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Preparations for NDC
This study questioned Online Travel Agencies on several areas of preparation for NDC and, perhaps surprisingly, none have been undertaken by more than half of the sample.
However, conversely, only 6% of Online Travel Agencies said they have taken no action at all on NDC, potentially suggesting there is progress in the deployment of the new standards, but it is slower than anticipated.
Diving a little deeper, Online Travel Agencies suggest catering to multiple standards at once is the biggest challenge NDC poses. Yet, significant minorities cite issues with ‘securing content’ and the ‘negotiations’ required to do so. Nearly a third of Online Travel Agencies pointed to problems with the large-scale polling of airline systems required to obtain offers and pricing for travelers during the search process as potential areas of concern.
Focused investment could ease the transition.
With effective NDC search, Online Travel Agencies will be able to respond faster to the traveler and build inspirational use cases – such as destination maps or calendars – without systematically polling the airline. The airline, as owner of the data, will control and decide which content to push into the repository, while demands made of the IT systems of the airline will be reduced.
“At Amadeus we see that NDC volumes have increased by a factor of five compared to 2022”
Ludo Verheggen
Director Air Distribution Product Marketing
Amadeus
What preparations, if any, has your agency made for IATA’s New Distribution Capability (NDC)?
%
Updated our mid- and
back-office systems for NDC
%
Trained our team for
NDC and its implications
%
Collaborating with the industry to limit the impact of polling on airline systems (extreme and inspiration use cases)
%
Ability to fully change
and service NDC bookings
%
Secured access to a wide range
of airline NDC content
%
Invested to ensure we can
operate with both EDIFACT and
NDC over the coming years
%
Able to merchandise new
NDC offers e.g., display
ancillary services
%
We haven’t made any
preparations for IATA’s NDC
What are the biggest challenges for your Online Travel Agency when preparing for NDC?
%
Running systems for multiple content formats in parallel
%
Managing commercial relationships with airlines around NDC content
%
Securing access to airline
NDC content
%
Brining NDC content together with other formats like EDIFACT
%
Airlines limiting polling to Online Travel Agencies (extreme ‘look to book’)
%
Being able to service
NDC bookings
%
Merchandising
NDC content
%
The back-office implications
of NDC
%
We are not facing any challenges preparing for IATA’s
New Distribution Capability
Amadeus recently unveiled a study with Avianca, demonstrating progress from the airline with NDC since signing an expanded agreement with Amadeus in 2021 to supply the travel agency community with its full range of NDC content.
Not only is the airline seeing double-digit growth in its NDC bookings, but the airline has re-focused its commitment to its agency partners too.
“We value our relationships with the agency community and their contribution to our growth. Avianca considers travel sellers and distribution partners as key actors and will look to continue building strong relations with them.”
Catalina Nannig
VP, Sales and Distribution
Avianca
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