The airline industry is constantly evolving with the introduction of new technologies like New Distribution Capability (NDC). However, this modernization has brought about challenges, especially for travel agencies. An ARC working group has been established to address servicing and support issues related to NDC-enabled airline ticket transactions. The goal is to establish best industry practices to alleviate the burden on agencies and ultimately increase adoption of this new technology.
According to data from ARC, in February only 17.9% of air transactions settled were NDC-enabled. Among these, online travel agencies (OTAs) accounted for the majority at 91%, while corporate travel agencies made up a paltry 1%. This indicates a reluctance among agencies, particularly in the corporate realm, to fully embrace NDC technology due to servicing challenges.
The ARC NDC Advancement Working Group recently held its first in-person meeting with representatives from various stakeholders including corporate agencies, OTAs, airlines, and technology providers. The group identified three key focus areas post-transaction: unused tickets, notifications of PNR changes, and fare and void rules.
One of the primary challenges faced by agencies is the inability to exchange unused tickets seamlessly through NDC. The working group discussed ways to address this issue and ensure that agencies can make exchanges for their clients without the need to visit an airline’s website. Additionally, agencies emphasized the importance of consistent notifications from airlines regarding itinerary changes and the reasons behind them.
Another area of concern is the lack of consistency in communicating fare and void rules within the NDC environment. Agencies are calling for more uniformity in how these rules are displayed, similar to legacy GDS bookings. Furthermore, there is ambiguity surrounding the application of DOT’s rule on refunds for cancellations made within 24 hours of booking, which agencies want clarification on.
The ARC NDC working group is set to reconvene in April to further delve into these issues and work towards establishing industry best practices for NDC-enabled airline transactions. By addressing challenges related to servicing and support, the group aims to pave the way for increased adoption of NDC technology among travel agencies.
The collaboration between airlines, technology providers, and travel agencies through the ARC working group is a crucial step towards improving industry practices for NDC-enabled airline transactions. By identifying and addressing key challenges, the group is laying the groundwork for a more seamless and efficient booking process that benefits all stakeholders involved.