In 2018, the International Air Transport Association’s “leaderboard” of 21 airlines that were part of IATA’s New Distribution Capability initiative had a goal of processing 20 percent of indirect bookings through NDC channels by 2020. That didn’t happen, in part due to the Covid-19 pandemic.
NDC transactions, however, recently have been picking up speed. In June 2024, they represented 21.5 percent of Airline Reporting Corp.’s total transaction volume for the month, a 14.4 percent increase year over year and the first time they exceeded 20 percent. More than 1,000 travel agencies processed NDC transactions in June, according to ARC.
ARC’s NDC transaction share started the year at 16.9 percent in January, and each month since has inched upward, hitting the 20 percent mark in May.
June Total Air Sales, Corp. Sales Down
June air tickets sold by U.S. corporate agencies, those with at least 70 percent self-reported corporate and government business, dropped 7.2 percent year over year, according to ARC.
This is the second month this year that corporate sales have declined after increasing each month since 2021. In March, they declined 5 percent, then recovered to growth rates in April and May.
Total June U.S.-based agency air ticket sales also declined by 6.2 percent year over year to $7.6 billion, which represents a 15.8 percent drop from May. June total passenger trips were up 1.8 percent from June 2023 to 22.7 million but were down 11.7 percent month over month.
U.S. domestic trips were up 4.4 percent year over year to more than 14.2 million, but international trips declined 2.2 percent to just under 8.5 million. Compared with May 2024, domestic trips were down 12 percent, while international trips were down 11 percent.
Still, for the first six months of 2024, total U.S.-based agency air ticket sales totaled $53 billion, up 1 percent year over year, and the “highest total recorded by ARC for a consecutive six-month period.” Total passenger trips for the period increased 5 percent versus the first six months of 2023 to 149 million, with domestic trips up 8 percent to 86.8 million and international trips up 2 percent to 56.2 million.
The June average price of a U.S. domestic roundtrip ticket was $526, down from $543 in May and below the $555 reported in June 2023. For the six-month period, the average ticket price was down 1 percent year over year to $552.
“Travel demand remains strong for both domestic and international trips, with average ticket prices down year over year for the first six months,” ARC chief commercial officer Steve Solomon said in a statement. “Both corporate and leisure travel spending are experiencing similar growth rates, and airlines look to continue this momentum through the end of summer and into the fall.”
June electronic miscellaneous document sales, which include fees for such ancillary products as upgraded seats and checked bags, increased 11.9 percent year over year to $27.5 million. That figure also was down 12.2 percent month over month. Ancillary transactions increased 27.2 percent versus a year prior to nearly 518,000. They were down, however, from the nearly 565,000 reported in May 2024.
