Debunking the myths of the Next Generation Storefront for airlines

As with any industry-disrupting innovation, good news travels fast but misinformation flies at Mach speed. Such is the case with the Next Generation Storefront^TM, or NGS. 

NGS is designed to help solve one of the airline industry’s biggest challenges. Flight shopping can be confusing, stressful, and overwhelming. Passengers visit an average of 20 booking sites just during the week that they purchase their tickets, according to the Traveler’s Path to Purchase study conducted by Expedia Group.

And after they’ve made a purchase, travelers may be hit with a fee for something they thought was included or may get stuck in a seat that wasn’t what they expected.

During ATPCO’s flight shopper survey conducted in April 2019, 44% of respondents said it’s not easy to find what’s included in a ticket, and 40% said they paid an unexpected fee for a service they thought was included.

Airlines have made significant investments in providing richer content and branding data on their directly controlled points of sale to help consumers choose the products that make the most sense for them.

This is reflected in two key metrics - NPS (Net Promotor Score), which tracks customer satisfaction, and upsell, or the measure of how often the consumer will choose a better product over the basic no-frills product. These measures average 80%+ and 40%, respectively, for directly controlled channels.

Unfortunately, for channels that don’t have access to the same level of data, these metrics are flipped.

NPS runs very low and upsell is often less than 3%. That’s because each airline has created its own propriety solution for defining, branding, and sharing key data that explains its products, and the indirect channels have no practical way to reconcile the rich content to the products they present.

NGS is designed to fix this. It’s a free data standard that airlines can use to distribute their rich content and branding data to all channels.

With NGS, airlines can finally differentiate their offers, channels can design unique shopping experiences, and passengers can easily comparison-shop, find the flights that they want, and visualize what they’re getting. The NGS standard enables a shift from "cheapest fare" to "best value."

Setting the record straight

That’s the reality of NGS. Now let’s look at some of the myths.

MYTH: NGS is a bunch of rules restricting how you display flights for sale.

REALITY: NGS is not a rule-based ecosystem.It’s a data-driven standard that was developed by stakeholders from all across the industry to enhance airline retailing capabilities for all channels.

The NGS standard establishes a core set of capabilities to simplify flight shopping and drive confidence through consistent, impartial, and reliable data. Representatives from airlines, channels, and GDSs have come together in rigorous NGS Working Group and Advisory Group meetings to help create the NGS standard.

Acting as an impartial third party, ATPCO guided the industry toward a standard that translates the airlines’ complex data into content that enables travelers to purchase the flights that best match their unique needs. NGS is the infrastructure that lets travelers search for and compare the experiences that they want.

MYTH: NGS is a just star rating system.

REALITY: No, NGS is a set of data standards that enable distribution channels to better present, sort, and find the airline products and services consumers are looking for.

With consistency and transparency, the airlines, travel sites, and passengers can all be clear on the things that are — and aren’t — included in the ticket price. Different products and airline offers can be organized to help shoppers find the right level of service.

With rich media content, the shopping experience is drastically improved from start to finish — and so are the flights when there are no hidden surprises. All of which can lead to happier travelers and more satisfied, loyal customers.

MYTH: NGS is nothing more than a grid of six shelves.

REALITY: NGS doesn’t box you in, lock you into a grid, or put you in a corner. Sales channels can emphasize the shelves that matter to their customers and customize displays for each of their platforms, including mobile.

They can showcase product quality, content, and capability - not just price. NGS-enabled displays allow flight shoppers to easily understand the difference between multiple products of one airline and compare them to like products across different airlines.

Wi-Fi, beverages, changes, and other amenities can be included to improve searching, but where and how all the details are presented on a screen and through the shopping journey is in full control of each shopping channel. 

NGS allows channels to display complete offers, presenting all the relevant data for an offer so that consumers know exactly what they are and aren’t purchasing. It allows channels to employ the standards to consistently integrate content into modern, compelling shopping displays.

Shoppers can compare like products from multiple airlines through standardized data that describes services and delivers a framework for creating comparable products and attributes.

The NGS standard has proven potential. Channels that have participated in trials have seen results that indicate the revolutionary potential and power of NGS and its ability to completely disrupt the flight shopping experience.

The first trial that included NGS concepts helped produce a 62% increase in premium bookings. A second independent trial yielded a 33% increase in overall bookings. 

MYTH: NGS is for corporate and business travelers, not leisure travelers.

REALITY: That is absolutely not true — it’s for everyone. NGS is for every airline and travel seller, of all sizes and business models, and for every airline customer, no matter where they are traveling to or from, for business or pleasure. 

For leisure travel, NGS means that parents could quickly narrow the options they need for the perfect flight that will get their family of five to and from their vacation destination as easily and pleasantly as possible.

For business travel, a rising corporate star could choose just the right seat to relax in a comfortable environment while she sips a glass of wine, has a gourmet meal, and confidently reviews her notes for her meeting the next day.

MYTH: NGS is designed to slow the pace of digital direct.

REALITY: Strangely enough, we hear this a lot. Some industry players see NGS as a tool to slow the pace of digital direct distribution mechanisms such as NDC. NDC itself does not contain any data necessary for channels to take their rich media offers and present them in a complete form.

Airlines such as United and American have leveraged NDC and NGS to present products that can’t be presented on older distribution standards. NGS gives “legacy” distribution channels a needed set of capabilities that should be basic necessities for any type of retailing.

With NDC, NGS provides a substantial value-add that opens the door for truly personalized, rich content offers to be presented consistently across all direct channels.

MYTH: NGS is already set in stone.

REALITY: Last year, the NGS Working Group and Advisory Group built the first data-driven NGS standard for the U.S. domestic market.But this is something that will continue to evolve and we need the industry’s help.

Join in and build on that momentum and prepare NGS for global expansion. Bring your perspective and represent your organization’s interests as they focus on adapting the NGS standard for transpacific, transatlantic, and other regional markets.

ATPCO welcomes a diversity of industry players who can ensure that the standard that is delivered reflects how all airlines wish to present their products and empowers channels to easily integrate that content in a consistent and simple way. 

This year, ATPCO will announce its NGS certification process. The process will be focused on driving adoption by presenting flexible implementation milestones that will actively support airlines and channels alike. 

Instead of setting firm regulations, ATPCO intends to use more carrot and less stick in supporting an NGS leader-board approach that will highlight every step in the journey to NGS for the airlines and channels.

We have much to learn and our channels will innovate and drive NGS in new directions, so we don’t want to stifle this innovation with rigid and binary measures.

The NGS community is a supportive, fun and results-driven group that is focused on decommoditizing air travel and fixing airline retailing for good.