Creating greater value in the air

IATA is calling on aviation stakeholders to work together to create greater value for customers across the travel experience while enabling greater efficiency for industry participants. Tony Tyler, IATA’s director general and CEO, told the World Passenger Symposium in Abu Dhabi, UAE, that: “Airlines expect to carry some 3 billion passengers in 2013. And that number will double by 2030. Connectivity is a critical component of modern economies. Serving that growing demand will require innovation. We need to understand what consumers expect and what they value enough to pay for. Aviation is team effort. And that is a challenge for all industry stakeholders. Travel agents, airports, air navigation service providers, regulators, manufacturers, ground service providers, global distribution systems (GDSs) and many others must work together to make each passenger journey as safe, secure, seamless and convenient as possible.” To do this effectively, IATA’s boss pointed to three priority areas: simplifying airport processes with Fast Travel; implementing a Checkpoint of the Future (CoF) for passenger security; and developing a New Distribution Capability in line with modern retailing practices. “Airlines are trying to escape the commoditization trap through differentiation, and merchandizing,” Tyler observed. “They are developing products and services, such as special meals, expedited boarding, roomier seats and access to airport lounges. But the travel agent sees only fare codes F, J, Y and their various derivatives — which cannot fully describe options available. Customers expect more. The solution is the NDC powered by open XML standards. This will enable innovation in the way airline products are distributed. One key outcome will be closing of the gap between airlines and their customers so that customized offers can be made to travelers even through travel agents.” He pointed out that IATA’s role is to lead the industry to adopt a new, modern infrastructure that will accommodate more choices for personalized travel offers, provide the foundation for the development of efficient tools for agents and lower the overall cost of distribution. To this end, IATA will propose a roadmap and business case for the NDC. “We expect to complete the Standards definition next year. Then competition and travellers’ needs will guide airlines, agents, system providers and new entrants with tremendous opportunities for innovation. Forty years after the birth of the current distribution paradigm, we have an opportunity for a revolution in airline retailing.” Go to http://www.iata.org for more.