NDC Overview Star Alliance Ambassador Club. 31 August 2018
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1 NDC Overview Star Alliance Ambassador Club 31 August 2018
2 What s the market problem? Airlines Travel Agents Customer Experience Don t have the freedom to distribute their products across channels without being commoditized 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
3 What do airlines want? Revenue opportunities: Differentiation (product description) Merchandizing (ancillaries, fare families) Personalization (based on loyalty, preferences) Dynamic Pricing (based on supply, demand) Cost savings: Increased competition and innovation
4 Together, Let s Build Airline Retailing Why NDC? What is NDC? Who will benefit from NDC? To modernize the way air products are being retailed to travel agents, corporations and travelers A travel industry supported program for the development and adoption of a new data transmission standard Full-service and low-cost airlines Content aggregators and travel agents Corporate Buyers and travelers
5 Traditional Flight Distribution
6 Airline Retailing in an NDC World
7 A new structural baseline 17.2 The new industry baseline Industry feedback: A robust standard as a new baseline Provides functionalities to go for critical mass A solid base to invest in
8 Value chain readiness Airlines 62 airlines certified worldwide momentum Some front runners added commercial model (cost pass through, incentive), some added content differentiation Sales teams are better briefed / trained APIs are improving (functionalities, servicing etc) IT providers and GDSs Lots of players continue to build / improve solutions More holistic view of industry needs (payment, dynamic pricing, reporting etc) Sabre, Amadeus, Travelport announced platform plug and play readiness for 2019 Addressing pain points: servicing, IROPs, mark up etc TMCs and OBTs Gap between Large players and others in terms of readiness Private channel to offset surcharge Sense of urgency to adopt NDC due to content differentiation
9 IATA focus on the TMCs Innovation Reference architecture Propathon Hackathon, Developer Portal, Implementers forums Ongoing, 2018 TMC focus NDC at scale Vision for travel agent possible IT architecture White paper for Air BTS Jun 2018 What s in it for me? Vision for TMC possible future role (s) First release during Air BTS Jun 2018 Matchmaking Expectations by travel agencies from airline APIs White paper for AIRs Oct 2018 Creating value with NDC, evolving models White paper for AIRs Oct 2018 Build easy web access to list of airline products & distributors End 2018 TMC strategic steering GTEC - Global Travel Management Executive Council Established in March 2018
10 NDC Roadmap to 2020
11 and airlines are committing to volume - NDC Leaderboard 21 Airlines that 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
12 The NDC Leaderboard is growing
13 NDC Tools & Comms Channels NDC Certification Registry Up-to-date list of all companies that are considered NDC Certified/Capable Dedicated NDC Microsites For Airlines, Business Travel and Developers Change Readiness Guide for Airlines A support tool for airlines planning their NDC enablement from defining the vision and strategy to initiating the program Info tab on iata.org To access white papers, case studies and guidelines around the NDC standard
14 For more information subscribe to the NDC Hub
15 Together, Let's Build Airline Industry Retailing!
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