NDC Overview Star Alliance Ambassador Club - 31 August 2018

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NDC Overview Star Alliance Ambassador Club - 31 August 2018
NDC Overview
Star Alliance Ambassador Club

           31 August 2018
NDC Overview Star Alliance Ambassador Club - 31 August 2018
What’s the market problem?

                                                                   Customer
         Airlines                  Travel Agents
                                                                   Experience

• Don’t have the freedom to   • Can’t easily access many    • Is not consistent
  distribute their products     airline products that are     depending on where they
  across channels without       available on the airline      search for travel and not
  being commoditized            direct websites               rich when shopping
                                                              through travel agents
NDC Overview Star Alliance Ambassador Club - 31 August 2018
What do airlines want?

                         Revenue opportunities:
                           • Differentiation (product description)
                           • Merchandizing (ancillaries, fare
                             families)
                           • Personalization (based on loyalty,
                             preferences)
                           • Dynamic Pricing (based on supply,
                             demand)

                         Cost savings:
                            • Increased competition and
                              innovation
NDC Overview Star Alliance Ambassador Club - 31 August 2018
Together, Let’s Build Airline Retailing

       Why NDC?                    What is NDC?                 Who will benefit
                                                                 from NDC?

• To modernize the way air      • A travel industry supported • Full-service and low-cost
  products are being retailed     program for the               airlines
  to travel agents,               development and adoption
  corporations and travelers      of a new data transmission • Content aggregators and
                                  standard                      travel agents
                                                              • Corporate Buyers and
                                                                travelers
NDC Overview Star Alliance Ambassador Club - 31 August 2018
Traditional Flight Distribution
NDC Overview Star Alliance Ambassador Club - 31 August 2018
Airline Retailing in an NDC World
NDC Overview Star Alliance Ambassador Club - 31 August 2018
A new structural baseline

                            Industry feedback:

       17.2                 •   A robust standard as a new baseline
    The new industry
                            •   Provides functionalities to go for
        baseline                critical mass

                            •   A solid base to invest in
NDC Overview Star Alliance Ambassador Club - 31 August 2018
Value chain readiness
   Airlines
     • 62 airlines certified – worldwide momentum
     • Some front runners added commercial model (cost pass through, incentive), some
       added content differentiation
     • Sales teams are better briefed / trained
     • APIs are improving (functionalities, servicing etc)

   IT providers and GDSs
     •   Lots of players continue to build / improve solutions
     •   More “holistic” view of industry needs (payment, dynamic pricing, reporting etc)
     •   Sabre, Amadeus, Travelport announced platform “plug and play” readiness for 2019
     •   Addressing pain points: servicing, IROPs, mark up etc

   TMCs and OBTs
     • Gap between Large players and others in terms of readiness
     • Private channel to offset surcharge
     • Sense of urgency to adopt NDC due to content differentiation
NDC Overview Star Alliance Ambassador Club - 31 August 2018
IATA focus on the TMCs
         Innovation                  Reference architecture                           Propathon

 Hackathon, Developer Portal,        Vision for travel agent possible       Vision for TMC possible future
    Implementers forums                       IT architecture                           role (s)
      Ongoing, 2018 TMC focus          White paper for Air BTS – Jun 2018   First release during Air BTS – Jun 2018

        NDC at scale                   What’s in it for me?                        Matchmaking

    Expectations by travel              Creating value with NDC,            Build easy web access to list of
  agencies from airline APIs                evolving models                 airline products & distributors
   White paper for AIRs – Oct 2018      White paper for AIRs – Oct 2018                   End 2018

              TMC strategic steering – GTEC - Global Travel Management Executive Council
                                         Established in March 2018
NDC Roadmap to 2020
…and airlines are committing to volume - NDC Leaderboard

                   Airlines

  21               that weight 30% of total IATA PAX
                   have ambitions to contribute to an
                   industry goal of having

                      20% of their indirect sales
                   powered by an NDC API by 2020
The NDC Leaderboard is growing
NDC Tools & Comms Channels

                 NDC Certification Registry
                   •   Up-to-date list of all companies that are
                       considered NDC Certified/Capable

                 Dedicated NDC Microsites
                   •   For Airlines, Business Travel and Developers
                 Change Readiness Guide for Airlines
                   •   A support tool for airlines planning their NDC
                       enablement from defining the vision and
                       strategy to initiating the program

                 Info tab on iata.org
                   •   To access white papers, case studies and
                       guidelines around the NDC standard
For more information
subscribe to the NDC Hub
www.iata.org/publications
Together, Let's Build Airline Industry Retailing!
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