The Future of Delta’s Distribution Strategy

Delta Airlines is set to take a significant step towards revolutionizing its distribution strategy by introducing its first New Distribution Capability (NDC) iteration later this year. Sara Reid, the airline’s managing director of sales technology and global sales support, revealed this development during a panel discussion at the Elevate + TravelConnect conference in Washington, D.C. While other major U.S. airlines like American and United have already made strides in NDC adoption, Delta has been deliberate in its approach to ensure a seamless transition without compromising on service quality.

In an effort to better grasp the needs and challenges of various stakeholders, Delta has initiated conversations with travel agencies, online travel agencies (OTAs), Global Distribution Systems (GDSs), and corporate clients. Reid emphasized the importance of providing comprehensive servicing capabilities through the NDC solution, suggesting that the eventual transition will result in an enhanced customer experience compared to the current Edifact world.

One of the key concerns raised by travel advisors is the difficulty in servicing NDC-enabled airline tickets. By committing to unveil its NDC solution only when fully equipped with servicing capabilities, Delta aims to alleviate such concerns and build confidence within the agency community. Unlike its competitors, Delta has opted not to impose a GDS surcharge or abruptly withdraw content from legacy GDSs, signaling a more gradual and consultative approach to NDC implementation.

While Delta acknowledges the limitations of its current merchandising capabilities using Edifact technology, it recognizes the need for a transition to NDC in order to further enhance its fare product offerings within agency channels. By announcing its NDC design partners in the coming week, Delta is poised to take a significant step towards modernizing its distribution strategy and aligning with industry trends.

Delta’s cautious yet forward-thinking approach to NDC adoption underscores its commitment to providing a seamless and customer-centric distribution experience. By prioritizing thorough servicing capabilities and engaging with stakeholders to understand their needs, Delta is paving the way for a more efficient and dynamic distribution ecosystem. As the airline industry continues to evolve, Delta’s strategic embrace of NDC positions it well for the future of travel distribution.

Airlines

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