Consumers support NDC-enabled improved air travel shopping: IATA study

26 October 2015 06:30 pm

The International Air Transport Association (IATA) announced the results of a study of air travelers showing that passengers would welcome the richer travel shopping experience that will be enabled by the New Distribution Capability (NDC). 

 Study participants were shown examples of how the NDC standard can be used to support an improved experience when shopping for air travel online. This includes providing consumers with more information about airline product and service options, showing product images and enabling comparison shopping among airlines. Highlights of the findings include:

•     More than 75 percent of air travelers said the NDC-based display would make it easier to compare flights and prices and understand the true cost of their flight, compared to how they shop and book travel online today 
•     More than 70 percent of business fliers and 65 percent of leisure travelers would be more likely to purchase optional airline services if presented with information about the services in an NDC-based display
•     Sixty-three percent of business travelers and 69 percent of leisure travelers would find it helpful to receive timely promotional offers via text message 
•     68  percent of business passengers and 64 percent of leisure passengers would be comfortable with an airline or travel agent informing them about the availability of optional products based on previous purchase data

     “When presented with the opportunity, air travelers welcome the comprehensive shopping information and graphic visual displays that the NDC Standard enables. A substantial majority also look forward to the opportunity to be recognized and to receive personalized offers,” said Aleks Popovich, IATA’s Senior Vice President, Financial and Distribution Services.

     The survey also revealed the following travel trends:

•     88 percent of business passengers and four of five leisure passengers own a smartphone. Seventy percent of business passengers own tablets, as do 60 percent of leisure passengers 
•     Business passengers are younger than leisure travelers, suggesting a “passing of the torch” from older generations of business passengers

 NDC is a travel industry-supported program launched by IATA for the development and market adoption of a new, XML-based data transmission standard that is intended to enhance communications between airlines and travel agents.

The study was based on survey responses of approximately 5,000 business and leisure passengers in eight countries Australia, Brazil, Canada, Germany, Mexico, Singapore, United Kingdom, USA, at least 30 percent of whom are business travelers. It was conducted by Atmosphere Research Group on behalf of IATA.