Travel advisors are facing a new challenge when it comes to selling air travel, and it can be summed up in three letters: NDC.
The International Air Transport Association (IATA) developed New Distribution Capability (NDC) to improve upon legacy distribution systems such as the Global Distribution System (GDS), and allow airlines to adjust and customize offers to better fit customer demand while also improving their own bottom line.
Travel advisors, meanwhile, are faced with the prospect of learning a new platform and figuring out how it will affect the way they do business.
“I’ve always loved selling air, but this is just putting another program into the mix that I need to learn and look through,” said Ashley Les, luxury travel advisor and founder of Postcards From, an independent affiliate of Protravel International, Global Travel Collection in New York City. “While I can appreciate that airlines are ever evolving to meet their customers’ needs, what we do as travel advisors to try to keep up and deliver that same quality and price to clients can get overwhelming. Of course, I provide my clients with top service, so I will be looking at and learning the program.”
Since the situation is so new, many advisors are adopting a wait-and-see attitude, even as they do their best to comprehend the new reality.
Airlines should remember that it was the travel advisor who provided invaluable assistance during the pandemic.
“NDC is the future, and we hope it creates a more streamlined process,” said Keisha Adriano, president and chief executive officer at Travelwise International in Fort Washington, Md. “However, everyone is waiting to see how. We are optimistic, hoping that NDC will give us the opportunity to integrate and prepare ourselves for what’s to come for our clients. ASTA is fighting to ensure we receive that courtesy. Airlines should remember that it was the travel advisor who provided invaluable assistance during the pandemic.”
The most recent changes came in April, when American Airlines pulled about 40% of its fares from GDS channels, making them available only through NDC-enabled connections. ASTA criticized the move as anticompetitive and potentially detrimental to consumers.
Other carriers, meanwhile, have added GDS surcharges for non-NDC bookings. And in June, American launched a partnership with Accelya, a tech solutions provider, that will enable travel management companies to exchange tickets purchased through EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport) for NDC tickets. More changes and announcements are likely in the coming months.
What NDC Means for Travel Agents
Ideally, NDC should be good for everyone. The concept represents a new communication protocol that empowers airlines to provide more detailed and personalized offers to customers and travel agencies, resulting in more choices and a more dynamic experience, while also making it easier to customize and add ancillary product sales.
But for now, NDC also presents significant challenges for travel agencies — including issues such as technology integration, access to content and fare transparency, not to mention the time advisors will need to invest to learn new skills.
While the idea that we will have a direct connection to each airline’s individual ticketing system instead of going through the GDS or a consolidator does sound appealing, it is also a cause for concern.
“While the idea that we will have a direct connection to each airline’s individual ticketing system instead of going through the GDS or a consolidator does sound appealing, it is also a cause for concern,” said Heidi Nanigian, a Signature Travel advisor at Heidi’s Holidays, affiliated with Travel Concepts in Orange, Calif. “The only one that will be able to assist with [technical] problems will be the actual airline, not a computer technician as we have done in past years.”
She is also worried that advisors will not have the inventory options that they have become accustomed to. Already, Nanigian has discovered several limitations.
Many travel advisors are finding problems with NDC.
Credit: 2023 astrosystem/stock.adobe.com“There are a lot more stipulations than we had realized prior to the rollout,” she said. “If you book an NDC fare, it can only be exchanged for another NDC fare. They released these fares before they knew how it would work if they needed to be changed. You have to call the contact center to see if they can help you modify NDS fares after they have been ticketed.”
Most of the NDC fares are completely non-refundable, Nanigian says, so advisors should only book them if the client uses “cancel for any reason” travel insurance.
“There is definitely going to be a huge learning curve for all parties involved,” she said.
Peter Vlitas, executive vice president of partner relations at Internova Travel Group, says that the speed with which American rolled out NDC was ill-planned.
I understand they wanted to move fast, but it was too fast, and I think that it left a sour taste in the industry.
“I understand they wanted to move fast, but it was too fast, and I think that it left a sour taste in the industry,” he said. “And IATA needs to share some of this blame. IATA should have created a standard for how every airline delivers NDC.”
Relationships Matter More Than Ever
While most people interviewed for this report expressed concerns about adapting to NDC, they also shared strategies for making the most of the situation.
Staying educated about the ins and outs of air sales goes a long way, says Steve Hirshan, senior vice president of sales of Avoya Travel.
“The biggest challenge is lack of experience and fear of making a mistake,” he said. “One way to overcome these hurdles is to look for a good general travel education platform that will give you a basic understanding of how to sell and book air.”
Anthony Mavrogiannis, president and CEO of Vai Travel, a TravelSavers agency in Hilton Head Island, S.C., has found support from multiple sources.
One way to overcome these hurdles is to look for a good general travel education platform that will give you a basic understanding of how to sell and book air.
