The New Distribution Capability (NDC) has emerged as a significant innovation within the airline industry, designed to modernize ticket distribution and enhance customer service experiences. However, its adoption has faced challenges, as evidenced by a report from the Airlines Reporting Corporation (ARC), which recently published best-practice guidelines aimed at enhancing the servicing and support of airline tickets booked using NDC technology. This document fills a crucial gap by offering 20 actionable practices that target common pitfalls associated with NDC transactions, focusing on areas such as exchanges, debit memos, and waivers.
The formulation of these best practices involved a collaborative effort spearheaded by ARC’s NDC Advancement Working Group, which convened representatives from various sectors within the travel industry, including airlines, travel technology providers, online travel agencies (OTAs), and traditional travel agencies. This diverse group acknowledged that, while the potential of NDC is substantial, the issues adversely affecting its uptake must be addressed systematically. By bringing together expertise from these different stakeholders, the guidelines aim to alleviate the frustrations faced by travel advisors and ensure a smoother transition to this new technology.
Despite the potential advantages of NDC—such as improved service personalization and better inventory management—the actual implementation has lagged since the initial transactions commenced in 2016. As of October, NDC-enabled transactions made up only 19.1% of air transactions settled by ARC, primarily driven by OTAs. This statistic reflects the slow progress in shifting airline ticketing practices toward a more integrated and adaptable model. A significant hurdle lies in the differences between legacy systems and NDC frameworks; airlines now have enhanced control over their offers and services, presenting inconsistencies in servicing protocols that complicate usage for agents.
The newly published guidelines include a range of best practices that can significantly improve the efficiency and effectiveness of NDC transactions. Among these, six practices address the specifics of executing exchanges, illustrating the need for clear communication between airline systems and travel agents. For instance, when an exchange request is denied, NDC interfaces should not only provide a clear rationale but also facilitate a resubmission process for alternative options. Such steps could mitigate the frustrations commonly faced by travel advisors during customer interactions.
The overarching goal of ARC’s guidelines is to catalyze the normalization of NDC servicing processes, promoting wider adoption across the industry. By clarifying protocols and establishing consistent practices, ARC aspires to eliminate confusion that has hindered the transition to this more modern distribution capability. One of the notable recommendations involves enabling comparisons between NDC and traditional GDS fares, empowering travel technology providers to deliver an informed selection of options to consumers, thereby enhancing transparency in pricing strategies.
As the airline industry continues to innovate and transform through technological advancements like NDC, it is imperative that clear guidelines and best practices are established. ARC’s initiative to publish these practices demonstrates a proactive approach to overcoming existing challenges and facilitating smoother operations. By fostering collaboration and understanding among various industry players, the expectation is that the adoption of NDC will accelerate, ultimately benefiting travel agencies, airlines, and, most importantly, travelers themselves. The journey toward fully embracing NDC is complex, but with these guidelines, the path appears to be more navigable.
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