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Rethinking NDC: Can We Solve the Challenges in Six Months?
The discussion around New Distribution Capability (NDC) technology has taken center stage in the travel industry, particularly following claims by Richard Viner, Sabre's head of corporate accounts, that significant hurdles will be overcome in a mere six months. Viner's confident assertion that the matters surrounding NDC will be resolved soon indicates a pivotal transition in how airline content is distributed via Global Distribution Systems (GDS).
Maintaining Fare Parity: The New Demand
Viner’s emphasis on fare parity over NDC itself underscores a crucial shift in focus for corporate travel. Many stakeholders, including members of the Business Travel Association, are eager for transparency in pricing across platforms. Viner indicates that it’s less about technology and more about ensuring customers face no discrepancies in pricing when booking through different channels.
This sentiment aligns with opinions voiced at the Corporate Travel Summit. Paul Dear from Concur mentions the necessity of an omnichannel approach to effectively aggregate content, catering to what corporates expect. Yet, challenges abound; Pat McDonagh, CEO of Clarity Business Travel, calls attention to the difficulties in aggregating and curating travel options.
The Dual Nature of NDC Technology
Although some tech leaders like Jack Ramsey of TripStax express optimism about how airlines can present fare options to agencies, others such as Kyle Moore from Travelport remain skeptical. Moore argues that corporate travelers are largely unaware of NDC fares, suggesting that the transition requires consumer education alongside technological advancement.
Understanding NDC, which facilitates deeper personalization of travel offers and optimized revenue streams for airlines, is key to ushering the industry into a more efficient future. However, as the journey to implement this technology persists, airlines are faced with an array of obstacles—their legacy systems struggle to accommodate newer technology, and collaboration with other market stakeholders remains complex.
Looking Ahead: Bridging the Knowledge Gap
To fully appreciate the potential of NDC, the industry must focus on bridging the knowledge gap among end-users. From ensuring employees are well-versed in assets available through NDC to fostering a culture that embraces digital transformation, the current challenges present a significant opportunity for growth. As airlines and tech companies embark on this journey, establishing common standards and fostering interoperability will be crucial for a cohesive transition.
If the travel sector embodies a commitment to collaboration and invests in training, both agents and travelers can harness the benefits of NDC technology. As we await the results of these rapid advancements, it’s crucial for businesses to remain engaged and informed about developments in NDC integration.
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