Future of distribution Entering a hybrid world
functionality as a GDS, but more-sophisticated versions will be available next year [and] we have a road map to reach the same functionality as a GDS.” He suggests: “It will require two years to be on a par with the GDS.” That won’t mean most airline content will then be available via NDC channels. Valmorbida says: “Airlines have to make [their content] available through their API.” An API is an application programming interface – a software intermediary which allows two programmes or applications to exchange data. He explains: “We can only offer the
functionality of the available API. It’s not our functionality, it is what the [airline’s] API can do [that matters]. For example, when the
FREQUENCY OF ONLINE PURCHASES: ALL ADULTS Purchases in last 3 months
FIGURE 28: %
10 15 20 25
0 5
25% 23% 19% 17% 17% 10% 17% 23% 21% 19% 16% 12% 10% 8% 8% 6% 3% 1% 1-2 Purchases 3-5 Purchases 6-10 Purchases 10+ Purchases
FREQUENCY OF ONLINE PURCHASES: ALL PURCHASING ONLINE All who made online purchase in last 3 months
FIGURE 29: EU
Germany UK
30% EU 70% 1-5 Purchases 10+ Purchases EU 22 | Travel Weekly Europe Report 2018
France Italy
33% GERMANY 67% 49% UK 51% 22% FRANCE 78%
France Italy
19% EU
France Italy
Germany UK
Germany UK
Source: Eurostat 7% 5% EU
Germany UK
France Italy
NDC interface becomes capable of offering interline ticketing, we can integrate it and make it available to agents.” Interline ticketing is not yet possible
through NDC technology, but Valmorbida insists: “We have committed that we will make everything available. Our pitch to agencies is ‘We will make content available to you’.”
DATA ON the frequency of online
purchase emphasises the gap between the UK and other European markets, with the UK out in front for multiple purchases per head (Figure 28).
Almost half of UK online shoppers made 10 or more purchases in the
previous three months (Figure 29) and they made a far higher proportion of high-value purchases (Figure 30).
A hybrid world The transition won’t occur overnight. Valmorbida believes: “The two worlds [traditional GDS and NDC] will co-exist. It is going to be quite a long process. It could be a 10-year cycle. We’ll live for a long period in this hybrid world.” The process will not be cost-free for agencies. “Agents will have to change their systems,” says Valmorbida. “They will have to make investments to upgrade their connection to this new platform. Agencies will have to upgrade their systems. “The [level of] investment will depend on the size of the agency. For large global players with a lot of sophisticated systems it will cost millions to adapt. For smaller agencies operating in a single country, using off-the-shelf product, the investment will be minimal. They can simply take what we produce – depending on how much of the agency IT system is outsourced to us. “It means a future for agencies where
EU
they can be a lot more specialised and focus much more on the user experience.”
France Italy
17% 23% 10%
TW EURO CHART 2C Bar chart - 4 x 5 bars; use same col New version of Report p26, Fig 29 NB Group bars by purchases 1-2, 3 ADD Italy
FREQUENCY OF ONLINE PURCHAS Purchases in last 3 months, all adu 1-2 purchases 17%
Germany 19% UK
3-5 purchases 17%
25%
23% 19% 8%
6-10 purchases ITALY
8% 12% 81%
16% 6% 3%
10+ purchases 7%
Source: Eurostat 10%
21% 5% 1%
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