While agents continue to struggle with fragmented and inconsistent roll-out of NDC, Ann Cederhall, Travel Technology Strategist at Leapshift, believes the ultimate vision of airline distribution could see agents reclaim a stronger commercial role in the process.
Speaking at last week’s Asata Conference at the Arabella Hotel, Golf & Spa, Cederhall explained that NDC had its roots in the emergence of LCCs in the mid-2000s, which completely disrupted the aviation industry.
“At the time (the mid-2000s), airlines were paying an IT fee of around $5-$6 (R89-R106) per segment, and LCCs showed it could be done at just 30 cents (R5),” she said. Another big change is that LCCs started selling ancillaries like bags and seats. “Traditional airlines suddenly realised they didn’t have tools or standards to sell in the same way,” she added, which paved the way for the early discussions to begin about the introduction of a new standard.
PNR problems
“The problem isn’t EDIFACT itself – it’s PNR centricity,” she explained. “Everything has been built around the PNR – from back-office to accounting – and trying to retrofit new products into it has cost the industry an unimaginable amount.” The solution, according to Cederhall, lies in the development of the ‘shopping basket’ – or an OMS (Order Management System). In 2018, IATA introduced its ‘ONE Order’ vision. Instead of separate PNRs, tickets and Electronic Miscellaneous Documents (EMDs), all elements of a booking would be managed in a single order. “It’s not here yet – and I can confidently say we won’t be ticket-free by 2030,” she said. “But with an OMS, we can start consolidating orders even if we keep PNRs and tickets for now. The benefits are clear: travellers can be linked into one order, enjoy shared services like lounge access, and avoid the endless ‘computer says no’ scenarios.”
While OMS is an enabler, Cederhall stressed that true personalisation comes from data and customer relationship management (CRM). “With OMS you can create dynamic bundles. If a traveller always buys fast track, you can offer it as part of a discounted package. That’s real personalisation.”
Advice for travel sellers
Cederhall left three main takeaways for agents:
- Don’t wait – “Think about what else you can sell. Insurance, for example, can carry huge margins of 30-50%.”
- Work with airlines, not against them – “It needs to be a win-win. We need to break down the wall between airlines and sellers. Travel agents have an advantage – you can sell so much more than airlines.”
- Ask questions – “Challenge the GDSs, IATA, and others. Push for the changes that matter most.”
