NDC and Matchmaker
Before you start:
- Consider reading: “Why IATA’s NDC is important”
IATA (International Air Transport Authority) has soft-launched Matchmaker, an initiative to put more information into the hands of Sellers, Aggregators and Airlines.
- Sellers and Aggregators can directly connect to Airlines, look up what that Airline offers in terms of NDC (New Distribution Capability, an API schema) functionality and make better business decisions.
- Sellers can look up Aggregators and see what NDC connections to Airlines they offer, allowing them to make decisions on whether they implement a Direct Connection or go through an Aggregator to make multiple NDC connections for one API connection their end.
- Airlines can look up Sellers and Aggregators and reach out to them to offer an NDC connection for a given Region if they think the business case is there.
This empowers and makes it easier for everyone involved in NDC implementation to get in contact with each other.
What does that mean for Business Travellers?
At a glance this doesn’t seem to have much obvious impact for a Business Traveller, however, with the discussion of NDC in Travel publications, it is likely that Businesses are now aware of NDC and looking out for Sellers who can offer connections on Airlines they use.
Why NDC?
- Increased Fare pricing bands; Airlines are able to implement “Continuous Pricing”, essentially they are uninhibited by limited Price Bands in the GDS (Global Distribution Systems), so can offer more gradual, smaller Fare changes as demand and supply change. Meaning on an NDC connection a Traveller is more likely to get a cheaper fare.
- No GDS Fee; Airlines are offering cheaper fares through NDC because they are not having to pay a fee to the GDS in order to lodge their fares.
- Direct Connection between Seller and Airline; it’s easier for Sellers and Airlines to discuss enhancements, richer content or additions such as Seats because they have a direct conversation. Meaning the Seller can offer the Business Traveller a better experience, more akin to booking directly through the Airline’s website, whilst the Business still retains all the benefits from procuring a TMC (Travel Management Company).
Doesn’t NDC make it more complicated?
As a Business Traveller do I have to compare more searches in order to compare NDC results to GDS results?
Not necessarily, as with aggregating GDS results, TMCs could aggregate NDC and GDS results into one Search result, so you are always presented with the cheapest, most appropriate Flights and Fares. Your TMC should handle the complexity behind the scenes, so from a Business Traveller perspective, you should notice no additional complexity compared to having no NDC connection.
Don’t TMCs have to manage more connections?
Yes and No, NDC has the potential to increase complexity for TMCs, if a TMC has to connect directly to every Airline to get their best rates then they have greater overhead. However, as Matchmaker is intended to help with, the rise of Aggregators handling the multiple NDC connections, who largely do not need to worry about the complexities of managing, reporting on and booking the Business Travel. Then TMCs should be able to connect via an Aggregator to access NDC content for multiple airlines. Thus allowing the TMC to focus on providing the best service to their customers rather than implementing NDC with every Airline.
