TNW pick of the week: NDC – evolution or revolution?

Iata plans to launch the pilot project of its New Distribution Capability (NDC) standard as early as the end of this year. It is said the new industry standard will revolutionise the way airline product is currently distributed, particularly through GDS channels. But Iata maintains that this is not an attempt to cut out indirect distribution, but rather to see the necessary evolution of merchandising the world of aviation.

Aleks Popovich, Iata’s senior vp of industry, distribution and financial services, recently visited South Africa. TNW sat with him to discuss the latest developments of the new project as well as several issues relating to the standard that he said were misconceptions.

The first misconception was that the NDC is a new GDS, he said. “The NDC is a new global standard, which will enable airlines to fill the capability gap between their direct and indirect channels.” Airlines, through their websites, were able to offer a variety of products, such as ancillaries, with the option to customise these products, while the information brought to travel agents through the GDS was limited, Aleks said. “The GDS was designed to commoditise airline product. And although there has been progress in this regard, the system does not have the capability to effectively present this rich content to travel agents.

“The NDC is about building the technology standards that will open up all channels, bringing true merchandising to the aviation industry – unlocking revenue for airlines and other players.”

TNW will be running a series of articles on the NDC in upcoming issues. Send your comments and thoughts to natashat@nowmedia.co.za.

For more on this story refer to TNW February 6.