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		<title>How to Name Our Travel API? – The Challenges of Branding!</title>
		<link>https://www.travel-industry-blog.com/travel-technology/how-to-name-our-travel-api-the-challenges-of-branding/</link>
					<comments>https://www.travel-industry-blog.com/travel-technology/how-to-name-our-travel-api-the-challenges-of-branding/#respond</comments>
		
		<dc:creator><![CDATA[Michael Strauss]]></dc:creator>
		<pubDate>Tue, 08 Oct 2024 07:46:10 +0000</pubDate>
				<category><![CDATA[Travel Technology]]></category>
		<category><![CDATA[xml]]></category>
		<guid isPermaLink="false">https://www.travel-industry-blog.com/?p=7906</guid>

					<description><![CDATA[In an industry where agility and integration are key, naming can be pivotal in shaping a product’s perception. In this article, we reflect the challenges of renaming our Travel API. You can vote on a new name via the LinkedIn page of the author. ]]></description>
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									<p>Our travel aggregation platform has come a long way since its inception as an XML-<span style="font-size: 16px; color: var( --e-global-color-text ); letter-spacing: var( --e-global-typography-text-letter-spacing ); text-transform: var( --e-global-typography-text-text-transform );">based (Extensible Markup Language) interface, built to connect global travel giants like Amadeus, Sabre, and other GDSs. Now, with a reach extending to 50 different travel content sources and a modernized REST API infrastructure, we find ourselves questioning if &#8220;Travel XML API&#8221; still encapsulates the strength and relevance of our platform in today’s market. With developers viewing XML as outdated and client needs evolving, we&#8217;re considering a rebrand to better reflect our technology&#8217;s performance, versatility, and modern approach to travel distribution.</span></p>								</div>
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									<h2>Is XML antiquated?</h2><p>In our recent meeting with the marketing team, we spent quite a little bit of time discussing how we should name our travel aggregation platform that allows billions of travelers, travel arranger, travel risk manager and many more to access up to fifty sources of travel content providers (airlines, hotels, rental car companies, Global Distribution Systems, other travel aggregators, low-cost carriers, etc.) through one single interface. Up until today we have called it <a title="Travel XML API - Multi GDS and Global API" href="https://www.pass-consulting.com/en/industries/travel/travel-xml-api/" target="_blank" rel="noopener">Travel XML API</a> and nicely enough, we are ranked at the #1 top spot on Google. At the same time – and rightfully so – our developers are telling us that this name is ‘antiquated’ and developers run away when they hear XML.</p>								</div>
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									<h2>How did we come up with Travel XML API?</h2><p>When we started developing our first XML aggregation platform connecting Amadeus, Galileo, Worldspan and Sabre (sometimes via EDIFACT) and made it available to our clients through a single XML interface, this was back in the year 2000 and <a title="The reality behind NDC: Why NDC won’t break down the GDS oligopoly – yet" href="https://www.travel-industry-blog.com/travel-industry/ndc/">XML actually was a milestone compared to EDIFACT</a>.</p>								</div>
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									<h2>What is the problem with XML in travel technology?</h2><p>XML itself is already considered overloaded as it generates large files. XML being a plain text format is not memory efficient to start with. With all the additional tags around the actual data, files can become extremely large. In many cases, the tags can take up more room than the actual data! Combine that with peer-to-peer connections, stopovers, times of travel during a certain period, the number of airlines competing in a certain market, the different fare types (not to even mention <a title="← Back to home Travel Technology for Dummies: What Is Continuous Pricing?" href="https://www.travel-industry-blog.com/corporate-travel/travel-technology-for-dummies-continuous-pricing/">continuous pricing</a>), classes, bags, seats, refundability, changeability and more, the files grow exponentially and become a multidimensional problem. Today, people want REST instead of SOAP as a data exchange technology and JSON instead of XML as a data format – leading to small messages and high performance. This is why we actually created a new API based on REST.</p>								</div>
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									<h2>Why did we think we should keep the term XML?</h2><p>The answer is that the new airline distribution standard <a href="https://www.travel-industry-blog.com/corporate-travel/ndc-for-dummies/">NDC</a> is based on XML (actually our XML schema from back in 2000). I always joked about IATA calling NDC their New Distribution Capabilities to shop and book air inventory. I&#8217;m a pure engineer with no marketing background and acquired my commercial skills in a marketing department in the cellphone area. One thing I learned there is never to call anything “new”. What do you do the following year? Is it still new? So NDC has been around over a decade now. Why do we still call NDC “new”? XML may be newer than 50–60-year-old EDIFACT, but compared to other industries in internet age, XML is old. Stable but old.</p>								</div>
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									<h2>So, how should we name our product in future? How are you being found?</h2><p>With search term Travel XML API we can be found on position #1 on Google. It even has a fair search volume. But do developers and potential clients actually turn away when they read XML? Should we call our platform GDS integration? Or GDS aggregator? Both search terms our clients confirmed they used in their challenging journey to find us.</p>								</div>
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									<h2>Should we focus on Global Distribution Systems (<a title="The Difference Between CRS and GDS in the Travel Industry" href="https://www.travel-industry-blog.com/gds/the-difference-between-crs-and-gds-in-the-travel-industry/">GDS</a>)?</h2><p>Being able to flawlessly integrate all the different Global Distribution Systems (Amadeus, Sabre and the Travelport Systems Galileo/Apollo, Worldspan) specifically with the traditional <a title="Travel Technology for Dummies: What Is NDC?" href="https://www.travel-industry-blog.com/corporate-travel/ndc-for-dummies/">ATPCo/EDIFACT workflow</a> is probably our strongest suit, but doesn’t the name GDS aggregator diminish our capabilities? Today we aggregate up to <a title="Travel XML API - Multi GDS and Global API" href="https://www.pass-consulting.com/en/industries/travel/travel-xml-api/#tab2" target="_blank" rel="noopener">50 source systems</a> and only three of them are GDS! Many airlines (and there are up to 500 airlines in the world) <a title="Travel Technology for Dummies: What Is Direct vs. Indirect Distribution?" href="https://www.travel-industry-blog.com/corporate-travel/direct-vs-indirect-distribution/">distribute directly</a> via NDC.</p>								</div>
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									<h2>Can you help us?</h2><p>GDS aggregator minimizes our product offering. We are told that with XML we are regarded as an antiquated company. Our product name XX1 has a dubious secondary meaning: I hear that some may consider XX.. something different than &#8216;with XML (X) connect many (X) sources through one (1) interface&#8217; … hence we are back to the drawing board scratching our heads trying to figure out what would be the best keyword for our product offering.</p>								</div>
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									<h2>Please vote on LinkedIn! </h2><p>Would you like to give us feedback on the name search? Then please use the <strong>voting tool</strong> on the author&#8217;s <a href="https://www.linkedin.com/in/micstrauss/" target="_blank" rel="noopener"><strong>LinkedIn page</strong></a>.</p><p>There we put 4 name suggestions to the vote:</p><ol><li>GDS Integrator or GDS Aggregator</li><li>Travel API or Travel Technology API </li><li>Travel Distribution API or Travel Distribution platform</li><li>Travel XML API</li></ol>								</div>
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			</item>
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		<title>Reduction of Carbon Emissions – with SQUAKE</title>
		<link>https://www.travel-industry-blog.com/corporate-travel/reduction-of-carbon-emissions_squake/</link>
					<comments>https://www.travel-industry-blog.com/corporate-travel/reduction-of-carbon-emissions_squake/#respond</comments>
		
		<dc:creator><![CDATA[Anne-Kathrin Geuppert]]></dc:creator>
		<pubDate>Tue, 03 Sep 2024 13:44:29 +0000</pubDate>
				<category><![CDATA[Corporate Travel]]></category>
		<category><![CDATA[corporate travel]]></category>
		<category><![CDATA[sustainability]]></category>
		<guid isPermaLink="false">https://www.travel-industry-blog.com/?p=7673</guid>

					<description><![CDATA[Tools for recording carbon data and the reduction of carbon emissions are becoming increasingly important for global and sustainable business travel. We spoke to the German company SQUAKE about digital solutions for reducing CO2 consumption. ]]></description>
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									<p>If you ask business travel experts, the topics of sustainability and travel safety will be at the top of the agenda in 2024, right behind process optimization. I have already written about this in another article on the topic of sustainable business travel <a title="Sustainable Business Travel: How Software can support" href="https://www.travel-industry-blog.com/corporate-travel/sustainable-business-travel/">here on the PASS Travel Industry Blog</a>. New directives from the European Union create requirements for companies to pay more attention to their carbon footprint and establish reporting functions. The pressure on travel and business travel providers to reduce their carbon emissions is increasing. Yet success can be achieved quickly with little effort, as our interview shows:&nbsp;</p>								</div>
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									<h2>Shaping the future of sustainable business travel</h2><p>With the claim &#8220;Trusted technology to achieve your carbon targets&#8221;, the German company <a title="SQUAKE" href="https://www.squake.earth/" target="_blank" rel="noopener">SQUAKE</a>, based in Berlin, has dedicated itself entirely to the topic of &#8220;sustainability in the travel process&#8221;. The SQUAKE team was also recently recognized for its work by the BTN Group with the <a href="https://www.businesstravelnewseurope.com/Management/Winners-announced-for-Business-Travel-Sustainability-Awards-Europe-2024" target="_blank" rel="noopener">Business Travel Sustainability Award Europe 2024</a> in the &#8220;Sustainability Innovation&#8221; category. We spoke to Dan Kreibich, Founder &amp; CPO of SQUAKE, about the matter.</p>								</div>
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									<h4><span style="color: #009ee9;">Hi Dan, with SQUAKE&#8217;s technology, CO2 information can be collected, evaluated and mitigated directly from the travel process. Customers also receive certificates for this. How successful is this model and how important is it likely to become in the future?</span></h4><p><strong>Dan Kreibich:</strong> Policies like the EU&#8217;s CSRD and climate targets, such as the commitment to SBTi, prompt companies to disclose their carbon emissions and adopt more sustainable practices. This is where we come in. SQUAKE started within the airline industry and has since diversified to support multiple verticals, from logistics to business travel, helping leaders in each sector. We serve notable clients like Airbnb, HRS, DB Schenker, AirPlus, and CWT, among others. Additionally, we recently launched an app on the SAP Concur marketplace to address corporates’ biggest challenges: consolidating all their travel and carbon data in one place, providing POS <span style="font-family: 'Open Sans', sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400;">CO2</span> visibility, and offering an all-in-one platform for CO2 calculations, CO2 reporting, and CO2 compensations.</p><p>Our model has been successfully adopted by companies across various industries, regions, and sizes. It is set to become increasingly important due to regulatory, stakeholder, and client pressures. We are also among the top 10 largest intermediary service providers on VDR, underscoring our <a href="https://www.cdr.fyi/marketplace/squake.earth" target="_blank" rel="noopener">commitment to transparency</a>. A little recent highlight which you already mentioned is that we received the Sustainability Innovation Award by BTN Group this year, which is a significant part of our success story.</p>								</div>
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									<h4><span style="color: #009ee0;">You have already saved your partner Lufthansa Group substantial CO2</span><span style="color: #009ee0;"> amounts, which you have been supporting in these processes for three years. What do you estimate? On average, how many percents can companies save on their own CO2 consumption as soon as they start using a digital solution?</span></h4><p><strong>Kreibich:</strong> In general, the potential CO2 savings depend on the specific company we are working with. Typically, companies begin by understanding their current CO2 emissions. Once they have this baseline, they can set goals and adjust their behavior accordingly. There are different solutions available, and we have observed a wide range of outcomes. Some companies achieve single-digit percentage reductions, while others implement solutions that allow them to compensate or reduce up to 100 % of their emissions.</p><p>The latter scenario is the mid- to long-term goal for many companies, achieved step by step either by investing directly as a company or by engaging their customers in the process.</p><p>Reduction efforts often involve using alternatives like Sustainable Fuels, which can achieve up to an 80 % reduction in CO2 emissions. Remaining emissions can be compensated or removed through innovative technologies like biochar or direct air capture. We offer a curated portfolio of over 150 CO2 projects across various geographies and price points.</p>								</div>
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						In another of my specialist articles here on the Travel Industry Blog, I show you how <a href="https://www.travel-industry-blog.com/corporate-travel/travel-risk-management-2021/" target="_self">Travel Risk Managment</a> can contribute to a safe and well-planned business trip. 
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									<h4><span style="color: #009ee0;"><strong>We at PASS also want to integrate your technology into our systems in 2024 and provide the CO2 data in our customers&#8217; booking processes. What added value is this likely to generate for the respective travel management agencies?</strong></span></h4><p><strong>Kreibich: </strong>For your customers, you can help them solve CO2 by covering these 5 essential steps:</p>								</div>
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									<ol><li>Create a baseline with historic CO2 reports</li><li>Set CO2 targets and budgets</li><li>Activate CO2 steering and nudging tools</li><li>Measure and monitor CO2 progress</li><li>Close gap with CO2 compensations and reductions</li></ol>								</div>
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									<p>For you (PASS):</p>								</div>
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									<ul><li>Better consult corporate travelers based on their carbon and travel data, to help them understand, track and reduce CO2 and eventually meet their carbon targets.</li><li>Understand and optimize your business travel.</li></ul>								</div>
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						PASS SolutionWorld Travel ... and CO2-Data					</h2>
				
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						Keeping an eye on your own CO2 footprint? This will soon be possible with the software solutions from PASS. In cooperation with SQUAKE, we want to make our travel data with CO2 emission data accessible to our travel customers. 
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The PASS SolutionWorld Travel is a technical vehicle to connect the relevant players in the market and to make today's world available as efficiently and precisely as possible for the industry. The primary topic is to make the content of the various providers in the market bookable through a uniform process – either via the multi-source microservices API (iXX1) or directly in a uniform booking interface (such as the Travel Agent Desktop) and to digitally map the upstream and downstream processes and integrate the relevant players.					</div>
				
