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Data / <strong>Travel</strong> tech<br />
DISTRIBUTION CONFUSION<br />
“We could be closing in on drastic change,” states Greeley Koch, Executive<br />
Director of ACTE, in the organisation’s white paper on the evolution of air<br />
distribution. And if the findings of the survey are anything to go by, there<br />
are certainly mixed views and varying levels of engagement with IATA’s<br />
New Distribution Capability (NDC) standard.<br />
“For decades, the corporate travel booking process has operated in basically the same way.<br />
While the system worked in simpler times, it’s needed to be updated for quite some time,”<br />
continues Koch. “Six years ago, the International Air Transport Association (IATA) started talking<br />
about New Distribution Capability (NDC). <strong>The</strong> idea: offers could be personalised for specific<br />
travellers, helping them to be more efficient while companies would benefit from cleaner<br />
reporting on their total airline spend, and airlines would have greater flexibility with pricing<br />
options.” Discover the findings of its survey, in association with American Express Global<br />
<strong>Business</strong> <strong>Travel</strong>, below, and read more about distribution developments on pages 76-77.<br />
NDC MISGIVINGS PERCENTAGE OF TRAVEL<br />
MANAGERS WHO HAD CONCERNS ABOUT...<br />
£<br />
REDUCED FUNCTIONALITY<br />
HIGHER COSTS<br />
44 %<br />
REDUCED FARE TRANSPARENCY<br />
AVAILABILITY OF DATA<br />
POLICY COMPLIANCE<br />
Significantly concerned<br />
90 %<br />
46 %<br />
89 %<br />
51 %<br />
88 %<br />
45 %<br />
88 %<br />
42 % 87 %<br />
Concerned<br />
THE NDC KNOWLEDGE GAP<br />
81%<br />
OF TRAVEL MANAGERS ARE<br />
NOT FULLY CONFIDENT ABOUT<br />
THEIR NDC KNOWLEDGE<br />
64%<br />
TOP 5 TRAVELLER ADD-ONS<br />
THE PERCENTAGE OF TRAVEL<br />
MANAGERS REPORTING<br />
TRAVELLER USE OF ANCILLARIES<br />
BAGGAGE FEES<br />
OF TRAVEL MANAGERS<br />
83 %<br />
BELIEVE NDC WILL IMPROVE<br />
THE TRAVELLER EXPERIENCE<br />
SEAT SELECTION<br />
67 %<br />
56%<br />
INFLIGHT WIFI<br />
45 %<br />
INFLIGHT MEALS<br />
45 %<br />
OF TRAVEL MANAGERS BELIEVE<br />
UPGRADES<br />
35 % NDC WILL SUPPORT THEIR<br />
AIRLINE NEGOTIATIONS<br />
PAYING THE PRICE<br />
WHO TRAVEL MANAGERS THINK SHOULD PAY FOR NDC IMPLEMENTATION:<br />
AIRLINES – 41%<br />
ALL STAKEHOLDERS – 28%<br />
DON’T KNOW /OTHER – 12%<br />
TMCs – 4%<br />
CORPORATE PROGRAMMES – 1%<br />
FEW TRAVEL MANAGERS ARE LOOKING<br />
BEYOND BOOKING TOOLS AT<br />
ALTERNATIVE BOOKING CHANNELS<br />
NOT LOOKING AT OTHER TOOLS OR PLATFORMS – 63%<br />
AIRLINE DIRECT CONNECTS – 26%<br />
METASEARCH ENGINES, OTAs – 12%<br />
AIRLINE WEBSITES – 9%<br />
OTHER – 7%<br />
THEBUSINESSTRAVELMAG.COM<br />
79
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