Today’s travelers want more control over how they book their flights. In response, the airline industry is poised to upgrade its booking technology. Although this move is ruffling some feathers in the IT sector that handles existing – and increasingly outdated – technology, the new system is expected to drive job more growth in the field.
The technology is known as the New Distribution Capability (NDC) and it has been introduced and approved by the International Air Transport Association (IATA), a trade association that represents 84 percent of global air traffic. The resolution to implement the new technology – officially known as Resolution 787 – was reaffirmed at the association’s recent general meeting.
The NDC will be the new standard of communication between the airline industry and travel agents, including online travel agencies and travel management companies. Travelers will have a wider range of options when booking their trips, such as seat choice, plane amenities and fare alternatives.
These features are nothing new for experienced travelers, as most airlines already use them on their own sites, but current “pre-Internet” technology doesn’t allow outside travel brokers to provide this level of customization to their customers.
Reuters reports that many travel IT companies make money by connecting airlines and travel agencies, and are “heavily reliant” on the old technology. The NDC project’s pilot phase will require these IT companies to adjust to the new system or make room for companies that can do so.
In a keynote speech at the IATA meeting, association director general and CEO Tony Tyler addressed privacy concerns voiced by opponents of the new technology. He said the technology doesn’t require customers to supply personal information before they can receive offers, but does give them the option to do so. This in turn can build customer loyalty for specific airlines. He also noted that the new technology will not eradicate comparison shopping, but will give customers better information and assist them as they make informed travel decisions.
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