What's next for NDC: Content investment and innovation

NDC was one of the most heated phrases in the business travel sector until COVID-19 changed everything. 

In fact, the eerie quietness that has fallen upon the theme of the NDC technology standard over the past 18 months has led many to speculate that investment in new distribution capability has slowed and been heavily impacted by revenues falling off a cliff in the aviation sector.  

But quiet storms should never be disregarded. 

Like many businesses, airlines have used the pandemic to test, trial and introduce fundamental changes that would be tricky when everything is business as usual. 

Similarly, travel management companies (TMCs) have reviewed how different booking platforms work for them and made plans for areas of focus as travel resumes.  

What is clear is that there is no one size fits all. NDC does not completely replace the GDSs, and neither does it fundamentally alter how corporates, TMCs and airlines work together. 

Channel choice and flexibility

Multichannel choice is a key theme as we emerge into a world living with Covid-19. 

And the need for ultimate flexibility and choice is not just about price, it’s about having the right travel content for sale in the different channels and platforms that work for wherever a corporate is on their booking journey, at that moment in time. And no two trips are handled in the same way. 

While price will always dictate most booking decisions, it is no longer the heaviest influence on how decisions are made. 

The world has been changing for a while and the pandemic has accelerated interest in factors such as sustainability and wellbeing. The cheapest flight option might be the highest in terms of carbon emissions, or at ungodly times with multiple legs. Today, price is only one sum of the parts when it comes to which fare to choose. 

As a TMC, we recommend our clients consider many different sources. TMCs need to serve up all of the options and show the benefits of choosing one platform over another. Of course, it is in our interests to highlight what comes with a fare beyond just an attractive price. But what clients need will vary by booking. 

Booking platforms now need to be like a slick smart TV where the user can choose programming from multiple competing sources. 

Most people don’t only watch terrestrial TV, they flit between different subscriber packages, free online content and old favourite channels. Smart TVs recognize this and at the push of a button you can seamlessly view your Netflix recommended titles, on-demand events, YouTube films from independent content creators or expensive box office blockbusters. 

Booking travel shouldn’t be any different. The role of TMCs is to anticipate the multiple sources where great travel content will come from in the future, including NDC platforms, and ensure clients can access it as part of the mix.  

NDC is an important part of this. And as airlines invest more in personalisation and merchandising options, NDC becomes more and more attractive. 

But with many carriers having their own NDC platform there is a lot for TMCs to get to grips with. 

Responsive and flexible technology is everything. Those who have dismissed NDC as no longer a priority in the wake of the pandemic have misjudged a sleeping giant. 

Being able to accommodate the changes and opportunities that come from NDC content is a key part of being a good TMC.  

Content challenges

Of course, it is challenging to keep up with NDC and other travel content innovations, let alone have the right technology platforms and commercial agreement to sell their fares. 

Some say that NDC is separating the new guard from the old, in a similar fashion to how ecommerce has eclipsed bricks and mortar retail. But our view is that it’s about having the right mix of everything.  

There have been recent announcements from GDS providers that NDC content with some of Europe’s largest airlines will be available through their platforms. 

And some TMCs have stated that they will not access NDC content outside the GDS. While this may initially sound like a roadblock removed, a closer examination reveals this is not actually the case. The airlines are in fact ensuring that the GDS does not have guaranteed ‘full content’. 

Their position is that while they intend to put the bulk of NDC content via GDS platforms, they also want to reward agents and innovators that have been on the NDC journey with them. 

 TMC’s serving specific industry niches will be able to access certain NDC content in their direct channel that is not available through the GDS.  

While the variety and range of this content remains a little unclear, it reflects a clear paradigm change. Those clients with the largest volumes will undoubtedly be able to claim a discount that major TMC’s can transact easily through their GDS NDC channel. 

However, the innovative agents who demonstrate the ability to target the right customers are likely to see the most attractive fares tailor-made to travelers coming through a direct NDC connection, rather than the GDS. 

For the corporate travel buyer this means that the benefits of centralized discounts and scale are eroded as airlines focus on travelers directly through better targeted NDC content.  

While our role as a TMC is focused on our contractual owner, we have always maintained it is important to know what offers are out there beyond any agreed discount. This ensures you have a more rounded view. 

Future proof technology platforms are always essential, however they will not be successful without expert service. Navigating travel in the pandemic took much of travel booking offline and into a high-touch service environment. 

If you’re only good at being a technology platform then you are really exposed. Skilled TMCs know which sleeping giants to keep close to, and which storms are worth navigating through.  

NDC is a big part of corporate travel booking in the future, but it is not the only important travel content source to embrace. There will continue to be exciting opportunities and this will drive innovation from other travel content providers. 

As for what’s next? Being ready to embrace change and disruption is a good place to start.