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New Distribution Capability benefits and challenges

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NIIT Technologies
NIIT Technologies

Is NDC (New Distribution Capability) in Airlines a norm or a phenomenon? Explore the benefits and challenges of New Distribution Capability: goo.gl/K5n5wO

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NDC: A norm or a phenomenon?  Business Class Traveller wifi Inflight meal Lounge Baggage Leg space Economy Economy Class Traveller Leisure Traveller 2013 2014 2015 2017 When Do you think NDC will be a norm in the industry, rather a new phenomenon? 60.98 % 31.7% 7.4% Three to four years from now In the next 18 - 24 months In the next 12 months New Distribution Capability Benefits and Challenges NDC Implementation Challenges PSS upgradation Performance and Scale Most critical challenge for implementation of NDC Benefits realized from NDC Changes to PSS systems needed to support NDC Performance and scale to be able to handle agent requests Generating personalized offers Limited merchandizing capabilities Product innovation across direct/ indirect channels Additional revenue by enhanced offering/ancillaries Reduced distribution dependence Customer recognition and brand stickiness Inability to personalize offers Airlines.com $ 112 $ 156 $ 211 ? ? ? Benefits of NDC Product Innovation Airlines.com Airlines.com schedule Additional Revenue Enhance Customer Care wifi Inflight meal Lounge RR Airways .. $ 172 SS Airlines .. $ 165 Baggage Leg space Frequent flyer Business traveller Airways.com 63.2% 27.6% 6.2% 3% 51.4% 25% 17.4% 6.2% www.niit-tech.com

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New Distribution Capability benefits and challenges

  • 1. NDC: A norm or a phenomenon?  Business Class Traveller wifi Inflight meal Lounge Baggage Leg space Economy Economy Class Traveller Leisure Traveller 2013 2014 2015 2017 When Do you think NDC will be a norm in the industry, rather a new phenomenon? 60.98 % 31.7% 7.4% Three to four years from now In the next 18 - 24 months In the next 12 months New Distribution Capability Benefits and Challenges NDC Implementation Challenges PSS upgradation Performance and Scale Most critical challenge for implementation of NDC Benefits realized from NDC Changes to PSS systems needed to support NDC Performance and scale to be able to handle agent requests Generating personalized offers Limited merchandizing capabilities Product innovation across direct/ indirect channels Additional revenue by enhanced offering/ancillaries Reduced distribution dependence Customer recognition and brand stickiness Inability to personalize offers Airlines.com $ 112 $ 156 $ 211 ? ? ? Benefits of NDC Product Innovation Airlines.com Airlines.com schedule Additional Revenue Enhance Customer Care wifi Inflight meal Lounge RR Airways .. $ 172 SS Airlines .. $ 165 Baggage Leg space Frequent flyer Business traveller Airways.com 63.2% 27.6% 6.2% 3% 51.4% 25% 17.4% 6.2% www.niit-tech.com