused on the LGBT segment, said,
We work hard year-round to enhance American Airlines strong reputation in the LGBT
community. Our partnership with Logo and TripOutGayTravel will allow us to keep bringing
valuable travel services and content to many of our most loyal LGBT customers.
10

Over the years, AA had earned widespread recognition as a long-time supporter of the LGBT
community. In fact, it was considered the first major company to launch an LGBT-focused sales
and marketing team. The team came into being as far back as in 1994, at a time when people were
not as accepting of the LGBT community as they have become in recent years. In his pioneering
book on the subject, Gay and Lesbian Tourism: The Essential Guide for Marketing, author Jeff
Guaracino, described AA as the granddaddy of savvy gay travel marketing.
11

The marketing program that started in the early 1990s was later renamed the Rainbow TeAAm and
as of 2008, it was led by Betty Young (Young) and Carrancho. Young and Carrancho, who were
lesbian and gay respectively, were involved in a range of activities aimed at tapping the fast
growing LGBT travel market. We want to be involved with the gay community because we feel it
is the right thing to do because American is involved with many different communities in the
markets that we serve The LGBT community has been a long-term goal of Americans for
years, not just now because its culturally being more accepted. American was one of the first
Fortune 100 companies to be out there asking for the LGBT communitys business and [to be]
giving back to the community. Were not just out there asking for your business; we support the
community and we give back to it,
12
said Young.
Experts felt that the LGBT market was poised for significant growth and competition to tap this
market would intensify with many major companies jumping into the fray. As of early 2009, the
challenge before the Rainbow TeAAm and Young, who had been promoted to the position of
Director Diverse Segment Marketing, was not only to maintain its brand position as the most
popular airline of LGBT-choice but also to take the marketing strategies to tap this lucrative
segment forward.
BACKGROUND NOTE
American Airlines, Inc. (AA) is a leading airline with its global headquarters at Fort Worth, Texas,
USA. It was founded in 1930. It was a conglomeration of 82 small airlines brought together
through acquisitions and reorganizations. As of 2009, it was one of the worlds largest airlines in
terms of passenger miles transported, passenger fleet size, aircraft operated, and operating
revenues. AA is a subsidiary of AMR Corporation (Refer to Exhibit I for the key financials of
AMR Corporation).
As of early 2009, AA, American Eagle, and the AmericanConnection airlines served 250 cities in
40 countries with more than 3,400 daily flights.
13
It had 900 aircraft in its fleet. The airline was a
preferred carrier for a diverse group of customers. It had a strong marketing and sales team and
had, over the years, honed its skills in targeting diverse segments through specialty sales and
marketing teams. It was credited with being the first airline to develop specialty sales and
marketing teams for African-Americans, Hispanics, LGBT, and women customers.
14


10
New Website Launches for the LGBT Traveler, www.cherrygrrl.com, May 4, 2009.
11
Jeff Guaracino, Gay and Lesbian Tourism: The Essential Guide for Marketing (Butterworth-Heinemann,
2007).
12
Ross Forman, Business Profile: The Rainbow TeAAm Flying High, www.windycitymediagroup.com,
December 6, 2006.
13
http://www.aa.com/aa/i18nForward.do?p=/aboutUs/diversityInclusion/main.jsp
14
American Airlines Expands Diversity and Inclusion Information on its Web Site,
www.targetmarketnews.com,
April 22, 2008.
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With an award-winning website, AA.com, it enabled travelers to check and book fares, and also
access a range of content related to travel including travel offers. As of 2008, the AA.com site
registered more than 1.6 million site visits per day. The site received various awards including the
World Travel Award for Worlds Leading Airline Internet Site twice.
15
The company also ran a
successful loyalty program, AAdvantage frequent flyer program (AAdvantage), which it
considered to be one of its competitive strengths. This program had 60 million members as of
December 31, 2007. AAdvantage members earned mileage credits by flying on AA, American
Eagle, and the American Connection carriers or by using the services of other participants in the
AAdvantage program. Mileage credits could be redeemed for free, discounted, or upgraded travel
on AA, American Eagle, or other participating airlines, or for other awards.
16

Since the 1990s, AA had also made a name for itself for its diversity and inclusion policies.
Experts felt that the company had made significant progress in fostering inclusive policies
regarding employment and in the area of diversity leadership and supplier diversity. For instance,
AA had 15 Employee Resource Groups, which reflected a variety of communities within its
diverse employee population. These groups offered cultural guidance and ideas to support the
airlines business initiatives. The company had also set up two advisory councils one focused on
women travelers, the other on LGBT travelers. Americans dedication to diversity leadership
helps us to foster an environment where individuals experience and perspectives are valued and to
ensure that customers and communities receive service delivered by committed, passionate
people This dedication also supports our ongoing program to identify minority-, women-,
LGBT-owned, and small businesses to be considered as potential business partners for American,

17
said Roger Frizzell (Frizzell), AAs Vice President for Corporate Communications and
Advertising.
Experts felt that AA had, over one and a half decades, successfully tapped the fast growing LGBT
segment. This it had done through its LGBT-focused sales and marketing team that had gained a
good knowledge of the LGBT market (Refer to Exhibit II for a brief note on the LGBT segment
and the LGBT travel market in the US).
HOW IT ALL STARTED
In June 1993, many LGBT travelers traveled to Washington, D.C. to take part in a gay pride march
there from various parts of the US. In one of the flights, an insensitive and poorly educated
member of the AA flight crew recommended that all of the aircrafts linen used by these travelers
be discarded or be systemically sanitized, for fear that people who came in contact with these
would contract HIV.
18
That was when AA realized the need for more inclusive diversity policies.
In the same year, Rick Cirillo (Cirillo), a key executive of AA who also happened to be gay,
proposed the idea of an LGBT-focused sales team to the then vice president of sales, and the
company agreed.
19
Everyone just had a hunch, a feeling that this was the right thing to do.
Ultimately, it was a very shrewd business move on managements part to listen to Rick. Our plan
early on was to talk to and support organizations that were important to the community. And were
still doing that,
20
recalled Tim Kincaid (Kincaid), corporate communications manager at AA.

15
American Airlines Launches Exciting New Link Using Facebook Platform, Popular Online Tool for
Many LGBT Travelers, www.witeckcombs.com, March 31, 2008.
16
http://library.corporate-ir.net/library/11/117/117098/items/294845/ar2007.pdf
17
American Airlines Expands Diversity and Inclusion Information on its Web Site,
www.targetmarketnews.com,
April 22, 2008.
18
Robert Witeck and Wesley Combs, Business Inside Out: Capturing Millions of Brand Loyal Gay
Consumers (Kaplan, 2006).
19
Rolling Out the Red Carpet for Gay Consumers, The Advocate, February 19, 2002.
20
Ross Forman, Business Profile: The Rainbow TeAAm Flying High, www.windycitymediagroup.com,
December 6, 2006.
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The GLBT Marketing and Sales program was started in 1994 and was later renamed American
Airlines Rainbow TeAAm.
21
The rainbow is a symbol important to the GLBT community as it
was adopted as HRCs equality symbol
22
, and hence the name.
23
Cirillo led the initiative as the
Global Sales & Marketing Manager Gay and Lesbian Community, while two other founding
members, Robbin Burr (Burr) and Michael Fricke (Fricke) acted as National Sales Managers.
24

Burr, who was a lesbian, was the first woman to serve on the Rainbow TeAAm.
25
She was also the
co-chair of GLEAM
26
,
27
and co-chaired AAs Diversity Advisory Council.
28
The members of the
team were considered pioneers in LGBT programs and marketing to this community.
The team actively engaged with the LGBT community and also built relationships with
community groups and forged partnerships with other travel providers such as cruise lines. While
Cirillo was based at Dallas and liaisoned with headquarters, Fricke was based in Los Angeles and
focused on trade shows and relations with travel agencies. Burr was based in Chicago and focused
on the lesbian market, liaisoning with the companys Human Resource (HR) department and
GLEAM. She was also responsible for public speaking and training. All the three members of the
team were involved in forging ties with various national and local LGBT organizations.
29
The team
also coordinated the Rainbow TeAAms efforts with that of the field sales managers and city
promotions managers. Since its inception, the Rainbow TeAAm worked with Witeck-Combs in
formulating its strategy for the LGBT market.
30

