Since the first announcement of NDC in 2012, it has raised the hackles of just about everyone. Views have matured and improved.
NDC will be here next year and it’s a good time to revisit.
For anyone who doesn’t remember, NDC is from IATA – New Distribution Capability:
“There is a gap between direct (airline websites) and indirect (GDS/travel agent) channels.”
IATA
This is due to the fact that airlines today use two different formats:
- Internet programing language (XML) through their websites – offering travel consumers an online experience similar in content and display to what they can find on retail websites
- Less flexible pre-Internet message protocol (EDIFACT and TELETYPE) when selling through the indirect channel (GDS/travel agent) which does not support personalization and customization”
Airline systems were designed pre-Internet; this is all about using more modern standards to bring air ticket booking up to speed with the technology available on other travel products.
It is also about big data. The ability to collect, share and utilise information about individual search and booking patterns across a number of airlines.
So, where does the fear lie?
1. Change
People struggle with change.
Anything new and they will crawl into their shells and start sucking their thumbs whilst simultaneously calling for their mum.
It’s human.
Often the change happens and we say “oh, I missed that”.
2. Big data
Not discussed enough.
Information harvesting on your travel preferences which may manipulate back to you what you see and how much you might pay.
I mean Facebook would never use that information for commercial gain would they?
3. B2C direct on the internet
The Internet challenge, in my mind, is valid.
roomsXML thrives and prosper because we integrate standardized feeds from a number of global wholesalers into one searchable database.
Global buying power means better prices and a broader product range than an individual in-house supplier. Can’t be argued. Standardized Technology facilitated our growth.
Standardised XML technology for NDC means Trip Advisor, Expedia and Bookings.com are should already be working on NDC compatible airline booking engines.
What about Google? There is your big player who has been tracking search queries for years and not really showed its hand. They are too busy right now to comment.
So NDC becomes a pathway for more powerful online booking engines and airlines going direct to public.
Who is complaining?
- Half a dozen senators in Washington are concerned the bulk data collection will lead to price discrimination
- In 2012 Amadeus said it was about price manipulation
- A US lawyer suggested it would kill the travel industry
- IATA suggesting the fear is about posturing
- NDC appears to involve a group of airlines attempting to collectively impose on buyers…
Some good positive responses amongst all that too.
So the future?
IATA says that NDC will unlock revenue opportunities for travel agents. It’s a common thread in all the discussion .
From my 15 years working on building systems, technology like this is a great step to remove layers and increase thin margins.
In this context, agencies are a layer.
But the future is best summed up by:
“Today’s airline distribution network is changing with or without NDC.”
Aleks Popovich, IATA
Too late to complain, it comes next year.
