At least in the early stages, IAG is focusing its private distribution agreements on major TMCs, including Carlson Wagonlit, Hogg Robinson Group (HRG), BCD Travel and Amex GBT. While Harteveldt generally supported the concept of a private channel, he expressed concern that AGI and GDS could create a separation between the “haves and have-nots” within the agency community. We are investing heavily in our own technologies to deliver on NDC`s promise. TripSource®, our proprietary digital platform for travelers, integrates bookings from both GDS and non-GDS sources. We`ve also introduced new agent technologies that allow our agents to efficiently view, book, and serve bookings across all channels. This new technology allows us to manage a wider variety of booking channels. Finally, we look forward to working closely with the GDS to launch their new NDC features as soon as they go live. It is important to note that even if GDS uses NDC solutions, this does not guarantee that airlines will distribute all content through this channel in the future. Some airlines have chosen to deviate from the GDS`s traditional “full content agreements” (agreements that guarantee parity with other channels). This indicates their clear intention to control who gets what in the future.

“We`re seeing airlines in the European market experimenting with new models,” Jones said. “This experiment is getting a lot of attention, but it`s important to remember that the vast majority of airlines around the world work with full content agreements in the traditional way.” Still, IAG`s private channel model has caught ASTA`s attention, according to Mark Meader, vice president of the Society for Industrial Affairs and Education. In an email to Travel Weekly, he said ASTA was questioning whether agencies of all sizes could opt for a private channel deal, and it was not yet clear whether prices could vary from channel to channel. On the other hand, Sabre IAG charges a lower segment fee for bookings from private channels as a carrier, including IAG, for bookings made through the standard GDS channel. While Sabre doesn`t disclose segment fees, they`re typically around $4.50 per segment, according to industry analyst Bob Mann. Mark Muren, Head of Global Sales at British Airways, said: “It is more important than ever to work with partners to create a stable foundation for the resumption of global travel while driving innovation and efficiency. This agreement with GBT achieves both goals and I look forward to working even more closely together to implement NDC functionality and new NDC-enabled solutions for our joint customers. GBT`s support and strong commitment will significantly accelerate the industry`s transition to next-generation content and delivery systems. I look forward to achieving our common goals in this area. To compensate for the lower fees for the private channel segment, Sabre will not pass on a portion of the booking fee to the agencies in the form of incentives. For agencies using the private channel, the loss of these incentive fees is the stick. To date, Amadeus and Sabre have negotiated agreements with IAG that set the content framework for private channels.

Travelport has not yet entered into such an agreement. From low-cost carriers to hotel reservation agencies to airlines` direct distribution channels, efficient business travel programs and travel management companies that enable their success to take advantage of the reality of content sourcing (fares, fare classes, prices, amenities, etc.) from multiple channels must and will continue to be. In this sense, the NDC is a substantial evolution, not a revolution; Content that goes through NDC standards will of course be part of BCD`s overall content strategy. Chris Ramm, Vice President, Enterprise Air Partners at Travelport, said: “Travelport is committed to helping the travel industry transition to IATA`s New Distribution Capability (NDC) standard.