While sponsorships of LGBT events were a key part of the strategy, the initial years also required
the team to put the house in order by adopting LGBT-friendly policies such as adding sexual
orientation and gender identity to the non-discrimination clause, extending domestic partner
benefits to same-sex couples, etc.
31
In fact, Burr was credited with playing a key role in
implementing the AAs domestic-partnership program and securing support from the corporate
management and the diverse employee groups.
32
This was in sync with the characteristics of the
target audience as research by Witeck-Combs and Harris Interactive suggested that the segment
was influenced by the companys stance on LGBT issues in their purchase decisions.
33


21
AAs Raimbow TeAAm Honored with Hall of Fame Award, www.witeckcombs.com, Summer 2006.
22
The LGBT community had been using the rainbow flag since 1978 when it first appeared in the San
Francisco Gay and Lesbian Freedom Day Parade. The flag was designed by Gilbert Baker and originally
had 8 colors, all of which were assigned a meaning. (Source: http://main.uab.edu/Sites/students/life/safe-
zone/33533/)
23
American Airlines launches AA.com/Rainbow - The First Comprehensive Airline Web Page for GLBT
Travelers, M2 Presswire, November 1, 2006.
24
Rick Cirillo Steps Down from American Airlines Rainbow TeAAm,
www.navigaytion.com/page.cfm?Sectionid=1&typeofsite=snippetdetail&ID=274&snippetset=yes&regio
n=107 - 49k -
25
Tracy Baim, American Airlines Exec to Take Charge at Center, www.windycitymediagroup.com,
February 25, 2004.
26
GLEAM is the LGBT Employee Resource Group at AA.
27
Gretchen Lee, Looking Up at American, Curve, November 1, 1999 (Retrieved from
www.accessmylibrary.com)
28
http://www.glhalloffame.org/index.pl?item=280&todo=view_item
29
Robbin Burr, American Airlines GLBT marketing: leading the Way,
www.diversitybestpractices.com, April 30, 2003.
30
AAs Raimbow TeAAm Honored with Hall of Fame Award, www.witeckcombs.com, Summer 2006.
31
Robbin Burr, American Airlines GLBT marketing: leading the Way,
www.diversitybestpractices.com, April 30, 2003.
32
Tracy Baim, American Airlines Exec to Take Charge at Center, www.windycitymediagroup.com,
February 25, 2004.
33
Robbin Burr, American Airlines GLBT marketing: leading the Way,
www.diversitybestpractices.com, April 30, 2003.
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The team carried on with the pioneering work till 2003, when Cirillo left AA to join the US
Government Sales department. The following year, Burr too left to join as the Executive Director
of the Center on Halsted
34
.
35
In August 2004, Young was appointed the National Sales and
Marketing Manager and she along with Fricke carried forward the initiative.
36
Young was a 15-
year veteran at AA and before this assignment, had been a meeting planner in Passenger Sales as
well as sales manager for the AAs innovative CorporateAAccess.com
37
product. Being a lesbian
herself, she was also actively involved in the LGBT community.
38
Later Fricke was replaced by
Carrancho and he along with Young became the face of the Rainbow TeAAm.
39

As part of the Rainbow TeAAm, they not only worked out marketing and sales strategies including
designing special vacation packages, but also ensured that AA donated to the relevant charities.
40

They were involved in a number of outreach activities and worked closely with national and local
LGBT organizations and businesses to ensure that AA remained the preferred choice for LGBT
travelers globally.
41
The duo also played a leading role in the online initiatives to target the LGBT
traveler through the launch of a dedicated microsite and web page.
42

AAVACATIONS.COM/RAINBOW MICROSITE
In November 22, 2005, AA launched the microsite -- AAVacations.com/rainbow -- a new addition
to their travel website, which was specifically targeted at LGBT travelers. According to industry
observers, it was the first site of the kind by an US airline and was aimed at tapping the LGBT
segment based on their preferred destinations and travel habits.
The microsite listed more than 50 destinations that would be of interest to the LGBT traveler and
offered special vacation packages for them. According to the company, the site catered to all types
of LGBT travelers, from romantics and adventurers to club-hoppers and sports fans.
43
It also
covered events that were of importance to the LGBT community. This microsite enabled the target
audience to combine airfare with other related services such as hotel, rental car, and tour package
deals in destinations that were of interest to them or to other LGBT-friendly destinations. The
LGBT visitors who booked trips through this site were awarded a bonus of up to 1,000 miles, in
addition to the normal miles awarded to frequent flyers reserving travel. These miles could be used
by the visitors to purchase other services such as hotel stays, spa packages, etc. Carrancho, said,
Once again, we are proud to lead the industry as the first U.S. airline with its own vacation
package site specifically for this community Through this new AAVacations.com/rainbow site,

34
The Center on Halsted is a LGBT-focused organization based in Chicago, that offers support networks
and programming to meet the cultural, emotional, social, educational and recreational needs of the LGBT
community and friends.
35
http://www.glhalloffame.org/index.pl?item=280&todo=view_item
36
Out and About Newspaper, Vol.3, No. 8, August 2004.
http://outandaboutnewspaper.com/download/archives/2004/oan04aug.pdf
37
CorporateAAccess.com was a site dedicated to corporate customers. AA discontinued the program on
December 31, 2008.
38
American Airlines Names New GLBT Sales & Marketing Manger,
http://gayjob.biz/page.cfm?Sectionid=1&typeofsite=snippetdetail&ID=1144&snippetset=yes
39
Ten Money Questions for Betty Young, www.queercents.com, November 10, 2006.
40
Ken Sweet, Corporate America Embracing LGBT Customers, Travel Dollars, www.foxbusiness.com,
April 30, 2008.
41
Ten Money Questions for Betty Young, www.queercents.com, November 10, 2006.
42
IGLTA, Board of Directors 2008 Nominations, www.iglta.org/documents/vote08noms.pdf -
43
Andrew Noyes, American Airlines Unveils First LGBT Travel Site,
www.gay.com/business/article.html?sernum=1695
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we are highlighting for our gay frequent travelers the benefits of the huge American Airlines
network and all the terrific vacation destinations that welcome them.
44

The company promoted the microsite through multiple channels viz. advertising, public relations
(PR), and sales promotion. Experts felt that the target audience was likely to try out the microsite
considering the fact that AA was perceived as a LGBT-friendly company. The site was reportedly
visited by many people even before its official launch and a number of LGBT-friendly destinations
and travel companies expressed interest in partnering with it.
45
The company said that it would
make the necessary changes to the site to accommodate feedback and suggestions from the target
audience.
AA.COM/RAINBOW WEB PAGE
The subsequent success of the AAVacations.com/rainbow microsite prompted AA to launch the
AA.com/rainbow web page in October 21, 2006. This was the first comprehensive airline web
page for LGBT travelers.
46
[T]his isnt a relaunch of the AA.com/Rainbow site American
Airlines is actually building on the success of our AAVacations.com site and developing a
completely new LGBT dedicated travel site. AA.com/Rainbow is a fully comprehensive site and
includes LGBT community events, special discounts, and deals along with helpful travel tips for
LGBT travelers,
47
explained Young.
The AA.com/rainbow web page provided LGBT visitors with a range of content and features, such
as Lowest Fare Guarantee, up to 1,000 AAdvantage mile booking bonus, and no booking fees
(Refer to Box I for a list of features and content offered in AA.com/rainbow). In addition to this,
the content was of interest to the LGBT travelers. It included a comprehensive community events
calendar listing available special discounts, an e-newsletter which listed LGBT travel tips and
deals, and schedules and fares for AA and hundreds of other airlines worldwide,
AAVacations.com/rainbow for gay-welcome travel packages, etc.
48
Visitors could customize their
vacation package to suit their needs and budget and also book related services such as airport
transfers, sightseeing tours, shows, etc.
49
American is the only airline to offer such a robust, one-
stop online welcome for GLBT travelers Adding the comprehensive GLBT community events
calendar, a forthcoming travel newsletter, and other exciting content enhancements to AA.coms
standard features such as fees like other travel sites charge, earning up to 1,000 mile booking
bonus, and Lowest Fare Guarantee were confident that AA.com/rainbow will quickly become a
favorite of GLBT travelers worldwide,
50
said Carrancho (Refer to Exhibit III for a screenshot of
the AA.com/rainbow Web page).

