The evolution of airline ticket servicing through New Distribution Capability (NDC) technology has presented both opportunities and challenges for travel professionals. In an industry striving for modernization, the implementation of NDC promises enhanced flexibility and personalization in ticket offerings. NDC enables airlines to have direct control over their products, virtually transforming how fares, services, and offers are structured. However, as adoption rates have shown slower-than-expected progress, the need for standardized practices has surfaced.
In recent developments, the Airline Reporting Corporation (ARC) released a comprehensive set of best-practice guidelines that aim to streamline the servicing and support of tickets booked through NDC. The guidelines emerged from a collective effort spearheaded by ARC’s NDC Advancement Working Group, which includes a diverse group of stakeholders, from airlines to travel agencies. The goal was to tackle the servicing issues that have proven to be obstacles in the wider adoption of NDC.
Despite the initial success in executing NDC transactions since 2016, the majority of airlines and travel agents have struggled to embrace this technology fully. As of October 2023, only 19.1% of air transactions settled by ARC utilized NDC, mostly driven by online travel agencies (OTAs). The slow adoption can be attributed to a number of factors, including inconsistencies in service practices across different airlines and confusion among travel agents regarding how to navigate this new system.
One of the primary challenges with NDC is the change in how offers are made and serviced—moving from the traditional Global Distribution System (GDS) model to one where airlines dictate terms. This fundamental shift created a need for clarity in servicing protocols to ensure that agents can effectively assist travelers while adhering to both airline policies and consumer expectations.
ARC’s newly published guidelines offer a roadmap for navigating these complexities. Comprising 20 distinctive best practices, the document categorizes essential procedures into various areas, including exchanges, debit memos, waivers, and operational timelines. For instance, one of the practices encourages a transparent exchange process, where if an exchange request is declined, agencies should receive clear reasoning and the ability to propose alternative requests seamlessly.
Moreover, the guidelines emphasize the need for travel technology providers to enable comparisons between traditional GDS fares and NDC fares. Such capability fosters a more competitive marketplace for consumers while equipping travel advisors with the necessary tools to advocate for their clients effectively.
The Future of NDC Servicing
As the airline industry continues to innovate, the role of best-practice guidelines will be crucial in facilitating a smoother transition to NDC. By normalizing processes and establishing clear expectations, ARC’s efforts have the potential to bolster confidence among travel agents and motivate broader adoption of NDC technology.
Looking forward, the successful integration of NDC will likely culminate in a more robust and agile travel ecosystem, where airlines and agents work in tandem to deliver superior service. It will be imperative for all stakeholders to embrace these guidelines and collaborate effectively to overcome existing challenges in the journey toward fully realizing the benefits of NDC.
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