This is precisely the aim of NDC and ONE Order.
The new NDC and ONE Order distribution standard reduces distribution costs significantly and enables increased revenue through ancillary sales. It also greatly simplifies the implementation of dynamic pricing.
Communicate directly with your customers and offer them any product you like. Decide whether your distribution strategy should involve third party intermediaries, such as costly GDSs or aggregators, or whether you want to directly engage with the traveler through your own sales channels, such as web pages or apps.
What is the new NDC data standard all about?
IATA, which represents around 300 airlines worldwide, is working on the New Distribution Capability (NDC) initiative. This new data standard is more flexible and dynamic than the current EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport) format, for example. EDIFACT was established in the 1980s.
How can you benefit from NDC and ONE Order?
Global Distribution Systems (GDS) separate you from your passengers by acting as intermediaries between you and your customers. This means you have no direct contact with customers in the offer phase, and you also pay hefty fees for using the GDS.
NDC and ONE Order allow you to fully control what you offer as an airline. You can decide whether your distribution strategy should involve third-party intermediaries, such as GDSs or aggregators, or whether you want to directly engage with the traveler through your own sales channels, such as web pages or apps.
At the same time, ancillaries such as seat reservations, chargeable bags, Wi-Fi and lounge access are playing an increasingly important role for all airlines, whether you are a legacy or low-cost carrier. However, GDSs are often not able to fully offer and sell these additional services. As a result, the options for displaying rich content and differentiating products are limited.
NDC and ONE Order significantly reduce distribution costs and increase revenues, e.g. through ancillary sales. This new distribution standard helps you to better focus on consumer needs and expectations. The key components of such an approach are a more personalized offer and order management philosophy as well as dynamic pricing.
How is a booking created today?
Today, when a customer books a ticket for a flight, a PNR (passenger name record) is created. This PNR contains information about the passenger as well as the selected flight route, but it contains no payment information. The payment information can be found in the Electronic Ticket (ETKT) along with the status, such as whether this ticket was actually flown, refunded or used in another way. The ticket is issued at the time of payment with all of the information mentioned above. If the customer wants to purchase additional services, such as a seat reservation, another document known as an EMD (Electronic Miscellaneous Document) is issued.
Post-booking dataflow: Why do NDC and ONE Order make such a difference?
Distributing all information or records within the airline system landscape to individual systems such as the back office, accounting or departure control systems is very complex. Should problems arise, such as flight cancellations, many components need to be updated one by one, or sometimes even at the same time.
Meet our insider André Siggel:
- Support for airlines worldwide in the implementation of the new NDC & ONE Order distribution standard
- Become less dependent on the GDSs
- Implement additional and superior direct or indirect distribution channels
- Offer products and services that differentiate you from your competitors
- Implement new concepts for personalized offers and marketing activities as well as rich content for product differentiation
- Increase revenue with real-time decisions based on dynamic pricing concepts
- Respond quickly to market changes