Aviation Business News

In Depth: Book to the Future

photo_camera Eric Dumas

We spoke to Eric Dumas, CEO of NDC platform TPConnects Technologies to explain how data can enhance the whole airline industry

 

Everyone in the airline business, large or small, knows that profit from ancillary add-ons is essential, particularly as profit from selling seats alone can no longer be guaranteed as airport fees continue to rise.
In order to capture these revenues, a system will of course be needed. This is where New Distribution Capability (NDC) comes into play.

Increasing Awareness
Despite the obvious benefits for airlines and travel agents alike, there is some way to go before all of the relevant parties in the travel industry understand what NDC is, and how it can help them.
A recent TPConnects survey suggested that while a good number of respondents (86 per cent) have “heard of NDC and modern airline retailing”, a surprising 64 per cent admitted that they understood “nothing” or “not much” about the programme.

Given that airlines are free to interpret standard XML schemas to develop their own versions, or ‘flavours,’ of NDC and go on to implement distinct adoption programmes, navigating this landscape can seem daunting. However, the survey shows that sellers remain optimistic about potential benefits, with 57 per cent of respondents believing the programme could benefit them “a lot”. Yet, behind this confidence lies a number of challenges.
Travel sellers identified three key obstacles holding them back from realising these benefits: knowledge (50 per cent of respondents); technology costs and technology customisation (both 43 per cent); and air content access (36 per cent).
This is where new products, such as those offered by Dubai-based TPConnects Technologies are supporting the growing adoption of NDC.
Its Astra Airline platform is a modern retailing platform built on standardised, modular technology architecture with Offer, Order, Settle capabilities. Astra has solutions for B2B (airlines, agents, portal/API) and B2C (such as apps).
In simple terms, this means that most of the processing is done on its servers, so the airline or travel agent just needs ‘thin client’ terminals (very simple, low powered web-enabled PCs) to access the system.
Eric Dumas, chief executive of TPConnects Technologies explains: “The differentiation is really the ease of deployment. There are very few competitors that have a web-based platform like we have. A lot of them require a desktop set-up.
“Many suppliers can sell you a ticket and buying a ticket through an NDC is a piece of cake and a lot of people do it. You will find many suppliers who can provide this on the market.
“Where we differentiate is on the ancillary distribution and the way it is explained to the agent, because we make it easy.”A problem with an industry-wide one-size fits all-style product is that different airlines can interpret the standard in various ways. However, Dumas is confident that TPConnects’ product will account for all variations of other systems.
“On the servicing we make it simple,” he says. “We have spent three years investing in the platform, working with one of the largest TMC in the world. We had over 1.2 million NDC bookings in 2023, so our solutions are proven at scale.
“We have a simple web-based desktop application usable by agents on behalf of the airline, where the agent doesn’t need to call the airline to generate a ticket.
“This is why airlines feel comfortable using our solution – we offer a relatively flexible way to enhance the platform for their own purposes.”
Having a product that has unique features is helpful, but it is not the only consideration when selecting a technical product.
“The second part is that we have probably the best servicing solution in the market,” Dumas adds. “In the NDC world, servicing is extraordinarily complex.”
He adds that historically the airline industry has not always provided solid integration with the various databases and competing networks used, but NDC solves most of this.
“We do both our B2B2C platforms as one of the products in our portfolio, as we are required to run content in a very swift and seamless way. This is what we provide to airlines such as Gulf Air, Singapore, Finnair, Sri Lankan and so on,” he explains.
“Travel sellers cannot afford to hold off evaluating the options and making some informed decisions. Fortunately, experts like TPConnects are here to help and I encourage sellers to reach out to discuss their choices.
“We are on the path of enabling retailing transformation and modernisation. We have probably the ‘lowest friction’ and most easy to use solution,” he concludes.

 

So, What actually is NDC? 

To put it simply, NDC is an initiative championed by the International Air Transport Association (IATA). At its core, NDC is an XML-based data transmission standard that modernises communication between travel suppliers (like airlines) and sellers (such as travel agents and online platforms).
The goal of NDC is to create a more efficient and personalised booking experience for travellers.

Making things easier
For airlines, the most obvious benefit is that it is faster and more practical to offer new on-board products without having to agree on new standard codes. So, a passenger might be able to book a specific menu choice in advance of boarding, rather than just a generic option like ‘gluten free’.
NDC benefits also travel agents in several ways. First, it provides access to the airlines’ content which enables travel agents to offer personalised and relevant offers to their customers.
Secondly, NDC allows airlines to push promotional messages directly to travel agents and their customers, which helps travel agents stay up to date with the latest offers and promotions.
Thirdly, NDC provides localised text for travel agents and travellers, which allows airlines to provide a better service while remaining consistent with the airline branding. NDC can also provide additional ‘meta’ data to customers, such as frequent flyer accrual information.
Lastly, NDC eliminates the risk of agent debit memos due to miscalculation from the travel agent.

 

 

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