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.
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