44
Neal Broverman, American Airlines Launches Gay-friendly Web Site, www.advocate.com, November
24, 2005.
45
Andrew Noyes, American Airlines Unveils First LGBT Travel Site,
www.gay.com/business/article.html?sernum=1695
46
AA.com/rainbow Launched by American Airlines,www.allbusiness.com, November 1, 2006.
47
Ten Money Questions for Betty Young, www.queercents.com, November 10, 2006.
48
American Airlines launches AA.com/Rainbow - The First Comprehensive Airline Web Page for GLBT
Travelers, M2 Presswire, November 1, 2006.
49
www.aavacations.com
50
American Airlines launches AA.com/Rainbow - The First Comprehensive Airline Web Page for GLBT
Travelers, M2 Presswire, November 1, 2006.
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Box I
List of Features and Content offered in AA.com/rainbow
Schedules and fares for American and hundreds of other airlines worldwide
AAVacations.com/rainbow for gay-welcome travel packages
LGBT community calendar, listing special rates for major events worldwide
Special e-newsletter for LGBT travelers
Admirals Club
51
memberships and day pass purchases
Business ExtrAA small business travel program
AA Group & Meeting Travel arranging deals for groups of 10 or more travelers
Podcasts with topics and tips of interest to LGBT travelers (coming soon)
Sponsorship proposal submission link
No booking fees
Lowest Fare Guarantee
Ability to manage AAdvantage member account
Adapted from American Airlines Launches aa.com/rainbow - The First Comprehensive Airline
Web Page for GLBT Travelers, www.witeckcombs.com, October 31, 2006.
Through the Business ExtrAA program that was designed for small businesses with LGBT groups
participants, LGBT travelers could support their favorite organizations (a list of such organizations
with their Business ExtrAA identifier codes were available on the AA.com/rainbow Events
Page) each time they booked a flight online on AA.com/rainbow by providing the organizations
Business ExtrAA identifier code. This would ensure that while the traveler earned AAdvantage
miles, his/her favorite organization earned Business ExtrAA points toward free travel. AA viewed
this program as a way of giving back to the LGBT community.
52
In fact, many of the features
offered to the LGBT segment including the Business ExtrAA program were offered to all the
customers of AA. Why reinvent the wheel American Airline products are great, sometimes we
just need to fine tune it so the gay traveler knows that we are speaking directly to them. In the end
we are all just travelers,
53
said Carrancho.
ADVERTISING
AA was not a big believer in advertising to the LGBT segment, rather it relied more on
sponsorships of LGBT events which gave it the required visibility.
54
Nevertheless, it advertised to
this community online and had also tried its hand at print ads. For the first ten years, advertising
wasnt really necessary We could invest our dollars in sponsorship and our logo would appear in
their advertising it would be a two-fer. But the cost of doing business in the marketplace is
now higherother airlines are placing a lot of ads,
55
said Kincaid.

51
It is a loyalty program where loyal customers of AA would have access to a special lounge.
52
American Airlines launches AA.com/Rainbow - The First Comprehensive Airline Web Page for GLBT
Travelers, M2 Presswire, November 1, 2006.
53
Jeff Guaracino, Gay and Lesbian Tourism: The Essential Guide for Marketing (Butterworth-Heinemann,
2007).
54
Michael Wilke, IBM: Beyond Gay Vague, www.thegully.com, January 5, 2004.
55
Michael Wilke, Commercial Closet: American Airlines Flies First Gay Print Ads, www.gaywired.com,
January 10, 2008.
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While AAs logo first appeared in 1994 in a print ad for RSVP
56
as a booking partner, its first paid
advertising appeared only in 2000. In online banner ads on Gay.com, the ad depicted the sketches
of two males. The ads were aimed at highlighting the added leg room in its planes. When the
company launched AA.com/rainbow, it also launched a series of two online ads focused on the
LGBT traveler. The ads executed by TM Advertising
57
, were launched on the travel pages of
prominent LGBT community websites. Both the ads featured gay codes such as the rainbow
symbol and called upon the visitor to click on it and visit the AA.com/rainbow page. One of the
ads promoting the site showed the view inside an AA flight with the rainbow sign adjacent to the
no smoking and fasten seatbelt indicator lights. The ad also carried the message AA First
Major Airline to Offer Domestic Partner Benefits (Refer to Exhibit IV for a banner ad of AA).
58

In early 2008, the company launched two ads both of which resembled the 1950s-era illustrated
posters also executed by TM Advertising and Witeck-Combs.
59
The first ad showed a tourist who
had disembarked from a plane and in the forefront, two carefree men. The punch-line was Fly
forward and the ad also touted its 100% score from the Human Rights Campaigns
60
(HRC)
Corporate Equality Index and called upon visitors to book their flights at AA.com/rainbow. The
second ad was very similar, the only change being that it showed two carefree females and the
punchline said Acceptance Never goes out of style
61
(Refer to Exhibit V for one of the ads).
According to Kincaid, the team wanted to come out with something different rather than the
regular fare and these ads depicted a wanderlust and to show people traveling with someone they
care about. It allowed us to invent our own space and time, and subtly remind people that weve
been here a long time.
62
The ads appeared online as well as in LGBT-focused publications such
as The Advocate. AA was also the first company to advertise on Logo.
Industry watchers felt that this was the first major multimedia advertising campaign by AA. They
felt that the challenge for the airline would be to balance its conservative corporate identity with
messaging that actually struck a chord with the LGBT community.
63

OTHER ONLINE INITIATIVES
In a 2007 market study conducted by Harris Interactive and Witeck-Combs, the researchers found
that among all online adults, and excluding email, gays and lesbians spent more time online, and
the three most popular social networks for LGBT users included Facebook, MySpace, and
Friendster.
64
Compared to just 18 percent of heterosexual adults, 32 percent of gay men and

56
RSVP is one of the leading gay cruise lines.
57
TM Advertising (formerly Temerlin-McClain) is a full-service agency with offices in Dallas, Seattle,
Austin, Houston, New Orleans, and Toronto.
58
www.commercialcloset.org/common/adlibrary/adPrintdetails.cfm?QID=3321&clientID=11064
59
American Airlines Introduces Gay Ads, www.bgay.com, January 10, 2008.
60
Founded in 1980, the Human Rights Campaign (HRC) is the largest civil rights organization of the LGBT
community. The HRC envisions to provide the LGBT US citizens with fundamental equal rights and an
open and safe community and working environment. Corporate Equality Index, a report published by the
HRC annually, rates US businesses on their behavior with the LGBT consumers, employees, and
investors. The criteria for rating included protecting from discriminating employees based on sexual
orientation and corporate policies on inclusion, diversity, health care, training, and domestic partner
benefits.
61
www.behance.net/Gallery/American-Airlines-GLBT-Advertising/113558
62
Michael Wilke, Commercial Closet: American Airlines Flies First Gay Print Ads, www.gaywired.com,
January 10, 2008.
63
http://www.behance.net/Gallery/American-Airlines-GLBT-Advertising/113558
64
American Airlines Launches Exciting New Link Using Facebook Platform, Popular Online Tool for
Many LGBT Travelers, www.witeckcombs.com, March 31, 2008.
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lesbians surveyed said that they were online for between 24 and 168 hours per week.
65
This
prompted AA to bolster its presence in online and also launch services such as In-flight Internet.
With Facebook
66
being the most popular social networking site with the target audience, AA
teamed up with it to enhance its presence among the LGBT segment. With our dedicated LGBT
sales and marketing managers, the Rainbow TeAAm as well as our dedicated gay-welcoming web
presence at www.aa.com/rainbow, we are committed to finding more ways to speak to our most
loyal travelers online Working with excellent partners like Facebook gives us even greater
connectivity in the online world that is so vital to LGBT households,
67
explained Kincaid.
Facebook offered a new, interactive application for users called Travel Bag. To download the
AA application on the Facebook page, the user had to search for Travel Bag in the Application
directory. The application made it easier for Facebook users to share their travel experiences with
other people in their network. It also enabled them to read reviews and comments on restaurants,
shops, and other destinations and create countdowns for upcoming events or trips, etc (refer to
Table I for the components of the new AA application). The application included a link to the
AA.com/rainbow page where the Facebook users could navigate the site and make their travel
choices from their own unique profile page. At American Airlines and AA.com, we know that
one of the great pleasures of travel is being able to share your experiences and knowledge with
others, and our new application on Facebook Platform makes that easy, convenient and fun Its
also a new portal to everything that American has to offer customers through AA.com,
68
said
Derek DeCross, Managing Director Interactive Marketing, AA.
Table I
Components of the AA application on Facebook Platform
Favorites Allowed users to generate a list of their favorite things (e.g. restaurants, gay
nightspots, others places of interest in the town, etc.) and share it with other
Facebook users. Information could be easily organized by category, destination,
network, or previously tagged favorites.
Travelogue Allowed travel journals to be made with photographs, anecdotes, etc. and shared
with other Facebook users.
Trip-O-
Vent
Allowed creation of visual countdowns to important events (e.g. an upcoming trip,
a commitment ceremony, etc.) which could be viewed by other Facebook users.
Pictures could be added and the user could also invite friends to the event.
Adapted fromAmerican Airlines Launches Exciting New Link Using Facebook Platform, Popular Online
Tool for Many LGBT Travelers, www.witeckcombs.com, March 31, 2008.
In what was viewed as another first by an US airline, AA launched an in-flight broadband
Internet facility for passengers in August 2008.
69
Industry observers viewed this as an effort to
target the gay community. Gogo Inflight Internet
70
(Gogo) was to be available to passengers

