The ongoing efforts by airlines to transition travel agencies from legacy GDS systems to NDC platforms have faced resistance from many travel advisors. Even agencies that have made the switch report numerous challenges with post-ticketing servicing. American Airlines, for instance, is moving away from legacy GDSs and aims to operate entirely in the NDC environment. With other airlines likely to follow suit, the push towards NDC adoption is only expected to grow stronger.
ARC’s NDC Advancement Working Group has been established to develop best industry practices for NDC-enabled airline ticket transactions. This initiative is crucial for addressing the inconsistencies in servicing and settlement functionality that arise when transitioning from legacy GDS bookings to NDC. With NDC, airlines control the offers and service the orders, leading to variations in servicing protocols across different airlines. ARC’s working group aims to create a framework for standardizing these practices and smoothing over these discrepancies.
ARC has previously undertaken similar efforts, such as the publication of best practices for debit memo resolution and prevention in 2018. While this initiative received praise for its emphasis on better communication with agencies and timely dispute resolution, its impact on the debit memo landscape remains unclear. The ratio of debit memos to overall airline/agency transaction volumes showed improvement in the first year after the publication, but the pandemic disrupted the progress. Despite this, industry experts like Kathy Campbell from Frosch Travel believe that the standards have been beneficial in providing clarity on debit memos and resolving issues effectively.
At the first meeting of the NDC Advancement Working Group, participants identified three key post-transaction focus areas: unused tickets, notifications of passenger name record changes, and fare and void rules. These issues highlight the need for standardized practices in how airlines, agencies, and technology providers handle post-transaction matters. Over the coming months, the working group will continue to develop standards and guidelines to address these challenges and others that may arise in the transition to NDC-enabled bookings.
The future of airline ticket transactions lies in the successful adoption and implementation of NDC technologies. With airlines increasingly moving away from legacy GDS systems, travel agencies are faced with the inevitable transition to NDC. ARC’s NDC Advancement Working Group plays a crucial role in setting industry standards and best practices for servicing NDC-enabled transactions. By addressing the challenges and inconsistencies inherent in the shift to NDC, the working group aims to create a smoother and more efficient process for all stakeholders involved.