The aviation industry is witnessing a technological overhaul with the advent of New Distribution Capability (NDC), aimed at revolutionizing how airlines sell their products and services. Recognizing the hurdles faced in adopting this innovative approach, the Airlines Reporting Corporation (ARC) has stepped in with a comprehensive set of best-practice guidelines. These guidelines are designed to refine the servicing and support processes for airline tickets booked through NDC technology. By outlining 20 specific best practices, ARC seeks to address operational inconsistencies that have plagued the industry, thereby enhancing the overall customer experience.
The development of these guidelines was spearheaded by ARC’s NDC Advancement Working Group, convened in February of this year. This diverse group comprises representatives from seven airlines, six travel technology firms including Global Distribution Systems (GDSs), six online travel agencies (OTAs), ticket consolidators, and 17 travel agencies. This collaborative effort aimed to tackle critical issues that presently impact NDC adoption, particularly focusing on servicing challenges that travel advisers have faced while handling NDC bookings.
Despite initial transactions using NDC technology dating back to 2016, the rate of adoption has been frustratingly slow. As of October 2023, only 19.1% of air transactions settled by ARC were facilitated through NDC, with OTAs dominating this end of the market. Surprising as it may seem, a mere 822 travel agencies reported utilizing NDC for transactions in that month. The underwhelming figures indicate that while the technology holds promise, significant barriers to widespread acceptance remain.
Key Challenges in Servicing NDC Transactions
One of the fundamental distinctions between NDC and traditional booking systems is the airline’s role in controlling offers and servicing orders. Unlike the legacy systems, where GDS played a pivotal role, NDC grants airlines unprecedented control over their inventory and customer interactions. This shift has led to inconsistencies in servicing protocols, creating confusion and frustration among travel advisors who are required to navigate these new systems. ARC’s guidelines aim to standardize these processes, ultimately making NDC a more viable option for travel agencies.
Highlights of the Best Practices
Among the 20 best practices outlined by ARC, key recommendations focus on critical aspects such as exchanges, debit memos, and waivers. For instance, one notable best practice emphasizes that when an exchange request is rejected, the NDC interface should provide a clear explanation and options for the travel advisor to submit alternate requests. This transparency is likely to alleviate confusion and facilitate more efficient processing. Additionally, ARC has called for travel technology providers to empower agencies by allowing comparisons between NDC and traditional GDS fares, enabling clients to make informed decisions.
ARC’s best-practice guidelines are a pivotal step toward normalizing NDC processes and fostering broader acceptance within the industry. By addressing the existing challenges and promoting best practices, ARC is paving the way for a smoother transition to NDC. As airlines and travel agencies work together to implement these guidelines, the hope is that NDC will soon become a standard practice, offering benefits that extend to both agencies and travelers alike. The journey towards full NDC integration may be complex, but with these foundational practices in place, the aviation industry is on the right path to overcoming its current obstacles.
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