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Jorge Diaz - NDC, more than a distribution standard

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Jorge Diaz, Founder and CEO at AirGateway. at Travel Tech Conference Russia (http://traveltechcon.ru/eng).
"NDC brings a huge architectural change with it: A whole transitioning from the indirect distribution model to the direct distribution one, returning the control and ownership of the supply chain to airlines".
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Jorge Diaz - NDC, more than a distribution standard

  1. 1. AirGateway Rebuilding the airline distribution AirGateway - Travel Tech Conf Russia (Oct 2017)
  2. 2. The indirect distribution model 2 Airlines GDSs OTAs TOs Consos TMCs • Airlines depend entirely of GDSs in order to deploy new products or ways of commercialization • Airlines don’t control (at all) the booking flow which is proven to be part of the customer experience • Airlines can’t engage its final consumer in their B2B channel (commonly bigger than B2C for legacy carriers)
  3. 3. The new model: NDC (New Distribution Capability) • Standard created by IATA • Brings the distribution channel ownership to airlines • Facilitates fast deployment of new products across channels, regions, and consumers 3 Airlines Amadeus
 Altea OTAs MS TOs Consos TMCs • Enables airlines to control the booking experience in B2B channel • Facilitates dynamic pricing, personalized shopping, ancillaries distribution, and a unique booking/PNR owned by the airline. NDC Sabre
 Sonic Farelogix Datalex
  4. 4. 4 Why Direct Distribution is happening? Ancillaries B2B Distribution Dynamic Pricing Personalized Shopping Distribution Costs Channel Ownership & Differentiation
  5. 5. Airlines involved with NDC direct-distribution 5 IATA expects +90 Airlines to be delivering NDC APIs in 2020. Same airlines who created the GDS’s 30 years ago (Lufthansa, British Airways, Iberia, American Airlines) are leading the change to direct distribution. In June 2016, Lufthansa announced a 16€ surcharge for every single ticket sold through GDS’s systems. Amadeus shares went 22% down next day in the morning. IAG recently followed this steps and it’s expected a domino effect in the whole industry. Traditional carriers are challenging the GDS oligopoly
  6. 6. NDC in production 6 “Skyscanner’s Direct Booking solution, which seeks to provide a flexible, optimized retail experience, has seen an across-the-board increase in conversion of 20% among the airlines and online travel agencies that have adopted it. In the mobile channel, where Skyscanner has worked to bring the right options to the top of the search in an increasingly small space, suppliers have seen up to a 50% increase in conversions.”
  7. 7. AirGateway in the new layout for the industry 7 GDS (PSS) MS OTAs TOs Consos TMCs AirGateway NDC GTWY Air Air Air Air Air
  8. 8. Aggregation as a Marketplace 8 OTA OTA OTA AIR1 AIR2 AIR3 AIR4 AIR5 AirGateway Offer Demand As an aggregator we have a very privileged position to become a market scouter. 
 NDC is a conversion- oriented retailing workflow. Performance is the KEY. We can get the big picture of market in terms of data workflow We can estimate conversion prices per route, cabin, class, and type of passenger(s)
  9. 9. Status 9 We have been working for 2 years in our aggregation platform with special focus on: - Flexibility to support all existing NDC implementations in the industry and different capabilities among airlines. - Pure Real-time vs. fare caching. The airlines DON’T WANT to be skipped - Our NDC Gateway can deal with Scalability better than traditional aggregators because we used a technology specifically intended to support extreme concurrency situations. Currently we are the only B2B Airline aggregator specifically focused on NDC
  10. 10. Airlines Enabled 10
  11. 11. Thanks! @AirGtwy http://airgateway.net 11