Transition to NDC won't happen overnight; but through continuous increments

December 21, 2021

Last updated: January 28, 2022

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Ludo Verheggen

Director Air Distribution Growth

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Amadeus is making NDC-enabled content available around the world in 2021.

Any change is an ongoing process, especially if it involves a new mindset and new ways of working, and the same is true for NDC. It’s been eight years since IATA published its Future of Airline Distribution whitepaper outlining a vision for the industry’s distribution ecosystem. Change has been gradual but steady, and it has built up over time – we’ve now got to the stage where most stakeholders acknowledge the benefits of NDC.

With regards to COVID-19, despite it's clear impact on the world in so many ways, you might be surprised to hear that in my view, it has hardly stalled momentum on NDC. To the contrary, for some it has actually accelerated this transition. It has put the spotlight on the very benefits the standard can bring and that the industry needs now more than ever – from easier servicing to richer, more contextual offers. Having said that, it is also true that NDC brings about a change in ways of working, and this on its own requires acceptance and time.

For instance, NDC is bringing travel sellers a much more dynamic and tailored environment. And like all big changes, this will require a different mindset. In particular this means forgetting about bookings and PNRs – and thinking instead about offers and orders. If you have been working in a specific way for the past 30 years and are asked to start working in a completely different environment, there is bound to be a bit of trepidation.

In our recently published paper,“NDC 2021 and the path to industrialization” , we interviewed airlines, travel agencies and corporations to track progress on NDC so far in the industry’s bid to advance towards retailing. What became clear was that to really take off with NDC as an industry, we must overcome current barriers – including the need to get ready for a cultural shift.

This shift can be seen as one of the more pressing barriers in the way of mass scale implementation of the standard. Compounding the issue is the limited differentiated content currently available from airlines that have adopted NDC, so it's like a chicken and egg problem. Unless each group steps out of its comfort zone, there is likely to be frustration and untapped potential with regards to what NDC can achieve for the industry.

However, there is light at the end of the tunnel. Industry leaders realize that the transition to NDC will not happen overnight, and they are willing to keep working at educating stakeholders and enabling unique NDC content to overcome some of these challenges.

Collaboration a must for the travel ecosystem

Erik Magnuson, VP Product Management Mobility and Payments at travel management company, CWT says that “Transformational change is impossible without industry-wide collaboration… The various players need to work together to collectively reach a common level of interaction and momentum, only then will we reach critical mass for NDC”. Doing so can also overcome some of the friction that still remains and allow the industry to fully take advantage and be more productive thanks to NDC.

The paper goes on to mention how successful NDC partnerships are bearing fruit today. In Travix’s case for instance, by running pilot projects with airlines and other stakeholders across the industry, its strategy has focused on engagement from the outset of NDC and acting as an advisor to airlines. By being open, Travix collaborates with carriers, providing guidance on the NDC initiatives they are involved with and giving recommendations for selling airline products most effectively.

Advancing on the road to retailing

In an NDC environment, richer, dynamic and contextual content is king. More creativity from airlines will mean that their offer is truly differentiated. Encouraging more agility and experimentation to accelerate new types of content through NDC will mean moving to new offers based on true customer needs and dynamic pricing. With these benefits in mind, old PNRs and tickets will give way to comprehensive orders, opening different types of retail models in the future. Ultimately this will advance the industry’s retailing footprint to benefit all players, including the traveler.

We shouldn’t forget how much progress has been made in the past couple of years. With 18 airlines being implemented in the Amadeus Travel Platform, of which four are live and one piloting, and 10 airlines live with Altéa NDC and 20 more currently being implemented, the foundation for travel retailing is stronger than ever. For Amadeus travel sellers, NDC-enabled content is on track to be available around the world by early 2022.

Ultimately, collaboration will underscore the success of NDC. It’s only by talking and partnering that the industry will recognize, understand and overcome challenges head on and unlock its full potential. Amadeus remains fully committed to continue the discussion to accelerate this retailing vision and ensure NDC works for all stakeholders across the industry. The end result? Being better equipped for recovery in a more dynamic travel marketplace where the customer is front and center.

To read more on what industry leaders are doing in the NDC space,click here to download our paper “NDC 2021 and the path to industrialization”.

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