creation , pricing and fulfillment processes are done on the airline side .
NDC also enables “ continuous pricing ,” meaning the price of fares and ancillary services can change based on inventory or demand and facilitates the bundling of customized fares and services for a customer ’ s preference . This means that customers won ’ t see differing prices when comparing an airline ’ s website prices with an advisor ’ s prices . Travel advisors also will be able to bundle ancillary services , including preferred seat options , seat upgrades , priority boarding and baggage check , rather than customers purchasing those services separately from the airline .
But not everyone in the travel industry is enthusiastic about these changes . In a complaint filed against American Airlines , the American Society of Travel Advisors ( ASTA ) raised many objections , including that the switch to NDC could actually decrease fare transparency and inhibit comparison shopping . Because fares will be based on the consumer ’ s personal information and shared preferences , ASTA is also concerned about price discrimination .
GROUND PICTURE / SHUTTERSTOCK . COM
PITFALLS FOR TRAVEL ADVISORS Despite these concerns , airlines plan to move forward with NDC . American Airlines moved as much as 40 % of its fares from legacy GDS channels to NDC-connected channels in April 2023 . Air Canada now charges a fee for non-NDC GDS bookings . United offers fare deals through NDC channels that are not available in GDS channels — which means travel advisors who are not using NDC may be losing out on deals .
While IATA asserts the booking process will be simplified , in the near term , it ’ s more likely that it will get more complicated . Because NDC channels and legacy GDS have different content available , one-stop shopping will no longer be possible . Integrating NDCenabled systems also could be very costly , both in updating software and infrastructure and in training on new systems .
MAKE NDC WORK FOR YOU NDC ’ s rollout may not be uniform across carriers yet , but the ball is rolling . Travel advisors can benefit from the technology if they prepare wisely :
1 ) Determine how you ’ ll connect to NDC content . You can access the airlines ’ content through an NDC aggregator , which could be a GDS system acting as an aggregator , or directly without an intermediary . Connecting directly can require negotiating individual agreements and ongoing maintenance while using an intermediary — such as aggregators Travelport and Sabre — may be simpler and more cost-effective , as it provides access to multiple airlines ’ NDC content through a single integration point .
If you ’ re already using an aggregator , start there : Discuss your specific needs , as well as whether you need to move to a new interface that aggregates multiple sources of content ( i . e ., EDIFACT / GDS content as well as NDC content ), with your provider .
If you ’ re not working with an aggregator , visit IATA ’ s NDC and Travel Sellers web page for information on how to address your technology needs , including links to courses , certificates and white papers .
2 ) Negotiate . Discuss the terms of your relationship under the NDC framework with your airline partners . Ensure your contracts with aggregators meet the needs of your business and your customers . Talk to your aggregator and ask what content they have available via which channels .
3 ) Get training . Check with airline partners specifically . United , for example , lists resources on its website .
WINTER 2023 / THE COMPASS / 19