“We have the benefit of partnerships,” he said. “Amadeus has been awesome about sharing information on what’s coming down the pipeline, and we also benefit from associating with consortia such as TravelSavers, which we’re members of on the leisure side, and Uniglobe, which we’re members of on the corporate side.”
Kristina Barrett, relationship director, air and insurance at Travel Edge Network, touts her company’s proprietary air-booking platform, ADX.
“There are many trade and agent portals that allow advisors to search for a specific airline,” she said. “At Travel Edge Network, we have an air desk that supports all types of transactions that our advisors book.”
Nanigian, meanwhile, has expanded the resources she turns to when researching flights.
“With the new NDC rollout, I am now checking several options for selling air, instead of completely relying on the GDS,” she said. “While I haven’t seen the inventory change too much at this point, I am also now checking air consolidators, as well as direct on the airlines’ websites, prior to sending over flight options to the client. It might take a bit of extra time to check different avenues for flight options, but my focus is on knowing that I have given my clients all the options available to them.”
In the Era of NDC, Choose Carriers Wisely
While a client’s best interests are always a priority for a good travel advisor, Mavrogiannis says that agencies may find that it makes sense to lean toward airlines that make it simpler to book and sell.
“If an agent can easily sell a Delta Air Lines ticket versus an American Airlines ticket, and all things being equal, they’re going to go with what’s easier,” Mavrogiannis said.
If an agent can easily sell a Delta Air Lines ticket versus an American Airlines ticket, and all things being equal, they’re going to go with what’s easier.
Claire Canady, director of North Carolina operations at Travel Experts, agrees that advisors may in some cases reconsider which airlines they book.
“As an agency, we have not put a stop sell on American Airlines, but our in-house air team is only quoting them when they are specifically requested,” she said. “Additionally, our air team is only selling air in the GDS, as currently we cannot fully service NDC bookings. This means that many times, American Airlines is pricing much higher than its competitors. Our independent contractor affiliates are free to sell who, what and how they wish, but many are turning away from American, mainly because they have taken away our sales support.”
Maximize Relationships
This may not be the cheeriest moment in the history of agency-airline relations, but that doesn’t mean that advisors should forget the contacts they’ve built over the years.
Many of the airlines are still 100% “team travel advisor.” They see our value and will continue to support us in any way possible.
“Relationships are one of the most important tools that we as advisors have at our fingertips,” Nanigian said. “Both the new and long-time contacts I have at the airlines are what have assisted me in successfully helping my clients. I am confident that these relationships will stay intact as we both try to help each other navigate the new guidelines that are affecting both of us.”
Canady agrees about the importance of staying in touch.
Many carriers still value and support the travel advisor community booking airfare.
Credit: 2023 michael/stock.adobe.com“Recently, three American Airlines executives came to our office, and we were able to show them the difficulties we were having with booking them,” she said. “Currently, the other major carriers appear to still value the travel advisor, and we need to make sure that continues. We need to remain a valuable resource to the airlines if we want to keep working with them and being compensated.”
Les is optimistic about viewing carriers as allies.
“Many of the airlines are still 100% ‘team travel advisor,’” she said. “They see our value and will continue to support us in any way possible. When it comes to my clients, there are many times I will tell them that while one airline may be a slightly higher cost, I know without a doubt that they will always allow me preferred seating for free, or they’ll be a bit more lenient with a waiver or favor in the chance we need it.”
Embrace Change ... and Education
When it comes to addressing NDC with his member agencies, Vlitas has a clear message.
“It’s not an option: You either learn NDC, or you walk away from air,” he said. “It’s a path that we all have to take, and in all honesty, there’s going to be pain in the next six months. But our agents are dedicated to their customers. They fully understand that there’s going to be short-term pain for long-term gain.”
It’s not an option: You either learn NDC, or you walk away from air.
After all, it would be an unwise business decision for most agencies to walk away from air sales, according to Avoya’s Hirshan.
“There really isn’t a reason a travel agency should not be selling air, or at least offering the service to their clients,” he said. “It’s hard to expect a client to book a cruise or tour with you if you don’t offer any services to get them there. Clients want to buy a vacation, not just a piece of one.”
A solution to avoiding confusion with air bookings is to establish a dedicated air desk.
“The two most likely scenarios where it makes sense for a travel agency to develop an air desk are if the current advisors do not have experience selling air, or if the business has reached the point that the agency’s air volume would justify the expense of having a dedicated air desk function,” Hirshan said.
Overall, staying positive and proactive is perhaps the best advice, says Mavrogiannis.
“I’m hopeful that this will be an opportunity for us — another revenue stream which allows us to serve our clients even better,” he said. “Right now, for example, if we sell an air ticket, we may have to go to the airline’s website to select a seat or to purchase something that the customer would like. I’m hopeful that we’ll be able to do this all in one place and make it more efficient. At the moment, it’s not very efficient, but I hope we’ll get there.”
