arc transformation: travel agency distributioniata ndc certification validates that ndc messaging...

ARC

Transformation:

Travel Agency

Distribution

Shelly Younger

Sr. Manager, Industry Relationships

© Airlines Reporting Corporation (ARC)

All Rights Reserved.

Airline Distribution Strategy

Omni-Channel

Customer Experience

Airlines want the ability to offer consistent personalized

shopping experience across all their channels.

Retail Shopping

Capabilities

Airlines want to merchandise and target their product offerings,

providing customized offers to both business and leisure travelers.

Control Of

Content

Airlines want control over how their product is displayed and sold. They

seek “one version of the truth” that is consistent, accurate and transparent.

2

What is the Future of Distribution?

It’s a personalized shopping experience across

all channels, within all contexts – offering the

right content to the right traveler at the right

time.



New Distribution Capability (NDC)

4

ARC Proprietary and Confidential – 2018. Redistribution in any format requires written permission by ARC.


All Rights Reserved.ARC Proprietary and Confidential – 2018. Redistribution in any format requires written permission by ARC.

New Distribution Capability (NDC)

Refresher

5

• NDC is an XML standard which allows the airline to differentiate their airline products

• One standard that can be used by multiple technology partners which improves “time to market”

• Supports personalized offers by allowing agents to provide customer details before the ticket is issued

• Allows for the transmission of rich content which is a way to visually display product features



Airline Distribution – Agency Channel

6


Customer

GDS builds offer from schedule, fare rules

and availability



Airline Distribution – New Distribution Capability (NDC)

7


All Rights Reserved.ARC Proprietary and Confidential – 2018. Redistribution in any format requires written permission by ARC. ARC Proprietary and Confidential – 2018. Redistribution in any format requires written permission by ARC.

IATA NDC Certification

Validates that NDC messaging meets existing IATA NDC standards

• IATA NDC certification – Levels 1, 2, 3 and 4 (new)• Level 1 - Basic (basic shopping, ancillaries post booking)

• Level 2 - Offer management (extensive use of offer management API, shopping)

• Level 3 - Offer and order management (extensive use of offer and order management API)

• Level 4 – (forthcoming) NDC at scale

Airlines Registered for IATA NDC Certification

IT Providers Registered for IATA NDC Certification

Sellers Registered for IATA Certification

Aggregators Registered for IATA

Certification

Airlines and NDC

Where do things stand today?

9



Are Airlines Required to Implement NDC?

Will All Airlines Implement NDC?

Will Airlines Implement NDC in the Same Way?



11



Will Airlines Implement NDC in the Same Way?

Airline A - Focus on implementing NDC for

ancillaries with possibility of phasing in NDC for shopping

and booking in the future.

Airline C - Focus implementing NDC for shopping, booking,

payment and ticketing for multiple agency types and

markets.Airline B - Focus on

implementing NDC for shopping and booking, possibly for specific agency types (OTAs, Leisure or Corporate markets) or in specific markets (Europe,

South American etc.).

Airline D - Focus implementing NDC for shopping, booking, payment and ticketing first through metasearch engines

with a plan to phase in NDC for multiple agency types and

markets.



IATA Leaderboard Airlines

GDSs (Aggregators) and NDC


14



Where Does Amadeus Stand on NDC?

IATA NDC Level 3 - Aggregator



Where Does Sabre Stand on NDC?




Where Does Travelport Stand on NDC?


ARC and NDC


18



Flexible Distribution Options

One Size Does Not Fit All

19

ARC supports the full spectrum of airline distribution models in the travel agency channel and provides flexible transaction processing workflows, payment processing and settlement options, and outputs that enable airlines and travel agencies to efficiently and effectively manage their partnerships.