65
Collier Rutledge, Companies Team Up to Reach LGBT Travelers, www.q-notes.com, April 17, 2008.
66
At that time Facebook (April 2008) at more than 67 million active users.
67
Collier Rutledge, Companies Team Up to Reach LGBT Travelers, www.q-notes.com, April 17, 2008.
68
American Airlines Launches Exciting New Link Using Facebook Platform, Popular Online Tool for
Many LGBT Travelers, www.witeckcombs.com, March 31, 2008.
69
Gay Friendly American Airlines Launches In-Flight Mobile Broadband Internet,
www.ukgaynews.org.uk, August 20, 2008.
70
Gogo Inflight Internet enables passengers in commercial airplane to surf the Web, check e-mail, Instant
Message, access a corporate VPN, etc. It is powered by the Aircell air-to-ground (ATG) Broadband
System, which runs over Aircells exclusive nationwide network. Aircell is a leading telecom operator.
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travelling on AAs Boeing 767-200 aircraft as a fee-based service in all cabins at a charge of
US$12.95 on flights of more than three hours. The prices were set by Aircell and it shared
revenues with the airline.
71

Once the aircraft reached 10,000 feet, users could turn on their Wi-Fi enabled devices such as
laptops, smartphones, and PDAs, open their browsers and be directed to the Gogo portal page
where they could sign up and gain Internet access. While passengers would be able to access the
Internet, mobile phone and Voice over Internet Protocol (VOIP) services would not be available.
This tech innovation will be especially valuable to our loyal LGBT customers many of who are
more frequent and heavy Internet users according to market research... We hope this will serve
many LGBT road warriors well to stay connected wherever we fly them in the years ahead,
72
said
Carrancho.
After testing the service for a few months in Boeing 767-200 aircraft, AA in March 2009
announced that it would expand the service to about half its fleet of aircraft by 2011.
73
Aircell was
working out a range of prices for the service depending upon the usage, type of device used, etc.
For instance, it charged US$7.95 for using a handheld device, US$9.95 for using a laptop
computer on a flight up to three hours, and US$12.95 for using a laptop on a longer flight.
74

SPONSORSHIPS AND OTHER OUTREACH INITIATIVES
Sponsorships played a key role in AAs promotional strategy targeted at the LGBT segment. As
discussed earlier, AAs logo first appeared in a 1994 a print ad for RSVP. It was also a long-term
partner of Olivia
75
.
76
In addition to this, it sponsored a number of events such as the International
Women's Flag Football Association, the Gay Softball World Series, the Gay Super Bowl, GLAAD
Media Awards
77
, etc. For instance, in 2006, AA was a sponsor of the Gay Games held in Chicago
in July. It also offered LGBT travelers flying to Chicago for the games a 5% discount on air travel
for both domestic as well as international flights into Chicagos OHare or Midway Airports,
between July 10 and July 27, 2006.
78

AA was also able to forge innovative partnerships with other LGBT-friendly organizations. For
instance, in June 2006, it entered into a joint marketing partnership with Greater Fort Lauderdale
Convention & Visitors Bureau (GFLCVB)
79
. As a part of the partnership, AA and the GFLCVB
cosponsored press trips for leading gay media members to Greater Fort Lauderdale. They also co-
branded booths and undertook other joint initiatives at LGBT trade shows. We know both are
popular with GLBT travelers, and through our teamwork, we will help ensure Greater Fort
Lauderdale tells its great story as a welcoming and entertaining destination,
80
said Young. In late

71
American Airlines to Expand In-Flight Internet Service, www.mobiledia.com, March 31, 2009.
72
Gay Friendly American Airlines Launches In-Flight Mobile Broadband Internet,
www.ukgaynews.org.uk, August 20, 2008.
73
American Airlines to Expand In-Flight Internet Service, www.mobiledia.com, March 31, 2009.
74
American Airlines to Expand In-Flight Internet Service, www.mobiledia.com, March 31, 2009.
75
Olivia is a premier travel and entertainment company for lesbians.
76
Rainbow Team Monthly News | vol. 7 pg. 1 November Edition, 2007.
77
The GLAAD Media Awards were created in 1990 by the Gay & Lesbian Alliance Against Defamation
(GLAAD) to recognize advertisers that portray a fair, accurate, and inclusive representation of the LGBT
community and the issues that affect their lives. GLAAD is a non-profit organization that works toward
that end.
78
American Airlines: Official Airline of Gay Games VII, www.gaygameschicago.org, April 12, 2006.
79
Greater Fort Lauderdale (Florida, USA) is a popular tourist destination. It is especially popular with the
LGBT travelers.
80
American Airlines and Greater Fort Lauderdale Partner to Target Gay Travelers, www.gaywired.com,
June 1, 2006.
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2006, when AA launched the aa.com/rainbow page, Wyndham Hotels and Resorts
81
came forward
to offer a 20% discount to people booking their travels through the site till April 1, 2007.
82
And in
2009, AA decided to be a site-wide sponsor for Logos LGBT-focused travel website
TripOutGayTravel.com.
The Rainbow TeAAm was involved in a number of outreach initiatives. During the spring, Young
and Carrancho were on the field about 80% of the time, promoting AA at various LGBT events.
You have to be on the road, telling people who you are, that youre dedicated to the GLBT
community One of the main things we hope to accomplish is [to] further penetrate the market. A
lot of the research that has been done shows that the LGBT [community] is a vibrant market with
extra disposable income money that can be can be used for travel,
83
explained Carrancho.
The team could be seen giving out travel certificates and other offers at AAs Airlines Rainbow
Booths at various LGBT events. It strove to reward its loyal LGBT customers in unique ways. For
instance, in May 2008, the team offered a limited number of tickets to the movie Sex and the
City (which released on May 30).
84
The tickets were for the special film previews in two cities
Dallas and Chicago. The tickets were given away by conducting a draw at AAs Airlines Rainbow
Booth at the Gay Travel Expos held in Dallas on May 20 and in Chicago on May 22.
85
On July 15,
2008, AA celebrated the world premiere of Sordid Lives: The Series, with an event in New
York. This was a 12-episode prequel to the 2000 film, Sordid Lives which became a cult classic
with the LGBT segment. The premiere benefited The Trevor Project
86
. In one of the episodes,
Carrancho had a walk-on cameo role. We are honored not only to help introduce this long-
awaited series, but also to show American Airlines brand during the filming,
87
he said.
According to Carrancho, it was easy to make an ad campaign targeting the LGBT segment, but
what actually mattered was how the advertiser was giving back to the community. Therefore, the
team helped local charities, gay and lesbian centers, and other grassroots organizations.
88
(Refer to
Exhibit VI for a list of organizations supported by AA). AA invested around US$1 million
annually in the LGBT community.
89
Experts felt that the support of the LGBT community centers
by AA would help it build a loyal customer base as these centers were frequented by young
people. This provided AA with a chance to build a favorable image with them from an early
stage.
90
AA was also one of the first corporate partners of the National Gay & Lesbian Chamber of
Commerce
91
(NGLCC). American Airlines is pleased to have teamed with the NGLCC to provide

