Air transport group adopts NDC distribution standard
The International Air Transport Association (IATA)'s Passenger Services Conference adopted a "Resolution on a Foundation Standard for a New Distribution Capability" at a meeting of the World Passenger Symposium in Abu Dhabi last week.
The New Distribution Capability (NDC) will enable airlines to offer more options to customers and to reach them seamlessly across all distribution channels, IATA said. Currently, around 60 per cent of tickets by value are sold indirectly via travel agencies using global distribution systems. With the NDC, airlines will be able to recognise these customers and provide tailored offerings, as they already can for customers who book directly via airline websites.
This standard is the culmination of 12 months of intense coordination across the value chain with participation from airlines, global distribution systems, the travel agency community – including online travel agencies – IT providers and their respective trade organisations, IATA said.
The NDC will create a set of standards to modernise airline retailing by enabling innovation in the way airline products are distributed, and making possible personalised offers to passengers who will have access to all airline products and services regardless of distribution channel, it said.
IATA said key attributes of the NDC were: it is built on principles of collaboration, transparency and innovation; it is an industry effort with partners in the travel value chain, including airlines, online travel agents and travel management companies, and other travel technology providers. Airlines will be able to differentiate and personalise product and service offers across all channels and ensure passengers have full visibility of airline fares and services. It will facilitate new entrants into the distribution sector, resulting in more competition, which has historically lead to lower prices more choice for consumers.
“A Foundation Standard for the NDC is the first step to enabling the development of … standards that will be available for all interested providers to work on and develop their own offerings. At the World Passenger Symposium, participants have agreed that the industry standard is paving the way for the future, and the time is right to move to a new model,” said Aleks Popovich, a top IATA official.
