The New Distribution Capability (NDC) under development by the International Air Transport Association will help travel agents close the gap on the number of sales made direct with airline websites, chief executive Tony Tyler has promised.
Travel agents are still using distribution platforms created in a pre-Internet age which do not have the same capabilities as XML, according to Tyler.
He described XML as the “language of Internet-based commerce,” and underlined its growing importance as the shopping process for air travel evolves.
“Flying is more than just a seat on a plane. An air ticket has become a product with multiple attributes that may include in-flight Wi-Fi, extra legroom, lounge access and much more,” he told the World Passenger Symposium in Dublin.
“The reality is that it is much easier to access these value-added services via an airline website than through the travel agents who account for 60% of sales.”
While he is confident the NDC will help resolve this, Tyler acknowledged that global distribution system (GDS) companies are working towards a similar goal, But he stressed that each solution will be different whereas NDC will be an “open standard”, available to all and well-suited to the global nature of aviation.
The solution will also place emphasis on “customisation and personalisation”, responding to the findings of IATA’s 2013 Global Passenger Survey which found that almost one-half of travelers are interested in sharing details such as travel preferences, age, interests and frequent flyer status in order to receive special offers tailored to their needs.
“The NDC standard will unleash innovation—and that will mean change,” Tyler said. But he promised it will continue to operate within privacy laws and insisted that by giving travel agents more information, there will be “greater transparency”.
He urged airlines, travel agents and technology providers to join the pilot phase which is expected to continue through 2014.
