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.