Airlines distribution cost will come down to 8% of revenue from 13-15% currently. Dynamic offers & personalization for traveler. Will see what services they will get on & off board
About
Airlines Technology (AT) is one of first Asian travel technology company and among few global IT companies which provides NDC (New Distribution Capability) based aggregation and IT services to airlines, travel agents and 3rd party vendors. Airlines Technology is empowering airlines with NDC based products & services to align newer distribution channels and opportunities. Currently GDS does not offer content beyond fares and schedules. NDC (New Distribution Capability) is a travel industry-supported program launched by IATA for the development and market adoption of a new, XML-based data transmission standard (NDC Standard). NDC being global standards will enhance level of communication between airlines and travel agents, where airlines will be able to showcase all the rich content and sell onboard services like Wi-Fi, food, legroom, entertainment along with other services like lounge, porter, taxi, hotel on travel agent portal itself with reduced distribution cost and personalised offers for travellers via direct connect. Today 70% of Airlines reservations are done through online travel agent. Traveller always end up choosing the cheapest flight without understanding what extra he is getting in flight charging little more. Plus airlines today cannot sell and showcase other on-board ancillary services on online portals. This results in huge opportunity loss. Currently stakeholders in industry are facing following challenges: Problems Airlines are Facing: - Airlines do not have direct connect with travelers (70%-75% of Airlines reservations are done through Online Travel Agents (OTA) - Airlines spend around 10-12% in distribution cost on indirect channels (Online and Offline Travel Agents) - All flights looks as equally substitutable commodities. Airlines sell and showcase other on-board ancillary services via Online - Travel Agents (OTA) leading to significant revenue losses. - They cant demonstrate difference between 2 flights with our showcasing services in details. Problems Travel Agents are Facing: - Don’t have access to onboard offers and services of Airlines - Don't have end to end control over the booking being done by them. Problems Travelers are Facing: - Traveler is not fully aware of what on-board and ground facilities are available with Airlines - Travelers generally book tickets on OTA portals but they could not do - Check in, ancillary purchase etc. with OTAs - Travelers are not able to understand the reason for the cost difference between 2 similar flights. Price and brand prescription are only 2 criteria to choose between flights - Frequent flyer miles benefits cannot be fully explored by travelers Airlines Technology is developing NDC based content aggregator services which will solve all above problems. We will help Online Travel Agents to showcase all offers and services available onboard (Wi-Fi, food, seat etc) or at ground level (lounge, limo pickup) on his portal itself making customer more aware about choice available and choose the best value flight rather than cheapest. AT has created following 3 unique IT products around NDC - Adapter to handle transmission and communication between multiple versions of NDC schemas with both backward and forward compatibility. - We have created unique adapter layer for low cost and full service carriers to convert messages into NDC format. - We are one of first aggregator to offer full NDC + Non NDC content to travel agents.