new distribution capability (ndc) -...

29
Simplifying the Business 1 © COPYRIGHT IATA 2012 New Distribution Capability (NDC) Andrei Grintchenko IATA

Upload: vanhanh

Post on 23-Aug-2018

216 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 1 © COPYRIGHT IATA 2012

New Distribution Capability (NDC) Andrei Grintchenko IATA

Page 2: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 2 © COPYRIGHT IATA 2012

Agenda Ö  What NDC is about Ö  What’s changing Ö  What it looks like Ö  The NDC value proposition Ö  Who are we engaging with Ö  Next steps Ö  What NDC is NOT about Ö  Deep dive into governance and workstreams

Page 3: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 3 © COPYRIGHT IATA 2012

Page 4: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 4 © COPYRIGHT IATA 2012

Ö  NDC = New Distribution Capability = Industry standard

Ö  Balanced view, win-win-win equation

Ö  GDS, IT providers and agents are participating

Ö  For passengers – more choice of products and services, more personalization, and more transparency

Ö  Fill the gap – Direct vs. Indirect

Ö  Revenue opportunity – Increased sales of ancillary products and services, product differentiation, personalized offering

What NDC is about

NDC in a nutshell

Page 5: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 5 © COPYRIGHT IATA 2012

What is Distribution

Ö  How the airline product gets to their customer

Ö  All the processes are connected

NDC will first focus on building standards that impact the shopping process

Airline Distribution Life Cycle

NDC focuses on this aspect of the process

What NDC is about

Page 6: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 6 © COPYRIGHT IATA 2012

Introduction to New Distribution Capability Ö  What IATA member airlines are saying:

Ö  Need ability to differentiate through innovation and personalization

Ö  Need ability to sell what they want to whom they want through more channels

Ö  What is IATA going to do about it: Ö  Setting Industry Standards to support airline distribution capability:

developing a standardized method for airlines to describe their products and the options available.

Ö  The new standards aim to stimulate competition, innovation and offer more choice to consumer

What NDC is about

Page 7: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 7 © COPYRIGHT IATA 2012

The Problem Today Ö  Airline pushes the data – GDS constructs the offer

Ö  The “push” has limited interactivity with the airlines Ö  Constraints with ancillary trend, sophisticated dynamic pricing

revenue management and increasing data mining usage Ö  New technology: More agile, faster and more cost effective

What NDC is about

Page 8: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 8 © COPYRIGHT IATA 2012

So… What is NDC About? Enabling the capabilities that exist on the airlines’

website through Indirect channels

Ö What NDC is about

Page 9: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 9 © COPYRIGHT IATA 2012

So… What is NDC About? Enabling the capabilities that exist on the airlines’

website through Indirect channels Ö  There are 2 basic requirements

Ö  Developing a standardized method for airlines to describe their products and the options available - A standard way of connecting - common API

Ö  Product differentiation, Personalisation through Authenticated Shopping

Ö  The initial scope is the shopping process Ö  In tomorrow’s new distribution, airlines will have greater ability to

interact with who is requesting and provide tailor-made product offers

Ö  Product innovation / Differentiation / Personalization

What NDC is about

Page 10: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 10 © COPYRIGHT IATA 2012

•  It is critical airlines construct/own their product. Need to connect to customers through indirect channels with interactive relationship

•  Should use modern messaging. XML based protocols and web services as an example

•  Must not to be constrained by backward compatibility with existing legacy messages

•  Standards must facilitate authentication of customer identity, enable personalized offers through the whole distribution supply chain

•  The new model will be able to cope with changes and support a shopping basket approach (to add and remove product)

•  The ways to display product attributes will be standardized to facilitate comparison on sites such as fare comparison sites

Key Principles New Distribution Model

What NDC is about

Page 11: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 11 © COPYRIGHT IATA 2012

Airline Distribution Tomorrow The Airline builds & owns offer, personalized for consumer

What NDC is about

Page 12: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 12 © COPYRIGHT IATA 2012

Schedule

Airline

Fare Filing

Availability

Airline Distribution Today Push content via 3rd parties to GDS

Builds content

Agent

3rd

Parties

GDS

Cus

tom

er

What’s changing

Page 13: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 13 © COPYRIGHT IATA 2012

Airline Distribution Tomorrow Dynamic Airline Shopping

Airline

Product

Price and Availability

Engine

Dynamic Airline

Shopping

Interface

Agent

Cus

tom

er

Aggregator

Agent

What’s changing

Page 14: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 14 © COPYRIGHT IATA 2012

Shopping for air travel today

Ö Search by city-pair and date

Ö Compare on price or time

Ö Limited product information

What it looks like

Page 15: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 15 © COPYRIGHT IATA 2012

Shopping for hotel today

Ö Search by ratings and deals

Ö Compare on value to consumer

Ö Rich product information

What it looks like

Page 16: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 16 © COPYRIGHT IATA 2012

Shopping for air travel tomorrow with NDC Is it possible?

Ö Yes. Airlines already offer today much richer content than what consumers can find on travel agent websites which use GDS data.

