Ai Editorial: How does the payment-related aspects change when the airline controls the offer and all the information related to the booking is part of a single Order?
28th June, 2021
Airlines are looking into embracing Offer and Order Management systems, using NDC as the distribution protocol, and creating the OneOrder standard.
The industry has been evaluating what changes all of this would bring as far as databases or fulfillment is concerned.
There are critical financial changes that come along with NDC. All priced offers are created by the airline’s Offer Management System and no filed fares are used. Also, all interline offers include a settlement value for each service that is offered. This is the amount that the POA expects to receive from the ORA when the service has been delivered.
NDC will continue to create E-Tickets but once we move to ONE Order there will be no tickets.
So to recap:
- The way it has been for years: Booking information is contained in a PNR. Payment, entitlement and status information contained in E-Tickets and EMDs. Databases are linked but not the same.
- In the NDC world: Booking information is now contained in an Order. Payment, entitlement and status information are still contained in E-Tickets and EMDs.
- In the OneOrder world: All information is now contained in a single Order.
NDC and payment strategy
In addition to coming to grips with where booking information is going to be, it also important to evaluate how the same can improve upon the CX and how the role of merchant is going to evolve.
“It seems to me that anything related to payment is always overlooked. We have seen disconnect in the IATA NDC initiatives where parts of the travel eco system have been ignored such as payment but also retail and e-commerce. What we need more than anything is knowledge and understanding and that no size fits all. Typically network airlines outsourced technology and control to their PSS vendors/ GDS distribution and did not have the information they needed to understand how to technically implement NDC and understanding orchestration. I hope airlines realize that they need to keep tabs on technology and trends and this goes for payment evolution too,” explained LeapShift‘s Ann Cederhall in an interview.
Hear from following experts on 30th June:
https://lnkd.in/eFv7Kq7
Paul van Alfen Yanik Hoyles Thibaut Ruy Laurie Gablehouse
Stuart Barwood Sascha Huwyler Mirza Adnan Beig
Ian Tunnacliffe Chiara Quaia Jorge Díaz Thomas Helldorff
By Ritesh Gupta
Ai Team
Ai’s upcoming events: https://www.aiconnects.us/events/upcoming-events/
