4 Success Factors to Shift to Direct Distribution

Distributing through NDC and bypassing GDSs can be the next gold rush for airlines. It is tempting to believe the promise of controlling the offer is good enough to succeed in that challenge, but making money actually requires leading-edge technology.

A Sales Offer Creation Platform that Manages Massive Volumes at Low Cost

Connect to a global metasearch or a large OTA and there you have it: bookings flow. But… Your systems are now being hit by millions of searches every day, and the invoice from your pricing system provider (most often your PSS) is skyrocketing with a red hot ‘excess transactions’ line.

The look-to-book generated by an OTA or a metasearch can easily reach 1000 searches for a single booking and exceeding 5000 is not exceptional. Do the math: spending the money saved from GDS booking fees to pay the PSS/pricing system provider is not a desirable outcome.

So look beyond legacy solutions. Next-gen technologies available today enable airlines to benefit from a cost model without look-to-book limits and help them generate profits by avoiding hundreds of thousands of dollars in PSS charges.

Convert Shoppers into Bookers with The Best Customer Experience

Tailoring your direct distribution offer you’ll create a special relationship with your customers. However you must also deliver an excellent experience: 2017’s shoppers do not wait anymore: 30% of shoppers drop their purchase if their search query is not answered within a couple of seconds. Can your pricing system deliver millions of transactions and still provide nearly instant response? In today’s fast moving world performance matters.

One Size Does Not Fit All, Controlling Your Content is Key

TMCs, OTAs, metasearch have different peculiarities. A TMC or a Corporate Booking Tool will generously reward you with a very good yield if you seize the opportunity to differentiate your NDC offer from the standard one served through the GDSs: tailor it, personalize price and services, bundle or unbundle, and apply dynamic pricing adapted to those premium passengers. Complex? No, when you are able to set yourself the business rules according to the peculiarities of each of your distribution partners.

The Prize of The Game is Increasing Your Yield

Your prize for distributing content direct is to increase your revenue with 3 ‘magic’ buttons: interlining, merchandising and dynamic pricing.

  • Multiply the pool of potential travelers flying on your airline with ‘out-of-the box’ interlining that goes to 400 airlines!
  • Access the second wallet of your passengers by adding merchandising to improve their travel experience: define your services, add rich content description, bundle and personalize for each partner and each traveler.
  • Put in place dynamic pricing to maximize conversion and increase your yield on both fares and merchandising offer for any situation: flight context, purchase context, pre- or post-booking, etc. Quick, Easy, Powerful: set rules to apply dynamic pricing or discounting on the combination of fares and optional services. Integrate your CRM, RMS and predictive analytics data to always have your offer optimized in real time!

The opportunity to maximize profits by distributing the offer directly is there: it is having an NDC-capable Sales Offer distribution platform that works independently from the PSS pricing engine to give a competitive advantage in securing cost savings, maximizing customer conversion and increasing revenues.

About the Author

Boyan Manev

Boyan’s 17 years of travel industry experience spread across various senior Business Development and Product Marketing roles. Currently he is VP Strategic Consulting at PROS, before previously driving product success at Vayant Travel Technologies and Travelstoremaker. His expertise covers the domain of airline e-commerce and distribution. Driven by a strong passion for the travel business, Boyan has a strategic vision on how the industry transformation could take place.

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