NDC: A GBTA 2023 Retrospective

Disruption is key to innovation…with caveats 

To say NDC is disrupting the airline ticketing status quo is an understatement. And historically, the greatest leaps are made when embracing disruption and tackling change head on. Peter reflected on the need to make sure any forward momentum is ready for the long term, and not a “flash-in-the-pan” response. 

“Everyone’s clamoring for a piece of the same pie, even as some suppliers are aggressively pushing their agendas on the end-to-end distribution network,” Peter said. “The content also needs to be productive in how it's serviced end-to-end before protocols like new distribution capability (NDC) finally achieve critical mass. While disruption is key to innovation, it's important not to force-feed change before the full supply chain is ready to ensure sustainable progress.” 

Florian also showed caution around the phrase “NDC ready.” To various TMCs and airlines, it could mean something totally different. To Florian, it means certain benchmarks need to be met beyond NDC fares just being accessible in the OBT. 

“[NDC ready] means to be live with NDC content for both shopping and servicing and meeting minimal viable product,” said Florian. “It doesn’t need to be the perfect solution, but it can’t just be shopping either. That’s a bit too easy.” 

But NDC fares being accessible in a buyer’s OBT of choice is a whole other ball game, and one that comes with its own set of rules and concerns. “Without naming names, some are doing better than others,” Peter reflected. “Each OBT’s solutions for NDC is slightly different; NDC was designed as an industry standard, however each OBT has interpreted this slightly differently in how to develop their tools and thus deliver at scale. OBTs that have focused on user experience, modern airline storefronts, and self-servicing of NDC content are leading the way.” 

For Florian, there also needs to be an element of managing expectations when it comes to the NDC readiness of the industry. Change is difficult, and it will require flexibility from all sides to rise to the occasion. “There is a lot of fragmentation right now, and that will continue for another 12 months until solutions are broadly available for the top airlines in relevant markets,” said Florian. “Since online adoption is well above 50%, the first step will be OBT readiness together with serviceability. Shifting all online transactions to offline channels will likely not be realistic due to scalability and resourcing. And to be frank, more than 85% of the world’s airlines have not announced an NDC program, so the key is not just about NDC but also about managing both NDC and EDIFACT standard.” 

Discover the alternative…in NDC 

Obviously no two TMCs, airlines, or OBTs are approaching NDC the same. So to round out our interview, we asked Peter and Florian one more question: How is FCM approaching NDC differently? 

“Investment, innovation, and expertise,” said Florian. “We embrace NDC, believe in its capabilities, and have been live with NDC for years in multiple countries. We have the highest level of IATA certification and are involved in industry boards and councils. With our parent company’s majority ownership of TPConnects, a market-leading content aggregator, we have a unique setup that allows us to plug into multiple sources of content (GDS, airline direct connect, and low-cost carrier) enabling us to shop and service the most relevant content for our clients.” 

“FCM is working with its clients to help them understand the technical and commercial implications of NDC so that they can make informed decisions around when, how, and where to make this content available to their users,” Peter said. “For example, does it make sense to enable certain content if it has technical limitations on modifying, canceling, or refunding these bookings? That’s where FCM’s expertise comes into play. Further, our investment in TPConnects futureproofs our roadmap as NDC content provider.”