ovbta ndc status & future implications 03-05-2019 · near future lora ellis for ovbta march...
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NDC TODAY: Status, Engagement & Implications for the Very Near Future Lora Ellis for OVBTAMarch 2019
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NDC: Why?
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WHAT’S THE MARKET PROBLEM?
Source: IATA
Airlines
Don’t have the freedom to distribute their products across channels without
being commoditized
TravelAgents
Customer Experience
Can’t easily access many airline products that are available on the airline
direct websites
Is not consistent depending on where they search for travel and not rich when shopping through travel
agents
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HOW THINGS WORK TODAYTraditional Distribution
Source: IATA 4
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AIRLINE RETAILING IN AN NDC WORLDSpot the difference?
Source: IATA
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NDC Metaphor
Source: BT Summit 2018 | NDC & Direct Connects –What Now?
NDC gives airlines the ability to distribute all of their content through third parties
Questions?
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NDC: Program Update
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NDC BY THE NUMBERS
Source: IATA, for more information visit www.iata.com, click on “Programs”, then “Distribution & Payment”, then “New Distribution Capability”
Airlines signed up represent 61% of industry volumes
21airlines, representing 31% of the industry have committed to 20% of their sales
powered by an NDC API by 202066 IT Providers / Aggregators are capable & certified
3 major GDSs are on board and developing solutions
19 NDC certified implementations for sellers (includes 6 TMCs)
IATA introduced new level 4 certification (servicing)
NDC: Engaging the Value Chain
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INSIDE THE MIND OF THE AIRLINEThe Airline Opportunity via NDC
RICHER CONTENTLOYALTY
INVESTMENT &SPEED TO MARKET
ENHANCED DISTRIBUTION
CONTROL & VISIBILITY
NDC
Source: BT Summit 2018 | NDC & Direct Connects –What Now? 11
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INSIDE THE MIND OF THE BUYERTMAG
TRAVEL MANAGERADVISORY GROUP
Act as a sounding board for IATA to present updates and new initiative insights which may affect the corporate market. This will include NDC and related initiatives
To maintain a dialogue with IATA through TMAG on issues affecting corporate travel programs (“managed travel pain-points”)
To provide voluntary and non-binding ideas, suggestions and create a vision to assist the industry in adopting and benefitting from NDC-enabled technologies and solutions.
To act as a communication channel between IATA and other bodies on which participants are members of (e.g. associations, benchmark groups and committees)
INSIDE THE MIND OF THE BUYERThe Corporate Opportunity via NDC
CONTENTCUSTOMER
COST
CARE CONTROL
NDC
Source: IATA “Taking the Reins” Whitepaper 13
THE TMC OPPORTUNITY VIA NDCFrom the BUYER Perspective (as described by TMAG)
Source: IATA “Time to Fly” Whitepaper
COST
CUSTOMER
CONTENT
CONTROL
CARE
TOTAL MANAGEMENT
POWER OF PERSONALIZATION
REAL-TIME
CURRENT NEED FUTURE NEED
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TMC IMPACT CONSIDERATIONSTMC Models
Waiting for existing provider readiness (aggregation &
agency desktop)
Moving slower due to large / complex IT, current incentive
model
Want to evolve IT and commercial model, using 3rd
party providers
Sense of urgency due to content differentiation
Consider themselves as IT players and have built their own
platform
Moving fast, new commercial models, addressing NDC
opportunities
Most TMCs will fall into a fourth “hybrid” model which features one of the below as primary source of technology while also including elements of technology from one or
more of the other categories
Insourced IT
3rd Party-Based IT
GDS-Based IT
Source: IATA “Time to Fly” Whitepaper
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TMC IMPACT CONSIDERATIONSThe “Personalization & Rich Content” Opportunity
Questions?
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NDC: An Enabler for Value Chain Opportunities
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OPPORTUNITIES FOR THE VALUE CHAINWho exactly does NDC benefit?
AIRLINES§ Enriches the value proposition§ Reduces commoditization§ Supports increased customer loyalty§ Enhances distribution of products and services§ Creates potential growth through new partners§ Enables Simplification
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OPPORTUNITIES FOR THE VALUE CHAINWho exactly does NDC benefit?
AGGREGATORS§ Benefits existing tech providers & encourages new
entrants § Allows them to enrich the airline value proposition§ Expands the reach of both TMCs and OBTs with
richer content and new products to provide a consistent shopping experience
TMCs§ Creates the opportunity to be more customer focused§ Enables efficient selling of airline ancillary products§ Reduces the gap with “brand.com” websites
SBTs§ Brings a seamless UX for the traveler/travel arranger § Grants control to the corporation
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OPPORTUNITIES FOR THE VALUE CHAINWho exactly does NDC benefit?
CORPORATION (BUYER)§ Enables rich content to match “brand.com”§ Brings greater visibility into fare types & ancillaries§ Could encourage the traveler back to chosen
channels, better enforcing policy§ Provides ability to segment traveler types &
personalize their trips
BUSINESS TRAVELER / ARRANGER§ Brings rich content to match ”brand.com”§ Provides frequent flyer recognition and benefits associated
with within the chosen channels§ Allows amenities to be included with corporate bundles§ Brings better trust of corporate channels
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What next?Making the most o f NDC
NEXT STEPS
Re-des ign your book ing p la t form and exper ience
STEP ONEDETERMINE CAPABILITY REQUIREMENTS
STEP TWO
STEP THREE Cost Benefit Analysis: CTD or TMC?
“MEET & GREET” WITH RIGHT FIT TMCs
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Ask yourselfDo I know what NDC is? Do I have a full understanding of its impact on my (or my client’s) program?
Ask your suppliers
Make a planHow will NDC affect your (or your client’s) policy? Ensure NDC is included in your RFPs. Engage internal stakeholders.
What are their (your) retailing strategies? Can your chosen tech aggregators consume NDC content? What is your TMC’s attitude toward NDC? How will this affect you?
Questions & Discussion …
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