NDC Content Gap Is Becoming a Competitive Issue for OTAs

As airlines continue to ramp up their use of New Distribution Capability (NDC), online travel agencies (OTAs) will have to think about how the availability of airline content influences the choices they can provide to travelers. Limited access to NDC content may result in variations in fares and offers for customers between OTAs that primarily utilize traditional distribution channels and platforms that have incorporated other airline content sources. JR Technologies says this means NDC connectivity is becoming a bigger factor for OTAs looking at their distribution strategies with airlines. It’s not about adopting another technology standard. For an OTA, access to airline content is directly related to the shopping experience it offers. Travelers want to be able to compare relevant fares and options without having to go onto multiple booking platforms. With airline distribution continuing to evolve, OTAs need technology strategies that can support different sources of content but also maintain a consistent customer experience. The NDC Content Gap: Why It Matters The airline distribution environment has seen significant changes, with airlines finding new ways to create, distribute, and service their offers. NDC provides airlines with another channel for distributing offers and other content. This means that the content available to travel sellers through one distribution source may not always be the same as that available through another. That difference is important for OTAs. When a customer is searching for a flight, they often judge a booking platform on the options they see: availability, fares, flexibility, extra services, and the general ease of making a booking. This implies that how well an OTA can compete for the same traveler can be influenced by its ability to access the content that is relevant to the airlines. OTAs are being forced to think of NDC as part of their overall airline content and distribution strategy rather than a separate technical discussion. The Bigger Challenge May Be Integration Securing NDC content is just the beginning. OTAs also need to find ways to efficiently incorporate that content into their existing technology environment. The number of connections grows with the technical and operational requirements to establish and maintain individual airline connections. The challenge for travel sellers using multiple carriers and distribution sources is to avoid a fragmented environment where each new connection requires a completely separate workflow. This is where an aggregation approach can be useful. JR Technologies’ Thomalex NDC platform aims to help travel sellers interact with NDC airline content in a more centralized technology environment. We want to make it easy for travel companies to work with a variety of content sources without adding complexity to their distribution infrastructure. Customer Experience Doesn’t End After Booking Airline retailing does not end just because a traveler has picked a flight and paid for it. Changes, cancelations, refunds, rebooking, schedule changes, seat selection, baggage, and other servicing requirements are still an important part of the travel experience. This is especially the case for OTAs, where customers expect the booking platform to continue supporting them after the original transaction. A distribution strategy, therefore, should consider access to content and servicing after booking. This operational side of travel is also an area of experience for JR Technologies. Travel Bridge Services provides operational support in the following areas: Reservations and ticket booking Ticket changes and rebooking Refund processing, frequent flyer support Ancillary services schedule Change notifications customer support Travel Bridge Services also covers areas such as revenue accounting, ticket sales reconciliation, BSP/ARC reconciliation, credit card reconciliation, financial reporting support, and loyalty program administration for TMCs, OTAs, and corporate travel agents. Distribution and operations have to work together. The increasing importance of NDC also points to an even bigger challenge for online travel companies: technology and operations can no longer be siloed functions. It’s great to have access to more airline content, but travel sellers need processes that can support what happens after the booking. Refunds are to be paid out. Dealing with changes and cancelations. Financial transactions require reconciliation. Customer inquiries need addressing. Revenue has to be watched and guarded. For OTAs doing this at scale, these requirements can get increasingly complex as content is coming from different places. This environment is impacted by JR Technologies’ broader technology and operational portfolio, which includes travel distribution technology, reservation support, revenue accounting, reconciliation, revenue assurance, and other operational functions. NDC is becoming part of a wider OTA strategy. With OTAs, the NDC discussion is moving increasingly away from the question of whether to add another distribution connection. The bigger question is how can different airline content sources fit into a scalable distribution and servicing strategy? As airline retailing continues to evolve, OTAs should consider whether their technology infrastructure is providing them with the right access to airline content while enabling their teams to efficiently manage bookings throughout the customer journey. And it’s not just about adding NDC. It’s to create an ecosystem where content, booking, servicing, and operations are working well together.” For travel sellers, that may mean combining modern airline distribution technology with the operational capabilities needed to support customers after the booking is made. As this move continues, NDC connectivity is likely to be a bigger part of the way OTAs address airline content and retailing.  About JR Technologies JR Technologies provides travel technology and operational services for airlines, travel management companies, online travel agencies, and other travel businesses. Its portfolio includes Thomalex travel technology solutions and Travel Bridge Services. Travel Bridge Services supports a range of airline and travel operations, including reservations and ticketing, refunds and rebooking, revenue accounting, BSP/ARC reconciliation, ADM/ACM management, revenue assurance and recovery, loyalty program administration, customer support, and GDS support. Through its technology and operational capabilities, JR Technologies supports travel businesses as they manage evolving distribution, servicing, and operational requirements. Media Contact JR Technologies Communications