Air France and KLM are gearing up to drive agents and TMCs off traditional GDS channels and on to NDC.
This will be done by making some of their cheapest fares on short- and medium-haul flights available through NDC only (this includes those NDC channels that exist within the GDS ecosystem).
The airline group is following a trend sweeping across the aviation industry, under the title of ‘distribution changes’ as airlines continue to push ahead in the quest to put control of bookings into their own hands without the costly sector fees that they are obliged to pay GDSs for bookings done through traditional GDS methods.
For the French-Dutch airline group, this will start with its cheapest fares. AF-KL has said in a statement that it would withdraw short and medium-haul ‘Light’ fares (no check-in baggage included, no changes possible), from traditional GDS channels in June – these will then be available to agents only via NDC connections.
Air France and KLM, at the time of making their statement, also announced the addition of three new NDC aggregators – Duffel, Verteil and Wondermiles.
Other major airlines such as the IAG Group and Lufthansa have combined the stick (surcharges for GDS bookings) with the carrot (go to NDC channel to get the best fares).
But Air France KLM’s plans to introduce a GDS surcharge on TMCs and other travel agencies have been postponed from 2018 to the end of this year, according to online travel publication The Beat.
The AF-KL move toward NDC comes shortly after American Airlines told TMCs across the globe that they would need to use NDC channels in order to continue to have access to all its inventory. The airline has said it will move 40% of its inventory to NDC-only channels by the end of April.
The American Society of Travel Advisors (ASTA) has asked American to refrain from taking this step until the end of the year, says US industry publication, Travel Weekly.
US agents believe the move could be premature and are questioning whether American Airlines and the GDSs are ready to handle all but the most basic itineraries for NDC bookings. Bookings for multiple passengers, children, interlines and codeshares are an area of concern and agents also wonder about the servicing capabilities of these direct NDC bookings, including changes, cancellations and refunds.
Still, the carrier has not undertaken to delay the process.
“It appears that AA has made a strategic decision to forsake short-term profits to achieve a stronger, anticompetitive business position long-term, one secured by denying access to fare inventory," said ASTA President and CEO, Zane Kerby.
