NDC take off: planning for the long haul
Our Insights

NDC take off: planning for the long haul

Imperative to modernize distribution channels
Key Highlights:

  • The share of annual revenue from the distribution segment of two big Global Distribution Systems(GDS) has been trending down in the last five years, indicating their growing focus on the non-distribution part of their product portfolio
  • It is critical that the GDSs constantly innovate and maintain a comprehensive and relevant range of offers through a two-pronged strategy consisting of in-house development and strategic acquisitions
  • GDSs are in the best position to de-commoditize airline merchandise and further integrate the travel experience with other service providers such as hotels, restaurants, car rental agencies, OTAs and more, at each key touch point in the customer’s journey

New Distribution Capability (NDC) is challenging the way GDSs have traditionally operated; as intermediaries between travel agencies and airlines. The NDC framework is changing the dynamics within the existing airline ticketing and pricing distribution ecosystem. It will allow travel agencies to offer ancillary services just like airlines can on their own websites – such as extra legroom, lounge access, and baggage options.

Thus, an apprehension that GDSs will lose significance is not unfounded, and GDSs must adapt in order to continue to be relevant in the future. They must transition from their current role to become aggregators and technology service providers in the emerging system.

WNS DecisionPointTM has looked at some of the key factors that are likely to help GDSs evaluate their adaptability and readiness to continue to thrive in this new ecosystem. Some of these include:

  • R&D focus to develop new products in-house

  • Strategic acquisitions to help diversify their offerings

  • Use of open technology platforms

  • Further penetration in the non-air travel segment



Explore what the new NDC system will mean for different stakeholders, how it will affect GDSs and how GDSs should respond in the full report. 


READ FULL REPORT

NDC will allow airlines to combine various ancillary services, based on the customer's preferences, and offer them with the base ticket at competitive price points