Every week, more and more airlines are announcing the availability of NDC fares. At the same time, some of these airlines are levying fees for booking on the traditional GDS, while simultaneously removing the lowest fares from traditional EDIFACT systems.
Is this the writing on the wall?
Nobody knows, but it could be a good time for travel agents in South Africa to learn everything possible about how to operate within the NDC ecosphere.
Most agents will have heard by now that IATA’s New Distribution Capability (NDC) is based on offer and order management processes. What does this really mean for the industry?
IATA Offers and Orders represent a shift in the way airlines distribute and sell their products (flights, seats, and other services) to travel agencies and ultimately, to customers. Travel News looks at a breakdown of the key differences between the Offer and Order system and traditional GDS bookings.
It’s important to understand the holistic nature of NDC.
“NDC is far more comprehensive and goes beyond the traditional borders of being a system, database or a software to an ecosystem that include airlines, travel agencies, GDSs, travel technology providers, TMCs, and industry associations and organisations. Each party plays a unique and essential role in the distribution, adoption, and implementation of NDC-enabled content and capabilities, contributing to the transformation and modernisation of the airline distribution landscape in the travel industry,” said Candima Bandara, Project Manager at the Dyninno Group, in a recent Linkedin article. The Dyninno Group is a company that facilitates strategic planning and client services within the travel industry.
IATA Offers
Based on information derived from IATA’s website, it is clear that the focus of Offers defines the products and services airlines want to sell. This includes details like flight options, fares, baggage allowances, and any special offers or promotions.
The process begins when the agent inputs the requirements of the client. The response comes in the form of Offers.
Offers are flexible in that airlines can create a wider variety of Offers, catering for different customer segments and travel needs. For example, they might offer basic economy fares with limited amenities alongside more premium options with increased flexibility.
Offers are more customer-focused and offer clear information about what is included in the option, making it easier for agents and travellers to understand and compare.
IATA Orders
The Order is generated by the action of the agent. The selected offer will generate the order which becomes the actual booking on the airline’s system.
Rich data
Orders capture all the details of a specific booking, including passenger information, selected flights, chosen fares, and any additional services purchased (seat upgrades, extra baggage, etc).
Streamlined Workflow
Orders will automate and streamline the booking process, reducing manual data entries and errors. ADMs should fall away completely.
Analogy
Agents can think of Offers as a restaurant menu. It lists the available dishes (flights), their prices (fares), and any special offers (discounts).
Orders are like the client’s actual order at the restaurant. The Order specifies which dishes (flights) you want to order, the quantity (number of passengers), and any additional items (extra baggage, seating).
Who benefits?
NDC Offers and Orders will benefit different industry players across the airline distribution value chain.
For agents, the automation of bookings through NDC means reduced errors and no more ADMs. With a wider variety of Offers available, agents will have more options to offer their clients. Competitive pricing and better value will enhance the travel agent service offering.
Explained Bandara: “By automating pricing updates and adjustments through NDC, travel agencies can streamline their operations, reduce manual errors, and improve efficiency. Agencies can focus more on strategic activities like customer acquisition, marketing, and customer service, rather than spending time on manual pricing updates and inventory management.”