NDC and how it works in the travel agency environment – this is the third part in a series in which Travel News speaks to role players to get an overall perspective. In Part 3, some international airlines explain their NDC philosophy and some of the processes.
The inception of NDC dates back to 2012 and in 2015 Iata published the first official NDC standard. The first airlines to adopt NDC were Lufthansa, British Airways, American Airlines and Iberia. The concept was introduced as a response to the evolving needs of both airlines and passengers and its underlying motivation was to address the limitations of the ‘indirect’ booking flow. NDC has won over airlines because it makes selling tickets via direct retail channels cheaper, cutting down their dependence on GDSs, which charge airlines for the bookings made through their distribution systems.
Yanik Hoyles, Iata’s Director for Distribution, said in a recent Iata report that there was strong momentum toward NDC across the entire value chain before COVID-19. “Since then, many airlines, technology providers, and travel sellers have intensified this drive and maintained retailing as part of their core strategic priorities and some airlines have begun to adopt a strategy of removing fares from the GDS or creating fares that are exclusive to their NDC channels to accelerate the adoption of the channel – and reduce the costs of GDS fees.”
Currently more than 60 airlines hold certifications with varying levels of support for NDC capabilities. We look at some legacy carriers and how they use NDC in the South African market.
American Airlines
In 2019, American became the first airline to complete end-to-end integration, including ancillaries, through NDC in the Amadeus Travel Platform.
American Airlines utilises three major GDSs and some travel tech companies to provide connections to American's NDC content. On April 3, 2023, the airline signed long-term distribution deals with Sabre, Amadeus and Travelport. NDC content from American is already available via Amadeus and Travelport. It will come to Sabre during the course of 2023.
Emirates
The Emirates Gateway platform consists of three channels. Alongside Emirates Gateway Sync and Emirates Booking Portal, the booking platform also offers agents Emirates Gateway Direct. Using this channel, agents will directly connect to Emirates via Iata NDC standard interfaces, without use of any other intermediaries such as GDSs. Emirates has also signed NDC agreements with Travelport and Amadeus which will be available to South African travel agents in the last quarter of 2023.
Lufthansa
The Lufthansa Group and Amadeus are working to integrate the airlines’ NDC offers into the Amadeus Travel Platform, targeting a gradual global roll-out from 2023 onwards, commencing in selected European markets. Travelport and Lufthansa are in the process of implementing end-to-end NDC functionality. The Travelport launch lays the foundation for a diversified NDC programme giving Travelport agents the ability to access Lufthansa Group airlines’ content through Travelport+. The distribution of Lufthansa Group airlines’ content via the NDC standard is also available in Sabre travel marketplace. The agreements with all three GDSs includes NDC offers from Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, Air Dolomiti and Eurowings Discover.
Qantas
Qantas is connecting GDSs to the Qantas Distribution Platform so that travel agents can seamlessly sell Qantas NDC content. NDC for Qantas is available through Travelport, Sabre and Amadeus Selling Connect platform. The Qantas Distribution Platform improves functionality for travel agents by aligning them with the products and capabilities currently available on the airline’s website, making it easier for agents to sell Qantas products.
Qatar Airways
The Oryx Portal is available for sale of NDC content and offers via a web-based booking portal. It requires only an internet connection – technical integration is not required and it can be used without any implementation or set-up fees. NDC content and advanced travel and ancillary sales are also delivered via GDSs –Travelport next-generation platform, Sabre and Amadeus Selling Connect platform.
Delta Air Lines
Delta is taking a sharply different approach to NDC. In a recent presentation, Senior Vice President of Global Sales, Bob Somers, and Managing Director of Distribution Strategy, Jeff Lobl, emphasised repeatedly that Delta saw NDC as the distribution technology of the future and new technology would be introduced to the market when it’s mature enough to maximise benefit and minimise risk. “We want to be evolutionary vs. revolutionary in our approach to NDC, ensuring benefit to both the customer and the airline. Until NDC matures, Delta plans to work with TMCs and the travel adviser community within the traditional GDS framework.”
In lieu of moving toward NDC, Delta continues to work with the GDSs on tailoring agent desktop displays to better merchandise its full suite of offerings. Delta has also been a first mover in providing value-based booking payments to GDSs, as opposed to flat segment fees, as an incentive for improved merchandising of its higher-end products.
