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The Impact of IATA NDC Standard on GDS Business Platform
GDS reservation system began in the 1960s, operating as a reservation platform for decades. The main users include product suppliers - airlines and product vendors - travel agencies, to achieve real time flight booking and ticketing commercial process. With the advent of the information technology and E-commerce generation, airlines and travel agencies have been beginning to compete for markets for direct sales in addition to the original cooperation through GDS platform. In 2012, IATA launched the NDC standard by using XML standard specifications. It allows airlines to develop their own customized products and sell them directly to travel agencies. Under the dissemination of IATA, how should GDS platform operators respond these effects? This study uses a semi-structured qualitative interview method to interview the three roles of players in the GDS platform. The interviews discussed how the IATA NDC standard would impact the GDS platform business, and put forward opinions from the perspective of the players themselves. Based on the push-pull-mooring (PPM) theory, the transcripts of the interviews were coded and categorized into GDS push effect, NDC pull effect, and mooring effect separately. It shows how airlines and travel agencies make decision to switch to NDC platform or not based on how these three effects intertwines with each other. For the GDS platform, it can evaluate the future decisions based on the PPM effect from the perspective of airlines and travel agencies thinking of PPM effects to avoid being disintermediated or to reintermediate in order to keep as a key intermediator as usual.
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