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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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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!!!!
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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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