IATA: We Neglected to Build Trust With Agents

IATA “could have done more listening” to travel agents as it developed the framework for its New Distribution Capability, according to Aleks Popovich, senior vice president of industry distribution and financial services.

With the “wisdom of hindsight,” Popovich acknowledged that “you have to build some trust” when proposing major changes.

As the operator of the travel agency billing and settlement plan in every country except the U.S., IATA has had “a pretty adversarial relationship” with agents, so “you have to build credibility,” he said.

Gathering input, ‘quietly’
According to Popovich, IATA has been “quietly” assembling travel agency groups to provide input to the NDC project.

Popovich spoke at the SITA Airline IT Summit in Brussels, whose theme was “Potential and Collaboration.”

“We could have done more to see how they [agents] view the value proposition of NDC,” Popovich said. “If you’re going to talk about collaboration, you have to put yourself in their shoes.”

But he doesn’t believe the criticisms from other quarters would have changed through more dialogue, he said.

“You’re challenging existing players.”

New entrants wanted
The goal of NDC is to enable the distribution of new products and services through online and offline travel agency channels. That distribution may or may not involve GDSs, and it could invite participation by new players.

“GDSs are very well-positioned to do this, but we want to see new entrants provide some competition,” Popovich said.

Popovich also clarified the status of a new resolution that was approved at IATA’s recent annual general meeting in Cape Town, South Africa.

Addressing key concerns
The resolution addressed some of the chief objections to Resolution 787, which was passed last October.

The ambiguity of the language in Resolution 787 opened the door to a range of criticisms. GDSs and other entities questioned, for example, whether NDC would mean the end of comparison shopping or would violate privacy laws by requiring passengers to provide personal details.

The new resolution sought to address those concerns, affirming that NDC would be optional for both airlines and passengers; that privacy laws would be respected, and that comparison shopping and anonymous shopping would continue to exist.

Non-binding
Asked whether the new resolution would be appended to Resolution 787, or whether it would supplant 787, Popovich said it was “completely separate” from 787 and simply expressed support for the project.

Is the new resolution binding in the same sense that Resolution 787 is? “No,” he replied.