Travel Managers See Benefits, Disadvantages to NDC
Report from ACTE says most believe New Distribution Capability will help in booking and negotiation, but may hamper cost control and compliance >>
by: BTE
Most travel managers expect some benefit from New Distribution Capability (NDC), according to a new study, The Evolution of Air Distribution, from ACTE Global (Association of Corporate Travel Executives) in collaboration with American Express Global Business Travel (GBT). The study showed that 64 percent of travel managers believe NDC could improve the booking experience and 56 percent believe it could help contract negotiations with airlines. However, the majority of managers fear that fragmentation created by NDC could threaten cost control (89 percent), policy compliance (87 percent) and duty of care (77 percent). Greeley Koch, executive director of ACTE Global, said airlines have had to contend with proliferating traveler demands for decades, ranging from a preference for low fares to the desire for constant connectivity while in the air. He said NDC is a response to these market forces and could make for better traveler experiences through personalization. But it has come at a cost to travel managers who are now “scrambling to figure out how to maintain control of their programs if NDC becomes the norm.”
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