NDC解决方案白皮书第三版（英文版）_35页_2mb

NDC Solutions White Paper Summary (3rd Edition)

Core Content

The NDC Solutions White Paper (3rd Edition), published in January 2019 by Sia Partners and commissioned by IATA, provides an in-depth analysis of IT solutions built around the New Distribution Capability (NDC) standard. The report evaluates the current state of NDC adoption, the strategic focus of IT providers, and the evolving expectations of the airline industry.

Main Findings

NDC Overview

• NDC is an XML-based data transmission standard launched by IATA in 2012 to modernize airline distribution.
• It allows airlines to control their distribution, offering dynamic pricing, personalization, and rich content (e.g., images, videos).
• In 2018, there were 65 NDC-certified deployments, and GDSs had become Level 3 NDC aggregators.
• IT providers continue to develop and certify NDC solutions, emphasizing the importance of the standard for airline transformation.

Survey Scope

• 25 IT providers were surveyed between May and October 2018.
• The companies include both established market leaders and promising start-ups.
• The median age of the surveyed companies is 20 years, showing a mix of experience and innovation.

Key NDC Modules and Features

• Offer capability remains the top priority, with 90% of IT providers highlighting its value.
• Personalization and dynamic pricing are increasingly important, linked to loyalty programs and RMS (Revenue Management Systems).
• Interline is still not widely seen as a valuable feature, despite potential.
• Order Management is gaining traction, with 89% of providers supporting at least order creation.

Pain Points for Airlines

• Unclear transition path and lack of understanding of NDC benefits.
• Insufficient support for NDC implementation and change management.
• Legacy system dependencies and the need to move away from PSS (Property Support System).
• Limited funding for NDC development is not a major concern for most airlines.

Positive Aspects of NDC

• Differentiation: NDC enables airlines to offer tailored products and dynamic retailing.
• Disintermediation: Airlines can interact directly with customers and sellers.
• Cost efficiency: Standardized web services reduce maintenance and development costs.
• Agility: Real-time business intelligence and omni-channel strategies enhance user experience and CRM capabilities.
• Innovation: NDC supports modern selling platforms like voice assistants.
• Accessibility: Common naming and handling of transactions simplify implementation discussions.
• Durability: A robust global standard is essential for consistent distribution.

Areas for Improvement

• Better standardization and expansion of the standard to include non-air content.
• More detailed implementation guides and change management support.
• Reduced reliance on legacy systems (e.g., ATPCO Fare Rules, RBDs).
• Enhanced support for interline and global offer integration.

Roadmap Priorities

IT Provider Solutions

Offer Management

• PSS-native solutions use internal systems to create and manage NDC offers.
• On-top-of-PSS platforms add a layer of business logic, with some managing inventory independently.
• New providers increasingly use rule engines to build offers dynamically, without relying on RBDs.

Air Ancillaries

• All providers supporting offer management include air ancillaries.
• Seats, meals, bags, and Wi-Fi are the most widely supported.
• Priority boarding, special baggage, and change fees are well supported.
• Some providers also support entertainment and pets on-board.
• Most use existing PSS systems for managing ancillaries, but some provide specific inventories for air and non-air services.

Non-Air Ancillaries

• Many providers support non-air ancillaries through external inventories.
• Common non-air ancillaries include lounge access, travel insurance, hotel, airport transfer, duty free, and car rental.
• PSS-native solutions are limited in non-air ancillary support, with lounge access being the exception.
• On-top-of-PSS platforms access third-party inventory and integrate external data for non-air services.

Personalization

• Personalization is a core NDC feature, enabling tailored offers based on customer data.
• Loyalty card numbers are widely supported, with some enabling redemption shopping.
• On-top-of-PSS platforms often integrate personalization engines using search patterns, loyalty profiles, and booking history.
• Merchandizing systems that support multi-language and content bundling are key enablers.

Dynamic Pricing

• Dynamic pricing is increasingly supported, with fewer providers relying on traditional booking classes.
• Some providers use two pricing engines: one for real-time pricing, and one for pre-computed pricing (e.g., affinity shopping).
• Airlines can now price any variable or attribute from other IT systems via NDC messages.

Rich Media

• Rich media (images, videos) is a tangible benefit for customers.
• 63% of providers now integrate rich media, up from 50% in 2017.
• Two main content handling methods are used:
  • Airline-managed content: airlines index, store, and make content available.
  • CMS-managed content: content is uploaded to a distinct CMS and cached.

Order Management

• 89% of providers now support order creation, up from 76% in 2017.
• Order management includes creation, modification, cancellation, and payment.
• Most NDC layers store orders internally and synchronize with PSS systems.
• Orders should be created by reference following a NDC shopping response.

Conclusion

The NDC standard is evolving and gaining traction, with IT providers playing a crucial role in its implementation. The core benefits of NDC include offer management, personalization, dynamic pricing, and rich media, while order management is becoming more sophisticated. The roadmap for IT providers emphasizes merchandizing, connectivity, and ONE Order, with personalization and dynamic pricing being the most prioritized. The study highlights the need for clear guidelines, better standardization, and support for airline transition.