iata-thoughtworks - engaging in change
TRANSCRIPT
WHY IS THERE A NEED FOR CHANGE?
Agent channel closed for airline product merchandising
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F J M
LOUNGE ACCESS MEAL SPECIAL
SERVICES
BAGGAGE FJM FREQUENT FLYER MILES
FAST-TRACK INFLIGHT ENTERTAINMENT ETC
WHAT “IT” IS AND WHY
■ A 5 year travel industry-wide program (NDC Program)
■ Development, testing and deployment of a new, XML-based data transmission standard (NDC Standard)
■ Communication between airlines and travel agents
The NDC Standard will enable travel agents to better retail air products to corporations,
leisure and business travellers, by addressing the industry’s current distribution limitations:
PRODUCT DIFFERENTIATION
ACCESS TO FULL AND RICH CONTENT
A GREATER SHOPPING EXPERIENCE
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NEW DISTRIBUTION CAPABILITY (NDC)
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Consumers
TMC / OTA
Airline Reservation Systems Availability
GDS
Fares Schedule
Airline website /
e-commerce engine
■ Airlines file fares and schedules with 3rd parties
■ GDSs package and push offers based on 3rd party databases
■ Agents submit travellers’ requests using GDS
■ Airlines last to know who has purchased airline ticket
■ Distribution capability constrained by current level of innovation
NEW DISTRIBUTION CAPABILITY (NDC)
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Airline Reservation Systems
Aggregators
GDS New Entrant
NDC
■ Airline provides “offer” ● Just as for direct channel
■ NDC Standard ● Lower costs, speed of innovation
● Facilitates comparison
● Connections exist, not interoperable
■ Airline rich products: ● Available via travel agents
● Direct, or via Aggregator
● Enable comparison shopping
Consumers
TMC / OTA
Airline website /
e-commerce engine
WHAT BENEFITS DOES NDC BRING
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Merchandize airlines’ “uniqueness”
Distribute personalised products (if requested)
PRODUCT DIFFERENTIATION
ACCESS TO FULL AND RICH CONTENT
A GREATER SHOPPING EXPERIENCE
Compare flight products based on schedule, price and equality
Work with real-time fare and product
information
Deliver the right products at the right prices to corporate buyers
Offer each traveller the opportunity to shop based on what they value – be it anonymous or
personalised.