The new rule, announced in late April, will establish a single, clear outcome for disruptions—and help support a better passenger experience going forward. https://sap.to/6048dxo0j
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Its important for corporate clients to think about NDC and now continuous pricing both in terms of pricing and access to the customer. United says that about 40% of its economy fares are now under a continuous pricing model which cannot be accessed via traditional channels. Cost AND trying to better own the customer are at play here and the latter is critical. Owning the customer means drawing travelers to supplier websites for better engagement, to cross sell, to differentiate the brand. The traditional GDS model commoditized airline offerings - no more. What this means is that legacy suppliers must adapt to provide the best possible service, support, reporting, supplier negotiations, duty of care, etc. while also recognizing that a subset of brand loyal travelers or those who care that they "can find it cheaper online" will do so. This is WHY we created CapTrav Traveler choice is starting to outweigh policy in small pockets and will continue to grow. Will your program grow with this trend? https://lnkd.in/e-cRsYQY
Airline Continuous Pricing, Explained
businesstravelnews.com
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Monday morning check of Delta Air Lines' distribution strategy as the airline may be tempted to "start testing NDC": 👉 "Sara Reid said that Delta has no plans to implement a GDS surcharge"... => No need if the content and functionality in NDC is superior and differentiated enough 👉 "(...) or to prematurely remove content from systems using legacy Edifact technology"... => Same as above, new content should be rich and attractive enough 🤷♂️ 👉 "Our distribution strategy has not changed," Reid said. "We want to elevate the entire corporate travel ecosystem."... => Arguably one airline can elevate their technology while being consistent with the original strategy 😔 👉 "Delta's intent, Reid said, is to implement an NDC solution only when the airline is ready to provide thorough servicing capabilities"... => The statement is valid for all airlines providing their API to the corporate market where servicing is critical 👏 👉 "We believe that if this journey is done right, servicing will be better than it is in the Edifact world," she said... => Fully agreed and not only servicing will be better 🤗 👉 "Reid, though, did say that Delta has reached the limit of its merchandising capabilities using Edifact technology"... => It's probably been 10 years that the limits of EDIFACT have been reached but every airline has its priorities 👉 "Further evolving its fare product offerings within agency channels will require an evolution to NDC"...=> The reason for creating NDC was precisely to enable new Offers (and Orders) within the agency channels 👏 👏 👏 👉 "the airline will announce its NDC design partners next week"... => Stay tuned! 🍿 Glad to see Delta coming on board... #airlinendc #digitaltransformation #timingiseverything https://lnkd.in/ea-vCjZF
Delta to start testing an NDC booking solution
travelweekly.com
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American Airlines now also uses mileage to steer channels and motivate travel agents to migrate to modern technology. Last April, AA removed 40% of their fares from EDIFACT channels. By December, this figure had risen to over 55%. The recent announcement by AA to allow the collection of mileage only via its own direct channels, partner airlines, preferred travel agents, or buyers with a contracted relationship with AA is another strong push towards direct and modern technology channels but has raised some concerns, especially within the travel agency community. The interesting aspect lies in the definition of a ‘preferred travel agent‘: According to AA, a preferred travel agent qualifies by fulfilling the following: 1) Having a 2024 incentive agreement (which may exclude many small agents and is entirely controlled by AA) 2) Meeting NDC targets: April 21, 2024: 30%, October 31, 2024: 50%, and April 30, 2025: 70% The interesting take here: AA's GDS agreements need to allow the airline to differentiate between travel agents (often referred to as subscribers in GDS agreements) depending on their performance and willingness to transition from EDIFACT to NDC. In typical full-content agreements, this would not be permitted. 3) Fulfilling AA's preferred agency display requirements AA is the first airline to actively use mileage alongside content restrictions to steer volume towards direct or modern technology channels. Besides the fact that AA is the first airline that connects content (or milage) access to NDC targets, the overall strategy is quite similar to what various airlines are doing when pushing for NDC and direct channel migration via surcharges or other content restrictions. But it demands a lot of work beforehand, next to the technology it also requires specific freedoms in distribution contracts. #distribution #NDC #mileage #airlineretail
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Agents. . . if you have been reading this article and feel hard done by. There is an easy way to pave the way forward. - if you want FAIR. - if you want ACCURATE. - if you want to be PAID according to what each airline contract stipulates. Look no further. - Validate your performance for EVERY Airline you have a contract with - Validate performance for EVERY Airline you are preparing to establish a formal contract with [or renegotiate with]. - Accurately TRACK. - Accurately FORECAST Flown Revenue. - Accurately VALIDATE with document & coupon level detail. Ensure you are paid correctly according to your achieved performance vs. signed contract rules. AIRConnect is ALL Agents need. The days of Commission is over. . . Knowing what YOU sold that was "eligible for Target" and "eligible for Payment" for NDC & EDIFACT https://lnkd.in/gHi2MN3U
Qantas and travel agents: time for a reset?
