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GDS: The Turbulent Years (2012–Present)

In: Mastering the Travel Intermediaries

Author

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  • Ben Vinod

Abstract

This chapter examines the turbulent years for intermediaries—global distribution systems (GDSs), travel management companies (TMCs), and online travel agencies (OTAs) following the adoption of IATA Resolution 787 on October 18–19, 2012. This resolution aimed to replace the existing legacy messaging exchange standard with a new XML standard, known as the new distribution capability (NDC), at the Passenger Services Conference. The NDC initiative gained approval from the Department of Transportation in 2014 and subsequently commenced. In this chapter, the limitations of the current GDS infrastructure as perceived by airlines, as well as the fundamental changes in the booking workflow brought about by NDC, are explored. These changes will be discussed in three stages: the traditional GDS workflow, the hybrid state, and the end state. Additionally, we will delve into the NDC certification process and the transition to the Airline Retailing Maturity (ARM) Index. Furthermore, we will examine the challenges and deployment scenarios of NDC for TMCs and OTAs. As a result of NDC, NDC aggregators came into existence to consolidate NDC content from airlines and facilitate its delivery to the point of sale. Various aspects of NDC will be explored, including GDS pricing power, GDS bypass, GDS pass through, the threat of disintermediation, the future of schedule aggregators, and fare aggregators. Lastly, the impact of airline reservations with offers and orders, as well as codeshare availability, is reviewed.

Suggested Citation

  • Ben Vinod, 2024. "GDS: The Turbulent Years (2012–Present)," Management for Professionals, in: Mastering the Travel Intermediaries, chapter 0, pages 193-260, Springer.
    • Handle: RePEc:spr:mgmchp:978-3-031-51524-8_6
    DOI: 10.1007/978-3-031-51524-8_6
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