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New Distribution Capability (NDC) & What It Means to Travel Buyers & Suppliers

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Panel

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PERRY DAVISManager Distribution

Solutions, Americas

Lufthansa Group

JOHN

PITTMANDirector of

Strategic Accounts

ARC

TED BROOKSExecutive Vice

President, Service

Optimization

HRG

JONATHAN

MESSERERSenior Analyst,

Distribution Strategy

American Airlines

LORA ELLISPrincipal (& IATA NDC

Envoy for US)

FESTIVE ROAD

Fact or Fiction???

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After this session, you will ….

• Understand what NDC is and isn’t

• Gain a glimpse of how a travel program of the future might evolve

• Understand why it is important

• Know the latest developments

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Fact or Fiction?

1. NDC is a new technology

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FICTION!!

What is a Standard?

A technical standard is an

established norm or requirement

in regard to technical systems.

It is usually a formal document

that establishes uniform

engineering or technical criteria,

methods, processes and

practices

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What are the Key Benefits?

• Interoperability

• Speed to market

• Lower development costs

• Lower transaction costs

• Increased quality

NDC is

1) an XML-based data transmission STANDARD

2) a “development and market adoption” PROGRAM for the

development of the standard

Example of a Standard

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Fact or Fiction?

2. NDC has 3 levels of certification

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FACT!!

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NDC Certification. Scope & Levels

XML-Capable

NDC-Capable: IT Providers

NDC-Certified : Airlines, Travel Agents, Aggregators

NDC Baseline(OpenAxis)

OTA, All XMLs

Level 1

Basic

Level 2

Offer

Management

•Extensive use of

Offer Management

API

•AirShopping

required

Level 3

Offer and Order

Management

•Extensive use of

Offer and Order

Management API

NDC 1.*, 15.2+NDC 1.1*, 15.2+

NDC 1.1*, 15.2+

NDC Certification

•Basic Shopping:

Ancillaries post

booking

Fact or Fiction?

3. The only part of the value chain set to benefit is

the airlines

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FICTION!!

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Travel Agencies see NDC as an enabler• Customer Service: to help them be more customer focused

• Efficiency: to make selling airline products more efficient

• Competitiveness: to better compete with airline websites

Corporate Buyers see opportunities with NDC• Content: improved, rich content to match ‘airline.com’

• Cost: greater visibility of fare types & ancillary costs

• Control: could encourage the traveler back to the

chosen channels

• Customer Experience: segment traveler types and

personalize their trip

Fact or Fiction?

4. NDC will help airlines sell all of their services

available on ‘airline.com’ via a TMC

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FACT!!!

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Global

Distribution

Systems

Faresvia 3rd party

Travel

Agents

(TMC | OTA |

Independent)

Airline

Schedulevia 3rd party

Availability

Airline

e-commerce

engine

Travelers

(Business |

Leisure)

How Flight Distribution Worked

Airline

Content

Aggregators

(GDS | New

Entrants)

Travel

Agents

(TMC | OTA |

Independent)

Airline

Airline

Offer &

Order

Management

System

Travelers

(Business |

Leisure)

Content

Aggregation

NDC

NDC

How Airline Retailing WorksHow traditional flight

distribution works How airline retailing works

Fact or Fiction?

5. NDC is simply a different name for Direct

Connect

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FICTION!!!

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13

CONTENT & DISTRIBUTION

13

GDS

Aggregator

Air

Hotel

Car

etc

Brand.com

Phone TMC

Go online

Use mobile

Supplier Choice Buyer Choice

User

Inte

rface

Chat!

Inte

rmed

iary

Current vs. future view

Fact or Fiction?

6. There are already 50+ airlines certified

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FACT!!!!

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14

WHAT IS THE LATEST?

All key players are engaged

113

57

5

3 GDSs (Amadeus, Sabre, Travelport) have

confirmed that they will achieve the highest

level of NDC Certification by end of 2018

Airlines are adopting NDC

113 airlines have confirmed to have plans –

including 53 already live

IT providers are embracing NDC

57 IT providers and aggregators are now NDC-certified

5th Iteration of standard (17.2) – Industry plaudits

as baseline for industrialization

113

57

5

3

Fact or Fiction?

7. No TMCs or online booking tools have committed

to NDC yet

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FICTION!!!!

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Fact or Fiction?

8. It will take many years before the industry sees

any benefits of NDC

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FICTION!!!!

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…and airlines are committing to volume - NDC Leaderboard

21Airlinesthat weight 30% of total IATA PAX

have ambitions to contribute to an

industry goal of having

20% of their indirect sales

powered by an NDC API by 2020

Fact or Fiction?

9. NDC is just a big cover up for a broader

commercial shift

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FICTION!!!!

23© 2015 GBTA Silicon Valley Chapter. All rights reserved.

PERRY DAVISManager Distribution

Solutions, Americas

Lufthansa Group

JOHN PITTMANDirector of Strategic Accounts

Airlines Reporting

Corporation (ARC)

TED BROOKSExecutive Vice President,

Service Optimization

HRG

JONATHAN

MESSERERSenior Analyst, Distribution

Strategy

American Airlines

[PLAY VIDEO]

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Questions from the Audience

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