81
Wyndham Hotels and Resorts is a chain of hotels and resorts in the US and Canada. It also has facilities in
Mexico and the Caribbean. It has developed a reputation as a LGBT-friendly organization.
82
AA.com/rainbow Launched by American Airlines,www.allbusiness.com, November 1, 2006.
83
Ross Forman, Business Profile: The Rainbow TeAAm Flying High, www.windycitymediagroup.com,
December 6, 2006.
84
American Airlines Rolls Out Special Previews of New Line Cinemas Long-awaited Feature Film Sex
and the City, www.aa.com, May 12, 2008.
85
Sex and the City Movie Tickets! http://gps.outtraveler.com, May 14, 2008.
86
The Trevor Project which is a nationwide, around-the-clock crisis and suicide prevention helpline for gay
youth and youth who question their sexual identity.
87
American Airlines Celebrates Launch of Sordid Lives: The Series www.aa.com, July 14, 2008.
88
Aefa Mulholland with Ed Salvato, Fly the Gay-friendly Skies: Top 10 Airlines, www.gay.com,
February 23, 2007.
89
Ross Forman, Business Profile: The Rainbow TeAAm Flying High, www.windycitymediagroup.com,
December 6, 2006.
90
Jeff Guaracino, Gay and Lesbian Tourism: The Essential Guide for Marketing (Butterworth-
Heinemann, 2007).
91
The National Gay & Lesbian Chamber of Commerce (NGLCC), headquartered in Washington, D.C., is
a US not-for-profit advocacy organization dedicated to expanding the economic opportunities and
advancements of the LGBT business community.
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valuable benefits to the LGBT business community. This is a relationship that allows American
Airlines to not only support this valuable travel segment, but also positively impact our companys
bottom line,
92
said Young. According to Young and Carrancho, gay-owned businesses had
become easier to identify and market to with the establishment of the NGLCC.
Whether it was feting legendary tennis champion Martina Navratilova (who also happened to be a
lesbian)
93
or providing support and free air tickets to Judy Shepard
94
,
95
the Rainbow TeAAm ways
always there to show their solidarity with the LGBT community. In 2008, in a letter sent to the
Congress, AA also issued a strong endorsement of federal employment non-discrimination
protections for LGBT employees.
96
The company also actively publicized its LGBT-friendly
policies and practices
97
(Refer to Exhibit VII for AAs LGBT-friendly policies and practices).
Even outside their job responsibilities, the key executives at Rainbow TeAAm played an active
role in the LGBT community. For instance, Cirillo was Vice President of the board for the IGLTA
as well as the advisory board of the Turtle Creek Chorale, and was an active member of the Dallas
Black Tie Dinner Committee, US's largest LGBT black tie event.
98
Burr was also involved with
fundraising for the National Center for Lesbian Rights and was a past board member of Dallas
Black Tie Dinner committee. She also served as honorary co-chair of the 2003 Chicago Houses
World Tour gala.
99
Young and Carrancho were also familiar faces at numerous LGBT fundraisers,
actively raising money for a variety of organizations.
100
I love my job With our jobs, were able
to make a difference in the GLBT community. Clearly, one of the most rewarding parts of this job
is that I can make a difference,
101
explained Young.
RESULTS
The LGBT sales and marketing team brought in US$20 million in revenue that could be directly
attributed to that segment in the first year of its launch.
102
The revenues jumped to US$116 million
in 1995 and reached US$189 million in 2002.
103
And thats just what were able to track Were
certain theres a great deal more out there,
104
said Cirillo in 2002. Experts too believed that the
actual figures might be more as only 6%-7% of people in the US self-identified as gay or lesbian.

92
NGLCCs Corporate Partnership, http://76.12.21.32/files/pdf/brochure.pdf
93
Rainbow Team Monthly News | vol. 7 pg. 1 November Edition, 2007.
94
Judy Shepard is the mother of Matthew Shepard who was the victim of a brutal homophobic murder in
1998.
95
Gay Marketing Arm of American Airlines and GLAAD Honour Judy Shepard,
www.ukgaynews.org.uk, March 20, 2008.
96
American Airlines: Flying High for Families (Again), http://pflagblog.blogspot.com, September 29,
2008.
97
American Airlines Expands Diversity and Inclusion Information on its Web Site,
www.targetmarketnews.com,
April 22, 2008.
98
Rick Cirillo Steps Down from American Airlines Rainbow TeAAm,
www.navigaytion.com/page.cfm?Sectionid=1&typeofsite=snippetdetail&ID=274&snippetset=yes&regi
on=107 - 49k -
99
Tracy Baim, American Airlines Exec to Take Charge at Center, www.windycitymediagroup.com,
February 25, 2004.
100
http://www.glhalloffame.org/index.pl?item=280&todo=view_item
101
Ross Forman, Business Profile: The Rainbow TeAAm Flying High, www.windycitymediagroup.com,
December 6, 2006.
102
Rolling Out the Red Carpet for Gay Consumers, The Advocate, February 19, 2002.
103
Robbin Burr, American Airlines GLBT marketing: leading the Way,
www.diversitybestpractices.com, April 30, 2003.
104
Rolling Out the Red Carpet for Gay Consumers, The Advocate, February 19, 2002.
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They felt that people who were reluctant to self-identify were also likely to travel in AA due to its
LGBT-friendly credentials. The return on investment on the initiative was also very favorable. For
instance, Cirillo pointed out that the LGBT-focused teams budget was US$300,000 in 1999 and it
raked in US$193.5 million that year.
105

In addition to this, various studies showed that AA had earned high levels of brand loyalty among
the LGBT consumers with a majority of them indicating that they would prefer to travel with the
airline. By the time Cirillo left AA in 2003, AA had become the Official Airline of more national
and local LGBT leadership organizations than any other carrier. It served organizations such as
GLAAD, HRC, LLEG
106
, SLDN
107
, NLGJA
108
, PFLAG
109
, etc. During his tenure, Cirillo and the
entire Rainbow TeAAm received many awards and recognition. In 1997, Out & About, recognized
Cirillo by inducting him into its Hall of Fame and stated that, as the driving force behind
American Airlines gay marketing and sales effort, Rick has changed the way American and the
airline industry look at the gay market.
110
At the 2003 International Conference on Gay and
Lesbian Tourism, Burr, Cirillo, and Fricke were awarded the Gay and Lesbian Tourism Leadership
Award and at the IGLTA Convention in 2006, held in Chicago, they were honored with the
distinctive Hall of Fame award for their work as the original Rainbow TeAAm and their
contribution to the LGBT worldwide travel community.
111

The growth in revenues continued after Young and Carrancho took over the reins of the Rainbow
TeAAm. According to the company, its LGBT strategy flourished under the leadership of
Carrancho and Young and the duo were instrumental in supporting the LGBT community and
fostering a targeted sales strategy that helped maintain AAs leadership in this important market
segment.
112
Experts also appreciated their initiatives in launching AA.com/rainbow page. Experts
felt that incentive programs such as the Business ExtrAA program helped generate business as
well as loyalty among the target audience.
113
Young and Carrancho were also credited with playing
a key role in AA maintaining 100% in the HRCs Corporate Equality Index score every year.
114

AA continued to be widely recognized as a preferred carrier by the LGBT community and industry
observers felt that AA was secure in its brand position as the most popular airline of LGBT-
choice.
115
(Refer to Exhibit VIII for the top ten LGBT-friendly Airline Carriers) Experts felt that
the efforts put in by the Rainbow TeAAm had not gone unnoticed, with the company winning
many awards and recognition (Refer to Exhibit IX for the awards and recognition won by AA).

