Air Canada Drops DCR Fees On Most Bookings, Says NDC Program Working

Image: Air Canada
Image: Air Canada
Bruce Parkinson
by Bruce Parkinson
Last updated: 6:00 AM ET, Tue June 18, 2024

One year into its New Distribution Capability (NDC) program, Air Canada says more than 20% of Canadian agency partners are using the technology to make bookings. The airline has announced additional features and benefits, including dropping the Digital Cost Recovery (DCR) fee on all but the lowest fares booked in each cabin.

Twelve months after its launch in June 2023, Air Canada says the NDC program has made significant progress with trade partners and corporate buyers in modernizing the airline’s product distribution, offering new benefits, more content and comprehensive partner support.

"We’re incredibly grateful for the partnership from local independent agencies and larger corporate travel management companies who were, are, and will always be crucial to Air Canada’s commercial success,” said Mark Nasr, Air Canada’s EVP, Marketing & Digital and President of Aeroplan.

“We made a commitment from the outset to provide a steady transition for them, prioritizing comprehensive content and uninterrupted capabilities through both legacy and new technology, enabling the trade to connect with Air Canada using their preferred methods. We also committed to close collaboration throughout the transition process.”

AC execs

L-R Keith Wallis , Senior Director Distribution and Payments, Lisa Pierce Vice President, Global Sales & Air Canada Vacations, and Mark Nasr, Senior VP, Products, Marketing, and e-commerce. (Photo Credit: John Kirk)

Nasr says the partnership approach is bearing fruit, and agency and travel buyer communities are actively shaping the future of the program. “We continue to invest in accelerating adoption and building out a wider range of NDC features and products,” he added.

In the past 12 months Air Canada has delivered the following NDC milestones 

·      Executed three new GDS distribution agreements, all incorporating support for NDC.

·      Developed 25+ new features and capabilities directly based on agency feedback.

·      Implemented NDC in eight different technology platforms, including Amadeus.

·      Over 600 agencies actively booking using Air Canada NDC.

·      Hosted 100+ partner meetings globally to engage with the agency/technology community.

·      Significantly expanded reach, enabling NDC in 20 different country points-of-sale, representing 96% of Air Canada’s global ticket volume, with plans to further expand this month.

·      Over 70% of all Air Canada bookings now use modern technologies.

AC says the program offers comprehensive product depth, including discounted ancillary seat pricing, access to promotional code offers, and all domestic basic fares. It has also increased self-servicing and post-servicing capabilities, while expanding payment options and adding new partnerships with technology platform providers that extend global reach.

In addition, Air Canada signed new agreements with GDS partners Amadeus, Sabre and Travelport in 2023, with Amadeus successfully enabled last year and others to follow soon, including an imminent expanded new agreement with Sabre.

Lisa Pierce

Lisa M. Pierce, VP, Global Sales & Air Canada Vacations at Air Canada. (Photo Credit: PHOTO: TravelPulseCanada)

"We're excited about the progress we've made alongside our valued partners. Our early adopters have provided important feedback that is shaping our expansion plans, adding strength as we move into the second year of transition," said Lisa M. Pierce, VP, Global Sales & Air Canada Vacations at Air Canada.

"The result is that the wheel of change can now turn much faster, giving us momentum to drive this next stage of growth for our travel partner community and our shared customers."

New Features and Planned Advancements for 2024

With the first stage of transition to a new, modernized distribution platform behind it, Air Canada shared a number of new features and advancements coming in 2024 and beyond:

The launch of Sabre NDC: Access to Air Canada content and features through Sabre will be available in the coming weeks, providing access for the vast majority of travel trade partners to a production-ready Air Canada NDC solution.

Simplified Distribution Cost Recovery: The DCR has now been simplified to apply only to the lowest fares booked in each cabin.

More generous refund capabilities: The airline will double the risk-free refund period from 24 to 48 hours for bookings made using NDC, providing travel partners and customers with greater flexibility. Development of this feature is underway and will be available in the coming months.

Continuous Pricing and Availability: Continuous availability is now live to all partners integrated with Air Canada NDC, offering greater access to best prices. In late 2024, AC says it will begin offering continuous pricing for better, more dynamic price points.

Special benefits for corporate partners: NDC functionality creates additional ticketing flexibility for agency and corporate partners.

In the next 12 months, travel partners can also expect more new content and additional features from Air Canada that include: support for disrupted customers, new features for the handling of Involuntary Changes; the ability to apply unused tickets for future travel; and more payment options for international markets; followed by Cancel for Any Reason; and carbon offset content, both of which are planned for roll-out in early 2025.

For more information on Air Canada's NDC program, including detailed benefits, functions, and connection options, click here.


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