FOLLOWING the announcement of IATA’s New Distribution Capability (NDC) last week (TTG Asia e-Daily, October 22, 2012), Mobile Travel Agents Australia’s managing director, Roy Merricks, is rallying travel consultants against the initiative, calling it “the biggest threat to travel consultants since commission cuts”.
Adopted by the IATA Passenger Services Conference at the World Passenger Symposium 2012 in Abu Dhabi, the NDC is aimed at creating a set of open XML standards that will modernise airline retailing by enabling innovation in the way its products are distributed. It is speculated that the NDC will be rolled out for trial in 2013.
Merricks claimed that despite 60 per cent of all airline tickets currently being sold through travel consultants, IATA had not included agency groups in their discussions on NDC to date. He also expressed concern that IATA would develop the NDC to a high level with airlines before releasing the details.
According to Merricks, travel consultants stood apart for their ability to add value to the client experience while building travel proposals based on destination knowledge and connections on the ground. “If the airlines succeed with the NDC in its current form, that position may very well be compromised,” he said.
Merricks explained: “We are all aware that on occasion airline websites undercut fares offered to (travel consultants) through the GDS – we also know that the airlines’ goal is to reduce or eliminate segment costs they currently pay to the GDSs.”
“If the NDC succeeds along those lines, it is clear where the cost burden will move and that’s us. In turn, we will need to pass those extra costs on to our clients and the void between airline website fares and those available through the GDS will widen even further.”
He added: “I would urge all (travel consultants) everywhere to band strongly together on this issue, as must (travel consultants) globally with their relevant associations, in order to protect our collective position and ensure our needs as the largest single airline distribution channel are not damaged by this proposed NDC.”
