New distribution capability (NDC) is a much-discussed topic among the travel agency community, as more airlines move toward adopting the program. Travel advisors, meanwhile, are becoming increasingly savvy about identifying the advantages and adapting their workflows to evolve with the retailing of air travel.
As just about everyone in the retail travel industry knows, NDC is a standard data exchange format launched by the International Air Transport Association (IATA). The program aims to make it easier for airlines to enhance the user experience, create more relevant offers and avoid the heftier costs of legacy distribution models like EDIFACT.
NDC benefits consumers and travel agencies, according to IATA, by helping advisors to access a wider array of content from the airlines and allowing them to make ancillary sales, all while giving customers a more transparent experience.
The topic has made even more headlines in the travel industry this year, as a major airline carrier pulled back from earlier attempts to pressure travel agencies to use NDC by removing nearly half of its fares from traditional GDS channels. The trade strongly opposed the initial move, but the carrier’s current strategy is viewed as a more palatable approach.
“The agency community should give a big thanks to ASTA for pushing back…and reducing the possible negative effects NDC could have on travel agencies,” said Steve Hirshan, senior vice president of sales at Avoya Travel.
Jason Block, CEO of WorldVia Travel Group, acknowledges that the situation is still evolving. “While NDC adoption has increased since late 2023, challenges such as slow response times, limited control for travel agents and a lack of standardization are still prevalent. But we are seeing gradual improvements, as airlines and travel companies refine their NDC implementations.”
“While the concern about reduced agent compensation for GDS-skilled travel agents due to easier booking systems hasn’t materialized yet, it’s a trend we are watching closely as the industry evolves,” Block added.
Indeed, major changes in business practices can naturally cause concern.
Still, Block advocates for long-term advantages to using the new platform, and many advisors are taking steps to stay on top of the new reality. Here are some best practices to make the most of NDC, according to several experts.
Source: Air Canada
Recognize the benefits
Peter Vlitas, executive vice president, partner relations at Internova Travel Group, says that step one toward thriving with NDC is to accept the reality that it’s here to stay — and then to learn how to master it. “The first thing I tell everyone is that they should put it in their head: I have no option,” he said. “Once you accept that, then the rest is easy.”
Despite the obvious challenges, NDC presents attractive opportunities, according to Block. “The potential benefits of NDC, such as lower fares for travelers and reduced debit memos for agencies, remain significant and continue to drive interest and investment in the platform,” he said. “The travel industry is still in the learning curve phase with NDC, but there is a growing consensus that it holds the potential to modernize the sector, attract new talent and create a more interconnected ecosystem.”
Educate yourself
“Training and support for travel agents are essential for the successful adoption of NDC,” said Block. “Both agencies and airlines need to adapt their processes to ensure efficient and effective NDC bookings. The introduction of NDC-capable booking tools from GDS companies, such as Sabre’s Launchpad, will significantly aid NDC adoption, especially among independent advisors who do not typically use GDS systems. The next twelve months will be very interesting to watch, as the GDS companies wage a battle for first-mover advantage. It appears that Sabre is in the lead at the moment.”
Vlitas cites IATA as a good resource. “The IATA web pages have a whole slew of information; really good stuff for anybody who wants to get a deeper look at what NDC is,” he said.
Consider creating an air desk
Having a dedicated air desk can make it easier to deal with NDC, according to Vlitas. “It’s kind of funny how it’s come full circle,” he said. “Back in the day, we had ticketing desk file finishers. Now we’re kind of going back to where we actually have air desks. Internova has built teams to be able to assist the agent; not as much as to who to sell or what to sell, but when they do sell, if something doesn’t work — inevitably, a lot of things don’t work in today’s environment, because of NDC — they’re there to triage the PNR (passenger name record).”
Hirshan noted that certain types of situations are especially appropriate for setting up an air desk. “The two most likely scenarios where it makes sense for a travel agency to develop an air desk are if the current advisors do not have experience selling air, or if the business has reached the point that the agency’s air volume would justify the expense of having a dedicated air desk function,” he said.
Prepare for the future
Even as the industry continues to learn the practical ins and outs of NDC, Vlitas encourages advisors to be prepared for its long-term implications, many of which are positive.
“We’re at a reset right now,” he said. “There’s a great opportunity for the airlines to…move forward in a collaborative way with big TMCs [travel management companies]; for the airlines to say, ‘this is how it’s consumed. What issues are you having…and how can we make it better?’”
“Honestly, it costs us money the longer we have to have two systems — EDIFACT and NDC — because each one is serviced differently, each one has a different duty of care,” Vlitas added. “The sooner we get all get on NDC, trust me, it’s going to be better: better for the young agents and honestly, I do believe some of the older agents will just shift their business to an air desk.”
Since NDC still isn’t capable of handling certain types of sales, there’s still much room for growth — and education, Vlitas said. “There’s a big swath of our industry that the NDC hasn’t even started to be able to deliver.”
And, while this may take a couple of years, the move forward with NDC will be filled with important lessons in change management and advancements in how to better serve clients.