https://travelbulletin.com.au
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Travel Agents, are your Airline Incentive Contract Payments correct? How would you know? Did you validate them? One word... AIRConnect. Nothing else on plant Earth can VALIDATE what you got paid was indeed correct. #travelagent #tmc #travelindustry #airlines #consolidation #travelmanagement #revenuemanagement #profit #touroperator #otas #traveltechnology #traveltech
Agents. . . if you have been reading this article and feel hard done by. There is an easy way to pave the way forward. - if you want FAIR. - if you want ACCURATE. - if you want to be PAID according to what each airline contract stipulates. Look no further. - Validate your performance for EVERY Airline you have a contract with - Validate performance for EVERY Airline you are preparing to establish a formal contract with [or renegotiate with]. - Accurately TRACK. - Accurately FORECAST Flown Revenue. - Accurately VALIDATE with document & coupon level detail. Ensure you are paid correctly according to your achieved performance vs. signed contract rules. AIRConnect is ALL Agents need. The days of Commission is over. . . Knowing what YOU sold that was "eligible for Target" and "eligible for Payment" for NDC & EDIFACT https://lnkd.in/gHi2MN3U
Qantas and travel agents: time for a reset?
https://travelbulletin.com.au
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There’s a big shift going on in the world of air ticket distribution, as more airlines are moving to #NDC. This can lead to considerable savings for businesses, but only if their systems are set up to take advantage of it. I’m excited to share that Emburse is now adding NDC fares and analytics into our air reshopping solution, which will enable organizations to get even more insight into how they can stretch their #travel budget dollars. We deliver #software that enables #finance and #businesstravel teams to deliver.
Emburse Increases Flight Cost Savings Opportunities with the Introduction of Air Contract Auditing and NDC Fare Reshopping and Analytics
emburse.com
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Business Advisor, Revenue Management in Airline, IATA NDC Certified, Certified Instructor for Retailing and Ancillary RM in Passenger Transportation, Professional Scrum Master (PSM), GCP Certified, French Language Expert
Airline pricing war? Airline pricing wars persist for several reasons, reflecting the competitive nature of the airline industry and its dynamic characteristics: Overcapacity: Airlines often struggle with overcapacity, especially during certain seasons or in markets with intense competition. To fill their seats, they engage in pricing wars to entice passengers with lower fares. Market Entry and Expansion: New airlines entering the market or existing airlines expanding their routes may use pricing wars to gain a foothold or capture market share quickly. Offering lower fares is a way to attract passengers Hub Competition: In markets where multiple airlines operate hubs and compete for passengers, pricing wars can become intense. Airlines aim to maintain or increase their market share by offering competitive fares. Legacy vs. Low-Cost Carrier (LCC) Competition: Traditional full-service carriers (FSCs) often compete with low-cost carriers (LCCs) by adjusting their pricing. FSCs may offer lower fares or create budget-friendly fare classes to attract cost-conscious passengers. Market Fluctuations: External factors such as economic downturns, fuel price fluctuations, and global events (e.g., natural disasters, pandemics) can impact travel demand and lead to pricing wars. Dynamic Pricing Strategies: Many airlines use dynamic pricing models that adjust fares based on various factors, including demand and competition. This can lead to rapid fare changes and price wars when airlines closely monitor each other's pricing. Customer Loyalty and Retention: Airlines use pricing wars to attract new customers and gain loyalty. They may offer attractive introductory fares or promotions to get passengers to try their services, with the hope of retaining them as long-term customers. Online Booking Platforms: Online travel agencies and price comparison websites make it easy for passengers to compare fares quickly. This transparency can intensify competition as airlines adjust their prices to stay competitive. Consumer Expectations: Consumers