What it looks like

Page 17: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 17 © COPYRIGHT IATA 2012

Shopping for air travel Tomorrow with NDC (IATA mock-up)

Ö Search by affinity and value

Ö Compare on value to consumer

Ö Rich product information

Ö Transparency and choice

What it looks like

Page 18: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 18 © COPYRIGHT IATA 2012

NDC value proposition

Ö  Consumers Transparency (all-inclusive), choice (full-service & LCC), personalization

Ö  Airlines Differentiation, innovation, customization, time to market

Ö  Travel agents More content, better customer information, in one place

Ö  Aggregators More content, incentive to innovate

Value Proposition

Page 19: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 19 © COPYRIGHT IATA 2012

Value proposition for agents

Ö  Broader access to airline products: one stop access to ancillaries and other airline services will enable agent innovation and potential new revenue streams

Ö  Better service for clients: ability to present broader value added to clients via customized offers - if the customer chooses to be identified

Ö  Increased relevance of travel agent in comparing complex product offers

Value Proposition

Page 20: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 20 © COPYRIGHT IATA 2012

Ö  More choice Ö  More complete product offers Ö  More places to shop for travel Ö  More ability to comparison shop on complete

offer Ö  More ability to get personalized offers based on

your preferences if you choose to do so

Value proposition for customers

Value Proposition

Page 21: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 21 © COPYRIGHT IATA 2012

NDC STAKELHOLDERS

AIRLINES

ACADEMICS

LCC IATA

REGULATORS

EC

US DOT

GBTA

ETTSA

ASSOCIATIONS

ECTAA

ACTE

WTAAA

SBT

AIRLINE IT

FILING

3rd PARTIES

GLOBAL TRADE MEDIA EVENTS

IT PROVIDERS

KDS Concur

ATPCO OAG

Easyjet Jetstar

Air Canada Air France/KLM Delta United BA Emirates Cathay Pacific Singapore Korean Malaysia Small &Medium Carriers

Navitaire SITA Amadeus Sabre Travelport Travelsky

DISTRIBUTION CHANNELS

RETAIL TRAVEL AGENTS

GDS

TMC

MAJOR OTA

Sabre Amadeus Travelport Travelsky

Expedia Priceline Hipmunk Priceline

HRG AMEX CWT BDC Travel

META-SEARCH

Skyscanner Google Flight Kayak

Independents Small networks

Who we are engaging

Page 22: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 22 © COPYRIGHT IATA 2012

The NDC Roadmap

Next Steps

Page 23: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 23 © COPYRIGHT IATA 2012

Misperceptions about NDC Ö  NDC is an airline effort to circumvent agents and go direct to the customer

Agents continue to offer significant value to customers navigating complex offers Airlines will rely on agents more in a more cost effective and agile distribution environment

Ö  NDC is a GDS bypass GDSs part of NDC development team GDSs, like other IT companies, will be able to aggregate expanded airline content and offer comparison shopping

Ö  NDC will mandate customers provide personal information to buy tickets Customers can provide personal information for customized offers or remain anonymous (no different to other shopping experiences)

Ö  NDC is an airline driven solution to meet only airline needs NDC is an industry collaborative effort across the entire value chain that benefits the entire chain

What NDC is not about

Page 24: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 24 © COPYRIGHT IATA 2012

Ö Resolution Ö Governance Ö Working Groups

Deep Dive Time for a deep dive

Page 25: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 25 © COPYRIGHT IATA 2012

Governance and Resolution 787

Page 26: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 26 © COPYRIGHT IATA 2012

Ö  Set up under Passenger Distribution Group Ö  Chaired by Lufthansa with vice-chairs from Air

Canada and Advantage Travel Centers Ltd (UK) Ö  Objectives

Ö Detail NDC business requirements and deliver first release of XML schemas to be adopted as the NDC Standard

Ö Produce and maintain NDC Implementation Guidelines

Ö Identify NDC impact across distribution value chain

DDX Working Group

Page 27: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 27 © COPYRIGHT IATA 2012

DDXWG Workstreams

Ö  Strategic Workstream: define the business requirements and the overall architecture of the new distribution capability using the top-down approach

Ö  Tactical Workstream: focus on the details of business

requirements for authenticated shopping with a view of building the first version of the reference implementation (i.e. a bottom-up approach)

Ö  Impact Assessment Workstream: identify the impact of the new

distribution and provide recommendations how other impacted standards may need to be modified

Page 28: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 28 © COPYRIGHT IATA 2012

DDXWG 2 Highlights Ö  Over 60 participants representing:

Ö 16 airlines Ö 7 travel trade organizations Ö All major GDS Ö  IT Providers and other industry entities (ie ATPCO,

ARC) Ö  Group exercises addressing various aspects of NDC:

Ö Formulate and reviewed expectations and guidelines for Industry Pilots to be launched this year

Ö  Impact in other segments of the distribution value chain Ö Creation and review of use cases under NDC scenarios

Page 29: New Distribution Capability (NDC) - NBTAnbta.no/wp-content/uploads/2014/11/iata_ndc_presentation_nbta.pdf · Simplifying the Business 23 © COPYRIGHT IATA 2012 Misperceptions about

Simplifying the Business 29 © COPYRIGHT IATA 2012