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						Click here					</a>
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									<h4><span style="color: #009ee0;"><strong>Short elevator pitch: Why is SQUAKE the right provider in the market?</strong></span></h4><p><strong>Kreibich:</strong> CO2 targets? SQUAKE is your all-in-one solution to solve your CO2 topics:</p>								</div>
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									<ul><li>CO2 Calculations: for any travel activity</li><li>CO2 Compensation: 150+ curated carbon projects, such as Direct Air Capture or Sustainable Aviation Fuel;</li><li>CO2 Reporting: complete, aggregated and synced with your BI tool; </li><li>CO2 at POS: integrate anywhere, no matter if on- or offline. </li></ul>								</div>
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									<p>All certified, from Information Security (ISO 2700) to our Verified Carbon Management Platform (TN-CC-020).</p>								</div>
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									<h4><span style="color: #009ee0;">Thanks for the interview!</span></h4>								</div>
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						About Dan Kreibich, CPO and Co-Founder of SQUAKE					</h2>
				
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						Dan is an experienced venture builder and product visionary. With a background in travel-tech and sustainability, Dan has a proven track record of scaling innovative products that drive positive change. In the industry, he has worked for companies such as Flightright and later building multiple VC-backed ventures within the Lufthansa Innovation Hub. Dan is known for his ability to bring ideas to life and nurturing projects from inception to successful execution. He is first and foremost a pioneer dedicated to unlocking the full potential of market-leading tech and to create solutions powering the world's sustainable transformation. 					</div>
				
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									<p><em>Pictures: Shutterstock, SQUAKE</em></p>								</div>
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		<title>Sustainable Business Travel: How Software can support</title>
		<link>https://www.travel-industry-blog.com/corporate-travel/sustainable-business-travel/</link>
					<comments>https://www.travel-industry-blog.com/corporate-travel/sustainable-business-travel/#respond</comments>
		
		<dc:creator><![CDATA[Anne-Kathrin Geuppert]]></dc:creator>
		<pubDate>Thu, 25 Jul 2024 11:51:01 +0000</pubDate>
				<category><![CDATA[Corporate Travel]]></category>
		<category><![CDATA[corporate travel]]></category>
		<category><![CDATA[sustainability]]></category>
		<guid isPermaLink="false">https://www.travel-industry-blog.com/?p=7649</guid>

					<description><![CDATA[In an increasingly globalized business world, sustainable business travel becomes more and more important. How can software solutions support companies?]]></description>
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									<p>In terms of sustainable business travel the COVID-19 pandemic has shown us that a central element in the modern business world can be the use of modern communication technologies. However, Zoom, Teams, and similar platforms do not provide a long-term replacement for in-person meetings. Especially with the end of the pandemic, meetings are increasingly being held in person again. Clients, customers, and partners value direct interaction face-to-face, rather than being separated by a screen.</p>								</div>
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									<h2><span dir="ltr">Top of the agenda: Sustainability and travel safety</span></h2><p>Now that business travel is back again, we should do everything we can to make it more efficient through careful planning and optimization. Reducing CO2 emissions plays a key role in this, e.g., by choosing flights with lower CO2 emissions, choosing environmentally friendly means of transportation such as trains or electric vehicles or staying in sustainable hotels.</p><p>Sustainability is no longer just a buzzword for companies. Numerous governments are also making commitments to reduce greenhouse gases. Consumers today are paying much more attention to their own ecological footprint and are aware of the problems of climate change.</p><p>According to a <a title="VDR business trip analysis (german)" href="https://www.vdr-service.de/geschaeftsreiseanalyse" target="_blank" rel="noopener">survey by the German Business Travel Association (VDR)</a>, the topics of sustainability and travel safety are at the top of the agenda, right behind process optimization. With its EU-wide <a title="Corporate sustainability reporting" href="https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en" target="_blank" rel="noopener">Corporate Sustainability Reporting Directive (CSRD)</a>, the European Union will also clearly position itself in this area from this year and demand that companies act in an environmentally conscious manner. </p>								</div>
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									<h2>Travel guidelines for employees &#8211; raising awareness for sustainable business travel</h2>
<p>Companies can promote the awareness of environmentally friendly travel among employees through regular training and information campaigns, sharing best practices and highlighting success stories. Incentives and rewards can encourage sustainable behavior. For example, employees who plan their flights in a particularly CO2-efficient way could be rewarded with a bonus program, additional vacation days or public recognition within the company. This not only motivates employees, but also strengthens their commitment and loyalty to the company.</p>								</div>
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						In another of my specialist articles here on the Travel Industry Blog, I show you how <a href="https://www.travel-industry-blog.com/corporate-travel/travel-risk-management-2021/" target="_self">Travel Risk Managment</a> can contribute to a safe and well-planned business trip. 
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									<h2>Planning sustainable: Provide the best possible support during the selection process</h2><p>While avoiding the trip is the most radical option, the trend leads more towards sustainable planning. The German Business Travel Association has developed an <a href="https://www.vdr-service.de/nachhaltigkeit/wegweiser-nachhaltigkeit/einfuehrung#c17633" target="_blank" rel="noopener">8-step model for sustainable planning</a> and thus provides valuable input for climate friendly and sustainable business travel:</p>								</div>
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									<p>At PASS, we have built up expertise in the field of data and information relating to CO2 emissions and sustainable business travel over the past few years. My colleague Silvia Bolte has also been contributing her expertise to the relevant VDR expert committee for some time now.</p>								</div>
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									<h2>Software solutions for sustainable business travel</h2><p>The business travel selection process can be greatly assisted by specialized software solutions to promote sustainability. Here are some ways in which such software can help:</p><p><strong>Travel cost analysis and optimization:</strong> The software can analyze and optimize the costs and environmental impact of different travel options. For example, it can give preference to rail travel over flights or suggest the most efficient routes that minimize CO2 emissions.</p><p><strong>Highlight environmentally friendly options:</strong> When booking flights, hotels or rental cars, the software can highlight and give preference to environmentally friendly options. This includes, for example, the selection of hotels with environmental certificates or rental cars with low fuel consumption or flights with using sustainable aviation fuels (SAF) and offset of CO2 emissions like the Lufthansa Green Fares.</p><p><strong>CO2 calculations and offsetting:</strong> The software can automatically calculate the carbon footprint of each trip and offer suggestions for offsetting measures. This could include the direct integration of CO2 compensation projects into the booking process.</p><p><strong>Policy integration and compliance:</strong> Companies can integrate their sustainable travel policies into the software so that employees are automatically reminded of these policies when booking and are guided to choose options that comply with company guidelines.</p><p><strong>Travel approvals and reporting:</strong> The software can implement approval processes for trips where sustainable alternatives are reviewed and prioritized. It can also generate detailed reports on the environmental impact of all business trips to facilitate the monitoring and improvement of sustainability strategies.</p><p><strong>Training and awareness raising:</strong> The software can also provide information modules and training materials to educate employees on the importance and methods of sustainable travel.</p>								</div>
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									<h2>Make it sustainable: Mapping of the entire travel process</h2><p>Sustainable door-to-door routing and comprehensive planning of the entire travel process can make a significant contribution to promoting sustainable business travel. By integrating all travel segments and means of transport into a unified planning, this concept enables a detailed analysis and optimization of the entire trip. By selecting the most efficient and environmentally friendly routes and transportation options, CO2 emissions can be significantly reduced. The remarkable switch from taxis to public transport was stated as one of the most surprising results at the presentation of the VDR business travel analysis.</p><p>In addition, continuous monitoring and adjustment helps to avoid unnecessarily long routes, inefficient itineraries and hotels with a poor carbon footprint (e.g., caused by the use of plastic tableware, plastic waste and the high consumption of towels and other accessories) minimizing both the environmental footprint and travel costs.</p><p>By using these technologies, companies can not only better implement sustainable travel policies, but also improve the travel experience for their employees by providing seamless and efficient door-to-door navigation. This leads to higher traveler satisfaction while contributing to the company&#8217;s sustainability goals.</p><p>Until the industry manages to optimize air travel through new propulsion systems or sustainable aviation fuel (SAF), the focus for business travel should be on finding ways to accurately measure business travel emissions. With this data, planners can make informed decisions to plan sustainable and responsible business travel and simultaneously get a good base for the requested/obligatory business reporting.</p>								</div>
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						PASS SolutionWorld Travel ... and CO2-Data					</h2>
				
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						The PASS SolutionWorld Travel is exactly such a technical vehicle to connect the relevant players in the market and to make today's world available as efficiently and precisely as possible for the industry. The primary topic is to make the content of the various providers in the market bookable through a uniform process – either via the multi-source microservices API (iXX1) or directly in a uniform booking interface (such as the Travel Agent Desktop) and to digitally map the upstream and downstream processes and integrate the relevant players.

We will soon be able to enrich this data with that of CO2 emissions and make it
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									<p><em>Header: Shutterstock</em></p>								</div>
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		<title>The Challenge for a TMC: Efficiency, Full-content and Revenues</title>
		<link>https://www.travel-industry-blog.com/travel-technology/the-challenge-for-a-tmc/</link>
					<comments>https://www.travel-industry-blog.com/travel-technology/the-challenge-for-a-tmc/#respond</comments>
		
		<dc:creator><![CDATA[Anne-Kathrin Geuppert]]></dc:creator>
		<pubDate>Tue, 11 Oct 2022 09:12:55 +0000</pubDate>
				<category><![CDATA[Travel Technology]]></category>
		<category><![CDATA[ndc]]></category>
		<category><![CDATA[tmc]]></category>
		<category><![CDATA[travel industry]]></category>
		<guid isPermaLink="false">https://www.travel-industry-blog.com/?p=6947</guid>

					<description><![CDATA[Everything used to be better! Wasn't it? Let's take a look at the new distribution world of travel and the resulting challenges for TMCs.]]></description>
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									<p>There was a time when you had a GDS terminal and could quickly serve customers in the green screen with learned cryptic commands. No special treatments for low-cost carriers, no additional fees from airlines, no additional services and no customers who could simply compare on the internet, all fares and bookings / PNRs were more or less available in one central place. And today?</p><h2>Time to Rethink! If Not Already Done&#8230;</h2><p>As the much quoted quotation from Leon C. Megginson based on the research findings of Charles Darwin says:</p><blockquote><p>„It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.”</p></blockquote><p>Darwin may have done research in nature, but that can be easily applied to the economy. There are enough negative examples: Kodak, Quelle and Nokia immediately come to mind. Positive examples include: Netflix, CEWE and Lego.</p><h2>Today&#8217;s Situation</h2><p>The distribution world of travel has turned. Not all rates (e.g. <a title="Travel Technology for Dummies: What Is NDC?" href="https://www.travel-industry-blog.com/corporate-travel/ndc-for-dummies/">NDC</a> or LCC) or even additional services are available in the GDS. The booking world of agents has expanded and with it many new processes have emerged, which also mean some manual and administrative effort. Customers want simple digital processes and a close link between offline and online and, since Corona, they also increasingly want a partner at their side to advise and help them and to ensure that the business traveler requires a minimum of time for his business travel booking, receives a good offer and is accompanied and supported digitally as best as possible during the trip.</p><p>So in the end, a good starting position for travel agencies/TMCs. Virtual meetings and the sustainability aspect will reduce business travel in the future, but the additional services of the travel agencies and the added value can generate higher revenues and margins. At the same time, the use of appropriate systems and automation can reduce costs and thus also counteract the loss of employees due to corona-related departures.</p><h2>What to Do? The New Way of Travel Distribution</h2><p>A landscape is needed in which the relevant systems (including TMCs own) are optimally linked with each other and the processes run digitally and automatically. In other words, a network of suitable partners and possibly also in-house developments. Everything from a single source was therefore yesterday – today it is about optimal integration of the relevant providers. This also creates independence and the necessary user and customer experience.</p>								</div>
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																<a href="https://www.travel-industry-blog.com/wp-content/uploads/2022/09/challenge-tmc-1.png" data-elementor-open-lightbox="yes" data-elementor-lightbox-title="The Challenge for a TMC" data-e-action-hash="#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6Njk5MiwidXJsIjoiaHR0cHM6XC9cL3d3dy50cmF2ZWwtaW5kdXN0cnktYmxvZy5jb21cL3dwLWNvbnRlbnRcL3VwbG9hZHNcLzIwMjJcLzA5XC9jaGFsbGVuZ2UtdG1jLTEucG5nIn0%3D">
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									<p>The graphic is just an example how everything could be linked together:</p><ul><li>An independent data source for travel/mobility content and enriched service data for the various user interfaces for all stakeholders in the ecosystem (e.g. travelers, travel arranger, travel managers and agents).</li><li>An independent profile management system for all traveler/organizational data and preferences as well as agent/agency data.</li><li>One itinerary and export of relevant data (e.g. PNR data or additional data information like ancillary services) at the right point of time to the service provider like duty of care companies, traveler/trip support app companies, mid-/backoffice provider and BI systems.</li></ul><p>Such a multi-source platform may even have to support two workflows: the traditional ATPCO workflow and the new <a title="Travel Technology for Dummies: What Is NDC?" href="https://www.travel-industry-blog.com/corporate-travel/ndc-for-dummies/">NDC workflow</a>. This proves the complexity predicted by my colleague Michael Strauss back in 2017 to be true. At that time <a title="The reality behind NDC: Why NDC won’t break down the GDS oligopoly – yet" href="https://www.travel-industry-blog.com/travel-industry/ndc/">he wrote</a>:</p><blockquote><p>&#8220;The proposition of NDC means that a “formerly relatively lean distribution chain will become a complicated commercial landscape with numerous airlines, numerous TMCs (or corporations) and several technology providers – all being connected to each other on a technological, as well as commercial, level.”</p></blockquote><p>The Time for Change is NOW! Find the right providers for you in the market to be fit for the future and to successfully assert yourself on the market.</p>								</div>
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						PASS SolutionWorld Travel					</h2>
				
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						The PASS SolutionWorld Travel is exactly such a technical vehicle to connect the relevant players in the market and to make today's world available as efficiently and precisely as possible for the industry. The primary topic is to make the content of the various providers in the market bookable through a uniform process – either via the multi-source microservices API (iXX1) or directly in a uniform booking interface (such as the Travel Agent Desktop) and to digitally map the upstream and downstream processes and integrate the relevant players.					</div>
				
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									<p><br /><em>Picture: Shutterstock; Illustration: PASS</em></p>								</div>
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		<title>Data Warehouse: Business Intelligence in Business Travel</title>
		<link>https://www.travel-industry-blog.com/travel-industry/data-warehouse-travel/</link>
					<comments>https://www.travel-industry-blog.com/travel-industry/data-warehouse-travel/#respond</comments>
		
