New Distribution Capability (NDC) is challenging the way Global Distribution Systems (GDS) have traditionally operated; as intermediaries between travel agencies and airlines. The NDC framework is changing the dynamics within the existing airline ticketing and pricing distribution ecosystem. It will allow travel agencies to offer ancillary services just like airlines can on their own websites – such as extra legroom, lounge access, and baggage options. Thus, an apprehension that GDSs will lose significance is not unfounded, and GDSs must adapt in order to continue to be relevant in the future. They must transition from their current role to become aggregators and technology service providers in the emerging system. WNS DecisionPoint(TM) has looked at some of the key factors that are likely to help GDSs evaluate their adaptability and readiness to continue to thrive in this new ecosystem. Some of these include: - R&D focus to develop new products in-house - Strategic acquisitions to help diversify their offerings - Use of open technology platforms - Further penetration in the non-air travel segment Explore what the new NDC system will mean for different stakeholders, how it will affect GDSs and how they should respond. Read our full report at: http://www.wnsdecisionpoint.com/our-insights/reports/detail/44/ndc-take-off-planning-for-the-long-haul

1. wnsdecisionpoint.com
NDC Take Off: Planning for the Long Haul
Imperative to Modernize Distribution Channels
A Report by WNS DecisionPoint™

2. 1© Copyright 2013 WNS (Holdings) Ltd. All rights reserved1 Wnsdecisionpoint.com
What does NDC plan to achieve?
To enhance the communication
capability between airlines and travel
agents, such that comprehensive
merchandise information is made
uniformly available across all booking
channels
Objective
Agencies can choose to directly
connect to the Airline Offer
Management System instead of
connecting via GDS
Major Change
Launched by IATA for the
development and market adoption of
a new, XML-based data transmission
standard
Program Result:
Changing the approach
from mere distribution to
ecommerce
 Allow airlines to
combine various
ancillary services based
on the customer’s
preferences and offer
them with the base
ticket at competitive
price points
 Enable customization
of offers by airlines,
based on passengers’
buying history, thereby
enhancing the
potential revenue from
each passenger
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3. 2© Copyright 2013 WNS (Holdings) Ltd. All rights reserved2 Wnsdecisionpoint.com
Exposure to emerging markets and LCCs
11
Financial well-being for investments in
R&D and acquisitions
22
Use of open technology platforms
33
Penetration in the non-air travel segment
44
How will NDC affect GDSs and are they equipped to face this change?
GDSs’ role as intermediaries between airlines and agents will lose some importance
GDSs will need to constantly innovate
and maintain a comprehensive and
relevant range of offers. This has so
far been ensured by a two-pronged
strategy
WNS DecisionPointTM has developed a Future
Adaptability and Readiness Framework to aid in the
self-analysis of the existing GDS players as well as the
new players in the aggregator market in the post NDC
world. Some of the factors include:
In-house development of new
products
11
Strategic acquisitions
22
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4. 3© Copyright 2013 WNS (Holdings) Ltd. All rights reserved3 Wnsdecisionpoint.com
Post NDC scenario for all stakeholders
 Innovatively use ancillary products to boost yield
 Highlight and promote fare families in a better way
 Increased usage of customer analytics due to growing volume of data
 Enhanced customization for customers who reveal their identity at the search stage
Airline
 Accept and integrate an airline’s NDC XML API with other airline content from one or more
sources
 Contend with big GDS companies in the emerging aggregation market
Aggregator
 Role as intermediaries between airlines and agents will lose some importance
 Assume the role of aggregators and thus, face entry of newer competitors
 Focus on the non distribution, IT side of the business
GDS
 Access complete catalog of airline fares, products and offers through a single channel/screen
 Gain efficiency due to faster transaction time
Agency
 Better customization will mean relevant promotional messages
 Loyalty members will be able to clearly see the perks provided as a result of their loyalty status
 Enhanced experience in the process of searching, booking and flying
Customer
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5. 4© Copyright 2013 WNS (Holdings) Ltd. All rights reserved4 Wnsdecisionpoint.com
Where will GDS fit in the emerging travel ecosystem?
GDSs will be more involved as aggregators and IT service providers in the emerging paradigm
SMART MOBILITY ERA
TRAVEL AS A SINGLE DOOR TO DOOR SERVICE
PROLIFERATIONOFSENSORS-IOT
ENDOFSILOSINTHETRAVELINDUSTRY
GDS/AGGREGATORS
COMMONDATASTANDARDS
Other
Modes of
Transport
Airports
Hospitality Airlines
BIG DATA
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Email: perspectives@wnsdecisionpoint.com
Website: wnsdecisionpoint.com