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New Distribution Capability (NDC) has become a more common acronym in the travel industry than, well, GDS (Global Distribution System), but NDC (Enriched Airline Shopping Experience Technology) is more prominent in the business news. It has been seen. Recently, American Airlines has set a deadline for connecting distribution channels.
Several major industry organizations and other parties opposed the deadline, but American stood by the change.
But what does all this mean for travel advisors and airlines that sell their tickets? While tickets sold through NDC channels remain a small percentage of all transactions, Paige Blunt, general manager of Direct Connect and ONE Order at the Airlines Reporting Corporation (ARC), said that number is increasing over time and airlines and consultants have changed their approach. Business.
ARC plays two main roles in air travel procurement. One is to be the repository of all data surrounding airline ticket purchases, collect that data and analyze it for multiple data products. The second, and most prominent role, is to be responsible for the agency’s accreditation and settlement so that when a ticket is paid, the ARC initiates billing and/or payment on behalf of the airline. All told, ARC acts as an intermediary between 300 airlines and 11,000 travel agent offices. Arranges airline ticket sales for agencies located in the US and US territories – for flights worldwide.
The backlash surrounding the American Airlines ultimatum is part of a long-term process because it’s a radical change in the way travel vendors have been doing business for years. From ARC’s perspective, she says, “We want to support all stakeholders and enable them to do business the way they want to.”
After several years of existence, Blunt said, NDC has become a brand in its purest form, like Kleenex tissues. Everyone uses the term, but it means different things to different suppliers. The technology is standardized but may vary depending on the vendor’s implementation.
Paige Blunt Senior Manager of Direct Connect and ONE Command at Airline Reports Corporation. (Photo credit: ARC)
If consultants have been working at the big three global distributors (GDS) for many years and want to get NDC, they still can because all three now offer it. In ARC’s case, 90 percent of sales will continue to be through traditional GDS channels, while 10 percent will be handled directly through NDC. That amount still represents a large amount of money. Consultants, Blunt said, “now have the ability to use the same system in different ways.
NDC’s positive aspects center on its ability to customize and personalize sales – allowing traveling salespeople to reserve seats, as well as prime seats, airport lounge passes, vegetarian meals and more on the central stage.
What does it mean to be a consultant ready for NDC? According to Blunt, that means they have the ability to service registrations through NDC. This requires a connection to one or more aggregators to access and service these NDC transactions. This could mean changing seats, changing schedules and managing caregiving responsibilities, among other options. Being NDC ready for an airline means that they have the ability to provide NDC content through direct communication with the agency.
For all that has been said about the NDC, Blunt said, “We are still in a mixed world. As the landscape begins to change. It’s going to be a mixed world for a while – it’s hard to predict how long. ARC now has 24 airlines through Direct Connect with 12 more in the pipeline.
The good news for advisors is that ARC will continue to operate the way it always has – acting as a clearinghouse for airline sales. Regardless of the booking source, Blott said, ARC provides a way to settle transactions using its trusted platform and agencies know what they want. Output files remain the same as the list of transactions that were resolved that week. No matter what distribution takes place, ARC will allow the transaction to be settled the way it always has been, he said.
And as an intermediary between buyers and sellers, according to Blunt, ARC is working to educate consultants on the new landscape – by creating its own webinars and partnering with distribution systems.
In addition, new companies have emerged with the new technology – including Duffel, Atriis and Travelfusion and serve as aggregators of airline products with NDC capabilities.
In the end, and despite the challenges, Blunt believes there is a lot of value in what the airlines are trying to accomplish. The goal, she said, is to help agents create a more customized experience for travelers. If an advisor discovers that a traveler always likes a window seat, lounge pass, and vegetarian meal, the advisor can provide this to the customer more efficiently.
Topics from this article to explore
American Airlines and Airports
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