The biggest pain point in the transition to the NDC (New Distribution Capability) world is post-booking and servicing, according to Rajeev Kumar, CEO & co-founder of flight startup Mystifly. As airlines accelerate their adoption of NDC, intermediaries are struggling to remain relevant and are facing new challenges. Kumar believes that this moment will reshape the industry, with airlines of the future looking more like tech companies.
One of the opportunities for startups like Mystifly is to tackle emerging pain points within the industry. As airlines implement NDC and low-cost carriers continue to grow, intermediaries are finding it difficult to maintain relevance in the new realm of airline distribution. The role of Global Distribution Systems (GDSs) remains important, but there is a need for comprehensive multi-source shopping and servicing, which includes GDS, NDC, and low-cost carrier content.
However, the lack of a standardized framework presents a significant challenge. The ability to normalize data structures from different airlines is crucial for delivering a harmonized travel experience. Intermediaries need to confront these challenges and come up with innovative solutions to provide seamless and tailor-made encounters for their customers.
One of the biggest pain points that needs to be solved is the reliance on outdated templates that were created before the internet era. With airlines transitioning into retailers, there has been minimal advancement in enhancing automated service delivery. The responsibility for managing customer bookings and curating a positive travel experience falls on the travel seller, and it is crucial for airlines to establish efficient and responsive infrastructure for post-booking servicing.
Mystifly is addressing this pain point by providing a comprehensive platform that simplifies and streamlines the servicing process for travel intermediaries and airlines. Their proprietary technology, powered by AI, ML, NLP, and LLM capabilities, offers post-booking automation for both GDS and NDC bookings. Regardless of where the bookings were made, their platform provides a unified solution for automated booking changes and cancellations, giving travel intermediaries the tools they need to efficiently manage post-booking processes.
In terms of NDC adoption, Kumar believes that after years of talking about it, its time has finally arrived and everyone now has to get on board or risk being left behind. Online Travel Agents have been quick to adopt NDC, while Business Travel Agencies have faced challenges in terms of care and control. The era of airline retailing is here to stay, serving both the airline and the traveler’s interests.
While NDC does not directly affect low-cost airlines, their capacity is growing, with LCCs making up almost a third of total airline capacity. Aggregators of low-cost airlines have the opportunity to provide additional value beyond discounted pricing strategies. Those who can effectively navigate and enhance pricing strategies of airlines will likely have better long-term opportunities in the market.
In conclusion, the transition to the NDC world presents new challenges for intermediaries, with post-booking and servicing being the biggest pain points. Startups like Mystifly have the opportunity to provide innovative solutions to tackle these challenges. The reliance on outdated templates and the need for efficient post-booking servicing are key areas that need to be addressed. Mystifly is addressing these pain points through their comprehensive platform powered by AI and ML capabilities. Finally, NDC adoption is here to stay and those who do not adapt risk being left behind, while aggregators of low-cost airlines have the opportunity to provide additional value beyond discounted pricing.