IATA moves towards new distribution model

IATA moves towards new distribution model
By admin

The International Air Transport Association (IATA) is targeting the modernisation of airline retailing with a new plan which it predicts will boost competition and lower prices.

At a meeting during World Passenger Symposium in Abu Dhabi last week, the aviation body resolved on a foundation for a New Distribution Capability (NDC) – the culmination of a 12-month process which involved airlines, global distribution systems, the travel agency community and IT providers.

“Currently around 60% of tickets by value are sold indirectly through travel agencies using global distribution systems,” it explained in a statement. “With the NDC, airlines will be able to recognise these customers and therefore provide tailored offerings, as they already can for those customers who go directly to airline websites.”

Senior vice president, Aleks Popovich, described the move as the “first step” towards the development of open XML standards which would enable airlines to personalise their product across all channels while ensuring “full visibility” of fares and services.

“Participants have agreed that the industry standard is paving the way for the future, and the time is right to move to a new model,” he said.

In addition, the NDC would increase competition by opening up the distribution sector to new entrants, thereby reducing prices and boosting choice for consumers.

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