November 2022, Virtual
21 November 2022, Hilton London Metropole
The US Department of Transportation has granted final approval for Resolution 787 – the foundation document for NDC.
The approval clears the way for IATA’s new NDC – a set of technology standards, which will give airlines the ability to distribute all their content through third parties.
The final approval leaves unchanged DOT’s “tentative decision” approving NDC in May.
As part of this approval, DOT accepted the conditions proposed by IATA and Open Allies for Airfare Transparency, that “no traveller is required to supply personal information to receive an airfare offer, the standard remains voluntary and that each airline is free to choose its own data exchange methodologies”.
IATA CEO Tony Tyler said since Resolution 787 was adopted, it has been stated that NDC will be a voluntary standard and no passengers will be required to “divulge personal information” to receive an offer.
Certain parts of the travel industry have been against NDC as they believe that it means the airlines can charge more if there is less transparency with fares, and the ability to compare is limited.
Also for TMCs and agents, going directly to the airline could end up with more costs being passed on to the traveller, because the economics of NDC are still unsure. There is the possibility that airlines might start charging TMCs for queries as well as bookings.
Tyler said the next step is the release of the first set of comprehensive NDC end-to-end schemes, so the travel industry can “start defining how to best take advantage of the new capability”.
“We look forward to working with all stakeholders to advance the standard for transmission of airline product offers,” Tyler said. “This will enable travel sellers and consumers to have access to all of an airline’s products and offerings and to compare the full value of the product offer, not just the base fare,” he added.
Click here to read a guide into what exactly is NDC.
Is NDC a threat to corporate travel programmes?