April 25, 2023
For most consumers, booking an airline ticket is a matter of clicking or scrolling through online options to find the best deal. Behind the curtain, however, is an intricate distribution system — one that manages the flow of airline ticket transactions not only through apps and websites but also across a constellation of sellers, intermediaries and conduits. This highly choreographed ticketing system is essential in coordinating the millions of airline seats booked daily.
Consumers know that when the system fails — as we recently saw with Ticketmaster — it can set off chaos. While not all air travelers are Taylor Swift fans, they have learned why it is critical that today’s digital networks be modern and durable. It is puzzling why some are stomping their feet and standing in the way of modernizing technology that creates the most convenient and best experience for air travelers.
American Airlines is now shifting to New Distribution Capability (NDC), a modern aggregator for purchasing tickets that replaces antiquated technology in place since the 1980s. While dozens of carriers have already moved to this infrastructure abroad, and more intend to follow, American’s moves have fueled some consternation among a handful of travel agencies that have not adequately prepared for the switch from the legacy systems. Despite notice of the change dating back to 2017 and even offers from the airline to cover the costs of the move, these organizations are unfortunately seeking to derail the modernization altogether.
The American Society of Travel Advisors (ASTA) is accusing American of forcing NDC on their industry at “breakneck” speed, even though American released its NDC transition plan more than five years ago. ASTA’s efforts to push American Airlines to delay its full implementation of NDC include writing letters to the Department of Transportation and Department of Justice seeking intervention, but with NDC already in operation, and given the years of notice, their claim that the move is premature doesn’t hold water. Moreover, ASTA does not even disagree with the many benefits of NDC; it wants to kick the can down the runway because, for all its flaws, the current system has been good for its bottom line.