		<dc:creator><![CDATA[Anne-Kathrin Geuppert]]></dc:creator>
		<pubDate>Thu, 21 Apr 2022 06:15:55 +0000</pubDate>
				<category><![CDATA[Data]]></category>
		<category><![CDATA[Travel Industry]]></category>
		<category><![CDATA[data warehouse]]></category>
		<category><![CDATA[dwh]]></category>
		<category><![CDATA[travel industry]]></category>
		<category><![CDATA[travel risk management]]></category>
		<guid isPermaLink="false">https://www.travel-industry-blog.com/data-warehouse-travel/</guid>

					<description><![CDATA[A data warehouse (DWH) can support decision-making. We show you how.]]></description>
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									<p>As the saying goes, &#8220;You can&#8217;t manage what you can&#8217;t measure.&#8221; It is the same in the business travel sector. The basis for this is the collection and consolidation of data in order to obtain the relevant information.</p><h2>Data Warehouse for Travel Management</h2><p>The collection point for the various data gathered from different sources is called a data warehouse.</p><p>The data warehouse is more or less the foundation on which decisions are made, negotiations are conducted, or successes are measured and processes are optimized with the aim of uncovering inefficiencies and achieving savings.</p><p>Technically, a travel manager has nothing to do with the data warehouse, but it does provide him with information that he can use profitably to improve the company&#8217;s results and provide the best possible support for his company&#8217;s travelers. It is important to ensure that all relevant data pools are connected to the DWH.</p><h2>What Data Is the Data Warehouse Based On?</h2><p>Of course, this depends on which insights are to be gained from the data warehouse. As a rule, in the area of travel management these are:</p><ul><li>the personal/organizational data from the human resources (HR) system</li><li>the booking data from the various reservation systems (GDSs, OBEs, direct suppliers, which also includes NDC) &#8211; this includes both the bookings made via the travel agency and the travel bookings made by the company directly</li><li>the accounting data of the payment providers and/or also from the travel expense accounting systems</li><li>as well as &#8220;enrichment&#8221; data such as CO2 emissions, exchange rate data or geographic data.</li></ul>								</div>
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																<a href="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/data-warehouse-travel-management-business-intelligence.png" data-elementor-open-lightbox="yes" data-elementor-lightbox-title="Data Warehouse Travel" data-e-action-hash="#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6NTA0MywidXJsIjoiaHR0cHM6XC9cL3d3dy50cmF2ZWwtaW5kdXN0cnktYmxvZy5jb21cL3dwLWNvbnRlbnRcL3VwbG9hZHNcLzIwMjJcLzA2XC9kYXRhLXdhcmVob3VzZS10cmF2ZWwtbWFuYWdlbWVudC1idXNpbmVzcy1pbnRlbGxpZ2VuY2UucG5nIn0%3D">
							<img decoding="async" width="609" height="1024" src="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/data-warehouse-travel-management-business-intelligence-609x1024.png" class="attachment-large size-large wp-image-5043" alt="Data Warehouse Travel" srcset="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/data-warehouse-travel-management-business-intelligence-609x1024.png 609w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/data-warehouse-travel-management-business-intelligence-179x300.png 179w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/data-warehouse-travel-management-business-intelligence-768x1291.png 768w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/data-warehouse-travel-management-business-intelligence.png 792w" sizes="(max-width: 609px) 100vw, 609px" />								</a>
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									<h2 style="font-variant-ligatures: normal; font-variant-caps: normal; font-family: 'Open Sans', sans-serif; font-style: normal; color: #222222;">How Does the Structure of a Data Warehouse Look Like?</h2><p style="font-variant-ligatures: normal; font-variant-caps: normal; font-family: 'Open Sans', sans-serif; font-size: 16px; font-style: normal; font-weight: 400;">The reference architecture by our colleague and Competence Center Manager Business Intelligence Dr. Rainer Hahn shows the three-level structure of the data warehouse with one level for data procurement, one for data storage and the third for data provision.</p>								</div>
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											<figcaption class="widget-image-caption wp-caption-text">Reference architecture DWH by Dr. Rainer Hahn (PASS)</figcaption>
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									<h3>Data procurement: landing zone</h3><p>Here, the incoming data is initially loaded 1:1 so that it is available in a uniform form and can be further processed using database means. This part of the data management is not permanent, and so personal information is deleted here again when it is no longer needed.</p><h3>Data management: storage zone</h3><p>Here the data is stored permanently. All necessary cleanups have been carried out, and unnecessary personal data is not stored here. The main focus is to store the data in such a way that historical relationships can be traced in an audit-proof manner.</p><h3>Data provision: reporting zone</h3><p>Here, the data is filtered with respect to the storage zone, so that only the data relevant for reporting is stored, and a restructuring is carried out that allows specialists without database knowledge to carry out individual reporting using the appropriate tools. At the same time, it is ensured that standard reporting can be carried out efficiently on the structures available here.</p><h2>Which Information Can Be Obtained From a Data Warehouse?</h2><p>In general, it can be said that a data warehouse often acts as a basic element of a company-wide strategy for business intelligence so that well-founded business decisions can be made as well as providing results for performance management. At the same time, it provides procurement with important data for negotiating with the relevant service providers.</p><p>It is therefore used for:</p><ul><li>Recurring reporting: (e.g. expenses per region / per carrier or supplier / per cost center / &#8230; number of travelers, number of bookings per region or average advance booking time, CO2 emissions, booking channel, etc.)</li><li>Monitoring / controlling (e.g. KPI target achievement, total budget overrun warning, negotiated fare performance, travel policy compliance, corporate rates utilization rate, etc.)</li><li>Real-time analyses (e.g. benchmarks, location analysis, etc.)</li><li>Data provision to other service providers such as <a title="The increased importance of Travel Risk Management" href="https://www.travel-industry-blog.com/corporate-travel/travel-risk-management-2021/">travel risk management</a> companies</li><li>Forecasts</li></ul><p>The data obtained from the data warehouse can thus be used for internal reporting to management, optimization of current processes, behavioral changes (e.g. with a view to sustainability or savings), as a basis for negotiations with service providers, as a data pool for further services, and as a decision-guidance for further measures.</p><h2>What Should you Look for When Setting Up a Data Warehouse?</h2><ul><li>Relevant data pots, because only with the right data can you also gain the desired insights.</li><li>Automated processes – the data delivery (incl. the quality of the data) as well as the output of the data must be automated in order to avoid manual efforts. This automation also concerns error management – i.e. if, for example, relevant data is missing from a data set.</li><li>Data security – where personal and business-relevant data is involved, the data security factor and data anonymization naturally play an important role.</li><li>Intuitive use without training efforts – the selected tools for reports, monitoring and ad-hoc analyses should be intuitively operable for all users.</li></ul><p>It can also be an advantage if the data warehouse is provided by an independent service provider in order to be able to react flexibly to changes.</p><p>A helpful read with best practices on this topic can be found in the paper „<a href="https://www.airplus.com/editorial-files/united-kingdom/documents/english/research-and-studies/measured_and_managed_-_getting_more_out_of_your_corporate_travel_data.pdf" target="_blank" rel="noopener">Measured and Managed – Getting More out of Your Corporate Travel Data</a>“ [pdf] by Airplus.com.</p>								</div>
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						PASS PNR Retrieval					</h2>
				
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						The PNR management solution PASS PNR Retrieval allows you to accurately access all Passenger Name Records (PNRs) along with ticketing and EMD information saved in the booking system and provides you with a detailed overview of a company's overall travel activities. Applications are in the areas of travel business intelligence, risk management, <span style=", sans-serif;font-size: 16px;font-style: normal;font-weight: 400">sustainibility reporting, mobile traveller companion,</span> after sales services and more.					</div>
				
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									<p><em><br />Picture: Shutterstock; Illustrations: PASS</em></p>								</div>
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		<title>Travel Technology for Dummies: What Is Direct vs. Indirect Distribution?</title>
		<link>https://www.travel-industry-blog.com/corporate-travel/direct-vs-indirect-distribution/</link>
					<comments>https://www.travel-industry-blog.com/corporate-travel/direct-vs-indirect-distribution/#respond</comments>
		
		<dc:creator><![CDATA[Michael Strauss]]></dc:creator>
		<pubDate>Tue, 09 Nov 2021 12:00:28 +0000</pubDate>
				<category><![CDATA[Corporate Travel]]></category>
		<category><![CDATA[gds]]></category>
		<category><![CDATA[ndc]]></category>
		<category><![CDATA[travel technology for dummies]]></category>
		<guid isPermaLink="false">https://www.travel-industry-blog.com/direct-vs-indirect-distribution/</guid>

					<description><![CDATA[Direct vs. indirect distribution: Today we take a look at the difference. Also, we talk about the topic “GDS bypass vs. GDS passthrough”.]]></description>
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									<p>In many cases NDC is mistakenly used for direct distribution. NDC is a data standard. NDC is explained in details in the following Blogs: <a title="Travel Technology for Dummies: What Is NDC?" href="https://www.travel-industry-blog.com/corporate-travel/ndc-for-dummies/">“What is NDC?”,</a> “ <a title="The reality behind NDC: Why NDC won’t break down the GDS oligopoly – yet" href="https://www.travel-industry-blog.com/travel-industry/ndc/">The reality behind NDC</a>” and “<a title="NDC the next curtain: NDC will come, the GDS monopoly (or oligopoly) will stay" href="https://www.travel-industry-blog.com/travel-industry/ndc-gds-onboard/">NDC – the next curtain</a>”.</p><h2>Direct vs. Indirect Distribution</h2><p>When it comes to airlines, direct and indirect distribution is quite simple to explain: Direct distribution is when the traveler books his flight directly with the airline. In the indirect channels there are online or offline (brick &amp; mortar) travel agencies in most cases along with <a href="https://www.travel-industry-blog.com/gds/the-difference-between-crs-and-gds-in-the-travel-industry/">Global Distribution Systems (GDSs)</a> between the traveler and the airline.</p><p>Within NDC, instead of a GDS, IATA speaks of <a href="https://www.travel-industry-blog.com/travel-industry/ndc/">aggregators</a>. IATA “invites” GDSs to become aggregators, but in fact they really don’t care who the aggregator is (as long as there is one). The GDSs have meanwhile confirmed that they want to become NDC aggregators and integrate NDC content along with LCC and classical ATPCo content. However, with NDC, GDSs are less in control as <a href="https://www.travel-industry-blog.com/corporate-travel/ndc-for-dummies/">airlines control the offer creation as well as the order management</a>. With traditional indirect distribution, the GDS creates the offer, keeps the <a title="Travel Technology for Dummies: What Is a Booking Reference or PNR?" href="https://www.travel-industry-blog.com/travel-technology/pnr/">Passenger Name Record (PNR)</a> and only provides a copy of the PNR to the airline.</p>								</div>
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					<th class="pp-table-cell pp-table-cell-a852037"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Distribution</b></span></span></th><th class="pp-table-cell pp-table-cell-b8d2e27"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Online</b></span></span></th><th class="pp-table-cell pp-table-cell-32e9ce4"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Offline</b></span></span></th>				</tr>
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			<tr ><td class="pp-table-cell pp-table-cell-84cb674"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Direct</span></span></td><td class="pp-table-cell pp-table-cell-1403870"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Airline.com</span></span></td><td class="pp-table-cell pp-table-cell-5cb2c19"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Airline desk /
1-800-airline</span></span></td></tr><tr ><td class="pp-table-cell pp-table-cell-99f054c"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Indirect</span></span></td><td class="pp-table-cell pp-table-cell-d002c7d"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Leisure: IBE (Internet Booking Engine)
Business: OBT (Online Booking Tool) or SBE (Self Booking Engine)</span></span></td><td class="pp-table-cell pp-table-cell-2a58fec"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Agent Desktop:
ATPCo:
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  <li>GDS green screen/GDS Desktop</li>
  <li>TMC Agent desktop (e.g. BCD Agentsource, PASS TAD*)</li>
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NDS:
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  <li>Airline Desktop (e.g. Sprk for Farelogix)</li>
  <li>Aggregator built Desktop (LCR Bridge IT, PASS TAD*, Atriis Lucie)</li>
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						PASS Travel Agent Desktop					</h2>
				
									<div class="elementor-cta__description elementor-cta__content-item elementor-content-item">
						One solution for the entire process – from which agents, travelers and content providers benefit equally. PASS Travel Agent Desktop is a booking system that combines all central distribution channels as well as workflows in one intuitive web interface: from GDS and NDC direct content to other direct connections as well as low-cost carriers and aggregators for flights, rental cars, and hotels. This means that individual travel offers no longer have to be processed in different systems. 					</div>
				
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									<h2>The Difference Between GDS Bypass and GDS Passtrough</h2><p>So, what is a GDS bypass vs. a GDS passthrough? A GDS bypass is nothing else but a distribution channel which completely bypasses the GDSs. In other words, an aggregator that integrates directly with the airline’s NDC API, bypasses the GDS completely. GDSs were so reluctant to adopt NDC as they feared NDC will enable GDS bypass for the mass market and reduce the GDS usage for the complicated bookings. Consequently, GDS fought NDC until it was eminent that NDC will come and GDSs had the time to catch up. The travel agency community also favored the traditional distribution channel due to a revenue stream <a title="Travel Technology for Dummies: What Are Incentives, Commission &amp; Overrides?" href="https://www.travel-industry-blog.com/travel-technology/travel-technology-for-dummies-what-are-incentives-commission-overrides/">paid</a> to some extent by the GDSs.</p><p>A GDS passthrough is where the GDSs themselves actually integrate to the NDC APIs of the airlines and become certified. It is considered a passthrough, as messages between traveler/agent are more or less passed through the GDS on to the airline NDC system and no real refinement by the GDSs takes place (the order is created and managed by the airline). All the GDSs do in this case is, what (GDS-) aggregators did all these years, make sure that one airline looks pretty similar to the other airline. However, now, as all GDSs have committed to NDC, I suspect that the term “GDS passthrough” will eventually disappear.</p>								</div>
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							<div class="elementor-cta__content">
				
									<h3 class="elementor-cta__title elementor-cta__content-item elementor-content-item">
						Blog Series: Travel Technology for Dummies					</h3>
				