have come to expect competitive fares, and airlines strive to meet these expectations to remain attractive in the market. Route-Specific Competition: On specific routes where multiple airlines compete, pricing wars may break out as carriers try to gain an advantage. This is particularly common on high-demand and profitable routes. Revenue Management Practices: Revenue management systems help airlines optimize pricing, but they may also lead to price fluctuations and competition. Airlines use sophisticated data analytics to determine the right pricing strategy. Despite the challenges pricing wars can pose for airline profitability, they are a common feature of the industry. Airlines engage in pricing wars to remain competitive, capture market share, adapt to market changes, and meet consumer expectations for affordable fares.
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💥Provocative Disrupter⚡️Transforming the Usual into Epic Sh!t | Architect of Remarkable Customer Odysseys | Globetrotting Visionary & Captivating Speaker🔥| 🇳🇱🇪🇬| X Mercedes-Benz | 3x Customer Engagement Champion🥇
As a frequent traveler, logging 54 flights with 16 different airlines through 23 airports during 2023 alone, I’ve witnessed firsthand the decline in passenger experience. Shockingly, 65% of my flights were delayed, yet the problems with airlines are more than this. Passenger experience is being sacrificed for more cost-cutting and boosting profits with reducing employees, overpriced fares and services, and a flood of apps and “personalized campaigns.” This article from Lufthansa Innovation Hub’s TNMT highlights the worsening passenger frustration with airlines post-pandemic. Despite a robust recovery in travel demand, customer satisfaction has plummeted, driven by operational failures, mishandled baggage, and poor check-in processes. The most significant issues stem from flight irregularities, now mentioned in 36% of Tripadvisor reviews, a sharp rise from 20% in 2019. It's clear airlines need to prioritize operational basics and leverage innovative technologies to bridge the expectation-experience gap. From my point of view, to balance this issue out, airlines must: 1️⃣ Invest in Staff Training and Support: Ensure that there are enough well-trained staff to handle operational issues smoothly. 2️⃣ Enhance Real-Time Communication: Provide timely and transparent updates about delays and changes. 3️⃣ Reevaluate Pricing Structures: Offer fairer pricing without hidden fees to rebuild trust. 4️⃣ Focus on the Human Element: Personalized experiences should genuinely cater to passenger needs, not just profit motives. In essence, it's about re-establishing trust and humanizing the travel experience. Passengers deserve reliability, transparency, and true value for their money. It’s time for airlines to put passengers first and profit second. It’s time for airlines to disrupt or die. Customer loyalty is earned through exceptional experiences, not bare-minimum service masked by digital gimmicks. #airlineindustry #airlines #PassengerExperience #CustomerExperience #DisruptOrDie
A new deep dive into passenger frustration with airlines - TNMT
https://tnmt.com
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Unbundling travel with Spotnana, enabling innovation with multiple startups - TravelTopia speaker, Copenhagen Goodwill Ambassador
Very relevant article from Donna M. Airoldi and the BTN Group about the reactions (or lack of) after the announcement from Doreen Burse and United Airlines last week about the decision to remove the Basic Economy fares from the EDIFACT channel in September While the Basic Economy withdrawal really seems to be a non-event, there are some interesting comments in the article which travel buyers should think about - and start asking some tough questions about how to keep accepting not having access to NDC fares from major airlines in general via their OBT and TMC solutions Suzanne Boyan, GTP puts it best at the end by saying "I am not going to be written out of this, I can tell you that" - and she is now the second global travel manager I have heard saying this strong statement publicly - the first one was Ben Park during a panel session at the recent Business Travel Show Europe in London If you are a travel buyer you should start thinking about these statements - because both of these 2 "best in class" travel buyers are acknowledging that going into 