IATA says its decision to replace the current NDC certification process with a multilayered program called the Airline Retailing Maturity (ARM) index is intended to spur quicker NDC adoption and implementation by the airline merchandising value chain.
But the initiative is being met with skepticism by analysts.
“I’m not sure this new way of benchmarking is going to make any change. There are airlines that are aggressive with NDC and those that are less aggressive,” says senior Phocuswright analyst Norm Rose, who added that the airlines that tend to be more aggressive are the stronger carriers.
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Next October, IATA will sunset the existing NDC registry, under which airlines, travel sellers and airline merchandising system providers are certified as levels 1 through 4 for the NDC capabilities.
In its place, the ARM index registry still details the specific NDC capabilities of companies in the airline merchandising value chain, but without the certification level designations. It also folds in the One Order fulfillment capabilities of companies, which until now have been maintained in a separate public registry.
IATA says the new registry also uses more straightforward language than the NDC registry, providing a new lens for industry participants to look through. Already 25 companies have made the transition into the ARM index, including Amadeus, Accelya, United, American and British Airways.
New strategy
The new registry is just the first pillar of the three-pillar ARM index. Together, IATA says, the pillars are geared toward helping the industry more fully realize the revenue potential that could be unlocked by modern merchandising.
One element of modern retailing is the selling of ancillary and bundled products. Another is continuous pricing, in which airlines offer a wider variety of price points than the 26 fare…