The implementation of New Distribution Capability (NDC) within the airline industry represents a transformative shift in how airlines and travel agencies interact with consumers. As the standard developed by the International Air Transport Association (IATA), NDC enables airlines to offer richer content and personalized services through technology that better aligns with consumer expectations. A case in point is Accelya, a prominent player in this field, which recently disclosed that it experienced a remarkable doubling in its NDC volumes over the past year. With major airlines such as American, United, and Lufthansa embracing NDC, the question arises regarding the future trajectory of this initiative, especially in light of recent hesitations from travel advisors and the corporate travel sector.
Despite the promising growth figures, barriers to widespread adoption of NDC persist, particularly within the corporate travel arena. Travel advisors appear to exhibit a cautious stance towards embracing the new technology. There is an apparent need for education to address prevalent misconceptions about the capabilities of NDC. Accelya’s Chief Customer Success Officer, Tye Radcliffe, highlights that considerable growth is not solely attributed to traditional players but also finds vigor in innovative newcomers within the travel technology space. This flourishing ecosystem based on creativity and technological evolution is critical for invigorating NDC adoption.
Increased desire for real-time data and personalized offerings has propelled many agencies to reconsider their positions. The shift from static pricing offers to dynamic or continuous pricing, which provides airlines with the freedom to set pricing based on demand fluctuations, is one factor contributing to NDC’s growth. As enterprises become aware of the competitive edge that personalized offerings deliver, momentum towards NDC adoption is anticipated to speed up.
The global distribution systems (GDS) – Sabre, Amadeus, and Travelport – play a vital role in the transition to NDC. As they strive to adapt and expand their offerings to include NDC capabilities, travel agencies increasingly depend on their technological advancements to streamline transactions. The expectation is that as GDS integrate NDC functionalities, agents will experience enhanced accessibility to richer content thus encouraging a broader acceptance of this standard. Industry experts predict a surge in transaction volumes as agencies begin to leverage the improved services the GDSs aim to provide.
Nonetheless, challenges remain. Current GDS offerings, while improving, still lack certain key servicing capabilities that would make the transition smoother for agencies. A comprehensive list of essential features was recently provided by American Express Global Business Travel (Amex GBT), underscoring that certain functionalities are still awaited before agencies feel fully comfortable undertaking a switch to NDC.
In addition to established GDS companies, several new players have emerged in the marketplace. Organizations like Spotnana and Navan are finding innovative ways to optimize NDC functionalities. Their agility in navigating potential hurdles presents a contrasting dynamic to traditional TMCs that may be hampered by reliance on GDS timelines. This flexibility and speed are enabling new entrants to not only compete but potentially outpace established players in fulfilling agency needs.
Tye Radcliffe emphasizes that meaningful content now flows through NDC channels, which is vital for capturing corporate clients’ interests. By offering engaging and personalized options that transcend the limitations of legacy systems using traditional EDI formats, airlines can benefit immensely.
The trajectory of NDC is undoubtedly marked by both challenges and possibilities, as it endeavors to redefine how airlines and travel agencies deliver services. A sacred alliance between educational initiatives, technological advancements, and innovative players appears essential to further propel NDC adoption into the mainstream. As travel agencies gain confidence in the GDS platforms and awaken to the potential enriched experiences that NDC promises, the stage is set for a potent evolution in airline distribution strategies. The industry stands on the cusp of a new era, where NDC could significantly enhance operational efficiency, customer satisfaction, and ultimately, commercial growth.