THE NEW DISTRIBUTION CAPABILITY (NDC) 635 standard can support more advanced functions, which the current distribution landscape does not easily allow, such as: – Dynamic pricing: this is a pricing approach in which businesses set flexible prices for products or services based on current market demands. Businesses can change prices based on algorithms that consider competitor pricing, supply and demand, as well as other external factors in the market. It may no longer require fare filing. – Personalisation: (or customisation) consists of tailoring an offer, a service or a product to accommodate specific individuals. 7. INDUSTRY ADOPTION STATUS 7.1. There is a large engagement across all the value chain to adopt NDC IATA released the first official version of the industry standard in September 2015. Several updates have been produced since then, the most recent version of the schema being 18.2. This new version builds on significant enhancements from 17.2 in terms of robustness and consistency, which will make the implementation of NDC for airlines and technology providers more effective and faster to market. The NDC 18.1 contained many of the changes incurred to achieve harmonisation with the Airline Industry Data Model (AIDM), and the full set of changes from this exercise was completed by 18.2, and released in Q3 2018. This largely entails the existence of different data element names and concepts to adhere to the AIDM guidelines, rather than any fundamental redesign of the schemas and the way they function. Therefore, anyone designing their implementations on NDC 17.2 will not need to redesign processes and application logic. Instead, the focus will be on re-mapping data elements. To date, 124 airlines have deployed NDC or have plans to do so, a 10% increase compared to 2017. Moreover, close to 150 companies are NDC certified (including 60 airlines and over 60 IT providers). Airlines that are NDC capable transport over 60% of passengers flown on IATA carriers. Out of the top 25 airline groups, 20 have adopted or are working towards adoption of the NDC standard shortly. Those overall figures highlight that NDC is now on track to becoming mainstream. The full value chain is engaged:
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