105
Marketing to the Gay Community, http://jobcircle.com/career/articles/x/njtc/2915.xml
106
Founded in 1989, LLEG (acronym for The National Latina/o Lesbian, Gay, Bisexual, and Transgender
Organization) is a non-profit agency in the US devoted to organizing the Latina/o LGBT community on
a local, regional, national, and international level.
107
Founded in 1993, SLDN (acronym for Servicemembers Legal Defense Network) is a non-profit legal
services, watchdog, and policy organization in the US, with the stated aim of ending discrimination and
harassment of gay and lesbian US military personnel.
108
NLGJA (acronym for National Lesbian & Gay Journalists Association) is a professional association of
journalists in the US dedicated to unbiased coverage of LGBT issues in the media.
109
Founded in 1972, PFLAG (acronym for Parents, Families, and Friends of Lesbians and Gays) is a group
of family members and friends of LGBT people.
110
Rick Cirillo Steps Down from American Airlines Rainbow TeAAm,
www.navigaytion.com/page.cfm?Sectionid=1&typeofsite=snippetdetail&ID=274&snippetset=yes&regi
on=107 - 49k -
111
AAs Raimbow TeAAm Honored with Hall of Fame Award, www.witeckcombs.com, Summer 2006.
112
American Airlines Names Betty Young to Lead its Diverse Marketing Strategies,
www.echelonmagazine.com, February 9, 2009.
113
Jeff Guaracino, Gay and Lesbian Tourism: The Essential Guide for Marketing (Butterworth-
Heinemann, 2007).
114
IGLTA, Board of Directors 2008 Nominations, www.iglta.org/documents/vote08noms.pdf -
115
Does LGBT Business Sense Make Good Cents? www.pflagcanada.ca, October 2007.
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Experts appreciated AAs efforts to tap the LGBT segment and said that marketing to the segment
made good business sense. They felt that while targeting LGBT consumers, building relationships
was the key, and this had been amply demonstrated by AA and its Rainbow TeAAm.
116

LOOKING AHEAD
According to Young and Carrancho, the core principle of marketing to the LGBT community was
that it had to be a win-win situation for both parties the organization as well as the community.
The initiatives had to add to the bottom line of the organization and the returns had to be
measurable. Our sales and marketing efforts reflect the diversity of our customers Gay
customers are loyal to us because of frequent flyer program, Americans global route, and our
reputation in many communities,
117
said Young.
In February 2009, AA promoted Young to the position of Director Diverse Segment Marketing.
In her new role, Young was to take forward AAs Diverse Segment Marketing strategies, focusing
on enhancing services, support, and outreach to its LGBT, African-American, Hispanic, women
customers, and other diverse population segments.
118
Frizzell said, Betty has a career-long
commitment to inclusion and diversity that is second to none She will play a key role integrating
our customer outreach that best reflects our inclusive business philosophy, allowing us to better
serve our customers.
119
The Rainbow TeAAm continued to be led by Carrancho.
Young and Carrancho expected the LGBT market to grow in the future, particularly in the business
traveler sector. They felt that the outreach initiatives they were taking at the local level would go a
long way in reinforcing their national level commitment to the LGBT community. With
organizations realizing the growing buying power of the LGBT community, they expected the
competition to rise in the future. This would force these companies, including AA, to take a relook
at their products and their strategies to target this segment. They felt that AA was in a better
position to do this as they had years of goodwill built up in the community.
120
According to
Carrancho, We were pretty much alone in our industry for many years Now a lot of our
competitors have similar programs, but we often get the respect because weve been around the
longest.
121


116
Marketing to the Gay Community, http://jobcircle.com/career/articles/x/njtc/2915.xml
117
Jeff Guaracino, Gay and Lesbian Tourism: The Essential Guide for Marketing (Butterworth-
Heinemann, 2007).
118
Nancy Ford, Businesses in the Community that Support the Community,
www.outsmartmagazine.com.
119
American Airlines Names Betty Young to Lead its Diverse Marketing Strategies,
www.echelonmagazine.com, February 9, 2009.
120
Jeff Guaracino, Gay and Lesbian Tourism: The Essential Guide for Marketing (Butterworth-
Heinemann, 2007).
121
Ken Sweet, Corporate America Embracing LGBT Customers, Travel Dollars, www.foxbusiness.com,
April 30, 2008.
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Exhibit I
Key Financials of AMR Corporation
(in US$, million) 2008 2007 2006
Total Revenue 23,766 22,935 22,563
Gross Profit 4,552 6,035 5,980
Operating Income or Loss -1,889 965 1,060
Net Income -2,071 504 231
Adapted from http://finance.yahoo.com/q/is?s=AMR&annual

Exhibit II
A Brief Note on the LGBT Segment and the LGBT Travel Market in the US
In 2002, the buying power of the LGBT segment in the US was estimated to be in the US$350
billion-US$450 billion range.
122
There were approximately 13-15 million gays and lesbians in
the country at that time
123
and companies had become less concerned about the negative
repercussions of targeting LGBT consumers, and were thinking of better ways to understand the
needs of the segment and serve them. Experts felt that many companies had started openly
approaching gay experts running niche marketing agencies across the country. They felt that
there was a change in social perspective with popular TV shows such as Ellen (1997), Will and
Grace (1998), etc. having sensitized the mainstream population to LGBT issues.
Around 2005, the LGBT market received a boost with many companies trying to target the
segment. Experts felt that people had become more LGBT-friendly than they had been in the
early 2000s. It was estimated that during that time, the US companies were spending around
US$232 million annually in gay media and major sponsorships, according to Commercial Closet
Association
124
.
125
For instance, in 2005, the Gay Press Report revealed that 175 of Fortune 500
brands were being advertised in gay print media.
126
According to Witeck-Combs
Communication, Inc.
127
(Witeck-Combs) and Packaged Facts
128
, in 2008 there were 15 -16
million LGBT adults (6-7% of the total US population) with a combined purchasing power of
US$712 billion in the US, an increase of from US$690 billion in 2007.
129
The market was
projected to be US$745 billion in the US in 2009, 120 billion in the UK, C$50 billion in
Canada, and 6.64 trillion yen in Japan.
130
Experts felt that the market was even bigger as the
research studies only covered self-identified LGBT adults 18 and over.

122
Rolling Out the Red Carpet for Gay Consumers, The Advocate, February 19, 2002.
123
Robbin Burr, American Airlines GLBT marketing: leading the Way,
www.diversitybestpractices.com, April 30, 2003.
124
Commercial Closet Association, based in New York City, is a non-profit organization with the stated
objective of fostering understanding, respect and inclusion, LGBT people to achieve a more accepting
society and successful business results.
125
Jeff Guaracino, The Rise in Gay and Lesbian Tourism, Nothing Short of Historic,
www.gayandlesbianmarketing.com/RiseInGayTourism.html - 24k -
126
Does LGBT Business Sense Make Good Cents? www.pflagcanada.ca, October 2007.
127
Witeck-Combs Communications, Inc. , based in Washington, D.C., is a communications firm that
provides strategic public relations and marketing communications services. It specializes in LGBT
issues.
128
Packaged Facts is a leading market research firm. It is a division of Market Research Group, LLC.
129
Report: LGBT Buying Power at $712 Billion, http://outandequalseattle.blogspot.com, July 16, 2008.
130
Does LGBT Business Sense Make Good Cents? www.pflagcanada.ca, October 2007.
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Companies also realized that this was a segment that was very brand loyal. The main reason
you target a group like the gay community is because were willing to reward companies just for
targeting us Theres a huge emotional component there,
131
explained Fernando Trejo, a
management consultant in strategy and marketing. Studies also revealed that the LGBT
consumers on an average had more disposable income compared to the average heterosexual
consumer. For instance, a Syracuse University-OpusComm Group
132
online census found gay or
lesbian household income was 60% higher than the 1999 US median. Pioneering work was done
by Witeck-Combs and Harris Interactive, Inc.
133
(Harris Interactive) in this field in the early
2000s aimed at gathering more information on the buying habits of the gay and lesbian
consumers. Their research in 2001 revealed that though gays and lesbians may not be richer than
the average heterosexual consumer, they had a higher propensity to spend. The research also
found that LGBT consumers purchase decision were influenced by factors such as whether a
company advertised in the gay media (72%); whether it gave back to the community (72%); and
whether the company established and publicized progressive policies toward LGBT employees
(71%).
134

Later in the book Business Inside Out: Capturing Millions of Brand Loyal Gay Consumers
(Kaplan, 2006), Wes Combs and Robert Witeck provided some valuable information about the
LGBT segment. According to them, compared to 60% heterosexuals, 80% gay and lesbians
agreed that they chose to do business with companies that were committed to diversity and equal
treatment of employees. Among LGBT consumers, 70% were very or extremely likely to
consider a brand that was known to provide equal workplace benefits for all its employees
including gay and lesbian employees while 50% of gay consumers were very or extremely likely
to consider brands that supported LGBT causes and philanthropy. They said 90% of LGBT
consumers, were likely to consider purchasing everyday household products and service from
companies that marketed directly to gays and lesbians over competing brands that did not.
135

While the practice of targeting the LGBT community by mainstream organizations dated back to
the early 1990s and gained momentum in the new millennium, niche players in the travel
industry had been courting the LGBT community for many years. The market had been growing
since the late 1970s but it was in the new millennium that it had boomed.
136
Organizations
started realizing the significance of this segment after the 9/11 attacks
137
and the SARS scare
138

in 2003. Post-9/11, when the industry was suffering, gay and lesbians were the only consumers
who had not stopped traveling.
139
According to Community Marketing, Inc.
140
(Community