20

Input Format

Airline BAirline A

Reporting

File Transmission

Business Rule Application

Settlement

RET

IAR modifications, voids, refunds and exchanges are

inhibited

Transaction errors returned to airline on rejection file

Via IATA WebLink

Cash and Commissions Only (No CC Processing)

Yes – Cash FOP and CC with Commissions

Flexible Distribution Options

SPRF


allowed

Transaction errors corrected by agency in Interactive

Agent Reporting

Via IT Provider

Cash and CC

Yes – All Transactions

RET


inhibited

Transaction errors – path TBD

Direct from Airline or via GDS Host

Cash FOP Only (CC in the future)

Yes – Cash FOP Only

RET


inhibited

Transaction errors returned to airline on rejection file

Via IATA IFG

Cash and Commissions Only(No CC Processing)

Yes – All Transactions



Enhanced Distribution - Release 1

22

• Accept airline or neutral ticket stock

• Process multiple file formats (SPRF/RET*)

• Integrated with IATA NDC Link

• Credit card billing options – airline or ARC initiates credit card billing

• Option to prevent IAR error correction or modifications

• NDC identifier in agency sales reporting tool (IAR)

• Output of NDC and non-NDC transactions on agency BOS file

• Output of NDC and non-NDC transactions on CAT

*Limited functionality available for RET processing

Features

Airline testing: Nov. 2017 – January 2018

Code implementation on: Feb. 8, 2018



Airline Distribution – Agency Channel

ARC Process Flow

23

Cu

sto

me

r

Airline

GDS

Agent

Direct Connect

ARC Data Warehouse

SPRF/RET/Other

Aggregator

Internal Airline

Processing

Product

Price and

Availability

Engine

Airline API

GDS

Agent

Interactive Agent

Reporting (IAR)

BOS

Cash Sales

Carrier

Accounting

Tape (CAT)

Credit Card

Processors

Airline

Credit Card Billing

API/Direct Connects (NDC)

Traditional GDS

Distribution Model

NDCLink




ARC Participates in multiple NDC, One Order and

Settlement with Orders (SwO) Industry Meetings

24

NDC Discussion

Topics with

Industry

Partners

25



NDC Topics for the Agency to Discuss Internally

26

What are some topics to discuss within your agency?

• Do some research on NDC and what it means for your agency’s business strategy. Does your agency need to take any next steps right now?

• Reach out to strategic partners (airlines, GDSs, technology companies, corporate booking tools, customers) and initiate discussions on how best to partner around NDC implementations (ARC can help facilitate that).

• Based on how an airline implements NDC (ancillaries, shopping/booking etc.) will drive additional questions.

What is the impact to your ticketing process (website, other tools)

Will there be any special handling for post-ticket services? If so, what is the process?

How will any performance agreements or commission/discount contracts be impacted?

Will there be any impact to the agency’s customer invoicing or servicing (especially in the situation of irregular operations)

How will NDC transactions be integrated into corporate booking tools

Is duty of care impacted?



NDC Discussion Points – Airline Outreach

27

What are some topics to bring up when you reach out an airline?

• What is the airline’s strategy and timeline to implement NDC?

• What types of NDC messages will/does the airline support?

• Post-Sale Ancillaries, Shopping, Booking, Ticketing, Payment, Servicing etc.

• Does the airline support post-sale servicing?

• Refunds and Exchanges . If not, what is the timeline for that capability?

• What fare types will be available with the airlines’ NDC implementation

• Published, private, contract, net, bundles, fare families etc.

• What payment types are supported

• Credit/debit forms of payment, local payment types (country specific), and cash

• How will credit card chargebacks be managed?

• If your agency has any type of up-front commission contract, how will commission be applied through NDC?



NDC Discussion Points – GDSs/Aggregators

28

What are some topics to bring up when you reach out a GDS/Aggregator?

• What is the GDS’s strategy and timeline to implement NDC?

• Will the GDS display both NDC and non-NDC fares in a seamless tool?

• How will their implementation impact your agency’s business?

• Will the GDS still provide integrated back/mid office support/data?



29

Thank You!

30

arc transformation: travel agency distributioniata ndc certification validates that ndc messaging...

Documents