NDC, AI and POS-data: Some new boarding gates for airlines

From headwinds like interoperability to tailwinds like NDC and revenue-optimisation; airlines are flying through a new altitude of technology. Let’s look out of the window.

Air India, Hawaiian Airlines, IAG, Virgin Australia – these are some recent names where Sabre Corporation has been on-boarded for technology work, specially for NDC areas. As a software & technology solutions company that powers the worldwide travel industry, Sabre’s focus has been on Tech Transformation in Aviation, Travel, Tourism & Hospitality. That takes us to Sriram Gopalswamy, VP and MD - Site Reliability Engineering Sabre Bengaluru, to help us understand some new contours here. He draws a good aerial view of where the industry took from and where it is heading—with the engines of AI, distribution disruptions, ONDC and personalization.

AI is in the air. With Upgrade IQ, Air Price IQ, Lodging AI, Sabre also seems to be on this new tech itinerary. How deep and important is AI as a co-pilot now?

We have deepened a lot of efforts in this area – resulting in powerful solutions. We have been working with Google as a tech partner in building modern travel AI platforms. It’s a big jump towards personalisation. We are also looking at distribution in a new way. Our approach is to make AI a core element in key product offerings. There is a great adoption of the technology we are building and offering.

Digital passports do not suffer technological readiness, but political readiness.

Amadeus has worked on a Generative AI assistant. Is your work on the same path?

It is difficult to compare two products. We are looking at incorporating AI in our products with our unique lens. Having strong partners like Google gives us an edge over competitors.

Let’s double-click on distribution now. Since 2012, the aviation industry is trying to make a shift from GDC (Global Distribution System) to NDC (New Distribution Capability). In fact, as per a BCG report, 42 per cent airlines would be reaping benefits of NDC in 2023-25. And McKinsey also predicted that the industry might realize up to US$40 billion in new value annually by 2030. Why then are players still struggling on lack of technical standards, costly deployments and the nightmare of integration with multiple channels?

We already have customers adopting NDC. Yes, it is not easy. It is not a single flow – from booking to ticket—as there are multiple flows involved in many cases. That’s where airlines trust us—they want us to make it easy and remove the complexity beneath it. That’s where Sabre has a big role to play.

As airlines move towards hyper-personalization, how do they balance the see-saw between more revenues and respect for customer interest/privacy?

It totally depends on how airlines approach it—and it differs from one player to another. That’s where we come in. Does a player like to offer bundling at POS or use ultra-personalised data or take the NDC route or give in-line price comparisons—we enable it all.

So cross-selling is easier? And does it harm transparency and fair treatment of other passengers?

Yes, at the POS, now an airline can sell an ancillary, Wi-Fi or a bigger leg-space at the very precise moment that matters. The degree of elevation that technology will bring in customer experience here—would be massive in the next few years. But the control of data will be as per the customer’s comfort. There would be a strong level of transparency – without worries of mistreatment of one customer for selling something to another one.

Would we see more bots, blockchains and AI as we fly?

The whole scenario of travel experience will change a lot ahead. Think of DigiYatra. Think of facial recognition. Think of an integrated curve right from the moment one steps out of home- with cabs, hotels, other services available for one’s choice. The decisions for better price points and other CX areas will get better and better.

Would the ecosystem keep pace? What about entities behind the curtain-like payment gateways and other channels?

The standards for the overall ecosystem are evolving. I am sure we will have two to three standards as a unifying force. There will be better interoperability across all travel suppliers in the ecosystem. In India, we have already seen big strides being made in the form of UPI, ONDC and other moves on interoperability.

What about technology that has truly blown your mind, when you look at the last three of five years?

It began with the Jan Dhan Aadhaar Mobile trifecta; and with the advent of ONDC, and UPI as the backbone of the payment industry—so much has changed. For instance—Now we have hyper-local apps with auto-rickshaws but with no middlemen—thanks to ONDC. So much is changing and it is a great time for the industry.

Will we ever shift to digital passports?

That’s more of a political decision with geo-political factors involved than a technology decision. Even if countries like India get ready to embark on this shift, other countries (including top and developed nations) may not be open to the idea. Technology is not an issue here for this readiness.

Sriram Gopalswamy

VP and MD, Site Reliability Engineering Sabre Bengaluru

By Pratima H

 pratimah@cybermedia.co.in