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NDC
a standard application programming interface (API) that the corporate’s own in-house tech guys could access. “Let’s take a step back,” suggests Leopold. “Regardless of NDC, are airlines approaching corporates directly for business? If the answer is yes, it is a commercial decision between the airline and the corporate that does not have anything to do with IATA. But wherever a TMC is involved, NDC offers a standard that improves TMCs’ access to airline content, for the benefit of the TMC and the corporate.”
UNIFORM SYSTEMS The TMC bypass is something that Carlson Wagonlit Travel (CWT) notes. Director of programme management, Nigel Turner, says: “It’s inevitable that there will be new routes to market in any industry, and to an extent it’s
While IATA might insist it is not trying to bypass anyone with NDC, clearly there are significant opportunities to do so
preferred seating, a day pass for an airline lounge and so forth. But TMCs using GDSs may not be aware of the entire airline products on offer, and airlines cannot customise the offer based on who is making the request.” With the road warrior in mind,
he also points out that airlines are investing hundreds of millions of dollars in upgrading their products, with lie-flat seats, wifi on international services, new aircraft and so on. “Yet the legacy indirect-distribution model does not support product differentiation – one business class seat looks like every other,” he says. While IATA might insist it is not trying to bypass anyone – GDSs, travel agents, TMCs – with NDC, clearly there are significant opportunities to do so. One TMC circumvention that has been noted is the possibility that a big corporate could avoid the TMCs and/or the GDSs and deal directly with the airline, now that the airline is using
already happening. We are aware of the danger, but ultimately our customers want systems to be uniform. CWT is behind NDC in principle – we welcome any technology which helps us to sell air and, importantly ancillaries, in a standard way.” Elsewhere, Tony Berry, director of industry and fare distribution for HRG, says: “From an HRG perspective, we welcome this. IATA has taken on the responsibility to deliver global standards, and airline members see it as an opportunity to clarify the future of distribution. We have around 300 developers working for us, so the possibilities of introducing NDC standards to enhance a mature booking process are exciting.” Click Travel also welcomes the theory behind NDC, and feels there are opportunities for smaller, tech- based TMCs to profit from any change. Managing director Simon McLean says: “I think the change will be more painful for established TMCs who
have grown up with a model based around a commercial relationship with the GDSs. A new and open way for TMCs to connect with all airlines means we can think of new ways to deliver air content to our clients.” IATA agrees with this sentiment. “TMCs will have more information about the travel offers that are out there than they currently can access in the indirect channel,” Leopold says. “This, in turn, increases the potential value agents can provide their customers. TMCs will be able to offer more service options to customers while, in conjunction with the Electronic Miscellaneous Document [EMD], being able to document and manage non-ticket expenditures.” Managing non-ticket expenditures
is one caveat CWT’s Turner suggests when backing NDC in principle. “The ability to connect into the back office is as important as being able to access the air content,” he says. Another of IATA’s reasons for bringing in NDC is that it will open up competition, not only for technology providers but also for airlines to enter the corporate space. “There exists today a number of carriers that do not participate, or have very limited participation, in the indirect channel,” Leopold says. “Take the example of a low-cost carrier with no GDS presence. NDC will enable such a carrier, which today only sells direct to the customer, to sell via travel agents and TMCs, using a technology compatible with their website. Does that mean low-cost carriers will choose to participate and adopt the standard? That is up to them. The standard is open and will be available to anyone in the industry that wishes to implement it.” An insider at one of the leading
travel tech firms disagreed, telling Buying Business Travel that NDC had the potential to drive out competition in the airline sector. “There will be a cost attached to those airlines which want to use the NDC, and until we have some idea about what that cost will be, there is a danger the initiative favours airlines with the room for big systems investments and which have market power.”
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