Questioning the travel industry status quo, one blog post at a time

Posts Tagged ‘DOT’

The DOT’s approval of IATA Resolution 787 (NDC) marks an important milestone for the industry, as it removes any last remaining uncertainty that the nature of airline distribution is evolving for the good of all supply chain constituents. By embracing a modernized messaging standard, airlines are enabled to distribute new products and services efficiently and effectively to travel agencies and corporations, in much the same manner as they do on their websites today, using a standardized API. This is essential to closing the distribution gap between airline.com and the indirect channel.

In the years that this has been debated, innovation has continued to propel forward. Airlines are already investing in powerful new merchandising and distribution engines that enable them to create a wider range of offers, bundles, and services that are proving popular with consumers. GDS companies such as Travelport are already integrating with NDC-like XML APIs from Air Canada, American Airlines and WestJet. OTAs such as Priceline are selling premium seats using the same technology approach. Change is already happening.

We believe DOT’s approval of Resolution 787 will fuel even more innovation among players in the supply chain who are competing to creatively adopt and implement NDC and differentiate themselves in the process. On the airline side, those carriers that have been on the fence about investing in their own merchandising, distribution and APIs may now move forward. On the agency side, the pressure is on for GDS companies, TMCs and OTAs to enhance their user interfaces to ensure they can competitively consume new types of airline content delivered via the XML API, including rich media, bundles, personalized offers, and more. This is the new footrace to determine who will lead the way in terms of delivering on NDC.

In case you missed last week, IATA’s Alexander Popovich wrote a great piece in Tnooz explaining some of the fears and angst surrounding NDC. Definitely worth the read!

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NB: This is a viewpoint by, Aleks Popovich, senior vice president for financial and distribution at the International Air Transport Association.

Providing customers with more information and choice, enabling agents to sell a wider range of products and opening up a new realm of services more closely tailored to customers’ needs.

This should be a welcome development in the travel industry.

However, IATA is well aware that many in the travel agency community are concerned about IATA’s Resolution 787, the foundation document for the New Distribution Capability (NDC) project.

Yet despite the filing of 400+ comments and motions for or against Resolution 787 with the US Department of Transportation, there has been almost no attention paid to what is really driving travel agent angst over the NDC project: fear of the unknown.

Read the rest of the article at Tnooz.

I have now read in its entirety the Sabre comment filed with the DOT. Wow! Seventy-seven pages of Sabre showing PowerPoint slides and screenshots of what’s to come… at some point… in the future… eventually. The part I found the most interesting was —————redact————————, especially when they discussed the future development of —————————————redact————————. They have really nailed it because I would have thought that taking the approach of —————redact————————————– would have yielded a better return on their technology investment. But hey, good for them.

Well, since Sabre has clearly presented their technology and product plans for the future of new-world distribution technology, I feel compelled to do the same. So here it is, The Farelogix Technology and Product Strategy for the Future: We are mainly investing in —————redact———————— to the tune of $—————redact———–. This will also us to revolutionize the way the airline industry performs —————redact————————————————-. We will be incorporating new and advanced fusion-based accelerator ———————————————redact———————— which will yield a significant reduction in cost of operations for airlines and travel agencies and by utilizing —————redact———————— will generate transaction response times of less than 2 milliseconds. Now that is a strategy!

So, there it is. Clear as day… or at least clear as Sabre’s strategy.

As always, your comments welcome.

Farelogix is pleased to share our official commentary in support of IATA’s Resolution 787 (New Distribution Capability), which we recently submitted to the United States Department of Transportation. Yes, we know it’s a little long, but that’s because we wanted to provide a thorough analysis of the resolution including real-life examples of how this important initiative delivers greater transparency and choice to consumers, new opportunities for travel sellers, and a big step forward in the modernization of airline commerce.

So, pour yourself a fresh cup of coffee and read our comment here.

As always, comments are welcome.

 

It’s certainly no secret that while Farelogix doesn’t like to start fights, we seldom back away from a good one, especially one that threatens innovation, competition, or our business. It is also no secret that we have been embroiled in a number of airline/GDS lawsuits, a Department of Justice investigation into the possible antitrust activities of the GDSs, and a few rounds with the DOT. We, like many others, have the scars of ongoing business disruption and legal fees to show for it.

We continue to fight because we believe things are not right in the GDS-dominated indirect distribution channel and consumers, corporations, airlines, tech companies, and, yes, even travel agencies, are paying the price. With all the allegations and investigations going around, I wonder if the old saying is true: Where there is smoke, there’s fire.

In case you missed it, check out United States District Judge Terry R. Means’ Sealed (now unsealed) Order Denying Motions (by Travelport, Sabre, and Orbitz) to Dismiss the antitrust lawsuit filed by American Airlines. Not only may you find it an interesting read, you can judge for yourself whether there really is some fire here.

As always, your comments are welcome.

To borrow a line from almost every late night talk show host, “I couldn’t make this stuff up.” But I can blog it!

I’ve been accused from time to time of being a purveyor of black magic, a spellbinder of XML incantations, an agitator, a snake oil salesperson, an innovation bigot, and a man with a bobblehead’s brain. But one thing I’ve never been called is a “flip-flopper.” I tend to stick with my basic belief that through a combination of innovation, creativity, great people and a competitive landscape, valuable and far-reaching strides are happening in airline distribution… all to the benefit of airlines, travel agencies, and consumers. I wish I could say the same about some other folks in the industry.

Glass Concept Home by Santambrogiomilano

Anyone not living in a cave is aware of the tremendous distraction taking place in our industry by cries that airlines are “hiding fees.” It’s getting so bad that a huge lobbying effort is taking place to get the US Department of Transportation (DOT) to mandate new onerous regulations on disclosure and transparency… all under that guise that it’s to “protect consumers.” There seems to be a virtual swinging door at DOT headquarters with pleas from ITSA, ASTA, BTC, and the GDSs to force, through regulations, the airlines to be more transparent and disclose all airline optional services and related fees.

Of course, this is all in the name of “consumer protection.”

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