MTA - Mobile Travel Agents’ Managing Director, Roy Merricks has described the ‘New Distribution Capability’ (NDC) proposal currently being played out at high levels within IATA circles as, potentially, the biggest threat to travel agents since commission cuts.

Mr Merricks has called on all travel agents  - both within Australia and overseas - to band together with their relevant travelagent associations on the issue before it is too late, in order to both protect their position and ensure their needs, as the largest single airline distribution channel, are not damaged by the proposal.

Mr Merricks said that with around 60 per cent of all airline tickets currently being sold bytravel agents globally, it was vital that travel agents, as an industry group, be actively involved in the NDC which, it is believed, will be rolled out for trial by IATA in 2013.

“From what I can see, planning is well advanced and agency groups around the world have not thus far been included in IATA discussions despite claims of a collaborative approach being taken with the industry,” Mr Merricks said.

“The concern is that IATA is developing the NDC internationally to a high level with theairlines before releasing the details - no doubt the devil will be in the detail but let’s be clear about the potential issues here.

“Currently as agents, we build travel proposals in the best interests of our clients who are effectively unknown to individual carriers until the transaction is completed.

“It is the ability to work closely with clients regarding their plans, along with our experience, destination knowledge, connections on the ground and a highly developed client relationship that sets us apart as travel agents.

“This also enables us to add further value to the client experience and keep them coming back to us.

“If the airlines succeed with the NDC in its current form, that position may very well be compromised.

“It may not be widely known that many airline websites are already designed to recognise return visitors and make predictive ‘special offers’ directly to them based on traveller history and other specific data collected previously such as frequent flyer information etc.”

“We are all aware that on occasion airline websites undercut fares offered to agents through the GDS – we also know that the airlines’ goal of airlines is to reduce or eliminate segment costs they currently pay to the GDS’s.

“If the NDC succeeds along those lines, it is clear where the cost burden will move andthat’s us. In turn we will need to pass those extra costs on to our clients and the void between airline website fares and those available through the GDS will widen even further.