Greetings from TDN,
This week, a lot was announced, demonstrated or connected. In most cases the harder question came straight after: who runs it, who pays for it, and what can an agent or a travel seller actually sell through it?
In Macao, two multi-vendor demos showed a single order moving from offer to settlement across different companies’ software, yet no airline is running that chain in production. AI agents are also reaching airline inventory well before the systems that complete the sale, and most AI flight bookings still end at someone else’s checkout.
Closer to our markets, the GDSs now carry NDC, which leaves the aggregator needing a clearer purpose. Air Peace has added more ways for agents to find it, EGYPTAIR has put Accelya’s FLX Select alongside its existing NDC work, and Nigeria has cleared its blocked airline funds while OnePipe argues the naira problem is not over. Sabre’s profit is rising on pricing rather than volume, with debt still weighing ahead of its 17 November Investor Day.
Here is what we covered, and what we think it means.
Nigeria Cleared Airlines’ Blocked Funds. OnePipe Says the Naira Problem Is Not Over
Nigeria cleared airlines’ blocked funds, but OnePipe says getting naira out and dollars back is still slower and riskier than it should be. Its answer is Nokrin, which would collect airlines’ naira by bank transfer and settle in US dollars. The open question is how its rates compare with official ones, and how the central bank sees the model.
AI Agents Are Coming for Airline Search Before They Come for Airline Sales
AI agents are already searching airline inventory, and the airlines are the ones bearing the cost. In Bain’s March test, airline websites were reached directly only about 5% of the time, and nobody has published the commercial terms for a sale that starts with an agent. Only seven airlines are live with or implementing IATA’s Orders, the foundation the whole idea rests on.
Air Peace Is Giving Agents More Ways to Find It. What Agents Can Sell Is the Next Question
Air Peace has spent years adding ways for agents to find it, from the Hahn Air interline in 2019 to a Travelport content agreement in January. What the public record does not show is what an agent can actually sell through those links, whether that is branded fares, ancillaries or post-sale servicing. Its Chief Commercial Officer says GDS partnerships are essential to growing beyond Nigeria, so that is the question to watch.
EGYPTAIR Adds Accelya’s FLX Select to an NDC Set-Up Already Under Way
EGYPTAIR has chosen Accelya’s FLX Select, a standardised NDC programme that Accelya says lets airlines create offers and orders through NDC within 90 days. Ethiopian Airlines and Airlink are already customers, and EGYPTAIR is adding it to NDC work that is already under way. The announcement does not say which content goes live first, so the next thing to watch is what agencies can buy.
The GDS Now Carries NDC. What Is the Aggregator Still For?
The GDSs now carry NDC, so what is the aggregator still for? Airlines are nudging agents towards NDC, but it is still a small share of GDS volume, which means agents need both channels for now. The aggregators that last will be the ones offering carriers and content the GDS cannot, and agents who treat the GDS as plain infrastructure will win on the services around the ticket.
Most AI Flight Bookings Still End at Someone Else’s Checkout
AI agents can now search flights in real time, but most bookings still end at someone else’s checkout. Etraveli’s Flight MCP, Southwest’s ChatGPT plugin and Virgin Atlantic’s ChatGPT app all hand the traveller to the seller’s payment page. The real contest is over payments, not visibility, and airlines in emerging markets should sort out settlement before MCP.
Two Demos in Macao Show Airline Retailing Can Be Assembled. Running It Is the Harder Test
Two multi-vendor demos at IATA’s Macao symposium showed one customer order moving from offer to settlement across different companies’ software, including a same-day rebooking after a cancelled flight. Both still relied on a central coordinating layer, so control shifts to whoever runs it. The real test is a named airline running that chain in production.
PROS and IBS Software Join Forces to Give Airlines a Modular Route to Modern Retailing
PROS and IBS Software have joined forces, pairing PROS’s Kairos Offer Management with IBS’s iRetail Order Management so airlines can modernise retailing in stages without replacing their current technology. The move follows the launch of Kairos on 12 October, after PROS decided to focus exclusively on travel retailing. PROS says its pricing technology is already used by more than 150 airlines, including Lufthansa, TAP Air Portugal and Etihad.
Sabre’s Profit Is Rising on Pricing, Not Volume, as Debt Weighs
Sabre’s third-quarter profit rose 13% to $170 million, but bookings fell 1% to 79.4 million, so the gain came from higher pricing rather than volume. Interest costs of $123 million swallowed about 75% of that EBITDA, with net debt at $4.03 billion. Attention now turns to the fourth-quarter cash flow and the 17 November Investor Day.
UNTIL NEXT WEEK
That is it for this issue. If this was useful, forward it to a colleague in travel distribution, travel technology, or payments. If you have a tip, a data point, or want to be featured in TDN, reply directly to this email.
Wishing you a fruitful week ahead!
Gustave Sugira
Founder and Editor-in-Chief
Travel Distribution News
Kigali, Rwanda