The potential impact of IATA’s New Distribution Capability (NDC) on revenue management and pricing

Abstract

The New Distribution Capability (NDC) provides the foundation to improve the shopping experience for the airline product across all distribution channels. One of the fundamental concepts of NDC is that all shopping request will be sent to the airline in real-time for evaluation. This opens the doors for a true dynamic pricing concept, which in the end could even make booking classes obsolete.

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Correspondence to Dieter Westermann.

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1holds the position of Senior Vice President Revenue Management Strategy & Solutions at Qatar Airways, the national carrier of the State of Qatar. He has more than 20 years of experience in revenue management business processes and systems as well as in the area of pricing, reservations and distribution. During his career in the airline business, he worked for multiple carriers including Lufthansa and Swissair. He also got insight into the perspective of system providers, while he worked at Lufthansa Systems in the position of Director Portfolio Management & Innovations.

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Westermann, D. The potential impact of IATA’s New Distribution Capability (NDC) on revenue management and pricing. J Revenue Pricing Manag 12, 565–568 (2013). https://doi.org/10.1057/rpm.2013.23

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Keywords

  • Global Distribution System (GDS)
  • interactive shopping
  • dynamic packaging
  • dynamic pricing
  • Graphical User Interface (GUI)