The International Air Transport Association welcomed the decision by the United States Department of Transportation (DOT) to tentatively approve Resolution 787; GBTA remains concerned about unintended consequences.
ALEXANDRIA, VA – The U.S. Department of Transportation (DOT) tentatively approved a proposal for a data transmission standard that was submitted by the International Air Transport Association (IATA).
GBTA Executive Director and COO Michael W. McCormick issued the following statement: “GBTA respects the decision of the Department of Transportation and believes the DOT announcement recognizes the complex relationship between the need for modern standards versus the need for consumer protection. Corporations spent more than $1.12 trillion USD on business travel last year. Although the focus of this ruling is on the impact on multiple industry stakeholders, it is the requirements of the corporation who ultimately pays the bill that must be met.”
“GBTA recognizes the value of a modern standard to enhance information presented to the end user, but it is the use of the standard in airline business models that concerns us. While GBTA further analyzes the DOT ruling and decides on further actions, we will be developing a voluntary code of conduct to the airline community to continue to work toward a cooperative industry solution.”
“Airlines that wish to continue to build on long-established relationships with the business travel community must consider the content of the voluntary code of conduct to ensure whichever business model they choose also supports the managed travel principles of data capture, transparency in pricing and access to content through chosen channels, as well as a corporation’s responsibility for care for their travelers.”
“GBTA will continue to work closely with the DOT, IATA and all industry stakeholders to continue to shape the outcome of this critical debate.”
Also, the U.S. Department of Transportation (DOT) proposed new consumer protections for air travelers, building on previous passenger protection rules issued in December 2009 and April 2011. Today’s proposal would require airlines and ticket agents to disclose at all points of sale the fees for certain basic ancillary services associated with the air transportation consumers are buying or considering buying. It would also codify the Department’s definition of a “ticket agent” to ensure that companies that offer flight search tools and receive a form of compensation are adhering to the Department’s consumer protection requirements.
GBTA Executive Director and COO Michael W. McCormick issued the following statement: “GBTA will carefully review and comment in greater detail on the Notice of Proposed Rulemaking (NPRM), however we maintain support for the free-market right of businesses to create and follow their own chosen business models, including charging ancillary fees. But travel buyers and their agents must be presented with an accurate view of the full cost of products. To that end, it is imperative that there is full transparency to buyers on fares and fees. This also applies to booking, ticketing, billing and fulfilling those services.”
IATA welcomes US Dept. of Transportation Tentative Approval of Resolution 787
The International Air Transport Association (IATA) welcomed the decision by the United States Department of Transportation (DOT) to tentatively approve Resolution 787. The Resolution is the foundation document for the New Distribution Capability (NDC), a travel industry-supported program launched by IATA for the development and market adoption of a new, XML-based data transmission standard. “This is excellent news for air travelers, airlines, intermediaries, and for competition,” said Tony Tyler, IATA Director General and CEO.
In its decision, DOT stated that “Comparison shopping under the current system is generally limited strictly to comparing fares, and it is difficult to make price quality comparisons of different carriers’ product offerings….The modernized communication standards and protocols and the marketing innovations that [Resolution 787] could facilitate would be procompetitive and in the public interest.”
DOT also said it accepted the conditions proposed by IATA and Open Allies for Airfare Transparency to ensure that no traveler is required to provide personal information to receive a fare offer (“anonymous shopping”); that the standard remains voluntary and that each airline is free to choose its own data exchange methodologies. “IATA re-affirms its commitment to the conditions proposed by IATA and Open Allies,” said Tyler.
According to DOT, Resolution 787 will “create modern, industry-wide technical standards and protocols for data transmission throughout the distribution chain, promoting efficiency, cost savings, and innovation through a real-time exchange of price and service information among carriers, travel agents, customers, and other parties, such as web-based aggregators.” Furthermore, “the use of common technical standards could facilitate the marketplace development of distribution practices and channels that would make it easier for consumers to compare competing carriers’ fares and ancillary products across multiple distribution channels, make purchasing more convenient, allow carriers to customize service and amenity offers, and increase transparency, efficiency, and competition.”
“Working with our partners across the travel value chain, IATA is committed to updating the standard for transmission of airline product offers to enable travel sellers and consumers to have access to all of an airline’s products and offerings and to compare the full value of the product offer, not just the base fare,” Tyler said.
ASTA Statement on DOT’s Approval of IATA Resolution 787
The American Society of Travel Agents (ASTA) issues this statement regarding conditional approval by the Department of Transportation (DOT) of the International Air Transport Association’s (IATA) Resolution 787, which creates the framework for a new data transmission standard known as the New Distribution Capability (NDC):
The Department of Transportation’s (DOT) approval, with safeguards agreed to by ASTA in collaboration with IATA and other industry stakeholders, of a resolution creating the framework for IATA’s New Distribution Capability reflects the Department’s commitment to protect the interests and privacy of the traveling public, a priority that ASTA and its member agencies share. ASTA, Open Allies, IATA and other stakeholders have been working on behalf of our respective members in this long process, and the DOT’s action is a testament to the success of this collaboration. We look forward to working just as closely with IATA and others in the future as this standard, and others that may emerge, evolve over the next months and years.
As the DOT said, this action includes “several safeguards specifically designed to protect privacy, ensure competition and consumer choice, and make clear the voluntary nature of the standard and its availability to all airline industry participants.” The DOT has made it clear that anyone shopping for air travel will not be required to disclose personal information, and that airlines and travel agents are obligated to follow their own published privacy policies.
In the coming days, ASTA will be circulating to its members a sample privacy policy, and will communicate the need to have a privacy policy in place and to strictly follow those policies when it comes to collecting, storing and sharing of client information.
With regard to the ongoing development of NDC, ASTA will continue to monitor the situation and let our members know if any action is required. Additionally, we will continue to work in a collaborative fashion with IATA and other stakeholders to protect the interests of our members and the travel agency industry as a whole.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
