Open Retailing Standards Improve Personalization and Customization in Airline Retailing

Open Retailing Standards Improve Personalization and Customization in Airline Retailing

For the first newsletter of 2023, we shoot two questions to our Managing Director, Roland Heller, related to Open Retailing, and NDC and OneOrder within the context of the airline industry. Here is his contribution that we would like to share with you.

First question: Why is it better to use an open retailing standard based on products rather than NDC and OneOrder based on flights and ancillaries?

An open retailing platform based on products provides a more flexible and customer-centric approach to retailing compared to NDC and OneOrder based on airline industry limitations. The main advantage of using an open retailing platform is that it allows airlines to offer a wider range of products and services to their customers beyond just flight tickets. This can include hotel bookings, car rentals, travel insurance, and more. By bundling these products together, airlines can create customized packages that meet the unique needs and preferences of their customers.

In contrast, NDC and OneOrder are limited to offering products and services related only to flights, which can lead to a narrower product offering and a less personalized experience for customers.

Another benefit of using an open retailing platform is that it allows for greater collaboration and cooperation between airlines, travel agencies, and other partners in the travel industry. This can lead to more efficient and streamlined processes for booking and managing travel arrangements, as well as increased revenue opportunities for all parties involved.

“Overall, an open retailing platform based on products is a more customer-centric and collaborative approach to retailing in the travel industry compared to NDC and OneOrder. It offers greater flexibility, a wider range of products and services, and more opportunities for customization and collaboration, all of which can lead to a better overall experience for customers and increased revenue for airlines and their partners”.

Second question: Does it make sense to replace the current IATA-managed NDC XML schemas with an open community-based retailing standard?

There are potential benefits to replacing NDC XML schemas with an open community-based retailing standard. One advantage of an open community-based standard is that it allows for greater collaboration and input from a diverse group of stakeholders in the travel industry, including airlines, travel agencies, technology providers, and other interested parties. This can lead to a more comprehensive and flexible standard that reflects the needs and preferences of a wider range of stakeholders.

Additionally, an open community-based standard can be more transparent and accessible than a proprietary approach. This can enable a wider range of technology providers to develop products and services that are compatible with the standard, which can drive innovation and competition in the market.

However, it is important to note that the adoption of a new standard can be a complex and time-consuming process, and it requires significant investment from stakeholders in terms of resources and expertise. It may also require coordination with existing systems and processes, which can add additional complexity and cost.

“In summary, while there are potential benefits to replacing the IATA NDC XML schemas with an open community-based retailing standard, the decision to do so requires careful consideration of the costs and benefits, as well as the potential impact on existing systems and processes. Ultimately, the choice of the standard should be driven by the needs of the industry and the preferences of the stakeholders involved.”

We trust that the perspective and insights shared above have proven to be informative and beneficial to you. Please make sure to keep an eye out for our next edition, which is sure to be packed with valuable insights and information. Thank you for your continued support, and we look forward to sharing our next edition with you soon.

 

Yours truly,

Sawitree Kaewsangjai

Sales and Marketing Manager