I read multiple articles on NDC recently, and often found that many applications of the standard have so far revolved around “just” differentiated fares that have been simply removed from legacy channels or otherwise differentiated through surcharges. So I wanted to explore what lies beyond the commonly known benefits of NDC – to help travel agents and the industry understand the reality of the positive changes the standard is already delivering today. Some of these benefits are more obvious than others, but all of them are relevant to travel agencies of all shapes and sizes. More importantly, the examples below are real, documented, and currently available – so travel sellers can start benefitting from them today!
1. Promotional messages simplified
With NDC, airlines have placeholders to describe their fares and services upfront to travel sellers and their customers; many are already using this service where the description can be contextualized and made relevant for the traveler or travel agent. Thanks to this, promotional details such as free upgrades and branded inflight services will no longer be missed as they will reach the target audience directly when they need it!
2. Localized text for travel sellers and travelers
A rarely used NDC feature is the possibility for airlines to have localized descriptions of their offers and fare conditions. Besides the fact that in some jurisdictions T&Cs must be in local languages, many travel sellers aren’t fluent in English. Especially for airlines that offer detailed information on their fare families, having this possibility will allow them to provide a better service to travelers and travel sellers, consistent with the airline branding. This possibility exists and has started to be used today by some airlines.
3. Frequent Flyer mileage accrual information & more
Travel sellers using NDC can provide additional information to customers: telling them how many Frequent Flyer points they would earn with these flights.
The idea has been implemented by a large Southeast Asian carrier, among others. This carrier includes the mileage gain value directly in each offer description, early on in the flow during the shopping or upgrade phase.
If you are wondering, “So are all these investments in NDC just to display some text and frequent flyer information?”, I would reply, look beyond:
- The simple fact that airlines can “push” messages during the flow to travel sellers or travelers is already a game-changer compared to the legacy EDIFACT world. Taking into consideration that this messaging can be dynamically calculated amplifies the opportunities to engage with travelers: imagine being able to tell them “Did you know that selecting this more expensive fare family compared to basic economy would make you reach Silver status on your frequent flyer program?”
- For the travel agent trying to close a sale, this extra information can be the deciding factor to convince a traveler to book. There are “points guys” out there who are craving for such insights: “How many miles will I get with this booking?” So far, the only solution was for the travel seller to go on the airline website, find the mileage calculator, re-enter the origin, destination, class, tier status… which is neither efficient, nor practical.
- Airlines can also use these textual windows to promote special deals with the agency “Did you know that thanks to our agreement with agency XYZ, you can enjoy a 6% discount on our public rate and an extra week to issue the ticket?" This way the agency can demonstrate on the spot its added value and also promote this airline.
- In business travel, such a message can be a powerful driver to comply with travel policy, for example with a text like: “Dear employee of [corporation X], booking this flight will make your corporation reach 37 out of the objective of 50 transatlantic flights this year with [airline Y]. That means additional benefits like free wifi for [corporation X] next year. We appreciate your business”. Corporate travelers will feel more aware of the endgame, so travel managers don’t have to explain every day the use of the policy, and this can reinforce the value of the deal with the airline.
4. Frequent Flyertailored offers
The previous example shows why it is important to provide a Frequent Flyer identifier as early as possible in the booking flow and not just post-booking, as usually done with legacy EDIFACT processes. Having this insight has already enabled some airlines to offer a discount or apply special conditions to certain accounts when assembling an offer, a feature technically impossible with the legacy communication standard.
5.Fewer, more relevant offers
The unbundling of full-service carriers’ offers - which began some 15 years ago to compete on price with LCCs - brought additional complexity in shopping for travel. Since then, in their direct channels, and now, with NDC, airlines have been in charge of calculating the offers themselves, benefitting from more details from the search context on what the traveller is looking for. Now it is possible to connect NDC-enabled content with the airline’s merchandising system and offer/order platforms - to ensure the offer is adjusted even more to the traveler’s needs following the airline’s retailing strategy.
