Travel buyers show modest support for NDC (but many still have no idea)

A year ago, just 11% of travel buyers in a survey said they believe IATA's New Distribution Capability is "a good thing" for the industry.

Fast forward 12 months and the same group have changed their mind - well, some of them.

The survey by the Business Travel Show (next week in London) found that support has increased to 35%, with 4% saying they "strongly agree" and the remainder "agree".

The number of travel buyers who who disagree has dropped from 34% to 28% over the same period.

Still, some 39% of those charged with organising the travel arrangements of employees have no idea if NDC is a good or a bad thing.

Views are shifting to either a positive or negative stance towards NDC, in this regard, as the figure is down from 55% this time last year.

Industry ups and downs

That almost four out of ten are still undecided perhaps illustrates the work that still needs to be done to educate travel buyers as to its apparent benefits for airline distribution by its champion IATA and other protagonists.

A string of industry associations (and many of its technology providers) initially poured scorn on the idea of a new standard to connect airlines with intermediaries, with the promise of greater flexibility to sell ancillary products and the introduction of better personalization techniques.

Those that have seen an impact from the introduction of NDC have, again, different perspectives on whether it's improving how they work or what they're able to offer customers.

For example, 18% of travel buyers believe that there is now more transparency around air ticket pricing - yet the same figure argue that fares have increased as a result.

The good news for carriers that have pushed NDC the greatest extent, such as Lufthansa Group and International Airlines Group (owner of Iberia and British Airways), is that just 6% have decided to buy tickets elsewhere.

Ian Luck, head of distribution for British Airways argues: "We have had significant engagement from buyers, TMCs, travel agents, corporate booking tools and technology providers over the last 12 months that is enabling us to ensure that the NDC capability we are building both addresses their concerns and looks at areas of common opportunity."

* Check this video from The Phocuswright Conference 2017