									<div class="elementor-cta__description elementor-cta__content-item elementor-content-item">
						<ul>
 <li><a>What Is Full Content?</a></li>
<li><a>What Is a Booking Reference or PNR?</a></li>
<li><a>What Is Overbooking?</a></li>
<li><a href="https://www.travel-industry-blog.com/travel-technology/pss/">What Is a Passenger Service System (PSS)?</a></li>
<li><a>What Are Booking, Waitlists, Tickets, Codeshare &amp; Interlining?</a></li>
<li><a>What Are Active and Passive Segments?</a></li>
<li><a>What Are Incentives, Commissions &amp; Overrides?</a></li>
<li><a>What Is a ‘Married Segment’?</a></li>
<li><a>Blockchain in Travel: All You Need to Know – for Now</a></li>
<li><a>What Is the Difference Between Fares, Rates and Tariffs?</a></li>
<li><a>What Is NDC?</a></li>
<li><a>What Is Continuous Pricing?</a></li>
<li><b> What Is Direct vs. Indirect Distribution?</b></li>
</ul>
If you like my articles, please subscribe and share my blogs – I’d really like to crack the 10k mark of monthly readers of this specialized travel technology blog.					</div>
				
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									<p><em><br />Picture: Shutterstock</em></p>								</div>
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		<title>Travel Technology for Dummies: What Is Continuous Pricing?</title>
		<link>https://www.travel-industry-blog.com/corporate-travel/travel-technology-for-dummies-continuous-pricing/</link>
					<comments>https://www.travel-industry-blog.com/corporate-travel/travel-technology-for-dummies-continuous-pricing/#comments</comments>
		
		<dc:creator><![CDATA[Michael Strauss]]></dc:creator>
		<pubDate>Wed, 22 Sep 2021 08:29:01 +0000</pubDate>
				<category><![CDATA[Corporate Travel]]></category>
		<category><![CDATA[continuous pricing]]></category>
		<category><![CDATA[ndc]]></category>
		<category><![CDATA[travel technology for dummies]]></category>
		<guid isPermaLink="false">https://www.travel-industry-blog.com/travel-technology-for-dummies-continuous-pricing/</guid>

					<description><![CDATA[We explore the question of how continuous pricing – enabled by NDC – compares to static dynamic pricing.]]></description>
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									<p>Even if airlines only had a single price for each cabin (first, business and economy), the price per cabin would still be high.Consequently, only a few people could afford to fly, which would lead to inefficient capacity utilization as no-one would be able to determine how much an optimal price would need to be in order to fill up the aircraft – a nightmare for an airline’s yield management.</p><h2>From Single Pricing to Static Offer Creation to Dynamic Pricing to Continuous Pricing</h2><p>In order to fill up aircraft at an economical price per ticket, this led to static offer creation with booking-class based dynamic pricing: For several decades, airlines have filed their booking classes with ATPCo. These booking classes where historically limited to the alphabet, so we have up to 26 booking classes divided into 3-4 cabins, known as for instance A or F for the First Class cabin, C, D, or J for Business Class cabin, E, G or N for Premium Economy cabin and B, Y, H, M, U, Q, S, V, W, K, L, T for Economy class cabin.</p><p>Each booking class has pre-filed rules, such as the possibility and fee of a refund or rebooking, included baggage, factor for mileage accrual, restrictions and other items – again, all this had to be filed in advance and depending on available inventory of each booking class the GDS prepared the offer to the traveler. The advantage was that many passengers were now able to buy tickets for low fares for instance early, last minute or with certain restrictions, which led to the fact that airlines were able to offer more profitable connections by using the capacity more efficiently and consequently were able to accommodate passengers with short-term travel needs who were willing to pay a premium.</p>								</div>
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							<div class="elementor-cta__content">
				
									<h3 class="elementor-cta__title elementor-cta__content-item elementor-content-item">
						Blog Series: Travel Technology for Dummies					</h3>
				
									<div class="elementor-cta__description elementor-cta__content-item elementor-content-item">
						<ul>
 <li><a>What Is Full Content?</a></li>
<li><a>What Is a Booking Reference or PNR?</a></li>
<li><a>What Is Overbooking?</a></li>
<li><a href="https://www.travel-industry-blog.com/travel-technology/pss/">What Is a Passenger Service System (PSS)?</a></li>
<li><a>What Are Booking, Waitlists, Tickets, Codeshare &amp; Interlining?</a></li>
<li><a>What Are Active and Passive Segments?</a></li>
<li><a>What Are Incentives, Commissions &amp; Overrides?</a></li>
<li><a>What Is a ‘Married Segment’?</a></li>
<li><a>Blockchain in Travel: All You Need to Know – for Now</a></li>
<li><a>What Is the Difference Between Fares, Rates and Tariffs?</a></li>
<li><a>What Is NDC?</a></li>
<li><b>What Is Continuous Pricing?</b></li>
<li><a>What Is Direct vs. Indirect Distribution?</a></li>
</ul>
If you like my articles, please subscribe and share my blogs – I’d really like to crack the 10k mark of monthly readers of this specialized travel technology blog.					</div>
				
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									<div><h2>Airlines Claim: &#8220;NDC Avoids Unnecessary Price Jumps for Travelers&#8221;</h2></div><p>One step further with NDC, some airlines propose what is called “continuous pricing”: The traditional pricing in the GDS dates back to the 1970s with its limitation to 26 pricing points. Airlines argue that this causes unnecessary price jumps for the travelers, but also prevents the airline from materializing profits as certain classes fill up. Price jumps can sometimes be seen when you search for one person and get a fee of e.g. $120. Then you try to book for the whole family and now all tickets jump up to $180 – as you, potentially together with some family members, filled up the cheaper class. I ended up booking separate tickets in the past to at least take advantage of some tickets at the still lower rate – but that’s a dangerous move, especially if plans change.</p>								</div>
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											<a href="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/for-dummies-continuous-pricing-info-graphic.jpg" data-elementor-open-lightbox="yes" data-elementor-lightbox-title="for-dummies-continuous-pricing-info-graphic" data-elementor-lightbox-description="Comparison: classic dynamic pricing and continuous pricing" data-e-action-hash="#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6NTAzNywidXJsIjoiaHR0cHM6XC9cL3d3dy50cmF2ZWwtaW5kdXN0cnktYmxvZy5jb21cL3dwLWNvbnRlbnRcL3VwbG9hZHNcLzIwMjJcLzA2XC9mb3ItZHVtbWllcy1jb250aW51b3VzLXByaWNpbmctaW5mby1ncmFwaGljLmpwZyJ9">
							<img loading="lazy" decoding="async" width="1024" height="830" src="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/for-dummies-continuous-pricing-info-graphic-1024x830.jpg" class="attachment-large size-large wp-image-5037" alt="Comparison: classic dynamic pricing and continuous pricing" srcset="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/for-dummies-continuous-pricing-info-graphic-1024x830.jpg 1024w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/for-dummies-continuous-pricing-info-graphic-300x243.jpg 300w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/for-dummies-continuous-pricing-info-graphic-768x622.jpg 768w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/for-dummies-continuous-pricing-info-graphic.jpg 1250w" sizes="(max-width: 1024px) 100vw, 1024px" />								</a>
											<figcaption class="widget-image-caption wp-caption-text">Comparison: classic dynamic pricing and continuous pricing</figcaption>
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									<p><span style="font-family: 'Open Sans', sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400;">Being limited to 26 price points, puts the indirect sales channel (via agency/GDS/NDC) at disadvantage to the direct sales channel (airline website). On the airline.com website, one may find real-time fares based on supply and demand fares, while the traditional channel is restricted by the alphabet. Continuous pricing may allow airlines to offer more competitive pricing across all channels, as price jumps can be reduced significantly not just in direct sales but also in the indirect distribution channel alike. Unless all channels are capable to display continuous pricing, price differences between distribution channels (e.g. travel agent vs. airline.com website) occur which will favor the airline.com website, confuse the traveler and put agents at a disadvantage.</span></p>								</div>
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			<tr ><td class="pp-table-cell pp-table-cell-84cb674"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Key difference</b></span></span></td><td class="pp-table-cell pp-table-cell-1403870"><span class="pp-table-cell-content"><span class="pp-table-cell-text">One price per cabin</span></span></td><td class="pp-table-cell pp-table-cell-5cb2c19"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Limited to 26 price points
step-by-step mathematical model</span></span></td><td class="pp-table-cell pp-table-cell-b6f4576"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Unlimited amount of prices
continuous mathematical model</span></span></td></tr><tr ><td class="pp-table-cell pp-table-cell-99f054c"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Distribution channel and technology</b></span></span></td><td class="pp-table-cell pp-table-cell-d002c7d"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Unusual / not existent</span></span></td><td class="pp-table-cell pp-table-cell-0175761"><span class="pp-table-cell-content"><span class="pp-table-cell-text">GDS (EDIFACT) / ATPCo filed fares, OAG/innovate filed schedules</span></span></td><td class="pp-table-cell pp-table-cell-77dda8f"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Airline API / NDC XML</span></span></td></tr><tr ><td class="pp-table-cell pp-table-cell-1b6272b"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Pricing based on</b></span></span></td><td class="pp-table-cell pp-table-cell-e53376d"><span class="pp-table-cell-content"><span class="pp-table-cell-text">N/A</span></span></td><td class="pp-table-cell pp-table-cell-bd53cea"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Origin/Destination, trip characteristic, rates, compartments (cabins), services &amp; ancillaries (bags, meals, leg space, demand forecast, load factor, etc.</span></span></td><td class="pp-table-cell pp-table-cell-da102a5"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Origin/Destination, trip characteristic, rates, compartments (cabins), services &amp; ancillaries (bags, meals, leg space, demand forecast, load factor, etc.</span></span></td></tr><tr ><td class="pp-table-cell pp-table-cell-b9705b2"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Pricing not based on</b></span></span></td><td class="pp-table-cell pp-table-cell-eca4816"><span class="pp-table-cell-content"><span class="pp-table-cell-text">N/A</span></span></td><td class="pp-table-cell pp-table-cell-bdbe760"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Sensitive user data due to GDPR compliance: traveler income, mobile data, monitoring data, browser data, gender, ethics, etc.</span></span></td><td class="pp-table-cell pp-table-cell-b53185d"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Sensitive user data due to GDPR compliance: traveler income, mobile data, monitoring data, browser data, gender, ethics, etc.</span></span></td></tr>		</tbody>
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									<p> </p><p><em>Pictures: Shutterstock, PASS</em></p>								</div>
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		<title>Travel Technology for Dummies: What Is NDC?</title>
		<link>https://www.travel-industry-blog.com/corporate-travel/ndc-for-dummies/</link>
					<comments>https://www.travel-industry-blog.com/corporate-travel/ndc-for-dummies/#comments</comments>
		
		<dc:creator><![CDATA[Michael Strauss]]></dc:creator>
		<pubDate>Wed, 30 Jun 2021 09:45:07 +0000</pubDate>
				<category><![CDATA[Corporate Travel]]></category>
		<category><![CDATA[ndc]]></category>
		<category><![CDATA[travel technology for dummies]]></category>
		<guid isPermaLink="false">https://www.travel-industry-blog.com/ndc-for-dummies/</guid>

					<description><![CDATA[Travel Topics explained in a simple way: Let’s talk about the data standard New Distribution Capability (NDC).]]></description>
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									<p><span style="font-size: 16px; color: var( --e-global-color-text ); letter-spacing: var( --e-global-typography-text-letter-spacing ); text-transform: var( --e-global-typography-text-text-transform );">Dear Readers, during a tough year with a global pandemic which cost the travel industry according to IATA in excess of $118 billion, I was under the impression, no-one would be interested in educational stories about travel technology. Hopefully, we have better times ahead of us. Hence, I decided to continue my series with focus on necessary technology improvements such as NDC and ONE Order.</span></p><p>NDC is to become the standard for airline distribution of the 21st century. As mentioned in <a title="The reality behind NDC: Why NDC won’t break down the GDS oligopoly – yet" href="https://www.travel-industry-blog.com/travel-industry/ndc/">my article about NDC</a> from Oct. 2017, NDC is the replacement of a communication protocol from the 1980s (EDIFACT) by a communication protocol of 2000 (XML) – which basically means data becomes more readable. The reason behind this development: Every data element gets a description of what it stands for (you can find out more about that in the other articles of this series). </p>								</div>
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									<h3 class="elementor-cta__title elementor-cta__content-item elementor-content-item">
						Blog Series: Travel Technology for Dummies					</h3>
				
									<div class="elementor-cta__description elementor-cta__content-item elementor-content-item">
						<ul>
 <li><a>What Is Full Content?</a></li>
<li><a>What Is a Booking Reference or PNR?</a></li>
<li><a>What Is Overbooking?</a></li>
<li><a href="https://www.travel-industry-blog.com/travel-technology/pss/">What Is a Passenger Service System (PSS)?</a></li>
<li><a>What Are Booking, Waitlists, Tickets, Codeshare &amp; Interlining?</a></li>
<li><a>What Are Active and Passive Segments?</a></li>
<li><a>What Are Incentives, Commissions &amp; Overrides?</a></li>
<li><a>What Is a ‘Married Segment’?</a></li>
<li><a>Blockchain in Travel: All You Need to Know – for Now</a></li>
<li><a>What Is the Difference Between Fares, Rates and Tariffs?</a></li>
<li><b> What Is NDC?</b></li>
<li><a>What Is Continuous Pricing?</a></li>
<li><a>What Is Direct vs. Indirect Distribution?</a></li>
</ul>

If you like my articles, please subscribe and share my blogs – I’d really like to crack the 10k mark of monthly readers of this specialized travel technology blog.					</div>
				