131
Rolling Out the Red Carpet for Gay Consumers, The Advocate, February 19, 2002.
132
Syracuse University is a private research university located in Syracuse, New York. OpusCommGroup
is a leading marketing, communications and public relations firm specializing on the LGBT market.
133
Harris Interactive, Inc. is a New York-based market research company that specializes in public opinion
research using both telephone and online surveys on online panels.
134
Robbin Burr, American Airlines GLBT marketing: leading the Way,
www.diversitybestpractices.com, April 30, 2003.
135
Does LGBT Business Sense Make Good Cents? www.pflagcanada.ca, October 2007.
136
Ken Sweet, Corporate America Embracing LGBT Customers, Travel Dollars, www.foxbusiness.com,
April 30, 2008.
137
The September 11 attacks, often referred to as nine-eleven, were a series of coordinated suicide attacks
by militant group Al-Qaeda upon the US in 2001. The terrorists hijacked planes and crashed them into
key locations in the US.
138
SARS (acronym for Severe Acute Respiratory Syndrome) is a respiratory disease in humans which is
caused by the SARS coronavirus. There was a scare in 2002 and 2003 that the infection would become a
pandemic.
139
Jeff Guaracino, The Rise in Gay and Lesbian Tourism, Nothing Short of Historic,
www.gayandlesbianmarketing.com/RiseInGayTourism.html - 24k -
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Marketing) the LGBT travel market was US$54.1 billion market in the US in 2003, which
represented about 10% of the US travel industry. Community Marketings online survey of self-
identified gay and lesbian consumers in 2003 also found that 97% of them had taken vacations
in the preceding 12 months, 82% spent more than five nights at a hotel, 76% household incomes
were above the national average of US$40,000, and 84% percent held a valid passport compared
to the national average of 29 percent.
141
According to experts, the LGBT consumers were more
Internet-savvy and this was a suitable medium to target the segment. According to Forrester
Research
142
, gays and lesbians spent 70% of their expenditure on travel online, compared with
59% from other travelers. Despite the favorable characteristics of the market, in 2004, less than
10% of the mainstream travel industry catered to the LGBT segment.
143

According to some estimates, the LGBT travel market was worth US$65 billion per annum
industry in the US alone.
144
As of early 2009, it had a significant share in all categories from
packaged vacations to high-end travel destinations. As a result, companies as diverse as small
niche players to large publicly traded ones were coming forward to tap this segment. There had
been an explosion of magazines and trade publications dedicated to the LGBT traveler.
According to experts, companies were targeting the LGBT traveler due to their high brand
loyalty and high levels of disposable income. Since, they did not have children, they had more
disposable income compared to heterosexual consumers. Research had also shown that they
were more likely to travel.
145
According to Guaracino, in addition to the money that the
company earned, marketing to the LGBT community had other benefits too. For instance, it
gave a positive signal to others groups of people (e.g. African-Americans, Hispanics, Asians,
etc.) that the company welcomed them too; it had a positive impact on employee morale and it
also played a positive image building role as gays were perceived to be trend-setters who sought
out the most happening places.
146

Experts felt that the market was still evolving and with favorable policies that allowed same-sex
marriages and adoption, it was set to develop further. Competition was set to increase in this
segment as companies, and even country destinations were vying with each other in their bid to
tap this segment. While a growing number of companies were trying to tap this segment, experts
felt that merely advertising to target the group by putting a rainbow flag or other gay codes in
the ad was not enough, there had to be a genuine commitment to the LGBT community.
147
How
the company supported LGBT issues and their employees were equally important to this
segment.
148

Compiled from various sources.



140
Community Marketing, Inc. is a California-based market research firm specializing in the LGBT travel
tourism market.
141
Terry Trucco, Courting Gay Travelers, www.nytimes.com, May 16, 2004.
142
Forrester Research is a US-based technology and market research company that provides its clients with
advice about technologys impact on business and consumers.
143
Terry Trucco, Courting Gay Travelers, www.nytimes.com, May 16, 2004.
144
Ken Sweet, Corporate America Embracing LGBT Customers, Travel Dollars, www.foxbusiness.com,
April 30, 2008.
145
Ken Sweet, Corporate America Embracing LGBT Customers, Travel Dollars, www.foxbusiness.com,
April 30, 2008.
146
Jeff Guaracino, The Rise in Gay and Lesbian Tourism, Nothing Short of Historic,
www.gayandlesbianmarketing.com/RiseInGayTourism.html - 24k -
147
Marketing to the Gay Community, http://jobcircle.com/career/articles/x/njtc/2915.xml
148
Does LGBT Business Sense Make Good Cents? www.pflagcanada.ca, October 2007.
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Exhibit III
Screenshot of the AA/Rainbow Web Page



Source: www.aa.com/rainbow
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Exhibit IV
A 2007 Ad of AA Targeted at the LGBT Traveler


Source:
www.commercialcloset.org/common/adlibrary/adPrintdetails.cfm?QID=3321&clientID=11064

Exhibit V
A 2008 Print Ad of AA Targeted at the LGBT Traveler

Source: Michael Wilke, Commercial Closet: American Airlines
Flies First Gay Print Ads, www.gaywired.com, January 10,
2008.
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Exhibit VI
A List of Organizations Supported by AA
The Human Rights Campaign
Gay and Lesbian Alliance Against Defamation
National Gay & Lesbian Task Force
National Center for Lesbian Rights
National Gay and Lesbian Chamber of Commerce
LAMBDA Legal Defense and Education
R Family Vacations
PFLAG
Turtle Creek Chorale
GLBT Resource Center of Dallas
Mautner Project
National Lesbian and Gay Law Foundation
Dallas Black Tie Dinner
Servicemembers Legal Defense Network
GenderPAC
Los Angeles Gay and Lesbian Center
Center on Halsted
Miami Dade County Gay and Lesbian
Chamber of Commerce
North Texas GLBT Chamber of Commerce
Lesbian Community Cancer Project
LGBT NY Community Center
Metropolitan Community Churches
NYC Gay Men's Chorus
Fenway Community Health
GLEE Boston
DIFFA
amfAR
the Family Pride Coalition
Southern Comfort Conference
International Gay & Lesbian World Travel Expo
The Point Foundation
Out for Work
*The list is not exhaustive.
Source: Letter of Nomination: American Airlines,
http://travel.gay.com/letter-of-nomination-american-airlines.html
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Exhibit VII
AAs Policies and Practices
First major airline to implement same-sex domestic partner benefits (2000). Offers equal
health and travel benefits to same-sex partners of LGBT employees.
First major airline to implement both sexual orientation (1993) and gender identity (2001) in
its workplace non-discrimination policies.
First major airline to endorse the Employment Non-Discrimination Act (2008).
First major airline to have a company-recognized LGBT employee resource group -
GLEAM.
First major airline to launch a dedicated LGBT-specific website complete with
comprehensive LGBT event calendar, consumer newsletter and booking engine,
www.aa.com/rainbow (November 2006) and first LGBT site AA.com/rainbow for booking
leisure and vacation travel to gay-welcoming destinations (November 2005.)
Its Admirals Club members are eligible to purchase spousal memberships for their
domestic partners on an equal basis with heterosexual married couples.
First Fortune 100 company to establish an entire gay and lesbian national marketing and
sales team: The Rainbow TeAAm.
One of the leading corporate members of the IGLTA.
AA is a founding corporate member of the NCLCC, as well as the first and only airline to
include LGBT-owned businesses in its supplier diversity program.
First airline national advertiser on LGBT cable network Logo (2007).
Adapted from Letter of Nomination: American Airlines, http://travel.gay.com/letter-of-nomination-
american-airlines.html

