Many agency owners say it’s too early to tell how their business will be affected by Air Canada’s new NDC program. But some tell Open Jaw it will disrupt and even hamstring traditional agencies versus their OTA competitors.
Saying that the current booking system is antiquated and doesn’t properly serve agents or customers, Air Canada on 19APR announced its move to the NDC (New Distribution Capabilities) program. Air Canada also announced perks for agencies to use the NDC, but also fees for continuing to use legacy GDS. Execs admitted there could be bumps in the road, but said advisors and agencies will be able to serve their customers more efficiently with the new system.
Not all agency heads Open Jaw spoke to were on board with the transition - or more specifically, the way it's being done.
Lyell Farquharson, president of TTI Travel, didn't pull any punches, telling Open Jaw: "The number one issue again is timing. This is a major change for all clients, Corporate and Leisure."
He went on to add: "At this time we are not clear on the ability of the GDS to support NDC and to what extent we need to change our process to accommodate. We have been hearing about and having discussions on NDC strategy for over a decade it is totally mind boggling how Airlines then launch a major initiative with the Companies they call partners with a few weeks notice."
And crucially, "This kind of short notice only once again gives the large global foreign owned travel agencies like Expedia the advantage. They have unlimited resources to deal with these types of changes supporting jobs in other counties meanwhile the Canadian based travel businesses that employs thousands of Canadians are again being required to pivot to meet the requirements of an airline in a federally supported oligopoly."
Mike Foster, President of Nexion Travel Group Canada, admitted to Open Jaw the NDC will be a challenge. "Although we have been talking about NDC for about 10 years now, it’s still a new process for travel agencies and advisors who have to make changes and adapt for the disruption that many are not yet prepared for. Thankfully, for our advisors, the effect will be minimal. But for agencies that depend on a GDS there will be an impact, not only financially, but also operationally, as it will affect processes and efficiencies, putting more strain on an already strained industry.
"I also believe that Air Canada had to pick a start date, and no matter when, it would have impact on agencies. But this industry is resilient and adaptable, and I believe that the impact will be positive in time,” Foster said.
Other agencies and advisors are taking a 'wait and see' approach.
Christine James, Vice-President Canada, TL Network, told Open Jaw, “I’m not surprised to hear that Air Canada is implementing a fee. Their goal is to push agents to book through their own NDC-powered channels.
“We won’t fully know the impact on our members yet, and the only drawback that I can see at this time if booking through their web portal, is that agencies can’t pull their client profiles into their booking, as it is not fully integrated into the agency’s back office. The process will take time for agencies to get accustomed to,” James said.
One Virtuoso agency head said they would defer comment to ACTA.
But ACTA says it’s still assessing the situation. “There have been discussions regarding NDC for more than ten years. However, with the most recent announcements providing more specific information, we do not have a detailed comment at this time,” said ACTA President Wendy Paradis. “We are in consultation with ACTA Member groups to understand the full impact.”
On its part, Air Canada has posted its own video with comments it solicited from Canadian advisors.
“I think they've been very thoughtful in how they're rolling out,” said Tara Kimberley, Vice President, Air Distribution, Flight Centre, says in Air Canada's video.
Asked in the Air Canada video what the airline should do in the coming months, Kimberley said Air Canada “should focus on serviceability and functionality. I believe they’ve come a long way and are very well prepared in that area, but it’s a main concern of the agency industry to have functionality, ensuring that the customer’s journey is uninterrupted and flawless.”
“I look forward to using the NDC tool for my agents because it should be easier for us to access all of the content that Air Canada has to offer. And it will be able to increase the offering to our clientele,” adds Kevin Murphy, General Manager, Boulevard Travel.
Andrew Chase, Director of Airline Partnerships, Navan, comments, “I think this strategy is being done in a really, really thoughtful way. I think first and foremost giving a lot of consideration around communicating early and often around what is coming, and, frankly, listening to the feedback of the trade.”
“If you are already a partner in the NDC there’s a chance you will have some competitive advantage,” says Joane Tetrault, President and General Director, Skylink Voyages.
The entire video can be watched below.