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									<h2>The Bumpy Road to NDC</h2><p>The road to NDC was bumpy as a technology standard was used for political reasons: NDC was confused with <a title="Is Lufthansa Serious Or Just Negotiating? Why a Few Direct Connect Bookings Will Save Millions" href="https://www.travel-industry-blog.com/gds/is-lufthansa-serious-or-just-negotiating-why-a-few-direct-connect-bookings-will-save-millions/">direct distribution</a> (airlines sells directly to traveler) compared to the classical distribution channel airline use GDSs and agencies for indirect distribution (compare with the picture <a title="Travel Technology for Dummies: What Is a Passenger Service System?" href="https://www.travel-industry-blog.com/travel-technology/pss/">from my article about PSS</a>), where every entity in the value chain takes a <a title="Travel Technology for Dummies: What Are Incentives, Commission &amp; Overrides?" href="https://www.travel-industry-blog.com/travel-technology/travel-technology-for-dummies-what-are-incentives-commission-overrides/">cut</a> of the sale.</p><p>Even prior to NDC, direct distribution was common – better known by booking through the airline webpage. On average 50% of sales of the classical legacy airlines, as well as up to 100% of low-cost carriers (such as Southwest), were sold through the website of the airline. Besides the above referenced article, I explained at length commercial challenges, people used to address using NDC as a weapon in my <a title="NDC the next curtain: NDC will come, the GDS monopoly (or oligopoly) will stay" href="https://www.travel-industry-blog.com/travel-industry/ndc-gds-onboard/">2nd article about NDC</a>.</p><p>At this point, NDC is (or will become) reality. Airlines effectively have been working on providing NDC interfaces since 2018 after IATA was able to provide a (to some extent) stable version with NDC version 17.2 (it’s the 2nd version of the year 2017). Approximately two versions will be released every year. GDSs have committed to providing NDC interfaces (NDC-X, Sabre Beyond NDC, and Travelport announced Travelport+). TMCs are engaged, but obviously rather prefer the traditional program with <a title="Travel Technology for Dummies: What Are Incentives, Commission &amp; Overrides?" href="https://www.travel-industry-blog.com/travel-technology/travel-technology-for-dummies-what-are-incentives-commission-overrides/">kickback</a> for monetary reasons. Online Booking Tool provider are also somewhat engaged including SAP Concur and our own <a title="The Company Dime about our Individual Online Booking Tool for Travel" href="https://www.pass-consulting.com/en/news/the-company-dime-about-our-individual-online-booking-tool-for-travel-1/" target="_blank" rel="noopener">OBT</a>.</p><h2>Still Challenges Lie Ahead</h2><p>However, as of 2021 we have still been facing challenges as there is no one-stop NDC provider. GDSs are releasing capabilities for a few airlines each year. While some aggregators claim to have numerous airlines, in many cases the fact is, they only have a few real installations. Aggregators claim for instance to have Austrian Airlines (OS), Lufthansa (LH), SWISS (LX), Air Dolomiti (EN) and Brussels Airlines (SN) while all of these airlines are from the same Lufthansa Group Application Programming Interface (API) – it is exactly one and the same interface.</p><p>Additionally, Lufthansa’s technology provider of the NDC interface is Accelya’s Farelogix. And Farelogix is the technology provider for other airlines, too – among those, besides the Lufthansa Group, Aeromexico, Aegean, Air Canada, American Airlines, Copa, Delta, Emirates, Etihad, flydubai, Hawaiian, Olympic, Qantas, Qatar, United, Virgin Atlantic, and WestJet. Theoretically and ideally, once you have integrated Farelogix once, one would expect to have all such airlines. The latter unfortunately is not true as we have different IATA NDC versions, different airline interpretations of such XML messages, in most cases we need a certification with each airline, and once all this has been taken care of, there is a good chance you run into bugs and/or technology limitations by the 3rd party IT vendor of the airline.</p>								</div>
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						GDS Aggregator as well as a NDC Aggregator					</h3>
				
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						We at PASS were one of the first, to integrate the Lufthansa Group as it is a dominant airline in one of our home markets. The picture as of June 2021 is, that our clients can get Lufthansa through our own interface, with slightly limited features through our integrated aggregator Travelfusion, an agreement was announced with Sabre, while Amadeus was lacking a roadmap for Lufthansa’s NDC interface – even though Amadeus Altea is the inventory system (CRS) of Lufthansa.<p><p>

Interesting is also that almost every aggregator pumps up their number of airlines integrated by mentioning each brand. For instance, the Lufthansa Group consists of the brands Lufthansa, Swiss, Austrian and Brussels airlines – it is still one adapter and you will get all 4 airlines. It looks much better on paper if you integrated four airlines. [Remark: Lufthansa also owns Eurowings, but Eurowings indeed is a separate not so easy to integrate Newskies adapter.]<p><p>

Since 2021 PASS provides Travel Agent Desktop (TAD) – an independent and modern multi-source tool (NDC, GDS and non-GDS content) – for travel agencies.					</div>
				
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									<h2>Technical Challenges Should be Mentioned</h2><p>Regardless, the claim to have all those airlines in one’s aggregator’s pocket is made quickly. But make no mistake, in order to have a comparable all-embracing offering as today’s GDSs, a new entrant “aggregator” needs to integrate up to 500 airlines, as I <a title="The reality behind NDC: Why NDC won’t break down the GDS oligopoly – yet" href="https://www.travel-industry-blog.com/travel-industry/ndc/">highlighted</a>. If this was at all possible, it would basically mean to rebuild a GDS just using newer, more flexible but less proven and robust technology with questionable performance. As this is obviously not realistic, it will take time for NDC to get majority adaption and any NDC installation will need to be supplemented by a GDS aggregation.</p><ul><li>New integrations to up to 500 airlines,</li><li>mid- &amp; back-office challenges to manage a booking,</li><li>Super-PNR database to manage bookings in various sources,</li><li>unified agent desktop to modify or change bookings in various sources by a professional, and</li><li><a title="Travel Risk Management: Safety First" href="https://www.travel-industry-blog.com/corporate-travel/travel-risk-management/">travel risk management</a> (TRM) for bookings in various sources &#8211; especially <a href="https://www.travel-industry-blog.com/corporate-travel/travel-risk-management-2021/">TRM post-COVID</a>.</li></ul><h2>Commercial Challenges Are Often Overlooked</h2><p>NDC also comes with a number of commercial challenges, such as agreements between airline and NDC consumer (corporate, TMC, TRM, etc.) are necessary to get full visibility of all fares and features. Otherwise, the content is limited to zero or a “public NDC model”. In such a public model, an airline might make available limited content for those who do not have an NDC partner program agreement between the entity and the airline. The usual way is what some call “agency-paid” model, whereby an agency would first reach a bilateral agreement between the airline or airline group and such entity as part of a partner program, enabling access to all agreed NDC offers as part of such program. It is almost similar like public fares vs. private or negotiated fares in a GDS – where certain entities get access to certain negotiated fare of such entity.</p><h2>The Biggest Change of NDC Is Shifting the Booking Responsibility From the GDS to the Airline</h2><p>Apart from the communication protocol changing from EDIFACT to XML, the biggest change in the light of NDC is the change from a GDS created offer to an airline created offer. This is one of the prime factors for airlines to get out of their – as they call it – “commodity trap”, of reduced product presentation (no rich content – just a seat on a plane), no ancillary placement and no upsell options in their indirect distribution channel compared to the attractive product presentation on their own airline.com website along with filter criteria and upselling opportunities. Along with these restrictions comes: a static offer creation in traditional (GDS/ATPCO based) distribution compared to a dynamic offer management all the way to continuous pricing.</p><p>With NDC the offer and order model is introduced. The airline is in charge and provides the offer at the time of shopping. In addition to <a title="Ancillary Revenues – Blessing or Curse?" href="https://www.travel-industry-blog.com/gds/ancillary-revenues-blessing-or-curse/">ancillaries</a>, <a title="Travel Technology for Dummies: What is the Difference Between Fares, Rates and Tariffs?" href="https://www.travel-industry-blog.com/travel-technology/fares-rates-and-tariffs/">bundles</a>, upselling, etc. this allows the airline to dynamically price at the time of shopping/booking as the airline is no longer limited to a tier model.</p><p>A more complete list of differences between the traditional ATPCO based workflow and the newer NDC based workflow can be found in the table further down.</p><p>NDC is</p><ul><li>XML based data transmission</li><li>a revenue opportunity through XML based standard allowing product differentiation (see all drivers below)</li></ul><p>NDC is not</p><ul><li>a commercial model (although commercial questions arise)</li><li>a retailing solution</li></ul><h2>NDC Introduces Offer &amp; Order Management</h2><p>One of the Key Elements Proposed for an Airline NDC Platform is Offer and Order Management.</p><p>An offer management is part of the travel agency’s “NDC Shopping” request and triggers an offer creation by the airline dependent on information provided in the request. Also called &#8220;offer store&#8221; (as illustrated in the graphic further down), it enables airlines to distribute their full product offerings and to merchandise additional services using rich content (pictures, videos, sound VR experiences) in either an anonymous or personalized fashion. This may include dynamic pricing all the way to contineous pricing.</p><p>Order management is the ability to create, store and manage its orders. The order gives an entire view of the various products and services ordered. In a first step, a single identifier (Order ID) references to the <a href="https://www.travel-industry-blog.com/travel-technology/pnr/">PNR</a>, <a href="https://www.travel-industry-blog.com/travel-technology/ticketing/">e-ticket (ETKT)</a> and <a href="https://www.travel-industry-blog.com/gds/the-beat-live-ndc-tmcs-buyers-deja-vu/">EMDs</a> involved in an order. The idea is that the order management becomes as sophisticated as in the retail world where the order is managed from purchase, payment to delivery. At some point in time, it is expected that order management is extended to cover the entire lifecycle, beyond fulfillment, to delivery and accounting. This is one aspect of the replacement of the PNR by ONE Order.</p><h2>NDC as the Standard for Airline Distribution in the 21st Century Will Become Reality as a Hybrid NDC and ATPCO Model:</h2><p>In the following, you will find a comparison of the traditional ATPCO based distribution environment to the new NDC based distribution environment. I’m fairly certain that both workflows will remain around for at least until I retire.</p><p>On the top, the traditional distribution workflow with a communication protocol which is sometimes still based on the over 40 yr. old EDIFACT protocol and a workflow which is based on ATPCO (filing of fares through ATPCO limited to 26 price points of the alphabet instead of airline offers allowing continuous pricing based on supply and demand at the time of shopping/booking).</p><p>On the bottom the new NDC workflow where shopping occurs in the airline offer store (not the GDS) based on supply and demand at that time and the booking occurs directly in the airline order management system. Both models will coexist for a while and intermediaries will have to manage to support both workflows.</p>								</div>
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											<figcaption class="widget-image-caption wp-caption-text">NDC as the standard for airline distribution in the 21st century will become reality as a hybrid NDC and ATPCO model</figcaption>
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									<h2>A Typical NDC Booking Workflow</h2><p>The NDC booking and ticketing workflow consists of three main areas:</p>								</div>
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									<p><strong>Shop</strong> (search &amp; price of flights, seats, baggage and services) as part of the Offer Management System (OMS):</p><ul><li>Air Shopping: Request Offers for flights on a specific route/date combination (Flight Search using search parameters);</li><li>Offer Price: Reprice Offer and request upsell offers to account for e.g. updated exchange rates (OfferPriceRQ is always requested using References such as OfferID, OfferItemID);</li><li>Service List: Request available Ancillary Offers; The ServiceList returns chargeable ancillaries. Additional SSR requests can be entered via Augmentation Point;</li><li>Seat Availability: Request Seatmap with prices (if applicable);</li></ul><p><strong>Book</strong> (create, retrieve &amp; modify orders) as part of the OMS:</p><ul><li><span style="font-size: 16px; color: var( --e-global-color-text ); letter-spacing: var( --e-global-typography-text-letter-spacing ); text-transform: var( --e-global-typography-text-text-transform );">Order Create: Create the booking (if FOP – Form of Payment – is included, documents may be issued automatically). FOP is the trigger for ticketing in Order Create or Order Change;</span></li><li>Order Reshop: Reprice existing Order, repricing taxes/fees;</li></ul><p><strong>Pay</strong> (travel documents issuance, retrieval and payment):</p><ul><li><span style="font-size: 16px; color: var( --e-global-color-text ); letter-spacing: var( --e-global-typography-text-letter-spacing ); text-transform: var( --e-global-typography-text-text-transform );">Order Change: Send payment detail (FOP) and trigger payment/ticketing along with EMDs;</span></li></ul><p>Other items such as airline profile &amp; misc. stuff can follow after these steps.</p><h2>Accomplishments Expected with NDC</h2><p>With the help of NDC, airlines are primarily trying to differentiate one from another, however, there are a few additional achievements.</p><p><b>Personalization:</b> such as enhancing loyalty with personalized pricing offers (e.g. frequent flyer status may enhance an offer by tier or service experience), but also by enhancing its CRM to be able to propose tailor-made offers which could lead to improved look-to-book ratios and strengthen customer loyalty for future sale. From a customer perspective: Relevant content (“Understand me!”), smart content (“Recognize me!”), complete content (“Service me!”) and easy (“Facilitate me!”).</p><p><b>Differentiation:</b> ability to show competitive features that may be unique to the offer and therefore drive purchase decisions.</p><p><b>Merchandising:</b> displaying additional products (ancillaries) à la carte or bundled (for instance: Wi-Fi or lounge access may drive purchase decisions and/or generate additional revenue for the airline).</p><p><b>Rich content to inspire:</b> instead of a seat on an airplane, airlines want to sell an experience fitting their brand. In the traditional channels, traditional airlines were unable to differentiate their products, which eventually caught them in a commodity trap and a race for the cheapest fare. Especially with low-cost carriers, it is hard for traditional airlines to compete. In the old days, the business and first-class clients presented airlines with lucrative profits, but prior to Covid-19, the back of the aircraft paid the bills. In today’s world of high resolution image or video information at everyone’s fingertips, lie-flat seats, an appealing meal, a top-notch modern cabin, or just a cleaner, truly sanitized and/or social distancing accommodating interior can only be sold via rich content and attractive product presentation. Airlines sell via impressions on their websites, so they need to be able to reach the traveler the same way through their indirect sales channels. In a post-Covid-19 world, this might be even further important as traveler want to see how they can sit in a distance to the neighbor and what measures have been taken to avoid contamination.</p><p><b>Dynamic continuous pricing</b> conductive to modern offer management: flexible prices for products or services based on competition, supply and demand which do not require fare filing. With that said, airlines might have to file fewer fares as if they rely on classic dynamic pricing, hence the current fare filing processes can be simplified and therefore the airlines use this argument to gain NCD traction saying it leads to lower costs.</p><p><b>Control the offer/sale:</b> as the airline produces the offer and is responsible for booking and ticketing, it manages more closely how its product is sold with less risk of interference. Hence, numerous revenue integrity checks may become redundant. In an NDC world, the airlines also carry the true PNR (or order for that matter), and not just a copy of the GDS PNR like in the traditional ATPCO based distribution channel. This fact seems a little scary for the classical GDSs as they lose control (and actually need to find out, how to get the real truth back into their system and synchronized the airline order to their system) – a fairly new thinking process for the GDSs. Not so much for the aggregators (incl. ourselves), as aggregator always had to worry about where the true PNR (or order in the new world) is stored and synchronize prior to making adjustments to the order. For classical GDS aggregators not much changes, as all they have to worry about is if they create a PNR in a 3rd party system called GDS or an order in a 3rd party NDC system of an airline.</p><p><b>Flexibility of the sale:</b> in the past, airlines were restricted in their flexibility to sell. The selling capabilities are simplified with NDC, new products can be introduced much faster (Time to Market), offers can be bundled to the liking of the airline, and upselling (e.g. <a href="https://www.travel-industry-blog.com/travel-technology/fares-rates-and-tariffs/">fare families</a>) by, for example, displaying multiple price points, with increased value, may drive additional business and better sales of higher class features to the airline. All this comes at a downfall, as it obviously makes it much harder for the consumer to compare apples to apples. I guess it comes down to the Travel IT provider to come up with smart solutions to compare – such as the <a title="Next Generation Storefront&#x2122; for Airlines and Travel Sales Channels: Building a Consistent Shopping Display" href="https://www.altexsoft.com/blog/next-generation-storefront/" target="_blank" rel="noopener">Next Generation Storefront (NGS)</a> by ATPCo’s Routehappy in order to bring consistency to how product offerings are displayed across the airline distribution ecosystem. The disadvantage is only that every such technology comes at a price, and the content is only as good as it is maintained – which is not always dead-on. I’m still trying to picture how advertising financed user generated content (UGC) can wrap this up. In a post COVID-19 world, such content also needs to include COVID-19 testing, border control and vaccination requirements at the time of booking.</p><p><b><a title="Travel Technology for Dummies: Booking, Waitlist, Ticket, Codeshare &amp; Interlining" href="https://www.travel-industry-blog.com/travel-technology/ticketing/">Interlining</a>:</b> NDC promises simplified interlining along with a transformation into a revenue opportunity. When an offer needs to be completed by a partner, this can be done dynamically. The partner can make its own offer for their part and seamlessly integrate into the Offer Responsible Airline (ORA). Airlines may not need to file interline agreements as before. Interline settlement disputes could disappear as settlement values are communicated and agreed upfront at time of shopping. However, I consider this also debatable, as then each airline could have to integrate with each other and that might also cost and create conflict. Just imagine, a traveler being able to have two free pieces of luggage with one airline but only one piece on the other airline. Until this all is working seamless with all aggregators, I can see passengers being stranded, where an airline requires that passenger to check or gate-check his luggage at a stopover. In the end, it is up to the airline to decide and one can say: at least now, an airline who wants to integrate with one another can do so.</p><p><b>Reach:</b> increasing reach such as tapping new sales channels geographically and digitally; Reach may be a controversial benefit as it is obvious that GDSs have a pretty high reach. Why else would the largest US domestic airline (Southwest) who has historical not been in the GDS enter the GDS world? IATA claims that direct connect and new aggregators may increase the reach. On the other side, with the multiple adapters to be built, “reach” – especially in the beginning of NDC is debatable and seems rather like a theoretical marketing claim by IATA.</p><p><b>Complexity Reduction:</b> according to IATA, standardization means a common API, which could mean less complexity. This argument I’d like to challenge: IATA proposes two new versions per year, some airlines might adopt new versions, other not. In addition, the standard is not unified and each airline may interpret certain structures differently. Example: A stopover entertainment program by Lufthansa in Munich (e.g. visit a brewery) might be differently implemented by American Airlines to visit the Cowboys in Dallas. Now we have a multidimensional IT challenge: aggregators have to integrate x airlines using y versions of NDC with z interpretations of certain fields.</p><p><b>Payment innovations:</b> with airlines in control of the payment, airlines might further cut costs by introducing payment instruments such as PayPal, Bank transfer, Pay by installment, Air Miles, or Cash to avoid the up to 3% credit card fee.</p>								</div>
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						<b>Airlines distribution capabilities</b><p>
</p><ul>
  <li>The capability of airline websites is constantly improving. Airline retailing is following the online selling standards of the retail industries. For instance, one can purchase airline ancillaries such as seats, baggage, meals or lounge access as well as 3rd party ancillaries such as hotels, rental cars, local entertainment, etc.</li>
  <li>The Passenger Service Systems (PSS) consisting of inventory, reservation, departure control, etc. that were built in the 1970s by airlines in house have been replaced with systems provided by 3rd party IT providers with many more capabilities.</li>
  <li>The Consumer better understood with CRM tools along with analytical capabilities for personalization and tailor-made solutions.</li>
<li>The modernization of 40-year-old data exchange standards for ticket distribution developer before the internet was invented. This will make change more cost-effective.</li>
<li>Besides the GDSs, the facilitation of new entrants was expected to increase competition and drive down cost. It remains to be seen how Covid-19 affected those new entrants and as at length discussed in my other NDC articles bringing together numerous airlines and multiple TMCs/corporates on a technical as well as commercial level is quite a challenge.</li>
<li>NDC is expected to provide airlines with cost optimization opportunities in the areas of ticketing, payment, revenue accounting, back-office and fare auditing.</li>
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<p>
<b>Travel agency landscape</b></p><p>
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  <li>OTAs and metasearch have grown, allowing a much larger number of offers to be processed.</li>
  <li>TMCs have evolved moving to a service-oriented model (duty of care, etc.), partnering with OBTs and mobile solution providers.</li>
  <li>Agents are confronted with a highly educated traveler and an increasing complexity of sourcing content, and thus have a need for intermediaries that fully aggregate content.</li>
</ul>

