DISTRIBUTION New horizons By MATTHEW PARSONS


The technology is slotting into place – but first the key players must join forces to work out NDC’s potential


N


Paul Tilstone, managing partner at Festive


ew alliances are emerging as airlines, TMCs and GDSs step up their collaborations on distribution.


Two recent examples include Amadeus’s partnership with Flight Centre Travel Group, and American Express Global Business Travel’s private channel agreement with Air France KLM. Both were announced just last month, and IATA’s New Distribition Capability has played a key part in these latest moves. At a basic level, NDC is an XML-based


data transmission that aims to give airlines more flexibility over product distribution, content, offers and more. However, as more airlines adopt NDC,


so too do they experiment with ways to encourage its take-up. Charging bookers a GDS fee is one common example, yet larger TMCs are negoitating waivers for this. At the other end of the scale, direct


discounts are being offered and in April Lufthansa announced it would reduce some


short-haul, economy class return fares by Ð20 when booked direct. How, exactly, are travel buyers expected to keep up?


BUYINGBUSINESSTRAVEL.COM


Road, says: “It’s easy to criticise the players involved if you don’t consider the whole picture. From what we hear, if you’re a buyer you’re wondering why NDC is taking so long; if you’re a TMC you’re wondering who is going to pay for the necessary technology


“Flight Centre is a key driver in terms


of how NDC functions in practice”


investment; if you’re an airline you’re wondering why people aren’t jumping for joy at your latest discounted fares through private channels.” And apart from potential fare savings,


what is NDC putting on the table? “We’ve already seen an example of what’s achievable in the Siemens/Lufthansa deal to provide fares via an API which gives priority boarding and lounge access to all employees,” Tilstone continues. However, more transparent comparisons offered via NDC will likely pique buyers’


BBT May/June 2018 73


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