Back to the future with IATA NDC? Critical turning points in the history of airline distribution

• Main Author: Stephan Bingemer
• Format: Article
• Language: English
• Published: Emerald Publishing 2018-11-01
• Series: Journal of Tourism Futures
• Subjects: History; Airlines; Distribution; IATA NDC; GDS; Direct connect
• Online Access: https://www.emeraldinsight.com/doi/pdfplus/10.1108/JTF-05-2018-0032

Purpose - The International Air Transport Association (IATA) New Distribution Capability (NDC) standard aims at modernising the airline distribution landscape. It has supported the spread of Direct Connects by providing a common standard for linking airlines to travel agencies. The purpose of this paper is to analyse the historical development of airline distribution and to derive implications for the future. Design/methodology/approach - This paper follows the approach of Yeoman and McMahon-Beattie (2017) in providing a chronological account based on published research. Findings - Direct Connects are discussed to be a step back in the evolution of the distribution landscape because they foster disaggregation. An analysis of the history of distribution finds that a comparison of Direct Connects to the early stages of computer reservation system technology falls short to recognise the tremendous technological and market changes connected to the internet, cloud computing and the rise of low-cost carriers. Moreover, drawing on the seminal article by Anderson and Tushman (1990) on technical discontinuities and dominant designs, the current state of the distribution landscape is characterised to be an era of ferment that is driven by design competition and that might end up in a new dominant design. Originality/value - The originality of this paper lies in a critical review of the turning points of distribution. By reviewing the past developments, the paper sheds light on the contribution that IATA NDC and Direct Connect technology might deliver to the field of airline distribution.