IATA implements new distribution rules

IATA implements new distribution rules

The International Air Transport Association (IATA) has adopted a resolution on new standard rules for distribution.

60% of flight bookings are made using the GDS
60% of flight bookings are made using the GDS

The New Distribution Capability (NDC) rules, which were agreed in Abu Dhabi last week, are intended to give airlines more options in terms of the products and services they can sell via the global distribution systems (GDS). Currently around 60% of tickets by value are sold indirectly through travel agencies using the GDS.

The new NDC rules are designed to enable airlines to “differentiate and personalise their product and service offerings across all channels”, while ensuring that passengers will have “full visibility of airline fares and services,” according to IATA.

“It will facilitate new entrants into the distribution sector, resulting in increased competition. Historically competition leads to lower prices and increased choices for consumers,” the association added.

“A foundation standard for the NDC is the first step to enabling the development of open XML standards that will be available for all interested providers to work on and develop their own offerings. At the World Passenger Symposium, participants have agreed that the industry standard is paving the way for the future, and the time is right to move to a new model,” said Aleks Popovich, IATA’s Senior Vice President, Industry Distribution & Financial Services.

The NDC rules follow 12 months of coordination with participation from airlines, GDS, travel agents and IT providers.

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