Together, Lets Build Airline Retailing NDC Program Update January - - PowerPoint PPT Presentation

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Together, Lets Build Airline Retailing NDC Program Update January - - PowerPoint PPT Presentation

Together, Lets Build Airline Retailing NDC Program Update January 2020 Whats the market problem? Customer Experience Travel Agents Airlines Dont have the freedom to Is not consistent Cant easily access distribute their


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Together, Let’s Build Airline Retailing

NDC Program Update January 2020

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SLIDE 2

What’s the market problem?

Don’t have the freedom to distribute their products across channels without being commoditized Can’t easily access many airline products that are available on the airline direct websites Is not consistent depending on where they search for travel and not rich when shopping through travel agents

Customer Experience Airlines Travel Agents

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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

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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 – Corporates buyers and travelers

NDC can help

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Traditional Flight Distribution

Global Distribution Systems Fares

via 3rd party

Travel Agents (TMC | OTA | Independent) Airline Schedule

via 3rd party Availability Airline e-commerce engine

Travelers (Business | Leisure)

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Airline Retailing in an NDC World

Airline Content Aggregators (GDS | New Entrants) Travel Agents (TMC | OTA | Independent) Airline

Airline Offer & Order Management System

Travelers (Business | Leisure) Content Aggregation NDC NDC

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Today´s Shop Interface

Compare airlines mainly on price and schedule

Source: Expedia December 2019

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What is starting to look like with NDC

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NDC Program Update

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Level 4 – Covering full Offer & Order Management & Servicing 55 companies Level 4 certified

  • 35 Airlines – 10 NDC Leaderboard
  • 20 IT Providers & Aggregators

NDC Certification Updates

NDC@Scale for Airlines

  • 9 Airlines certified NDC@Scale
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with NDC partners www.iata.org/ndc-matchmaker

NDC Matchmaker

Featuring more than 220 connections ! SEARCH | COMPARE | CONNECT

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The Value chain is committed through

Global Travel Management Executive Council

. American Express GBT. . ATPI/Direct Travel. BCD Travel. . Carlson Wagonlit Travel. Clarity. . Click Travel. CTM. Egencia. . FCM Travel Solutions – and many more…

Travel Management Advisory Group

. Amazon. Allianz. AstraZeneca. . Bechtel. Gov’t. of Canada. LEO . Pharma. Microsoft. Nestle. . S&P Global. Ingersoll Rand. . UBS. Veritas – and many more…

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  • The TMC

Value Proposition in a New Distribution Landscape

Corporate Buyers

Envision the future

  • f the TMC

See Opportunities with NDC

.

  • Content
  • Cost
  • Control
  • Customer

Experience

…Envision the future

  • f the TMC
  • To

accelerate to a Future Managed Travel

and advise on changes……

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Travel Agents

…have their reference architecture See NDC as an enabler and …

  • Better Customer

Service

  • Increased

Productivity

  • More

Competitive

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The journey to 2020: IATA NDC Leaderboard

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NDC transactions powered by an NDC API

Dec 2019 data

12% 20%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Forecast Actuals

11%

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McKinsey see airline benefits from Retailing

annual value

$40bn

up to revenue gain

4%

i.e. up to per passenger

$7

up to

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Thank you

www.iata.org/ndc www.iata.org/publications for subscription to NDC Hub