The airline and travel industry is experiencing a profound transformation driven by the adoption of New Distribution Capability (NDC) technology. Accelya, a frontrunner in providing NDC solutions, has reported an impressive more than double growth in NDC volumes over the past year. This growth signals a shift from traditional distribution methods, emphasizing the need for airlines and travel agencies to embrace innovative approaches to stay relevant in a fast-evolving landscape. Major airlines including American Airlines, United Airlines, and Lufthansa have begun leveraging NDC, with Delta Airlines also progressing towards adoption.
The surge in NDC adoption, while commendable, has its roots in several factors, including the potential for improved customer experiences and greater pricing flexibility. As Accelya’s Chief Customer Success Officer, Tye Radcliffe, noted in a recent interview, a better understanding of NDC capabilities can significantly enhance the willingness of travel agencies and corporate travel managers to engage with this technology. Despite slow uptake among traditional players, linear growth patterns are evident as new market entrants leverage NDC to outpace their competitors.
One major roadblock in the widespread acceptance of NDC appears to be a lack of education about its benefits and capabilities. The travel community holds various misconceptions about NDC’s functionality, which can hinder its adoption. Accelya emphasizes the importance of continuous education as an essential step in bridging this knowledge gap. Agencies need to recognize that NDC offers meaningful content and the possibility for continuous pricing, which allows airlines to present more flexible pricing models directly to their consumers.
This paradigm shift requires travel advisors and corporate travel managers to be proactive in familiarizing themselves with the capabilities of NDC. As they begin to understand the impact that these innovations can have on their operational capabilities, the momentum for broader adoption could exponentially increase.
The Global Distribution Systems (GDS) play a significant role in the transition to NDC. Companies like Sabre, Amadeus, and Travelport are committed to refining their systems to support NDC functionalities fully. Radcliffe suggests that the degree of investment and innovation from these companies will be critical in determining the future trajectory of NDC volume.
Travel agencies are increasingly reliant on GDSs to provide them with the tools necessary to efficiently integrate NDC content into their offerings. However, there remains a gap in the extensive servicing capabilities needed for a seamless transition to NDC. Leading travel management companies (TMCs) express ongoing concerns related to transaction speed and the full spectrum of capabilities necessary for efficient operations. Despite this, the commitment from GDSs to innovate indicates progress is being made.
While the advancements made in NDC are encouraging, challenges remain. Many agencies continue to voice concerns regarding the readiness of GDS solutions. Accelya’s insight into the shortcomings of GDSs, including limited servicing capabilities and transaction speed, exemplifies the work still required to ensure a swift and efficient experience for end-users. The travel industry’s transformation via NDC is not without hurdles; the collaborative efforts between GDS providers and travel agencies will be pivotal in overcoming these challenges.
Furthermore, the hesitation among more traditional agencies to embrace NDC may persist unless compelling economic incentives are presented. The benefits of NDC, including dynamic pricing and enhanced product bundling, may not yet resonate with all stakeholders in the industry.
While the future of NDC appears promising and its growth trajectory is clear, a concerted effort towards education, innovation, and enhanced service capabilities is essential for ensuring more widespread uptake among travel agencies. Stakeholders must engage actively with GDSs and embrace the technological opportunities NDC presents to navigate the complexities of this transition effectively. With perseverance and collaboration, the travel industry can adapt successfully to this new paradigm, ultimately leading to improved efficiencies and enhanced customer experiences.
Leave a Reply