THE TECHNOLOGY
A brave new world
New Distribution Capability could shake up the way we view and buy air travel, and now it’s one step closer after getting the nod in the US. Linda Fox explains
I
n May the US Department of Transport- ation (DoT) ‘tentatively’ gave the go ahead to resolution 787 – the document paving the way for the development of the New
Distribution Capability (NDC). It sparked a frenzy of statements from all quarters, but does it all actually mean? NDC, which is being driven by IATA, the
International Air Transport Association, is a set of standards aimed at overhauling how airline content (fares, extras, routes and availability) is presented to consumers online and via travel agents. It also aims to enable airlines to personalise content and offer ancillary items. The ‘tentative’ decision has been a while in
the making with stakeholders from the travel agency and travel technology sectors initially voicing concerns over the protection of consumer privacy as well as whether NDC will result in a level playing field for all distributors. In response last June (2013), IATA proposed amendments to Resolution 787, which have led to this latest decision from the DoT. Further amendments were made in January to accommodate concerns voiced by Open Allies. The DoT says its approval includes a number
of safeguards to protect privacy and ensure competition and consumer choice as well as stress that the standard is voluntary for airline industry participants. The Department issued a statement: “When
IATA initially submitted its proposal, a number of parties raised concerns that for consumers to take advantage of the new system they would need to provide personal information that could create privacy issues and undermine the public benefits of the proposal. “IATA, together with many of the parties that
had initially raised objections to the proposal, later filed a joint motion asking the Department to approve the proposal subject to new conditions addressing consumer privacy and various other concerns that had been raised. “The Department’s tentative decision acknowledges these steps and further strengthens safeguards to protect consumers. The Department has added several consumer safeguards ensuring that those shopping for air travel could not be required to disclose personal information, and specifying that airlines and ticket agents would be obligated to follow their published privacy policies on the
“The DoT's approval includes a number of safeguards to protect privacy and ensure competition”
“ The DoT has added safeguards ensuring that those shopping for
air travel could not be required to disclose personal information
”
sharing and storing of personal information.” While initially the global distribution giants
also raised concerns about NDC, all three (Amadeus, Travelport and Sabre) now seem in line with the proposals, with an Amadeus blog describing it as a ‘move in the right direction.’ The blog continues: “It should be another
milestone on the path towards the develop- ment of an enhanced distribution capability that is to the benefit of the entire travel industry: from passengers and agents to airlines and technology providers.” Tentative does seem to sum up the mood at
the moment. The DoT’s approval was followed by a three-week consultation period for interested parties to put forward their views. Immediately after the DoT had issued its
statement in May, the Global Business Travel Association issued its own statement stressing the need not only for consumer protection and modern standards but also the requirements of the corporations spending more than US$1.12 trillion annually on business travel. In addition, the organisation plans to develop a voluntary code of conduct to ensure that whatever business model airlines choose also ‘supports the managed travel principles of data capture, transparency in pricing and access to content through chosen channels.’
The next moves will be interesting, not least in light of another release from DoT in May requiring airline ancillary fees to be displayed in distribution channels, although not necessarily making them available for sale.
• New Distribution Capability was debated at The Business Travel Conference in June and buyer concerns revolve around levels of adoption. IATA cannot mandate NDCs use so the worry is that the new standard will lead to a more fragmented distribution landscape with a mix of NDC and non-NDC airlines. See page 14-15 for a fuller report.
26 THE BUSINESS TRAVEL MAGAZINE
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