Exhibit VIII
Top 10 LGBT-Friendly Airline Carriers
Rank Airline
1 American Airlines
2 Jet Blue Airways
3 Air Canada
4 United Airlines
5 Continental Airlines
6 Delta Air Lines
7 Northwest Airlines
8 Southwest Airlines
9 Alaska Airlines
10 Spirit Airlines
Adapted from Aefa Mulholland with Ed Salvato,
Fly the Gay-friendly Skies: Top 10 Airlines,
www.gay.com, February 23, 2007.
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Exhibit IX
Major Awards and Recognition for AA
Earned the highest possible score of 100 percent on the HRCs Corporate Equality Index.
The only airline to achieve this distinction for seven years in a row (2002 - 2009)
PlanetOut Award for Airline of the Year (2006 and 2007).
The original Rainbow TeAAm sales group was inducted into the IGLTA Hall of Fame in
2006
Dallas Voice Readers Award for Best Airline (2006, 2007 and 2008)
Dallas Pride honored AA for its Outstanding Community Support 2007 and trophy
recognition Corporate Pride Best For Profit Entry for 2007 parade.
Out Traveler Magazine 2005, 2007 and 2008 Readers Choice Awards ranked AA as Best
Airline and the gold standard U.S. carrier for hospitality and service. Inducted into Out
Traveler Hall of Fame in 2008.
2003 International Conference on Gay and Lesbian Tourism Burr, Cirillo, and Fricke
awarded the Gay and Lesbian Tourism Leadership Award (2003)
Arizona Human Rights Fund Corporate Award (2002)
Mautner Project for Lesbians with Cancer Corporate Award (2001)
2000 HRC National Corporate Equality Award (2000)
PFLAG Flag Bearer Award (2000)
Out & About Editors Choice Award for Best Airline (1995 and 1996)
AIDS Action Foundation Community Service Award 1998 for AA, accepted in
Washington, D.C. by CEO Bob Crandall (April 6, 1998)
San Francisco AIDS Foundation Corporate Leadership Award (1998)
AIDS Funders Conference Corporate Leadership Award (1998)
Advocate Magazine and the Advocate Business Traveler ranked AA at the top (June
1995)
*The list is not exhaustive.
Compiled from various sources.










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References and Suggested Readings:
1. New Website Launches for the LGBT Traveler, www.cherrygrrl.com, May 4, 2009.
2. Ken Sweet, Corporate America Embracing LGBT Customers, Travel Dollars,
www.foxbusiness.com, April 30, 2008.
3. Logo Launches TripOutGayTravel.com - The Ultimate Travel Site Featuring the
Hottest Destinations for the LGBT Traveler, http://news.moneycentral.msn.com, April
27, 2009.
4. American Airlines to Expand In-Flight Internet Service, www.mobiledia.com,
March 31, 2009.
5. American Airlines Names Betty Young to Lead its Diverse Marketing Strategies,
www.echelonmagazine.com, February 9, 2009.
6. American Airlines: Flying High for Families (Again), http://pflagblog.blogspot.com,
September 29, 2008.
7. American Airlines: American Airlines Remains Travel Industry Leader on HRC
Corporate Equality Index, www.tradingmarkets.com, September 10, 2008.
8. Gay Friendly American Airlines Launches In-Flight Mobile Broadband Internet,
9. www.ukgaynews.org.uk, August 20, 2008.
10. Report: LGBT Buying Power at $712 Billion, http://outandequalseattle.blogspot.com,
July 16, 2008.
11. American Airlines Celebrates Launch of Sordid Lives: The Series www.aa.com,
July 14, 2008.
12. Sex and the City Movie Tickets! http://gps.outtraveler.com, May 14, 2008.
13. American Airlines Rolls Out Special Previews of New Line Cinemas Long-awaited
Feature Film Sex and the City, www.aa.com, May 12, 2008.
14. American Airlines Expands Diversity and Inclusion Information on its Web Site,
www.targetmarketnews.com, April 22, 2008.
15. Collier Rutledge, Companies Team Up to Reach LGBT Travelers, www.q-
notes.com, April 17, 2008.
16. American Airlines Launches Exciting New Link Using Facebook Platform, Popular
Online Tool for Many LGBT Travelers, www.witeckcombs.com, March 31, 2008.
17. Gay Marketing Arm of American Airlines and GLAAD Honour Judy Shepard,
www.ukgaynews.org.uk, March 20, 2008.
18. American Airlines Introduces Gay Ads, www.bgay.com, January 10, 2008.
19. Michael Wilke, Commercial Closet: American Airlines Flies First Gay Print Ads,
www.gaywired.com, January 10, 2008.
20. Does LGBT Business Sense Make Good Cents? www.pflagcanada.ca, October 2007.
21. Aefa Mulholland with Ed Salvato, Fly the Gay-friendly Skies: Top 10 Airlines,
www.gay.com, February 23, 2007.
22. Rainbow Team Monthly News | vol. 7 pg. 1 November Edition, 2007.
23. Ross Forman, Business Profile: The Rainbow TeAAm Flying High,
www.windycitymediagroup.com, December 6, 2006.
24. Ten Money Questions for Betty Young, www.queercents.com, November 10, 2006.
25. American Airlines Launches AA.com/Rainbow - The First Comprehensive Airline Web
Page for GLBT Travelers, M2 Presswire, November 1, 2006.
26. AA.com/rainbow Launched by American Airlines, www.allbusiness.com, November
1, 2006.
27. American Airlines Launches aa.com/rainbow - The First Comprehensive Airline
Web Page for GLBT Travelers, www.witeckcombs.com, October 31, 2006.
28. American Airlines and Greater Fort Lauderdale Partner to Target Gay Travelers,
www.gaywired.com, June 1, 2006.
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29. AAs Raimbow TeAAm Honored with IGLTA Hall of Fame Award,
www.witeckcombs.com, Summer 2006.
30. American Airlines: Official Airline of Gay Games VII, www.gaygameschicago.org,
April 12, 2006.
31. Neal Broverman, American Airlines Launches Gay-friendly Web Site,
www.advocate.com, November 24, 2005.
32. Out and About Newspaper, Vol.3, No. 8, August 2004.
33. Terry Trucco, Courting Gay Travelers, www.nytimes.com, May 16, 2004.
34. Tracy Baim, American Airlines Exec to Take Charge at Center,
www.windycitymediagroup.com, February 25, 2004.
35. Michael Wilke, IBM: Beyond Gay Vague, www.thegully.com, January 5, 2004.
36. Robin Burr, American Airlines GLBT Marketing: Leading the Way,
www.diversitybestpractices.com, April 30, 2003.
37. Rolling Out the Red Carpet for Gay Consumers, The Advocate, February 19,
2002.
38. Gretchen Lee, Looking Up at American, Curve, November 1, 1999 (Retrieved from
www.accessmylibrary.com)
39. American Airlines Flies First Gay Print Ads,
www.commercialcloset.org/common/news/reports/detail.cfm?Classification=news&QID=
5181&ClientID=11064&BrowseFlag=1&Keyword=&StartRow=1&TopicID=344&subna
v=adcolumn&subsection=adcolumn
40. American Airlines Names New GLBT Sales & Marketing Manger,
http://gayjob.biz/page.cfm?Sectionid=1&typeofsite=snippetdetail&ID=1144&snippetset=
yes
41. Andrew Noyes, American Airlines Unveils First LGBT Travel Site,
www.gay.com/business/article.html?sernum=1695
42. Corporate Equality Index: 2009 Statements from Employers that Rated 100
Percent, ww.hrc.org/issues/workplace/11139.htm
43. IGLTA
44. , Board of Directors 2008 Nominations, www.iglta.org/documents/vote08noms.pdf -
45. Jeff Guaracino, The Rise in Gay and Lesbian Tourism, Nothing Short of Historic,
www.gayandlesbianmarketing.com/RiseInGayTourism.html - 24k -
46. Letter of Nomination: American Airlines, http://travel.gay.com/letter-of-nomination-
american-airlines.html
47. Nancy Ford, Businesses in the Community that Support the Community,
www.outsmartmagazine.com.
48. Marketing to the Gay Community,
http://jobcircle.com/career/articles/x/njtc/2915.xml
49. NGLCCs Corporate Partnership, http://76.12.21.32/files/pdf/brochure.pdf
50. Rick Cirillo Steps Down from American Airlines Rainbow TeAAm,
www.navigaytion.com/page.cfm?Sectionid=1&typeofsite=snippetdetail&ID=274&snippet
set=yes&region=107 - 49k -
51. www.aa.com
52. www.aa.com/aa/pubcontent/en_US/urls/rainbow.jsp?anchorLocation=DirectURL&title=ra
inbow
53. www.aavacations.com
54. www.behance.net/Gallery/American-Airlines-GLBT-Advertising/113558
55. www.glhalloffame.org/index.pl?item=280&todo=view_item
Books:
1. Jeff Guaracino, Gay and Lesbian Tourism: The Essential Guide for Marketing
(Butterworth-Heinemann, 2007).
2. Robert Witeck and Wesley Combs, Business Inside Out: Capturing Millions of Brand
Loyal Gay Consumers (Kaplan, 2006).
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