TORONTO — Change can be hard. Not changing can be even harder.

When Air Canada unveiled its next-phase NDC initiative earlier this year, the airline knew what lay ahead. Travel agencies were just starting to get back on their feet after enduring unimaginable difficulties during the pandemic. Demand for travel was off the charts. Agents were just trying to keep up, and agency owners and managers were dealing with a labour shortage. The last thing on any travel retailer’s mind was learning new ways to book airfares with IATA’s New Distribution Capability (NDC).

Not that NDC is new. It’s been around since 2015, and most of the world’s major airlines, including Air Canada, are onboard. IATA and airlines see NDC as the way forward, with new booking protocols that allow airlines to fully showcase their complex fare offerings and add-ons. Plus, airlines have been pushing back on GDS segment fees for years.

But NDC hit a wall of opposition with travel retailers when it was first introduced – and even now, years later, not everyone in the retail travel industry is a fan. While IATA and airlines have long advocated for the adoption of NDC, some in the retail travel sector feel the NDC format is too restrictive, and will require major upheaval with their booking systems.

Air Canada made its next-phase NDC announcement in April fully aware of the challenges. “We know a lot of people might not even know what NDC is. We know change is difficult. There will be bumps along the way. But there is no perfect time, and we have to start somewhere,” said Lisa Pierce, Air Canada’s VP, Global Sales & Air Canada Vacations, at the spring 2023 briefing.

Air Canada’s best available seat inventory and discounted ancillary pricing went live via its NDC technology in mid-June, joining fare content already available including the carrier’s domestic Basic fares. At the same time Air Canada also ushered in its ‘Distribution Cost Recovery’ fee – paid by the customer – and applicable to all tickets issued globally via GDS EDIFACT channels to address the high expense of legacy models. The DCR does not apply to bookings made via any of Air Canada’s NDC connection options including NDC-sourced content in a GDS solution, as well as through Air Canada’s other direct booking channels such as aircanada.com, aircanada.com/agents, Air Canada for Business, and the Air Canada mobile app, or group bookings.

Also in mid-June, Air Canada introduced a new NDC coupon incentive, to support travel agency transition to NDC – and away from GDS EDIFACT channels.

Travelweek caught up with Air Canada’s Pierce to find out how the airline’s next-phase NDC initiatives are being received by the industry, and what’s ahead.

Travelweek: It’s been just over 4 months since the start of Air Canada’s NDC next-phase initiative. How has the rollout fared so far?

Pierce: “We’re excited at the growth in adoption we’re seeing every week. Adapting to innovation isn’t always easy – we knew it would take time, engagement, and support on our side to help the transition for agency and corporate partners. Past innovations, like e-ticketing, seemed implausible at first, but we couldn’t imagine life without them today. We firmly believe in the benefits of NDC and we’re working diligently to expand our NDC’s reach to more points of sale.”

Travelweek: Air Canada is doing everything it can to reach agents with its NDC message, offering webinars, workshops and more. What sort of numbers is Air Canada seeing in terms of agent participation at the webinars and workshops, and what’s been the reaction from agents when they understand Air Canada’s NDC offering?

Pierce: “We’ve hosted 12 webinars and 13 in-person workshops with 350+ agents and owners in key cities across Canada, and we couldn’t be happier with engagement levels. Workshop evaluations have told us that the training was extremely well received, with significant knowledge growth on the topic. Specifically, this included better understanding of the need for NDC, the options we’re offering for access, and that those currently using aircanada.com/agents won’t have to change their booking behaviour with Air Canada.”

Travelweek: Has Air Canada been levying its Distribution Cost Recovery (DCR) fee for the past 4 months, and is there any indication that the fee is helping to sway bookings away from legacy channels?

Pierce: “In fact, we are seeing a reduction in the number of weekly bookings made through legacy systems and growing adoption of our NDC. Ultimately, we want agencies to have access to the tools that best meet their needs. Those whose environment is best suited to using traditional GDS EDIFACT systems should continue to do so. However, the unsustainable costs of legacy systems means that tickets issued through those systems will be subject to the Distribution Cost Recovery.”

Travelweek: When the June initiative rolled out, ACTA said that most agencies weren’t ready. What is Air Canada seeing from its perspective?

Pierce: “We agree. Despite our robust ndc.aircanada.com website, multiple training initiatives and partner discussions, many are still navigating NDC or waiting for solutions that better meet their needs. We know our partners are hungry for more training and we’re adding more webinars in the coming weeks and months. Like with many things, it’s not until the need is pressing that urgency sets in – the launch of our NDC and the Distribution Cost Recovery is providing that incentive.”

Travelweek: What are the biggest misconceptions about NDC?

Pierce: “The biggest misconception is that NDC only benefits airlines. The fact is, NDC replaces 1980s-era GDS EDIFACT technology that is unable to showcase all the content and fares available at globally competitive prices. NDC is now the travel industry standard, giving customers and partners access to rich content beyond the limits on price and availability presented by legacy technology. It also lets B2B customers enjoy direct and equal access to the content and products our customers get via our .com and mobile sites. With NDC, we can close the gap between those different channels and make more, richer content available to our corporate and agency partners, and ultimately, benefit our customers.”

Travelweek: What surprises agents most about NDC?

Pierce: “Our agency partners have been pleasantly surprised at the options available in accessing our NDC content, including in Amadeus, the free Air Canada Connex tool, via technology partners, and soon in Sabre and Travelport, as well as being able to work with us on custom solutions. For many, it’s also a relief to be able to book and access the full range of Air Canada products confidently via our agency website, and not be subject to Distribution Cost Recovery.”

This article originally appeared in the Oct. 19, 2023 issue of Travelweek. To read the issue, click here.