Business Travel News
Business Travel News
  • SECTIONSOpen Menu
    • Transportation
    • Lodging
    • Payment & Expense
    • Technology
    • Distribution
    • Meetings
    • Global
    • Management
    • Travel Procurement
    • New! Sustainability
    • Recent Issues
  • VOICESOpen Menu
    • Expert Q&A
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2022
  • RESEARCHOpen Menu
    • BTN's 2022 Essential OBT Guide
    • Corporate Travel 100
    • Corporate Travel Index
    • Expense Manager Report
    • Small & Midsize Enterprise
    • Salary Survey
    • Strategic Meetings Report
    • VIEW ALL
  • WEBINARSOpen Menu
    • View All Webinars
  • EVENTSOpen Menu
    • Webinars
    • Business Travel Hall of Fame
    • Business Travel Intelligence Summit
    • Business Travel Lodging Summit
    • Business Travel Show
    • Business Travel Tech Talk
    • Business Travel Trends Forecasts
    • DEI Symposium Series
    • Entertainment Travel Summit
    • Global Travel Risk Summit
    • Government Travel Summit
    • Innovate
    • Strategic Meetings Summit
    • Sustainable Business Travel Summit
    • VIEW ALL EVENTS
  • RESOURCESOpen Menu
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index Calculator
    • Data Sources: The Reference Guide
    • White Papers & Case Studies
    • Influencers
    • Webinars
    • Hotel Search
  • SECTIONSOpen Menu
    • Transportation
    • Lodging
    • Payment & Expense
    • Technology
    • Distribution
    • Meetings
    • Global
    • Management
    • Travel Procurement
    • New! Sustainability
    • Recent Issues
  • VOICESOpen Menu
    • Expert Q&A
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2022
  • RESEARCHOpen Menu
    • BTN's 2022 Essential OBT Guide
    • Corporate Travel 100
    • Corporate Travel Index
    • Expense Manager Report
    • Small & Midsize Enterprise
    • Salary Survey
    • Strategic Meetings Report
    • VIEW ALL
  • WEBINARSOpen Menu
    • View All Webinars
  • EVENTSOpen Menu
    • Webinars
    • Business Travel Hall of Fame
    • Business Travel Intelligence Summit
    • Business Travel Lodging Summit
    • Business Travel Show
    • Business Travel Tech Talk
    • Business Travel Trends Forecasts
    • DEI Symposium Series
    • Entertainment Travel Summit
    • Global Travel Risk Summit
    • Government Travel Summit
    • Innovate
    • Strategic Meetings Summit
    • Sustainable Business Travel Summit
    • VIEW ALL EVENTS
  • RESOURCESOpen Menu
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index Calculator
    • Data Sources: The Reference Guide
    • White Papers & Case Studies
    • Influencers
    • Webinars
    • Hotel Search
Business Travel News
  • Business Travel News on Twitter
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
  • SECTIONS
    • Transportation
    • Lodging
    • Payment & Expense
    • Technology
    • Distribution
    • Meetings
    • Global
    • Management
    • Travel Procurement
    • New! Sustainability
    • Recent Issues
    Subscribe to NewslettersNew! BTN SustainabilityBTN DailyBTN GlobalBTN Travel ManagementTravel Procurement
    Subscribe to Print IssuesBusiness Travel NewsTravel Procurement
  • VOICES
    • Expert Q&A
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2022
    Jina SanoneFlush With Infrastructure Funding, Amtrak Readies New Trains
    Alex ChatzieleftheriouFurnished Apt. Co. Blueground Leans into Corp. Market
    Flight Centre Ready to Invest in More InnovationFlight Centre Ready to Invest in More Innovation
  • RESEARCH
    • BTN's 2022 Essential OBT Guide
    • Corporate Travel 100
    • Corporate Travel Index
    • Expense Manager Report
    • Small & Midsize Enterprise
    • Salary Survey
    • Strategic Meetings Report
    • VIEW ALL
    Annual Supplier Ratings• Car Rental Survey & Report• Hotel Survey & Report• Airline Survey & Report
    Special Reports• The Future of Meetings• The Mechanics of Sustainble Business Travel
  • WEBINARS
    • View All Webinars
    Analytics, Sustainability and Traveler Safety: Shaping the Future of Corporate Travel

    Thurs., Dec. 8 at 1pm ET / 10am PT
    Sponsored By: Emburse

    The Future of Meetings

    Fri., Dec. 2 at 2 PM ET / 11 AM PT
    Sponsored by: American Express Meetings & Events, Cvent, Group360

    Understanding Booking Behavior and Its Impact on Travel Experience

    Tues., Nov. 15 at 12pm ET / 9am PT
    Sponsored By: TripActions

  • EVENTS
    • Webinars
    • Business Travel Hall of Fame
    • Business Travel Intelligence Summit
    • Business Travel Lodging Summit
    • Business Travel Show
    • Business Travel Tech Talk
    • Business Travel Trends Forecasts
    • DEI Symposium Series
    • Entertainment Travel Summit
    • Global Travel Risk Summit
    • Government Travel Summit
    • Innovate
    • Strategic Meetings Summit
    • Sustainable Business Travel Summit
    • VIEW ALL EVENTS
    Business Travel Show Europe Kick Off