<b>Corporate Buyers objective</b><p>
</p><ul>
  <li>Satisfy the traveler and the corporation in a convenient and simple way.</li>
  <li>Be able to control.</li>
  <li>Security and duty of care.</li>
  <li>Be able to book fares enriching the official corporate channel to satisfy travelers while maintaining their corporate travel policy.</li>
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					<th class="pp-table-cell pp-table-cell-a852037"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Indirect Distribution</b></span></span></th><th class="pp-table-cell pp-table-cell-b8d2e27"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Traditional ATPCo based environment</b></span></span></th><th class="pp-table-cell pp-table-cell-32e9ce4"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>NDC environment</b></span></span></th>				</tr>
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			<tr ><td class="pp-table-cell pp-table-cell-84cb674"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Shop</b></span></span></td><td class="pp-table-cell pp-table-cell-1403870"><span class="pp-table-cell-content"><span class="pp-table-cell-text">GDS creates offer usually getting fares and rules from a 3rd party such as ATPCo, schedules from OAG or Innovata, availability by hooking into the PSS (Altea, Sabresonic, etc.) via EDIFACT.</span></span></td><td class="pp-table-cell pp-table-cell-5cb2c19"><span class="pp-table-cell-content"><span class="pp-table-cell-text">The intermediary (“Aggregator”) – which could be a GDS but does not have to be – transmits the shopping request to one or more airlines via XML using the IATA proposed schema supported by the airline (e.g. 17/2 or 18/1, etc.). An aggregator needs to be integrated with at least one current version of the respective airline, and it usually includes a certification with each airline the agency wants to shop.<p><p>
The Offer Store of the airline creates the offer based on prices, products &amp; availability, which is presented to the traveler/travel agent. The aggregator aggregates the offer(s) of various airlines and presents them to the traveler/travel agent. Once an offer is selected, additional items such as seat, baggage and ancillaries can be added and repriced.</span></span></td></tr><tr ><td class="pp-table-cell pp-table-cell-656652c"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Book</b></span></span></td><td class="pp-table-cell pp-table-cell-d002c7d"><span class="pp-table-cell-content"><span class="pp-table-cell-text">GDS creates the PNR which belongs to the Travel Agency and is stored in the GDS. The airline only owning a (partial) copy of the PNR.</span></span></td><td class="pp-table-cell pp-table-cell-2a58fec"><span class="pp-table-cell-content"><span class="pp-table-cell-text">When an offer is selected by the traveler/travel agent, the aggregator sends a create order request to the Offer Management System of the airline, who owns the order.</span></span></td></tr><tr ><td class="pp-table-cell pp-table-cell-99f054c"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Fulfillment: payment &amp; ticketing</b></span></span></td><td class="pp-table-cell pp-table-cell-30106a6"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Payment (two processes):<p><p>
1. money is collected by the travel agent using its merchant of record and then settled with the airline at a later stage using a mechanism called e.g. Billing and Settlement Plan (BSP). In this case, the travel agent bears the cost of settlement and remittance (approx. 10 Cents). The airline trusts the agency, which has gone through an accreditation process.<p>
2. In the pass-through process, the travel agent uses a GDS and enters the customer card details. The GDS will then proceed with the payment authorization. No money is collected by the travel agent. The card payment will be credited to the airline bank. The airline bears all payment costs for the reporting of the payment transaction (BSP) as well as the card cost. The airline uses its own merchant of record.
Payment costs are estimated at $7 B to the industry (a $350 ticket may be $0.10 for BSP/ARC and $10 for the card).<p>

Ticketing:<p>
Once payment has been accepted, the agency asks the GDS to initiate a ticket issuance with the airline. The GDS verifies airline is authorized to ticket with this agency, applies a neutral ticket number and sends it to the ticketing airline. The airline validates sufficient data and confirms to agency via GDS.</span></span></td><td class="pp-table-cell pp-table-cell-498f0e3"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Payment:<p><p>
The order is created e.g. with PCI compliant credit card data. The intermediary/aggregator does not collect the payment authorization but simply passes on PCI compliant payment details to the airline using the “order request” that will trigger the creation of the PNR and e-ticket, or the Order. The airline processes the payment as according to IATA, besides being the actual contractual partner to the transaction, the airline is better positioned to manage payment as it can accept / refuse a specific card and process fraud detection similarly to its direct sales.<p>
Airlines may want to apply a bigger payment portfolio of payment instruments such as<p>
- PayPal<p>
- Bank transfer<p>
- Pay by installment<p>
- Air Miles<p>
- Cash<p>
- New or local forms of payment<p>
Payment instruments are fueled by the FinTech community, and thus the traditional environment seems lagging behind in the view of airlines.
Transfer will be instant in Europe, within the framework of Regulations (PSD2), removing the current airlines specific complexity to have the PNR on hold.<p>

Ticketing:<p>
Agency and airline work directly together. When airline is satisfied with the proposed payment, it issues the travel documents and sends the references to the travel agency.</span></span></td></tr>		</tbody>
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						It is expected that normalization will take place and at some point we may see the ability to fulfil an ATPCO content offer (searched the traditional way, such as for example Sabre’s Bargain Finder Max BFM or Amadeus Masterpricer) through the NDC fulfillment path: create order, fulfill order, display order. GDSs however, are not expected to integrate the NDC fulfillment path into the traditional ATPCO based workflow as it contains a lot of “older style processing” such as the constraints about tickets (traditional ticketing that is resolved through an ARC/BSP type process). PASS will try to be compatible with the traditional workflow as much and as long as possible in order to provide backwards compatibility to their clients. This also applies to the technology: GDSs are likely to make NDC content available only through REST interfaces. However, in the industry SOAP, is still fairly predominant. PASS will continue to provide SOAP APIs also for NDC content.					</div>
				
