SPECIAL REPORT


ERWK WKH 1'& RIIHU DQG SD\PHQW RZV as, assuming the agent has entered the correct data, the airline will need to ensure it has a robust fraud prevention VROXWLRQ LQ SODFH DQG EH FRQGHQW WKDW it can proactively handle fraud. In time, the goal for any airline that


has adopted a hybrid approach will be to move to a full NDC model, comprising both improved shopping and payments capabilities, which will enable direct transactions with the end-customer. NDC will enable airlines to look at


more innovative ways to sell to customers. It will allow them to gain more control over their distribution strategy, reduce their reliance on third parties and generate new revenue models. It will also allow them to increase passenger engagement and gain more insight into traveller preferences, enabling the airline to deliver a more customised service. As outlined above, with this


increased opportunity comes increased liability. The main problem is that airlines are not used to dealing with fraud attacks in these new channels. Airlines have typically looked at how


they engage their customers by improving their shopping offer, introducing an optimised NDC-based merchandising approach front-end, but the focus has not always been on optimising payments and mitigating fraud in indirect channels. Right now, Iata is advising how OTAs


and airlines can best work together; however, clearly airlines will need to dedicate larger resources to combating fraud. In short, it is a wake-up call for airlines to adopt a comprehensive fraud solution and take fraud more seriously. It means they will need to update their legacy systems and payment channels.


AIRLINES ARE SAVVIER


The good news is that airlines are becoming savvier about fraudulent activity, including loyalty fraud. They are increasingly switching to revenue-based accrual programmes,


AS NDC TAKES OFF, AIRLINES WILL NEED TO DEDICATE MORE RESOURCES TO COMBATING FRAUD


Today, airlines need an integrated “It is a wake-up call


for airlines to adopt a comprehensive fraud solution and take


fraud more seriously”


fraud prevention platform that protects customers throughout the customer journey to gain a comprehensive view of all their customers so that they can distinguish and protect legitimate customers from fraudsters. They also need to deliver decisions in real-time, DV FRQVXPHUV H[SHFW LQVWDQW IXOOPHQW The platform must build a picture of


consumers that distinguishes genuine from fraudulent behaviour. In summary, if the airline remains in


selling upgrades for a combination of cash and points, and allowing passengers to bid for seats. Points are becoming a currency,


instead of being viewed as just a measure of loyalty, and airlines are striving to encourage customers to spend points through increased opportunities to redeem lower-value rewards like onboard services, rather than let loyalty sit as a liability on the balance sheet. Without a doubt, under NDC they will now see more fraud and their old legacy rules-based solutions unfortunately won’t cut it.


WKH %63 EDVHG SD\PHQW RZV IUDXG liability will in most cases remain with the OTA; however, this means that it will PLVV RXW RQ PDQ\ RI WKH EHQHWV WKDW NDC brings in streamlining payments. In my view, while it will take time to


adopt, anything less than full adoption of the NDC framework is a compromise, especially in the highly competitive environment that airlines operate in today and will drive unnecessary cost


and limit revenue potential. O Stuart Barwood is director of strategic partnerships, airlines & travel, at Forter


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TRAVOLUTION.CO.UK — FEBRUARY 2020 — 17


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