New Distribution Capability-IATA


Future of Airline Retailing - IATA New Distribution Capability

CURRENT SCENARIO:

Airline Products : 

1. Airline Seat Inventory

2. Airline Branded Fares Inventory

3. Airline Ancillary Products

Airline Sales Channel for Retail Travel Agents:

1. GDS - Amadeus/Galileo/Sabre etc

2. Consolidators

3. Airline Websites

The majority of bookings are done on the GDS by travel agents, they are at a disadvantage because of their inability to access airline, Ancillary Products, and airline, Branded Fare in the GDS.

It is viable today for an agent to sell Airline ancillary products as ticket commissions have been whittled down to 1%, in some instances 0%.

Agents and their staff find it frustrating when they have to access airline, Branded Fares and ancillary products via airline call centers/airline websites.

Thus agents at times tend to look upon Airline/s as better equipped competitors.

FUTURE SCENARIO:

The future of airline distribution will be dramatically more effective. I believe that after the implementation of NDC, airline distribution will evolve to a more flexible & dynamic.

The way the world searches, plans, and buys air travel is continuously changing. A key part of this is the New Distribution Capability (NDC) that IATA is spearheading.

NDC consists of:

1. NDC Shopping (Offer Management)  

2. Airline Profile  (Order Management)

3. Airline Booking (Order Management)

4. Airline Payment & Ticketing

5. Servicing  

6. Interline

The NDC Shopping schemas(APIs) enable airlines to distribute their full product offers and to merchandize their baggage, seat choices and ancillary services, using rich content, in an anonymous or personalized manner.

IATA's NDC is a bold, broad-based initiative which is intended to modernize the way airline products are distributed through third-party channels, including travel agencies. Another objective for NDC is to help the world's travel agency community to improve their productivity in selling airline services

Salient Features of NDC:

NDC is a travel industry-supported program launched by IATA for the development and market adoption of a new, XML-based data transmission standard that enhances the capability of data communications between airlines and travel agents

The NDC Standard is open to any third party, intermediary, IT provider or non-IATA member, to implement and use. 

The NDC Standard enables the travel industry to transform the way air products are retailed to corporations, leisure, and business travelers, by addressing the industry's current distribution limitations:

Product differentiation and time-to-market

Access to full and rich air content

Transparent shopping experience  

Advantages to FULL SERVICE & LOW-COST AIRLINES

Differentiate their Products and Services

Distribute the entirety of the airline's product portfolio, including ancillaries and promotional fares

Present the airline's products in an attractive manner, using rich formats like photos and videos

Expand the amount of information available on each product: attributes, facilities, policies, passenger reviews, etc.

Offer value-added products and services when applicable 

Advantages to CONTENT AGGREGATORS & TRAVEL RESELLERS

Access Full and Rich Air Content of the Airlines

Access to the entirety of the airline's product portfolio, including ancillaries and promotional fares

Work with the real-time fare, product and policies information

Deliver improved comparison capability to customers, based on product and service rather than price only

Provide personalized service based on customers' full travel history and preferences, if they chose to be recognized. 

Advantages to CORPORATE BUYERS & TRAVELERS

Benefit from a Transparent Shopping Experience

Make all airline product and service information available to corporate buyers, reducing the need for out-of-policies bookings

View and compare all air transport options and relevant fares available

Select the most appealing travel option, based on product quality, service level, schedule, and price or what it is they value

Receive personalized offers from preferred re-sellers based on own and complete travel history and preferences 

#IATA #NDC #Airline Distribution #OTA #Schemas #API

Author-Alok Singh

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