The evolution of airline ticket booking has seen significant changes with the introduction of New Distribution Capability (NDC) technology. The Airlines Reporting Corporation (ARC), a key player in the travel industry, has proactively addressed these changes by releasing a comprehensive set of best-practice guidelines aimed at enhancing the servicing and support frameworks for airline tickets booked through NDC. This initiative responds to a pressing need for consistency in an otherwise fragmented system and aims to streamline the booking process for travel agents and airlines alike.
The Collaborative Effort Behind the Guidelines
Developed primarily over the past year through the collaborative efforts of ARC’s NDC Advancement Working Group, the guidelines emerge from a diverse collective of industry stakeholders. This group included representatives from seven airlines, six travel technology firms—including Global Distribution Systems (GDS)—six online travel agencies (OTAs), ticket consolidators, and 17 travel agencies. The extensive representation underscores the collaborative nature of this initiative, which emerged in response to various obstacles that have hindered the smoother implementation of NDC technology.
Despite its inception in 2016, the adoption rate for NDC remains notably low. As of October, a mere 19.1% of air transactions settled by ARC were NDC-enabled—highlighting the challenges the industry faces in transitioning from traditional booking methods to this advanced digital merchandising technology. Low adoption can primarily be linked to inconsistencies in servicing protocols. With NDC, airlines independently manage offers and orders, differing significantly from the GDS-dominated model that travel agents are accustomed to.
To address these challenges, ARC has laid out 20 best practices categorized into key service areas: exchanges, debit memos, waivers, and timeliness. These recommendations are crucial for achieving efficient, streamlined servicing across various airlines. For instance, one highlighted practice involves the NDC interface providing clear explanations when an exchange is rejected, which not only improves transparency but also aids travel agents in proposing alternate requests. This focus on communication can greatly enhance the customer experience and encourage trust between agents and airlines.
Another significant recommendation suggests that travel technology providers implement mechanisms to allow travel agents to compare NDC fares with traditional GDS fares when both are available. This ability will empower agents to offer their clients better options, maximizing value while ensuring they are well-informed about the available choices. By promoting efficiency and transparency, ARC’s guidelines advance the goal of standardizing NDC processes, thereby facilitating its adoption within the industry.
Ultimately, ARC’s best-practice guidelines represent a vital step towards normalizing NDC ticketing processes while addressing concerns raised by travel agents. By focusing on consistency, clarity, and comparability, these best practices aim not only to enhance operational efficiency but also to build a stronger foundation for the future of airline ticketing. As the industry navigates these transformative changes, the successful implementation of these guidelines will be crucial for fostering broader acceptance of NDC technology and revitalizing the airline distribution landscape.