Adopting NDC: Time to accelerate out of the Grey Area

Let's talk about NDC and the grey area many find itself in. The adoption of the New Distribution Capability (NDC) standard presents a revolutionary opportunity but investment and speed to achieve is lacking. We been sitting on this subject matter as an industry for well over a decade. Any project lasting over a decade would be deemed a failure. We should not see it as a project though, but as a logical evolution we cannot escape, therefore investment needs upping by all parties involved: Airlines, TMCs and OTA's. By embracing NDC and strengthening collaboration with Travel Management Companies (TMCs) and Online Travel Agencies (OTAs), airlines can significantly transform their distribution and service models. Moreover, leveraging full automation for self-service through online booking channels and apps can greatly enhance the passenger experience.

NDC enables airlines to distribute their products more effectively and efficiently. This modern XML-based data transmission standard allows airlines to sell and differentiate their offerings more clearly, providing detailed and personalized fare options directly to consumers and intermediaries like TMCs and OTAs.

Closer collaboration with TMCs and OTAs, utilizing better feedback mechanisms (hello airlines, we're talking to you!!) can ensure a seamless booking experience across various platforms. This partnership allows for real-time updates on fare availability, ancillary services, and personalized offers, thereby enhancing the overall travel experience. Together, airlines and intermediaries can deliver a cohesive, comprehensive service benefiting both business and leisure travellers.

Effective booking management is crucial for maintaining customer satisfaction. By adopting NDC, airlines can grant TMCs and OTAs direct access to their inventory, enabling faster and more accurate booking management. This direct connection helps reduce (in theory) errors, improve transparency, and streamline the booking process.

Additionally, NDC allows airlines to offer dynamic pricing and tailored services, giving passengers more control and choices over their travel plans. This flexibility can significantly boost customer satisfaction and loyalty, as travellers receive more value and personalized attention.

One of the biggest advantages of adopting NDC and embracing digital transformation is the ability to offer full automation for self-service. Modern travellers increasingly prefer managing their travel arrangements through digital channels without needing to contact traditional agent desks. While some may argue that messaging services provided by some Mega-TMCs are sufficient, the future lies in AI and robotics taking over basic processes such as changes, revalidations, reissues, upgrades, and refunds. This shift will drive down staffing costs, allowing funds to be redirected into further tech investments and deploying personnel where they are truly needed.

By offering robust online booking channels and apps, airlines can empower passengers and travel arrangers to handle everything from booking and check-in to seat selection and changes, all in one place. These platforms can provide real-time updates, personalized recommendations, and user-friendly interfaces that enhance the overall travel experience. The current TMC models, with their diverse technology stacks and airline distributions, need to evolve to accommodate this level of service. Distribution should be seen as the initial phase; the continuous improvement of serviceability is where significant continuous investment is required.

With advanced self-service tools, the reliance on agent desks is also significantly reduced. Some advocate for the reinstatement of agent desks to help frontline when NDC goes upside down or with complex NDC issues, but automation ensures routine tasks are managed efficiently, providing passengers with instant solutions and reducing wait times.

TMCs and OTAs need to think about an overhaul of their traditional service models entirely. For example, instead of TMCs manually contacting travellers about schedule changes, they could automate the process by reissuing tickets for rescheduled flights, notifying travellers digitally, and allowing them to confirm or cancel as needed. The current high number deployment of human resources in the TMC sector often hinders technology-driven initiatives in favour of outdated service models as budgets get swallowed up sustaining headcounts.

Airlines can benefit greatly from adopting NDC, enhancing collaboration with TMCs and OTAs, and leveraging full automation for self-service. TMCs and OTAs that fail to invest in the necessary technology will fall behind. These strategies not only improve distribution and booking management but also offer a superior, more personalized travel experience for passengers, ensuring long-term success in a competitive industry.

The road may seem long, complicated - however, as an industry we will get there as long as the parties involved continue collaboration and do things at speed. This is why I went into travel, it's ever moving forward and never a dull moment.

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