    Virtual Event - 23 February, 2023

    Strategic Meetings Summit Series

    In Person Event Series

    3rd Annual Travel Procurement Virtual Workshop Series

    Virtual Event Series - March/April 2022

    Business Travel Trends and Forecasts Series

    Business Travel Trends & Forecasts is a one-day,

  • RESOURCES
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index Calculator
    • Data Sources: The Reference Guide
    • White Papers & Case Studies
    • Influencers
    • Webinars
    • Hotel Search
    BTN CTI Calculator

    Filter in or out as many as 200 cities, as well as hotel and car rental class and meals of the day and watch as the per-diem calculator automatically adjusts per diems to your program. Drill down into cost breakdowns and export the results.

  • Business Travel News Supplier DirectorySUPPLIER DIRECTORY

Distribution

American Tells TMCs to Be NDC-Ready by April or Lose Some Content Access

By Donna M. Airoldi / December 05, 2022 / Contact Reporter
Share

American Airlines on Monday alerted travel agencies that they need to be connected to the carrier's New Distribution Capability technology by April 2023 to ensure access to its full range of third-party public channel content, according to an American memo reviewed by BTN. A similar memo was to be sent to corporate customers.

Without this NDC connection, American estimates that agencies will lose access to "over 40 percent of fares available today via third-party legacy technology channels." 

The notice comes about six weeks after American announced it had signed new agreements with the three largest global distribution systems—Amadeus, Sabre and Travelport—to expand the carrier's NDC content. At that time, Amadeus and Travelport already provided American's NDC-enabled content, with Sabre set to be ready "in early 2023." 

Sabre's access will be in place by April, American managing director of airline retailing Neil Geurin told BTN. 

In addition, through an NDC connection, travelers will have access to "enriched content with more descriptive information," a seat map at the time of shopping, all available enhanced third-party public channel content including enhanced offers, ancillary products and the carrier's lowest fares, as well as enhanced functionalities and servicing features. 

"The conversation [with agencies] has been ongoing for a very long time," Geurin said. "Most of the [travel management companies] that we talk to have access to NDC content for some carriers, so they've already figured out a way to connect to this. One thing we've done a little bit differently than everyone else is we waited until we were in the GDSs with NDC to launch this process, which greatly simplifies the connection."

"We've talked a lot about this journey, and it's just another step," American SVP and chief customer officer Alison Taylor added. "While they may not know the 40 percent [figure] yet, they may not be surprised. Most of them are already ready or will be ready. We're here to help people get ready, and we've reallocated some resources to be dedicated around NDC as well, to help the customer through this."

TMCs React

Some TMCs' immediate reaction Monday was mixed.

"We do think it's a positive, and it's time for someone like American to force the issue," AmTrav CEO Jeff Klee said. "We've been talking about this since 2015, and clearly no one is moving fast enough."

Although the announcement was "not unexpected, it would have been nice to have more of a heads up," ATG CEO Tammy Krings said. "It would have felt more organized and structured if there would have been a bit more sensitivity at how they distributed the message. A face-to-face meeting would have gone a long way. There are a lot of questions that come with something like this."

Both AmTrav and ATG are already NDC-ready, their executives said.

Still, Krings noted that such a move requires new processes on the TMC's end. 

While her company is NDC-ready, Krings said that often, it's a little dicey to be first on the market with something so new. 

"I give them props for" being the first carrier to market with such an initiative, "but the fact is, most airlines don't truly understand the full operational dynamics of a TMC," Krings said. "They don’t understand everything we do. If there is NDC content, are we going to process refunds the same way? Are we going to process exchanges the same way? I don't believe they are fully prepared to answer all those questions, and April is a very, very close timeline for many companies. … I think it will be a stretch for many TMCs."

When asked about fees, Geurin was firm in that American would have neither surcharges nor a penalty for not being NDC-connected, other than not being able to access all the carrier's available content. 

The carrier will, however, reward agencies and corporates for making sure they include American AAdvantage membership in their offers, Taylor said. "Some agencies have a one-click to join AAdvantage, and some [online travel agencies] and OBTs are doing that successfully. We will reward that behavior."  

Further, the carrier will be able to offer bundles through NDC that are within corporate customer travel policies, officials said.

"We need to respect their policies and can do that through NDC. We can do specific bundles by customers that will support everything in policy so that is what the traveler is buying, not what is not in policy," Taylor said. 

There also will be the ability for a second type of payment if a traveler wants to personally pay for an upgrade, Geurin said. Taylor added this is important with blended travel on the rise.

About "29 percent of our agency business comes through NDC today, and we assume we'll be at about a third by the end of the year," Geurin said.