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					<th class="pp-table-cell pp-table-cell-a852037"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Indirect Distribution</b></span></span></th><th class="pp-table-cell pp-table-cell-b8d2e27"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Traditional ATPCo based environment</b></span></span></th><th class="pp-table-cell pp-table-cell-32e9ce4"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>NDC environment</b></span></span></th>				</tr>
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			<tr ><td class="pp-table-cell pp-table-cell-84cb674"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Reporting</b></span></span></td><td class="pp-table-cell pp-table-cell-1403870"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Standard reporting through IATA or ARC.</span></span></td><td class="pp-table-cell pp-table-cell-5cb2c19"><span class="pp-table-cell-content"><span class="pp-table-cell-text">	IATA Billing &amp; Settlement Plan (BSP) came up with a New Generation of IATA Settlement Systems (NewGenISS) to offer risk management between airlines and agents and avoid bilateral individual arrangements. ARC also provides help with regard to NDC implementation.</span></span></td></tr><tr ><td class="pp-table-cell pp-table-cell-656652c"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Interlining</b></span></span></td><td class="pp-table-cell pp-table-cell-d002c7d"><span class="pp-table-cell-content"><span class="pp-table-cell-text">GDS constructs interline itineraries and applies filed fares. Each participating carrier has little control of the revenue to expect (using industry proration rules or bilateral agreements) until the flight departs.</span></span></td><td class="pp-table-cell pp-table-cell-2a58fec"><span class="pp-table-cell-content"><span class="pp-table-cell-text">While creating an offer, an airline may include services of other airlines. The so-called Offer Responsible Airline (ORA) is responsible for obtaining content from its own interline partners called Participating Offer Airline (POA).</span></span></td></tr><tr ><td class="pp-table-cell pp-table-cell-99f054c"><span class="pp-table-cell-content"><span class="pp-table-cell-text"><b>Servicing</b></span></span></td><td class="pp-table-cell pp-table-cell-30106a6"><span class="pp-table-cell-content"><span class="pp-table-cell-text">Changes are carried out by the GDS.</span></span></td><td class="pp-table-cell pp-table-cell-498f0e3"><span class="pp-table-cell-content"><span class="pp-table-cell-text">The core NDC principle is that the airline is in control of its distribution. Bookings (Orders) are made in the airline IT environment. Agents can access an order directly in the airline environment instead of the GDS.</span></span></td></tr>		</tbody>
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									<h2>Examples of Typical NDC Booking and Exchange Workflows</h2>								</div>
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											<a href="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_immediate-payment.png" data-elementor-open-lightbox="yes" data-elementor-lightbox-title="end-to-end-booking_immediate-payment" data-elementor-lightbox-description="End to end booking: Immediate payment" data-e-action-hash="#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6NTAzMiwidXJsIjoiaHR0cHM6XC9cL3d3dy50cmF2ZWwtaW5kdXN0cnktYmxvZy5jb21cL3dwLWNvbnRlbnRcL3VwbG9hZHNcLzIwMjJcLzA2XC9lbmQtdG8tZW5kLWJvb2tpbmdfaW1tZWRpYXRlLXBheW1lbnQucG5nIn0%3D">
							<img loading="lazy" decoding="async" width="1024" height="808" src="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_immediate-payment-1024x808.png" class="attachment-large size-large wp-image-5032" alt="" srcset="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_immediate-payment-1024x808.png 1024w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_immediate-payment-300x237.png 300w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_immediate-payment-768x606.png 768w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_immediate-payment-1536x1212.png 1536w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_immediate-payment-2048x1616.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" />								</a>
											<figcaption class="widget-image-caption wp-caption-text">NDC Booking Workflow with immediate payment: Traveler application shops through the intermediary in the airline offer store for fares and ancillaries and books the offer in the order management system of the airline, which also executes the payment to become an order. Similar to a ticketed PNR.</figcaption>
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											<a href="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_defferred-payment.png" data-elementor-open-lightbox="yes" data-elementor-lightbox-title="end-to-end-booking_defferred-payment" data-elementor-lightbox-description="End to end booking: Deffered payment" data-e-action-hash="#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6NTAzNCwidXJsIjoiaHR0cHM6XC9cL3d3dy50cmF2ZWwtaW5kdXN0cnktYmxvZy5jb21cL3dwLWNvbnRlbnRcL3VwbG9hZHNcLzIwMjJcLzA2XC9lbmQtdG8tZW5kLWJvb2tpbmdfZGVmZmVycmVkLXBheW1lbnQucG5nIn0%3D">
							<img loading="lazy" decoding="async" width="1024" height="808" src="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_defferred-payment-1024x808.png" class="attachment-large size-large wp-image-5034" alt="" srcset="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_defferred-payment-1024x808.png 1024w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_defferred-payment-300x237.png 300w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_defferred-payment-768x606.png 768w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_defferred-payment-1536x1212.png 1536w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_defferred-payment-2048x1616.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" />								</a>
											<figcaption class="widget-image-caption wp-caption-text">NDC Booking Workflow with deferred payment: Traveler application shops through the intermediary in the airline offer store for fares and ancillaries and books the offer in the order management system. Payment is deferred. This can be compared to the order is booked but not yet paid – similar to a booked PNR which has not yet been ticketed. The order has to be retrieved and paid for in another step.</figcaption>
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											<a href="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_exchange-workflow.png" data-elementor-open-lightbox="yes" data-elementor-lightbox-title="end-to-end-booking_exchange-workflow" data-elementor-lightbox-description="End to end booking: Exchange workflow" data-e-action-hash="#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6NTAzMywidXJsIjoiaHR0cHM6XC9cL3d3dy50cmF2ZWwtaW5kdXN0cnktYmxvZy5jb21cL3dwLWNvbnRlbnRcL3VwbG9hZHNcLzIwMjJcLzA2XC9lbmQtdG8tZW5kLWJvb2tpbmdfZXhjaGFuZ2Utd29ya2Zsb3cucG5nIn0%3D">
							<img loading="lazy" decoding="async" width="1024" height="808" src="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_exchange-workflow-1024x808.png" class="attachment-large size-large wp-image-5033" alt="" srcset="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_exchange-workflow-1024x808.png 1024w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_exchange-workflow-300x237.png 300w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_exchange-workflow-768x606.png 768w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_exchange-workflow-1536x1212.png 1536w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/end-to-end-booking_exchange-workflow-2048x1616.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" />								</a>
											<figcaption class="widget-image-caption wp-caption-text">NDC Exchange Workflow: The order is retrieved from the order management system of the airline. The traveler application shops for alternatives in the offer store and selects an option, which is then changed in the order management system (potentially with additional payment).</figcaption>
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									<p><em>Disclaimer: Flow charts are for illustration purpose only. Always check with your NDC airline for up-to-date information. No warranties are made that flow charts are correct.</em></p>								</div>
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									<h2>For Ancillaries NDC Allows Three Options:</h2><ol><li>During Booking: Air Shopping à Offer Price (optional) à Service List à Offer Price à Seat Availability à Offer Price à Order Create;</li><li>Post Booking: Order Retrieve à Service List à Seat Availability à Offer Price à Order Change</li><li>Post Ticketing: Order Retrieve à Service List à Seat Availability à Offer Price à Order Change (same)</li></ol><p>It seems like some airlines allow services and seats in some cases only after ticketing – which is confusing, as at some point ticketing is supposed to be eliminated. Also, when using deferred payment, certain airlines restrict ancillary services to be added at the Order Create step. In these cases, ancillary services can only be added once payment is made. During booking, such services only seem to be allowed if they are accompanied by a payment guarantee. Again, depending on the implementation this may be combined with an EMD and if so, EMDs in NDC are non-refundable, which might be areas for disputes.</p><p>For aggregators who want to mimic the traditional ATPCO workflow in order to be backwards compatible with their clients who will use a hybrid model, it may be necessary to only allow ancillaries after ticketing.</p>								</div>
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						Airline Retailing Maturity Index					</h3>
				
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						As IATA announced at the end of October 2021, it is abolishing its current NDC certification process and replacing it with a new, multi-stage program: the Airline Retailing Maturity Index (ARM Index). This is based on three pillars:
<ul>
  <li><b>Capabilities verification:</b> Capabilities enabled by the IATA standards</li>
  <li><b>Partnerships deployment:</b> Scalability across the retailing value chain</li>
  <li><b>Value capture compass:</b> Maturity of capturing potential value</li>
</ul>

The first pillar, <b>“Capabilities verification”</b> still contains the NDC capabilities of the individual companies as verified by IATA, but without using the previous certification levels.<p><p>

The second pillar, <b>“Partnerships Deployment”</b> is designed to give airlines and vendors insight into how well they are doing in scaling their NDC-supported capabilities. To do this, airlines and their vendor partners provide IATA with information on the extent of their partnerships.<p><p>

The third pillar, <b>“Value Capture Compass”</b> is for airlines only. It is designed to help them understand how they compare to their peers in implementing modern retail strategies – such as bundling products and content, pricing and yield management, customer loyalty and payments.<p>

The transition to the ARM Index is expected to be completed by the end of October 2022, when the old NDC register will be shut down.					</div>
				
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						PASS Travel Agent Desktop					</h2>
				
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						One solution for the entire process – from which agents, travelers and content providers benefit equally. PASS Travel Agent Desktop is a booking system that combines all central distribution channels as well as workflows in one intuitive web interface: from GDS and NDC direct content to other direct connections as well as low-cost carriers and aggregators for flights, rental cars, and hotels. This means that individual travel offers no longer have to be processed in different systems. 					</div>
				
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									<p><br /><em>Cover: Shutterstock</em></p>								</div>
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		<title>Travel Risk Management – the Increased Importance</title>
		<link>https://www.travel-industry-blog.com/corporate-travel/travel-risk-management-2021/</link>
					<comments>https://www.travel-industry-blog.com/corporate-travel/travel-risk-management-2021/#comments</comments>
		
		<dc:creator><![CDATA[Anne-Kathrin Geuppert]]></dc:creator>
		<pubDate>Tue, 11 May 2021 07:09:18 +0000</pubDate>
				<category><![CDATA[Corporate Travel]]></category>
		<category><![CDATA[safety]]></category>
		<category><![CDATA[travel risk management]]></category>
		<guid isPermaLink="false">https://www.travel-industry-blog.com/travel-risk-management-2021/</guid>

					<description><![CDATA[It's no secret that the COVID-19 pandemic is redefining business travel. One of the changes is the increased importance on Travel Risk Management. ]]></description>
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									<p>TMCs and travel risk management companies can be a great support for the organizations. PASS provides the booking data for preventive and active risk identification.</p><p>When restrictions are lifted and companies start to travel more, duty of care responsibilities and Travel Risk Management have never been more important, ensuring that travelers are supported before and on their trips from a safety but also medical perspective.</p><p>Back in 2016, I wrote an <a title="How IT can Improve Security on Business Trips" href="https://www.travel-industry-blog.com/corporate-travel/can-improve-security-business-trips/">article on this blog about Travel Risk Management</a> and how IT can improve the security of business travel. My concluding statement at the time was: “The measures concerning personal safety are lower (then IT security). Thus, here is still a need to catch up.” In my opinion, the latest by now is exactly the time to catch up at the latest. Accordingly, today’s article will also focus on the question of how travel risk management companies can support on this topic.</p><h2>Why Is Travel Risk Management Needed?</h2><p>Responsible companies put the well-being of their employees first. This applies not only to the workplace in the office or home office, but also on business trips. A focus on employee welfare creates the basis for safe and successful travel. Additionally, the risk of legal action due to negligence is minimized. After all, if a company sends employees on business trips, it is responsible for their safety and health as part of its duty of care.</p><p>Experts from the travel industry predict in a survey about the future of business travel published <a title="Industry experts weigh in on the future of business travel" href="https://tnmt.com/the-future-of-business-travel/" target="_blank" rel="noopener">by TNMT</a> recently that the importance of duty of care for business travelers will continue to grow after the pandemic, making it an essential factor that must be met to enable future business travel for all employees. And also Lufthansa City Center recently published a <a title="8 Prognosen, wie sich Geschäftsreisen verändern" href="http://lufthansa-city-center.com/de/geschaeftsreisen/experten/case-studies/#Prognosen" target="_blank" rel="noopener">case study</a> [german] about the future of business travel where they predict that companies will invest more in Travel Risk Management. And since all good things come in threes I would like to mention that the Association of German Travel Management, called VDR, in its <a title="Ergebnisse der VDR-Barometerumfrage zum Coronavirus/Covid-19 (Unternehmen)" href="https://www.vdr-service.de/corona/ergebnisse-der-vdr-barometerumfrage-zum-coronaviruscovid-19-corporates-2021" target="_blank" rel="noopener">barometer survey</a> [german] within the German economy comes to the result that nearly 80 percent expect that the focus on Travel Risk Management is likely to grow.</p><p>The duty of care begins before the trip, continues during the trip, and continues even after the return. When people go on business trips for a company, appropriate measures and travel policies must be in place and known for their safety.</p><p>The increased importance of traveler health is reflected in the work of the International Standards Organization (ISO), which is currently working on a new <a title="Travel Risk Management: Why it&#039;s important" href="https://www.thebci.org/news/travel-risk-management-why-it-s-important.html" target="_blank" rel="noopener">ISO 31030</a> (Risk Travel Management – Guidance for Organization). With the ISO 31030 standard, organizations have guidance to increase internal assurance of the duty of care around business travel and to ensure the safety of their travelers.</p><h2>How Can Travel Risk Management Companies Support?</h2><p>In general, travel risk management providers support in consulting but also in particular in active implementation and support with the aim to minimize business travel risks and to be able to act quickly and professionally in case of emergency.</p><p>The services of the individual travel risk management providers vary, but generally include the following aspects:</p><ul><li>Advise and create internal travel policies and holistic recommendations for safety, health, business activities and liability issues.</li><li>Preventive and strategic preparation of stays abroad</li><li>Integration of all travel data and GPS tracking</li><li>Monitoring and analysis of travel countries on risks and security incidents</li><li>Preventive and real-time travel alerts incl. corresponding communication management as well as emergency apps</li><li>24/7 support especially for medical and security assistance</li><li>Worldwide crisis management and global emergency response, such as emergency evacuations and repatriations</li><li>Currently also advice and recommendations on Covid-19</li></ul><p>All these measures should be supported by modern tools and technologies.</p><p>In other words, travel risk management companies can support the coverage of the three main pillars of travel risk management: Prevent, Monitor and Respond.</p>								</div>
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											<a href="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/big-data-for-travel-saeulen-travel-risk-management_desktop_en_blog.jpg" data-elementor-open-lightbox="yes" data-elementor-lightbox-title="big-data-for-travel-saeulen-travel-risk-management_desktop_en_blog" data-e-action-hash="#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6NTAyNywidXJsIjoiaHR0cHM6XC9cL3d3dy50cmF2ZWwtaW5kdXN0cnktYmxvZy5jb21cL3dwLWNvbnRlbnRcL3VwbG9hZHNcLzIwMjJcLzA2XC9iaWctZGF0YS1mb3ItdHJhdmVsLXNhZXVsZW4tdHJhdmVsLXJpc2stbWFuYWdlbWVudF9kZXNrdG9wX2VuX2Jsb2cuanBnIn0%3D">
							<img loading="lazy" decoding="async" width="1000" height="351" src="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/big-data-for-travel-saeulen-travel-risk-management_desktop_en_blog.jpg" class="attachment-large size-large wp-image-5027" alt="Travel Risk Management" srcset="https://www.travel-industry-blog.com/wp-content/uploads/2022/06/big-data-for-travel-saeulen-travel-risk-management_desktop_en_blog.jpg 1000w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/big-data-for-travel-saeulen-travel-risk-management_desktop_en_blog-300x105.jpg 300w, https://www.travel-industry-blog.com/wp-content/uploads/2022/06/big-data-for-travel-saeulen-travel-risk-management_desktop_en_blog-768x270.jpg 768w" sizes="(max-width: 1000px) 100vw, 1000px" />								</a>
											<figcaption class="widget-image-caption wp-caption-text"> Prevent – Monitor – Respond: Travel Risk Management</figcaption>
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									<h2>List of Travel Risk Management Companies</h2><p>Here you find a list of travel risk management companies. The list does not claim to be complete. If you see that companies are missing here, please leave a comment or message.</p><ul><li><a href="https://www.alertmedia.com" target="_blank" rel="noopener">AlertMedia</a></li><li><a href="https://anvilgroup.com/" target="_blank" rel="noopener">Anvil Group</a></li><li><a href="https://www.global-monitoring.com/?lang=en" target="_blank" rel="noopener">A3M</a></li><li><a href="https://www.cardinus.com/" target="_blank" rel="noopener">Cardinus Risk Management Ltd</a></li><li><a href="https://www.garda.com/crisis24" target="_blank" rel="noopener">Crisis24</a></li><li><a href="https://www.everbridge.com/" target="_blank" rel="noopener">Everbridge</a> </li><li><a href="https://www.falck.com/" target="_blank" rel="noopener">Falck</a></li><li><a href="https://www.globalguardian.com/" target="_blank" rel="noopener">Global Guardian LLC</a></li><li><a href="https://gopassglobal.com/" target="_blank" rel="noopener">GOPASS Global</a></li><li><a href="https://healix.com/" target="_blank" rel="noopener">Healix</a></li><li><a href="https://www.internationalsos.com/" target="_blank" rel="noopener">International SOS</a></li><li><a href="http://www.oncallinternational.com/)" target="_blank" rel="noopener">On Call International</a></li><li><a href="https://riskline.com/" target="_blank" rel="noopener">Riskline ApS</a></li><li><a href="https://riskcompass.eu/" target="_blank" rel="noopener">RiskCompass</a></li><li><a href="https://www.safeture.com/" target="_blank" rel="noopener">Safeture</a></li><li><a href="https://www.sitata.com/en/" target="_blank" rel="noopener">Sitata</a></li><li><a href="https://www.solaceglobal.com/travel-risk-management/" target="_blank" rel="noopener">Solace Global </a></li><li><a href="https://www.trisavo.com/" target="_blank" rel="noopener">Trisavo</a></li><li><a title="" href="https://www.uhcglobal.com/en/global-programs/Assistance-and-security-services" target="_blank" rel="noopener noreferrer">United Healthcare</a></li><li><a href="https://vismo.com/" target="_blank" rel="noopener">Vismo</a></li><li><a href="https://www.voyagemanager.com/" target="_blank" rel="noopener">Voyage Manager Ltd</a></li><li><a href="https://worldtravelprotection.com/" target="_blank" rel="noopener">World Travel Protection</a></li></ul><p>Besides the specialized travel risk management companies also the travel management companies (I use the term &#8220;TMCs&#8221; for all types of travel agencies serving corporate clients of any kind) have solutions for this and partnerships with providers like mentioned above.</p><h2>To what extent does PASS contribute to this?</h2><p>We support travel risk management providers in <a title="PNR management – Itinerary retrieval" href="https://www.pass-consulting.com/en/industries/travel/pnr-management/?utm_source=blog&amp;utm_medium=post&amp;utm_campaign=travel#c88309" target="_blank" rel="noopener">the procurement of global travel data</a>. We have global access to the travel data in various systems such as Global Distribution Systems (GDS), tools of travel management companies, OBEs such as SAP Concur and other booking/sourcing systems and make them available to the risk management companies in a standardized and processed form so that both preventive and active risk identification is possible on the basis of the travel data.</p>								</div>
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						PASS PNR Retrieval					</h2>
				