2024 it will not be possible to explain to their boss (the CFO or CPO) that the travel program for some strange reason is unable to access and make use of the lowest fares in the market even though the fares actually are easy to find and available in many place The very meaning of travel management is to make sure the company gets the best travel value for money so it seems strange that so many buyers continue to accept that their TMC is unable to provide access to the lower fares available via the NDC channels As the article shows, TMC's like AmTrav (Jeff Klee), Gant Travel (Patrick Linnihan and my own playground (Spotnana) are all able to provide full support for both NDC and EDIFACT fares and hopefully other TMC's will join this group of future-friendly service providers very soon The final piece in this new fragmented distribution jigsaw is the order management system (OMS), and here at Spotnana we have already moved into the future in this area as we have said #goodbyetothePNR and no longer rely on a 25 year old order management system designed to support a very different world back in the late 1990's - have you asked your TMC how old their OMS is, and more importantly when they plan to move to a cloud-native OMS - hopefully the answer is before 2025 ? https://lnkd.in/eWaX-mFD
EDIFACT Move Clarifies Impact of United's Continuous Pricing Strategy
businesstravelnews.com
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NDC vs EDIFACT: The opportunity to overcome the limitations ✈️ To understand why airlines and companies are advocating so loudly to #NDC, we must first understand the limitations of what it is replacing: an outdated method of transmitting content called #EDIFACT. 🎫 Created in the ’80s, EDIFACT is a standardized communication protocol to exchange data between systems. #TravelAgencies rely on this standard to communicate with travel providers via the #GDS, but this protocol has strong limitations, such as: ✅A limited number of price points: EDIFACT limits airlines to 26 price points per flight, potentially creating sharper-than-intended price increases between seats sold and significant gaps between GDS and direct rates. ✅Limited offer management capabilities: This protocol has a significant impact on an airline's ability to differentiate and personalize its offering in an increasingly competitive space. 🧳#NDC (New Distribution Capability) is here: a modern data transmission standard introduced to offer more flexibility to airlines when distributing their content, in turn providing travelers with richer content and a better shopping experience. Can technically be deployed within the usual distribution channels agencies have access to: GDS, aggregators, or direct connections with airlines. ✅Depending on the route, up to 57% of fares published by an airline could be missing from your booking tool if you delay NDC adoption . The impact is more fares outside your system than inside — leading to leakage and distrust from employees, as well as a lack of visibility and further overspending. ✅NDC represents a potential savings opportunity of up to 12% depending on the airline due to a combination of avoided GDS surcharges and price gaps with EDIFACT channels (with fares up to 35% cheaper than traditional GDS offerings). For instance, Finnair adds a surcharge of ~€12.00 per fare component on any traditional GDS booking. ✅Accesses continuous pricing: NDC offers much more flexibility in terms of pricing structures. These variable pricing gaps can be a significant expense, especially if booking flights at short notice or during periods of high demand. ✅Access to exclusive fares and travel options: Lufthansa Group recently rolling out NDC-exclusive Green Fares “that include offsetting of individual, flight-related CO₂ emissions”. By understanding the limitations of EDIFACT and the flexibility that NDC offers, companies can make informed decisions about the best way to manage their travel programs and ensure their travelers access the best fares, the widest range of options and the experience of smoother booking. Source: Novan Please share your experience in integrating this new technology in your company or business! We would love to hear from you! 🚨Would you like to be part of this transformation? Contact us at: https://lnkd.in/d3CmWBsA #ReshapingTravel #TourismInnovation #Starlings
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