NDC Standard Presentation

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At a glance
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The key takeaways are that the current airline distribution model has problems for airlines, travel agents and customers. NDC is being developed as a new data standard to modernize airline retailing across different channels.

The current model does not allow airlines to freely distribute their products across channels without being commoditized. It also makes it difficult for travel agents to access all airline products and provides an inconsistent customer experience depending on where customers search for travel.

Airlines want revenue opportunities through product differentiation, merchandizing of ancillaries, personalization based on loyalty and preferences, and dynamic offers. They also want cost savings through innovation and competition.

Together, Let’s Build

Airline Retailing

NDC Program Update


February 2019
NDC Basics
What’s the market problem?

Customer Airlines
Experience Travel Agents

• Is not consistent • Can’t easily • Don’t have the freedom


depending on access many to distribute their
where they search airline products products across
for travel and not that are available channels without being
rich when on the airline commoditized
shopping through direct websites
travel agents
What do airlines want?
Revenue opportunities
▪ Differentiation (product description)
▪ Merchandizing (ancilliaries, fare
families)
▪ Personalization (based on loyalty,
preferences)
▪ Dynamic Offers (based on
personalization and other features)
Cost savings
▪ Innovation & Competition
The solution is NDC
• Why NDC?
– To modernize the way air products are retailed to travel agents,
corporations and travelers
• What is NDC?
– A travel industry-supported program for the development and market
adoption of a new data transmission standard
• Who can benefit from NDC?
– Full service and budget airlines
– Technology providers and travel agents
– Corporate buyers and travelers
Traditional Flight Distribution

Fares
via 3rd party

Schedule Global Travel


via 3rd party Distribution Agents
Systems Travelers
Availability
Airline (TMC | OTA |
Independent) (Business |
Leisure)
Airline

e-commerce
engine
Airline Retailing in an NDC World

Content Travel
Airline NDC Aggregators Agents
Offer & Travelers
(GDS | New (TMC | OTA |
Order
Entrants) Independent)
Management
(Business |
System
Leisure)
Airline
NDC Content
Aggregation
Airline
Today´s Shop Interface
Compare airlines mainly on price and schedule

Source: Expedia January 2019


Tomorrow´s shop interface
Enabled by NDC
Tomorrow´s shop interface
Enabled by NDC

Comparison
shopping capability
NDC Program Update
NDC Certified Airlines
North
Asia
Europe
Air China Hainan Airlines
Cathay Pacific Airways Hong Kong Airlines
Americas Aegean Airlines KLM China Airlines Jiangxi Air
Aer Lingus Lufthansa China Eastern Shandong Airlines
Aeroflot Norwegian Air China Southern Shenzhen Airlines
Air Austral Olympic Air Middle- Colorful Guizhou Sichuan Airlines
Air Canada Air France Onur Air East & EVA Air Xiamen Airlines
American Airlines APG Airlines S7 Siberia Airlines Africa
Avianca Airlines Austrian Airlines SunExpress Germany
Delta Air Lines British Airways SunExpress Turkey
GOL Emirates
Brussels Airlines SWISS
InselAir Etihad Asia
Condor TAP Air Portugal
Ethiopian Airlines
Taca International Airlines CORSAIR Thomas Cook Airlines
flydubai
Pacific
United Airlines Finnair Turkish Airlines
WestJet FlyEgypt
Flybe Virgin Atlantic
Oman Air
Iberia Vueling Airlines Korean Air
Qatar Airways
Iberia Express Qantas Airways
Rotana Jet
SilkAir
Saudi Arabian Airlines
Singapore Airlines
T’way Air

Latest status as of January 2019 – For most up-to-date information check: www.iata.org/ndc-registry
NDC is “technically ready”
The Standard is ready for industrialization
- As plaudited by GDSs and technology providers

66 NDC Certified airlines


- Representing 60% of IATA member passengers boarded

66 NDC Capable technology providers


- Investing in NDC - Includes GDSs certified as Aggregators
The Value chain is committed
Travel Management Global Travel Management
Advisory Group Executive Council

. Amazon. Allianz. AstraZeneca. . American Express GBT.


. Bechtel. Gov’t. of Canada. LEO . ATPI/Direct Travel. BCD Travel.
. Pharma. Microsoft. Nestle. . Carlson Wagonlit Travel. Clarity.
. S&P Global. Ingersoll Rand. . Click Travel. CTM. Egencia.
. UBS. Veritas . FCM Travel Solutions
– and many more… – and many more…

14 Working faster, together, to bring NDC to life


Corporate Buyers
See Opportunities with …Envision the future of the
NDC and … TMC
• Content
.
• Cost • The TMC Value
Proposition in a
• Control New Distribution
Landscape
• Customer
Experience

15 Together, Let’s Build Airline Retailing


Travel Agents
See NDC as an enabler …have their reference
and … architecture
• Better Customer
Service

• Increased
Productivity

• More
Competitive

16 Together, Let’s Build Airline Retailing


The journey to 2020:
IATA NDC Leaderboard
Thank you
www.iata.org/ndc
www.iata.org/publications for
subscription to NDC Hub

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