One concern Klee had is about the "small percentage" of special offers—limited-time and exclusive AAdvantage-member-only offers—that will be available only via American-owned channels. 

"Even though American says it's a small amount of content, it does a big disservice to their best customer," he said. "If a corporate customer has to check multiple channels to make sure they are getting the lowest rate, I don't think long-term that is in anyone's best interest." If a traveler finds a lower rate on AA.com "once, it creates mistrust between the travelers and the companies. Then they have to do all this extra work to double-check the price even if 90 percent of the time there is parity. It can bring outsized inconvenience to corporate travelers and their companies."

RELATED: American Signs New GDS Agreements for Expanded '23 NDC

More Distribution
Related
Finnair to Implement Continuous Pricing

Finnair in early 2023 will begin to gradually implement continuous pricing through its direct website...

Atriis Enables Sales, Servicing of Air France-KLM NDC Bundle

Air France-KLM is making its New Distribution Capability-based dynamic seat bundle product available...

Aeromexico Taps Accelya for NDC Offers

The carrier is using Accelya's offer creation tool to bundle offers with ancillary products and manage...

Sponsored Content

VIEW ALL
Delta’s Accelerated Sustainability Flight Plan
Delta’s Accelerated Sustainability Flight PlanBy Pam Fletcher, Chief Sustainability Officer – Delta Air Lines

At Delta, we see travel as a noble force for good – and the miracle of flight is helping us to better understand the far-reaching impacts of climate change.  KEEP READING

Air Canada helps small businesses take flight
Air Canada helps small businesses take flightBy Air Canada

As travel resumes and the world emerges from the pandemic, business travel has expanded its horizons to include all industries including the arts, technology and start-ups. Air Canada for Business offers a range of benefits, perks and offers geared towards all types of companies and industries. KEEP READING

Delta: Your Partner in Travel
Delta: Your Partner in TravelBy Delta Air Lines

Partner with Delta and get access to innovative products and services, award-winning account support and powerful tools that help your business reach new heights. KEEP READING

More Distribution

Finnair to Implement Continuous Pricing
Atriis Enables Sales, Servicing of Air France-KLM NDC Bundle
Aeromexico Taps Accelya for NDC Offers
Accommodation Platform AltoVita Appoints CTO

VIEW ALL
Subscribe to Our

Free Newsletters

pixel2

Click Here for our Terms and Conditions and Privacy Policy.

  • Most Read
  • Most Shared
  1. Amex GBT Restructuring to Two Global Segments: Multinational, SME
  2. United: In 'New Reality,' Aggregate Industry 2023 Capacity Outlook 'Unachievable'
  3. Contracted Corp. Business Losing Prominence at American
  4. STR Increases 2023 U.S. Hotel Rate Forecast
  5. Flush With Infrastructure Funding, Amtrak Readies New Trains
  1. Report: U.S. Mtg. Volume Exceeds 2019, Signaling End of Recovery Efforts
  2. AHLA Survey: Most U.S. Corp. Travelers Returning to Normalcy
  3. TakeTwo Partners with Serko to Offer Zeno Booking Tool
  4. Delta to Offer Free Wi-Fi, Special Content for SkyMiles Members
  5. Could the FAA Outage Hinder Business Travel's Recovery?
Business Travel NewsBusiness Travel News
  • About Us
  • Contact Us
  • Advertise
  • Editorial Calendar
  • Business Travel News on Twitter
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
BUSINESS TRAVEL NEWS
NORTHSTAR TRAVEL GROUP
Business Travel News
  • About Us
  • Contact Us
  • Advertise
  • Upload Print Ad Material
  • Purchase Reprints
  • Editorial Guidelines
  • Subscribe to BTN
  • Subscribe to Travel Procurement
  • Subscribe to Newsletters
  • BTN Europe
  • Privacy Policy
  • Terms & Conditions
Business Travel News
Business Travel News Travel Procurement The Beat
Northstar Travel Group
  • Retail Travel
  • Travel Weekly
  • Travel Weekly Asia
  • Travel Weekly China
  • TravelAge West
  • TravelPulse
  • TravelPulse Canada
  • TravelPulse Quebec

  • Hotel Investment
  • Burba Hotel Network

  • Travel Technology
  • Inntopia
  • Phocuswire
  • Phocuswright
  • Web In Travel
  • Meetings & Incentives
  • Northstar Meetings Group
  • Meetings & Conventions
  • Meetings & Conventions China
  • Meetings & Conventions Asia
  • Meeting News
  • Successful Meetings
  • Incentive
  • SportsTravel

  • Data Products
  • Agent Studio
  • AXUS Travel App
  • Intelliguide
  • travel42
Northstar Travel Group
Copyright ©2023 Northstar Travel Media LLC. All Rights Reserved. 301 Rte. 17N, Suite 1150, Rutherford, NJ 07070 USA | Telephone: (201) 902-2000
RRManagement rrtestprocurement