630 COMPETITION LAW IN TOURISM Future trends and NDC opportunities: Ultimately an airline would want to apply its complete portfolio of payment instruments to indirect distribution: Pay Pal, Bank Transfer, Pay by Instalment, Air Miles, Cash, New and local forms of payment etc. The list of payment instruments is growing fast, due to the dynamism of the FinTech community. An airline chooses payment instruments based upon factors such as the payment cost, cash flow (when it is paid), risk of fraud, reach (global vs regional solution). Bank transfers provide a concrete example, as they could present a great opportunity for the industry. Transfers will be immediate in Europe, within the framework of Regulation (PSD2), removing the current airline-specific complexity to have the PNR on hold. Bank transfers could surpass cards by 2025 for all industries (source: Payment Industry Intelligence, July 2017) and provide a lower cost alternative. 5. DEEP DIVE INTO NDC VALUE PROPOSITION 5.1.The NDC value proposition for airlines A glance at the overall scope of NDC shows areas of both revenue and cost opportunities at every step of the general process, from shopping to payment. Revenues are a direct consequence of the additional features provided or supported by NDC. Rich Content allows the airline to display comprehensive content (for example: videos, pictures and descriptions of the product), and therefore increase yield through product differentiation; or gain market share through a more competitive product offering. By enabling customers to purchase relevant ancillaries (a la carte or bundled), the airline may generate additional revenue. The number of ancillaries sold can be increased, as airlines are not dependent on implementing each ancillary with their distribution partners independently. Instead, they can offer limitless products and services according to their marketing strategy. In case the airline decides to implement dynamic pricing, it creates a potential for additional revenue through enhanced revenue management. Revenue managers get more flexibility, as well as better opportunities to optimise the revenue flow. The airline might also go for personalisation, enhance its CRM to be able to propose tailor-made offers to their customers, which should lead to improved look-to-book ratios, as well as strengthening customer loyalty for future sales.
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