Let’s take a long-haul flight as an example where there are four cabins onboard - Economy, Premium Economy, Business, and First. While some airlines at shopping time offer general upgrades to all, others are more tactical. The former tends to flood the upgrade section of the cheapest Economy fare with sometimes eight or nine extra options: bags, restricted or un-restricted fares in each higher cabin class, etc. On the latter, one Southeast Asian carrier for instance, looks at the context: if no cabin class has been provided as a search parameter, the airline can reach the conclusion that the passenger is looking for the cheapest fares. So the airline will not show the passenger an upgrade worth thousands of dollars from Economyor Premium Economy to a First class fare.
A good comparison to understand this better is: “When you browse a popular online retailer to buy a TV and you start looking at US$~300 entry-level screens, you don’t see recommendations for OLED 65” screens at US$10’000+, or if you search for large OLED SmartTV you won’t be shown the entry level TVs either, would you?”
This is replicating the way many airline websites behave, where manual input is required to access the premium classes fares: if the travel seller targets business class fares, the Southeast Asian carrier will propose upgrades to First-class if available. Curating the number of offers proposed is also a good way to ensure a smooth traveler experience in the mobile channel.
6.Offering new ancillaries is much easier with NDC
For airlines using NDC it becomes much more practical to offer new ancillaries, as they are able to classify them with virtually no delays and/or without having to agree with the industry on new standard SSR codes. For example, a European airline has taken this opportunity to offer tastier and more appealing in-flight meals than the standard IATA meals such as “Gluten free”.
Such freedom to innovate can be used to propose and describe all kinds of services like CO2 offset, assistance for disabled people and more. However, some airlines could take this freedom to innovate to the extreme. For instance, imagine selling bags checked in by the kilo or a new packs of services, combining bag weights and seats – or kerb-side check-in and security fast-track for such novel services, there are no defined standards, so it might be complex to properly display this information to travel sellers.
7. Complex transactions, simplified
Simplifying the sale of air tickets has always been a flagship objective of NDC. If we put aside the current standard definition, there are already some successes. For instance, after placing an order on a sophisticated e-commerce website, if you want to cancel it, you don’t need to send an email or call the helpdesk or chat with the delivery company. This is because there is a single “cancel order” button online which simplifies this process. In the travel industry to the contrary, the vast majority of travel sellers have had to live with complex processes for decades, having to master four different cryptic commands to cancel a flight booking, depending on whether it is after the booking, during the void period or after. The good news is that NDC enables this “cancel button” for travel, which means there is no need to explain the complex command lines to a new travel agent. It also means being able to tap into a broader pool of staff to empower them to perform such operations quickly and be more flexible.
8. No Agent Debit Memos due to miscalculation from the travel agent
A follow-up benefit from the previous point is tied to the fact that airlines are in charge of all calculations in NDC: there is no risk of a travel seller miscalculating a refund and incurring penalties from an airline when all they have to do is push the button. Amadeus has processed hundreds of thousands of NDC orders and we have witnessed so far virtually zero ADMs due to a miscalculation by the travel agency. That’s a significant saving in costs and processing time for travel sellers.
9.Prices calculated dynamically
With NDC, airlines can calculate prices in real-time. This should benefit travel agencies versus prices computed using legacy technology. For example, one European airline calculates its seat prices dynamically, meaning options vary in price based on a variety of factors including customer demand and travel context.
All the benefits described above exist today and are already available through the Amadeus Travel Platform. So if you’re a travel seller and about to negotiate an NDC deal with an airline, maybe you should ask: “How are you planning to use your new NDC superpowers to help me sell your product better and more?” In this respect, collaboration is essential to make NDC work for the whole industry and deliver on its promises to revamp retailing in our industry.
For more information and Amadeus insights about NDC, check out our dedicated webpage here .
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