China remains the stumbling block over global NDC adoption
03/15/2018|9:21:48 AM|PhocusWire

NDC might be the driving force behind changes in airline distribution - but there is a stumbling block in it gaining global adoption: China.

The issue in China is a fairly simple one to explain: State-backed GDS Travelsky holds the key to adoption of NDC in the country.

According to Nancy Zhou, co-founder and vice president at FlightRoutes24, the organisation holds a "monopolistic" position in the country, meaning that it is difficult for foreign distributors to push NDC to airlines in China.

As a result, in markets such as China, where distribution is heavily regulated, airlines are "finding it tough to implement their own versions of Direct Distribution Charge, such as the one imposed on passengers using the Lufthansa Group of airlines.

In other words, imposing charges or insisting on direct connects through NDC-enabled technology will not be possible until Travelsky relaxes its existing stranglehold on distribution between internal carriers and external intermediaries.

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