NDC: Why are we still talking about it?
In the NDC-focused episode, Thane Jackson, Senior Vice President of Global Distribution Strategy at BCD Travel, joined podcast co-hosts Chad Lemon, digital strategist, and Miriam Moscovici, vice president, Partnerships & Intelligence, to explore the complexities, opportunities, and future impact of NDC on business travel. NDC isn’t a new topic on the show, but the panel addressed an issue still atop the minds of many: Why wasn’t NDC solved on the backend, without involving travelers and clients?
Moscovici recalled a statement made at a recent conference: that clients and travelers have been unnecessarily involved in the NDC conversation when it should have remained behind the scenes. Thane agreed, explaining that NDC’s focus on distribution was originally a technical issue between airlines and their distribution partners – an issue that spilled into the public sphere.
“That statement is absolutely true. I’ve been saying that since day one when I first attended the IATA NDC conference back in 2016,” Jackson said. “NDC should really have been solved behind closed doors. This was a distribution wrangle and continues to be a distribution wrangle between airlines and their distribution partners. It’s about costs, it’s about technology, it’s about different ways of earning new revenue streams.
“So it shouldn’t have come out, but it has, and we’ve had to accept that. And to a large degree, that’s fine, because we need to really help our customers understand it, at least to some level of decency anyway, about where the industry is heading and where NDC fits into what is perhaps more aptly called the modern retailing journey.”
NDC’s capabilities and challenges
The episode furthered covered how NDC has developed since its introduction by IATA in 2012 and discusses how travel management companies (TMCs), airlines, and buyers are grappling with its rollout. Jackson emphasized that while NDC brings new capabilities, it also creates significant challenges due to fragmentation across airlines and regions. He provided insights into the current state of airline adoption, the varying geographical impact, and the value proposition for corporate buyers.
For travel managers, Jackson advised that while NDC will ultimately improve the retail experience and offer more flexibility, it’s not a one-size-fits-all solution. Travel programs must be patient and adaptable as airlines gradually implement the technology across markets.
Lies we believe about spend management
Returning guest Alissa Merlino, Senior Director of Global Solutions Engineering at BCD, tackled issues around spend management – from a slightly different angle. Merlino constantly has conversations with travel managers, travel buyers, and spend management vendors that sometimes lead to debunking misconceptions around T&E spend management. She debunked common misconceptions about spend management, including the notion that automated reconciliation doesn’t save money. Spoiler: It does—and she broke down the numbers to prove it.
“Let’s say manual reconciliation takes anywhere from two to 10 days, so the average of that would be five days and then eight hours per day, you look at 40 hours times $50 an hour,” Merlino said. “That ends up being $2,000 per month for reconciliation. If we’re doing an automated reconciliation within seven minutes, it ends up being $5.83.”
Automation saves Cracker Barrel $15,000 in annual costs
She pointed to a case study of BCD client Cracker Barrel, who ultimately saved 40 hours monthly and US$15,000 in annual cost for manual processing. Cracker Barrel spent a lot of time manually reconciling hotel charges monthly, causing many issues like increased overhead costs due to overtime, delayed reporting to accounting and stalled expense allocations. World Travel Service, a BCD Travel company, implemented Virtual Payment Automation (VPA), allowing travelers to easily book hotels with a virtual card, and VPA+, providing hotel invoice collection, correction and digitization and robust data reporting. With VPA and VPA+, Cracker Barrel now has an automated reconciliation process for their hotel program that provides visibility and control of travel spend, combats risk of credit card fraud and gives travelers an easy way to pay for hotel expenses.
READ THE CRACKER BARREL CASE STUDY >
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Connections with BCD Travel isn’t just a podcast; it’s a resource for travel arrangers and stakeholders in managed travel. The insights shared go beyond trends, offering practical solutions to everyday challenges. Whether it’s the latest in travel technology or tips on optimizing your travel program, Miriam and Chad have got you covered.
