GDS Evolves Beyond Traditional Model

Amsterdam, Netherlands — August 2023

In short: Major airlines and GDS incumbents form strategic alliances to coexist with emerging NDC players.

Airlines & GDSs Partner Amid NDC Expansion

The News

According to Travel Distribution News, leading airlines and Global Distribution System (GDS) operators have entered into collaborative agreements to coexist with new Distribution Network Providers (DNPs) entering the market. This partnership aims to ensure seamless integration of NDC capabilities while maintaining existing distribution channels.

Industry Context

This move represents a shift from the traditional GDS-centric model, where airlines relied solely on intermediaries like Sabre, Amadeus, and Travelport. The partnerships indicate a recognition that DNPs, leveraging advanced technology and direct booking capabilities, pose a significant competitive threat. By working together, the industry seeks to balance innovation with the stability of established distribution networks.

Key Details

• Airlines Involved: Delta Air Lines, Lufthansa, and Emirates.
• GDS Partners: Sabre and Amadeus have agreed to co-manage NDC interfaces with these airlines.
• Timeline: The collaborative agreements are set to be operational by Q1 2024.
• Scope: The partnerships focus on integrating NDC booking engines with existing GDS platforms, ensuring a smooth transition for travel agents.

What Travel Professionals Should Know

For Travel Management Companies (TMCs) and travel agents managing accounts with these airlines, this development means that while NDC capabilities will become more prevalent, the existing distribution infrastructure will remain functional. Travel professionals should prepare for a phased integration process, focusing on training staff to navigate the new NDC interfaces alongside traditional booking systems. This transition is expected to enhance booking efficiency and provide agents with broader fare options, ultimately benefiting travelers with more competitive pricing.

Frequently Asked Questions

What is NDC?
NDC stands for New Distribution Capability, a suite of technologies enabling airlines to sell tickets directly to consumers and travel agents, bypassing traditional GDS intermediaries.

Which travel trade segments does this affect?
This primarily impacts TMCs, travel agencies, and corporate travel departments that rely on GDS systems for booking airline tickets, as well as airlines seeking to expand their direct booking channels.

When does this take effect?
The collaborative agreements are set to become operational by Q1 2024.

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