Delta Airlines has recently finalized distribution agreements with all three major Global Distribution Systems (GDSs) in order to provide travel advisors with full content access without any surcharge on legacy system usage. During the Delta Business Showcase on August 20, senior vice president of global sales, Bob Somers, announced that Delta has completed multi-year agreements with two GDSs and is close to finalizing the third one. One of the agreements has been confirmed with Sabre, while the other one remains undisclosed.
These agreements include a commitment to full content availability across all channels and pave the way for New Distribution Capability (NDC) and other display enhancements on GDS-owned platforms. The exact duration of the agreements was not specified by Somers, but Sabre referred to it as a “long-term” deal. It is worth noting that Delta had last renewed its agreements with Sabre, Travelport, and Amadeus in 2021.
Somers mentioned that the new agreements will adhere to Delta’s value-based compensation strategy for GDSs, which involves payments being scaled according to the value of each booking. To incentivize higher-revenue bookings, the GDSs will continue investing in improvements to their merchandising platforms, including upgrades to legacy displays and the implementation of NDC platforms.
During the Business Showcase, Delta’s managing director of sales technology and global sales support, Sara Reid, provided an update on Delta’s NDC development. The airline expects to have a basic selling solution integrated with technology partners such as Google, Accelya, ARC, and IATA by the end of the year. Testing for a basic NDC selling and servicing solution with selected agency partners is scheduled to commence next year.
Reid emphasized that travel agencies will have the flexibility to adopt Delta’s NDC solution at their own pace or continue utilizing the airline’s services through legacy GDS systems. Agencies will retain control over when they choose to transition to the NDC solution. To support interested agencies through this transition, Delta has established an NDC consulting team that offers personalized guidance and education to facilitate the adoption process.
Delta’s new distribution agreements represent a significant step towards enhancing the travel advisor experience by providing full content access and promoting NDC adoption. The airline’s value-based approach to compensating GDSs and the ongoing development of NDC solutions demonstrate Delta’s commitment to modernizing and streamlining the booking process for both travel advisors and customers alike.