NDC causing confusion, concern for corporate travel managers

Corporate travel managers do not fully understand IATA’s New Distribution Capability and that lack of knowledge may make them resistant to embracing the data transmission standard.

That’s one of the findings from a new report, The Evolution of Air Distribution, from ACTE Global and American Express Global Business Travel and based on a survey of 218 corporate travel executives that are members of ACTE Global.

IATA introduced the first set of NDC standards in 2015 and since then, the topic has been widely analyzed and discussed through industry channels and events.

In spite of that, the survey found 23% of travel managers say they are “not at all” confident in their understanding of NDC and what it means for their programs, and 58% say they are only “somewhat” confident in their understanding.

And from what they do know about NDC, the majority of respondents have concerns about how it could impact their programs.

Ninety percent of travel managers say they worry NDC will reduce the functionality of their online booking tools. Other concerns include higher costs resulting from unbundling (89%), lack of availability of data (88%) and a negative impact on policy compliance (87%) and duty of care (77%).

Because of these concerns, the majority of travel managers (63%) say they are not exploring any new NDC-enabled tools at this time.

“Airlines have had to contend with proliferating traveler demands for decades, ranging from a preference for low fares to the desire for constant connectivity while in the air,” says Greeley Koch, executive director of ACTE Global.

“NDC is a response to these market forces and could make for better traveler experiences through personalization. But it has come at cost to travel managers, who are now scrambling to figure out how to maintain control of their programs if NDC becomes the norm."

Respondents did express some optimism, with 64% saying they believe NDC can improve the booking experience and 56% believing it could help contract negotiations with airlines.

The report encourages travel managers to evaluate their policies and technology now, so they are equipped to maximize the potential benefits of this new model.

“Travel managers should educate themselves on NDC, evaluate options with their TMCs [travel management companies], and ensure suppliers do not use NDC to add booking processing costs or limit access to content,” says Mike Qualantone, executive vice president of global supplier relations for American Express GBT.

“Meanwhile, they should look at fortifying travel policies to control cost and compliance while striving to keep travelers productive, safe and happy.”