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						The travel data capture solution PASS PNR Retrieval allows you to accurately access all Passenger Name Records (PNRs) along with ticketing and EMD information saved in the booking system and provides you with a detailed overview of a company's overall travel activities. Applications are in the areas of travel business intelligence, risk management, <span style=", sans-serif;font-size: 16px;font-style: normal;font-weight: 400">sustainibility reporting, mobile traveller companion,</span> after sales services and more.					</div>
				
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									<p><em><br />Images: Shutterstock, PASS</em></p>								</div>
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		<title>Next Generation Online Booking Tools for Business Travel</title>
		<link>https://www.travel-industry-blog.com/corporate-travel/next-generation-online-booking-tools-for-business-travel/</link>
					<comments>https://www.travel-industry-blog.com/corporate-travel/next-generation-online-booking-tools-for-business-travel/#comments</comments>
		
		<dc:creator><![CDATA[Michael Strauss]]></dc:creator>
		<pubDate>Wed, 03 Apr 2019 09:42:27 +0000</pubDate>
				<category><![CDATA[Corporate Travel]]></category>
		<category><![CDATA[Travel Industry]]></category>
		<category><![CDATA[business travel]]></category>
		<category><![CDATA[obt]]></category>
		<guid isPermaLink="false">https://www.travel-industry-blog.com/next-generation-online-booking-tools-for-business-travel/</guid>

					<description><![CDATA[What are the characteristics of a good, flexible and modern Online Booking Tool (OBT) for travel?]]></description>
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									<p>Many times I am asked: “What are the characteristics of a good, flexible, modern Online Booking Tool (OBT) for travel?” Some of the existing ones carry a lot of baggage, which makes them less flexible. They are and in constant competition with rapidly changing consumer applications. But those ‘legacy’ <a href="https://www.travel-industry-blog.com/travel-industry/online-booking-tools-of-today-and-tomorrow/">OBT</a>s provide stability, even though they may not look nice. Manufacturers try to facelift or re-develop them, but I ask the question: Does a business travel online booking tool really need to be fancy and compete with all the consumer apps out there?</p><p><span style="font-size: 16px; color: var( --e-global-color-text ); letter-spacing: var( --e-global-typography-text-letter-spacing ); text-transform: var( --e-global-typography-text-text-transform );">Obviously, today there is a lot of talking about </span><a style="font-size: 16px; letter-spacing: var( --e-global-typography-text-letter-spacing ); text-transform: var( --e-global-typography-text-text-transform ); background-color: #ffffff;" href="https://www.travel-industry-blog.com/travel-industry/google-artificial-intelligence/">artificial intelligence</a><span style="font-size: 16px; color: var( --e-global-color-text ); letter-spacing: var( --e-global-typography-text-letter-spacing ); text-transform: var( --e-global-typography-text-text-transform );">, virtual reality, </span><a style="font-size: 16px; letter-spacing: var( --e-global-typography-text-letter-spacing ); text-transform: var( --e-global-typography-text-text-transform ); background-color: #ffffff;" href="https://www.travel-industry-blog.com/travel-technology/chatbots/">bots</a><span style="font-size: 16px; color: var( --e-global-color-text ); letter-spacing: var( --e-global-typography-text-letter-spacing ); text-transform: var( --e-global-typography-text-text-transform );"> and </span><a style="font-size: 16px; letter-spacing: var( --e-global-typography-text-letter-spacing ); text-transform: var( --e-global-typography-text-text-transform ); background-color: #ffffff;" href="https://www.travel-industry-blog.com/travel-technology/blockchain/">blockchain</a><span style="font-size: 16px; color: var( --e-global-color-text ); letter-spacing: var( --e-global-typography-text-letter-spacing ); text-transform: var( --e-global-typography-text-text-transform );">, so one may think that traditional OBTs, even mobile apps, are a thing of the past. Constantly I am hearing complaints that business travel tools are way behind consumer tools – but are they really? Or is it just the look and feel – the appearance – which is old fashioned? I will not argue that business travel apps are boring and their entertainment factor is close to zero. But I will focus on what the business traveler needs: Should a corporate booking tool be exciting or should it be simple and straight to the point, with as little interaction from the user as possible?</span></p><h2>Let’s lay out an example of what I expect from the next OBT generation</h2><p>I am concerned least about the look and feel or even the Graphical User Interface (GUI) as long as there is one. Please note that I’d like to eliminate the ‘G’ in GUI and just make it a User Interface (UI) of some kind today and tomorrow. Amazon, Apple, Microsoft and Google will define how the UIs will present themselves in the future – whether it is <a href="https://www.travel-industry-blog.com/travel-technology/chatbots/">chat</a> or voice interaction via Amazon Echo, Google Home or Apple HomePod. Maybe the new Smart-TV starts showing you ancillaries for your next trip. I will leave the man-machine interface to them. What I am talking about in this article is the ‘plumbing’ underneath. All the <a href="https://www.travel-industry-blog.com/travel-industry/ndc-gds-onboard/">complicated network of content, inventory</a>, sources, rules, regulations, intelligence, policies, individual- and company preferences. The reason why those mega IT companies have not (yet) taken over the travel industry. It’s hard work down to the bones and there is no mass reward – even the simple understanding of the <a href="https://www.travel-industry-blog.com/gds/the-difference-between-crs-and-gds-in-the-travel-industry/">difference between a GDS and a CRS</a> (or the <a href="https://www.travel-industry-blog.com/travel-technology/pss/">PSS</a> for that matter) is already a challenge. [Pssst: Hopefully they won’t read my series “<a href="https://www.travel-industry-blog.com/travel-technology/pnr/">Travel Technology for Dummies</a>”.]</p><p>In business travel, it is important that the booking tools validate the desires of<br />(a) the individual business traveler as well as<br />(b) the requirements of the company and<br />(c) influencing factors from the environment.</p><p>What I mean by meet travelers needs (a) is that obviously the system should not offer me an airline which I don’t want to fly – might be that I try to maximize frequent traveler miles on one specific alliance, might also be that I don’t like the airline or their configuration (e.g. seats facing backwards) or its amenities or <a href="https://www.travel-industry-blog.com/travel-industry/ndc/">ancillaries</a>. If I cannot get to my final destination with a direct flight, I don’t need every possible combination of feeder flights to the hub to fill up my results. Just give me one option but once I narrowed my results to one or two airlines, let me change the feeder flight without having to start all over again. I may also decide that a longer overnight flight suits me better than the shorter one, so I can get some sleep.</p><p>The companies’ requirements (b) might be multifold: I strongly believe that business travel should be mandated. I don’t want the road warriors where you don’t know what they do and when – and this is simply from a risk management perspective. The company has invested a lot in their workforce and has an obligation to provide for <a href="https://www.travel-industry-blog.com/corporate-travel/travel-safety-tips-for-corporate-and-leisure-travelers-part-2/">employees&#8217; safety</a>. <a href="https://www.travel-industry-blog.com/corporate-travel/travel-risk-management/">Travel risk management</a> should have an influence, and one of our <a href="https://www.pass-consulting.com/en/company/customers/global-financial-institution/" target="_blank" rel="noopener">clients</a> who decided to use a <a href="https://www.pass-consulting.com/en/news/news/detail/News/the-company-dime-about-our-individual-online-booking-tool-for-travel/" target="_blank" rel="noopener">build-to-order booking tool</a>, for instance, has a clear mandate that only a restricted number of employees of the same unit can be on the same transportation vehicle. But that’s not all, travel patterns may have to be mixed up from time to time just for corporate espionage reasons. The trips should always be for the benefit of the company, so the employee should be well rested when arriving to a meeting – otherwise a video conference would do a better job. This is another individual component: some employees can sleep perfectly in the coach overnight, while they prefer business class on a day flight to use the time to work. Others may need business class to get some rest, while they can easily deal with limited space on a day flight, when they only watch a movie because they cannot work in the air.</p><h2>The cheapest business trip is not necessarily the best &#8211; neither for the traveler, nor for the company</h2><p>Another desire of the company should be that no employee wastes hours on extensively searching for their trip. It’s not a family vacation, so choosing a business trip should be like taking a bus. Many times business trips are booked and then changed and changed again, along with associated rebooking fees, before they become an unused ticket. The company may want to add intelligence from previous trips to understand the cost of changes and better manage such risk of added costs due to changes. Obviously, cost is an aspect the company cares about in general, but it doesn’t mean the cheapest option is the best. The company may have procurement goals to meet (number of flights with a certain airline or stays with a hotel chain), as well as it may have an interest to better handle the total trip cost – sometimes a hotel where you can walk to your destination instead of renting a car might be the better option, but sometimes an Uber could do the job and you don’t have to stay at the expensive hotel in the center. Hence, there are numerous aspects that may go into an offering which the company prefers or mandates. Most importantly, the company should be able to collect all the data, so that it can learn and improve their offering for the future. Also the price for the tool itself is obviously an aspect, but not the only one. I have published a <a href="https://www.pass-consulting.com/en/software-consulting/online-booking-tool/savings-calculator/" target="_blank" rel="noopener">Travel Savings Calculator</a> for companies who want to see what they can save.</p><h2>The 360-view on the business trip</h2><p>Finally, the tools could also include influencing factors from the environment (c). I still remember when I was located in Europe and had a meeting in “New York”, which was actually in New Jersey, 20 minutes from Newark. Back then the travel agent sent me to JFK airport and I had a three-hour cab ride to Manhattan and back at rush hour. How irritating after an eight-hour flight along with jet lag. Other factors may include weather information, likely flight disruptions, safety, traffic information, strikes, etc. They have to be taken into account at the time of booking or thereafter. No company can afford stranded employees or employees who come too late to their obligation.</p><h2>Even Amazon has a long way to go</h2><p>I believe the problem today is that all booking tools provide a one size fits all approach. The assumption is what is good for most travelers and/or most companies must be good for me as a traveler or my company as well. But this is not the case. We are not all the same companies and not all the same travelers. Even Amazon hasn’t figured that out: if I just bought a pair of children’s’ soccer cleats, do I really need more? However, they will offer me additional pairs for days to come – probably even just prompting me to return the ones I already bought and get a different pair – cannibalizing their own business. Come back to me when the kids grow out of their current size and offer me new ones then. Same with business trips: offer me what I need at this time – use all the intelligence available including the calendar, realize if I’m stuck in a meeting and won’t make it to my flight due to traffic conditions and long lines at the security checkpoint and rebook my flight and/or hotel. These are just some of the things I’d expect from my business travel tool.  I couldn’t care less if it is entertaining – give me what I need in the least amount of time and just try to do the right thing with the knowledge you have, so that I can develop some trust that whatever is booked is most likely the right thing for me and my company. It won’t be the 100% solution, but 80% and no time wasted is good enough for me.</p><h2>Smart OBTs are those where both, the traveler and the company win</h2><p>It is a crazy world out there and we have a lot to do. Decisions such as travel should be made (or at least broken down) by a tool rather than each employee challenging the job of a travel manager. However, a feedback loop should be integrated in case the tool or the travel manager has overlooked an aspect. And in case of a valid concern, the tool should be capable of adopting those additional needs.</p><p>If the company controls what is booked, based on their and the traveler’s interest, and collects all the data, the company is in the driver’s seat to tell the supplier what they need. With the latest distribution capabilities (some current restrictions mentioned <a href="https://www.travel-industry-blog.com/travel-industry/ndc-gds-onboard/">here</a>) the industry should be able to react to certain wishes and requests triggered by usage.</p><p>Once the company can communicate to the employees that based on various aspects the company will determine the ‘best’ option based on the traveler’s interest, company interest and environmental impact, traveler satisfaction should come by itself. Happy traveler, happy travel manager.</p><p>But what do you think?</p><p><em><br />Picture: Shutterstock</em></p>								</div>
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