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A major selling point for both TMCs and their clients is that using these NDC channels means avoiding Lufthansa’s dis- tribution cost charge (DCC) of £14, which is levied on bookings made through GDSs. More importantly for the UK market, British Airways is now charging a £12.50 fee for GDS bookings – this can also be avoided by booking through the airline’s NDC-based channels. None of these moves has been surprising as one of the stated aims of NDC at its outset was to reduce the GDS fees paid by airlines.


TRICKLE TO TORRENT Ironically, the owners of the three GDSs – Amadeus, Travelport and Sabre – are bring- ing their own NDC projects to fruition, which may eventually turn the trickle of NDC-ena- bled bookings into the promised torrent. Stefan Betz, director strategy and com- mercials for Amadeus’ NDC-X programme, says the industry is “still at the beginning of the NDC journey” despite “great strides” being made over the past year. “There’s growing awareness and engage- ment from the travel seller community, and a critical mass of airlines is making serious investments,” says Betz. “Work and investment have been done on all sides of the industry. “Travel buyers should continue to watch this space closely and be ready with updated policies for an NDC-enabled content future. Corporate travel executives need to be vocal advocates of choice and transparency. They should be able to compare and shop across airlines, ensuring that they are receiving the most value for their travel spend.”


TRAVEL BUYERS NEED TO


DECIDE WHETHER THEY WANT TO BECOME FIRST MOVERS


While most of the conversation about NDC and One Order has centred around the technology, what remains unclear is how TMCs cope with the loss of the incentives they currently enjoy when making bookings through GDSs. Martin Cowley, chairman of B2B travel marketplace eRoam and formerly Sabre’s senior vice-president for Europe, Middle East and Africa, is sceptical about NDC and its proposed benefits. He thinks the process is less about offering improved technology and more about chang- ing the business models within the managed travel industry by effectively choking off the revenue stream of GDS payments many TMCs have relied on.


NDC and the increased use of “private channels” by airlines, he argues, could drive further consolidation among TMCs around the world, leading ultimately to less compe- tition in the market and potentially higher fees for corporate clients. “I would encourage buyers to educate themselves,” says Cowley. “A travel manager of a corporate might think it’s not their job, but they should work with their TMC to better understand this stuff and the impact it’s going to have. “Do you have an industry body that sup-


ports you? Talk to airlines about this subject – you fly with these airlines so you can prepare to make some changes. “Being ignorant is not an excuse. It’s not really about technology; it’s all about the business models. Ultimately both buyers and travellers are going to be affected by this.” NDC has been a long time in the making, and it’s finally set to make a real impact on how flights are purchased. The question buyers need to ask themselves is how proactive they want to be in helping to ensure this transformation benefits them and their travellers.


buyingbusinesstravel.com NDC UPDATES


Next year, CLICK TRAVEL and BA will pilot customers for IATA’s new “Settlement with Orders” solution, which uses NDC and One Order standards to create a single reference number for each booking.


CONCUR has made NDC- based content from British Airways and Lufthansa Group’s airlines available to Concur Travel users and their TMCs. Clients can switch to BA’s full NDC content and Lufthansa’s NDC Smart Offer through their Concur Travel configuration, allowing them to avoid paying GDS charges. GDS content will no longer be displayed, however.


BCD TRAVEL has achieved IATA Level 3 NDC certification as part of its drive to deliver NDC-based solutions to its clients. BCD has signed an NDC agreement with Lufthansa and is taking part in NDC programmes run by Amadeus, Sabre and Travelport.


IATA has launched a new free online tool, NDC Matchmaker, which allows airlines, TMCs and content aggregators (including the GDSs) to search, compare and connect with NDC partners. IATA says the tool “increases transparency of their NDC capabilities and facilitates co-operation among different participants”.


2019 NOVEMBER/DECEMBER 85


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