BUSINESS NEWS 24: Corporate travel experts discuss AI, NDC and more. Ian Taylor reports from London
BA strategy on ‘journey’ to NDC different to AA
British Airways is “on the same journey” as partner American Airlines in developing new distribution capability (NDC) technology but the airlines have “different strategies”, according to BA’s head of distribution, Sam Robinson. He told the Business Travel
Association (BTA) conference: “We’re on the same journey as a joint business. We have the same vision but slightly different strategies. We’re aligned in terms of where we want to get to, but how we get there will be different.” American Airlines withdrew more
than 40% of its fares from global distribution systems and made full content available only via NDC channels last April, then announced last month it will no longer award loyalty points to customers booking though ‘non-preferred’ agencies – those not using NDC – from May. Robinson acknowledged: “When
BA launched NDC in 2015, we didn’t have the right tools.” But he insisted: “We have made progress. Now we have deals with
Virgin Atlantic chief highlights benefits of NDC
Virgin Atlantic chief executive Shai Weiss described the airline’s approach to NDC as “more considered” than its rivals’ at the BTA spring conference last week. He said: “We’re not the leaders of this revolution. Our approach
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Amadeus, Travelport and 20 other providers. We’ve made it mandatory that technology providers deliver on servicing [NDC bookings] before we go live.” Robinson told BTA members:
“A lot has changed over the past five years. We want to work with you. We can develop [NDC] capability and content, but we need all of you. We want you to give NDC a go and tell
is more considered. We’ve gone slower with our partners.” He suggested: “We’ve all got
confused about the objective of NDC. It’s not just to reduce cost, it’s to introduce better ways to show our inventory and move to a retailing model where you can sell more products. “We won’t surprise our trade
partners. Ultimately, [they] will all have to move to NDC or at least consider it a major piece of doing business.”
Sam Robinson
us where it’s not working. If we don’t know, we can’t make it work.” He added: “I’m not going to
pretend you’ll have access to full content immediately, and I’m not saying it’s going to be easy. [But] if you’re not working on NDC, you’re going to need to.” Amadeus UK and Ireland
commercial director Steven Love said: “NDC could revolutionalise how travel is bought.” He noted Iata has set a target of
achieving 30% NDC distribution among leading member airlines by 2025 and 100% by 2030. “We believe we’ll see a huge acceleration over the next two to three years. The future will be very different,” Love said. But Key Travel group chief
executive Saad Hammad described NDC as “a half-baked solution being forced on travel management companies” and asked: “How realistic is the trajectory?” NDC is a technology standard
developed by Iata to distribute fares and ancillary content to intermediaries via online application programme interfaces.
But Weiss insisted: “We
understand our position in the UK. Our commitment is to remain omni-channel.” He added: “We’ll be taking
more feedback on NDC product this year [and] thinking more about how we price.” Weiss said Virgin Atlantic is
using AI “to ensure there is as much personalised and tailored pricing” as possible and added: “We’ll think about bundles, even how to price in Upper Class and
Premium so everybody gets what they want, rather than buying a ticket that comes bundled with everything.”
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Travel manager criticises shift to NDC channels
The global travel manager of a leading multinational has hit out at British Airways partner American Airlines for withdrawing fares from global distribution systems and making full content available only via NDC channels, complaining there is a “major impact on servicing” bookings. Deborah Short of
pharmaceutical giant GSK said: “Travel management companies have had no money for years and suddenly have to spend millions [on NDC]. I don’t know we fully understand the impact, [but] I’m expecting it to get worse. Each airline wants different things.” James Diaz, UK chief
executive at TMC and technology platform Travel Planet, said his company entered the market as a software developer. “We’re a small TMC, [but] we capitalised on American moving away from the GDSs,” he said. Developing NDC connections
to American was “not that expensive”, he added, but conceded: “There are challenges around servicing [bookings].”
Shai Weiss
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