New Distribution Capability (NDC) Together Let s Build Airline Retailing. September 2015
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1 New Distribution Capability (NDC) Together Let s Build Airline Retailing September 2015
2 Overview Welcome to NDC The NDC Program, Today What s In It For You Learn More About NDC 2
3 3 Welcome To NDC
4 From Flight Distribution Travel agents have access to limited and commoditized airline information 4
5 to Airline Retailing Travel agents need to have access to the entirety of an airline s offering (as available in airline web sites) 5
6 6 NDC is about giving travel agents the same capability as airline web sites
7 What is NDC? NDC is a travel industry-supported program launched by IATA for the development and market adoption of a new, XML-based data transmission standard. The NDC standard will enhance the capability of communications between airlines and travel agents, and will be open to any third party, intermediary, IT provider or non-iata member, to implement and use. 7
8 How Flight Distribution Worked Fares via 3 rd party Schedule via 3 rd party Availability Airline Airline Global Distribution Systems Travel Agents (TMC OTA Independent) Travelers (Business Leisure) e-commerce engine Airline 8 Current distribution capability limits innovation
9 How Airline Retailing Works Airline Offer Management System NDC Content Aggregators (GDS New Entrants) Travel Agents (TMC OTA Independent) Travelers (Business Leisure) NDC Content Aggregation Airline 9 Industry standard brings lower cost, innovation, ease-of-comparison and interoperability
10 Scope and Application Shopping Order Management Booking & Servicing Payment & Ticketing Airline Profile Not mandatory Flexible Business model-agnostic Can be integrated Supports interlining NOT a system NOT a service NOT data 10
11 Who Will Benefit from NDC and How? Airlines Product Differentiation Richness and uniqueness of airline products Customized and personalized offers Travel Agents Buyers & Travelers Access to Full and Rich Content Comparison based on schedule, price & value Real-time product and fare data Transparent Shopping Experience The right products at the right prices Opportunity to shop based on what they value 11
12 A Look Into the Future NDC mock up Video 12
13 13 The NDC Program, Today
14 The NDC Program Market Validation Standard Development Airline Adoption 14
15 The Standard is there (Baseline) NDC Industry Standard 1 Sep 15 Shopping (NDC 15.2) Booking Servicing Payment Shopping Ticketing Shopping Booking Servicing Payment Ticketing + Interlining Airline Profile Apr 2013 Nov
16 The Market Is Engaged Regulatory Technology Trade Buyers Travelers US DOT Approves Resolution 787 (August 2014) 3 GDSs & 11 IT providers embrace NDC (October 2014) IATA and Travel Agent Associations Study (Q3-2015) Buyer study & Travel Manager Advisory Group (Q2 2015) NDC Innovation Fund First Investments (Q3-2015)
17 IT providers are engaged Global Distribution Systems Amadeus Sabre Travelport Travelsky Passenger Services Systems Amadeus Navitaire Sabre SITA Travelsky IBS ATPCO Datalex Farelogix HP Other IT Providers OpenJaw Vayant JR Technologies and new entrants through the NDC Innovation Fund 17
18 And they are delivering solutions 16 (*) technology vendors presenting their NDC-based solutions to airlines Americas 12 (*) airlines Asia-Pacific 32 (*) airlines Europe 25 (*) airlines (*) 2015 NDC Regional Workshops 18
19 More & More Airlines in Pilots & Deployments
20 Airline Adoption Forecasts airlines surveyed (*) are looking closely at NDC 73 airlines are actively working on their adoption of the NDC standard 72 have already invested in XML-based distribution 20 (*) 2015 NDC Airline Adoption Survey
21 21 What s In It For Me
22 More Control, better value proposition Airline Retailing Speed-to- Market Customer Engagement Describe the products and services that make your airline unique and different Present them using rich format (images, videos, animations) Retail your new products and services as soon as they are available for sale Test and implement new commercial strategies when you want and where you want Create offers that take into account travelers service preferences and history with your airline Own and manage resulting customer orders, resulting in more effective servicing 22
23 Partnership Opportunities More than 15 technology vendors can help you deploy NDC within your infrastructure All three Global Distribution Systems are building NDC-based products for agents Because it is XML-based, new entrants may come up with innovative distribution solutions 23
24 Remember NDC is your opportunity to transition towards the world of airline retailing It will help industry de-commoditization and make your airline a more tangible product You can take control of the Offer and also the Order Management process Your PSS and GDS partners remain critical assets in the transition to NDC 24
25 25 Learn More About NDC
26
27 Airline Micro-Site 27
28 New Distribution Capability (NDC) Together Let s Build Airline Retailing September 2015
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