“This moment will reshape the industry,” says CEO Rajeev

As NDC adoption by airlines accelerates, led by American Airlines, intermediaries are struggling to remain relevant as new pain points emerge. Yeoh Siew Hoon catches up with Rajeev Kumar, CEO & co-founder of Mystifly, to find out what new problems the flight startup is solving, and how he thinks this transition will impact intermediaries.

Rajeev Kumar: “This moment will reshape the industry.”

Q: What’s your take on American Airlines’ first move on NDC?

It will set the example for other airlines to follow. If you recall, in 2011, American was the first to go direct, moving away from traditional distribution model, even before NDC. It’s taken time for other airlines to catch up but today it’s the norm for airlines to go direct. This step of rationalising its commercial/sales team will become the model for other airlines.

We’ve often said, airlines of tomorrow will look more like tech companies, in the business of operating aircraft. This moment will reshape the industry.

Q: Given the acceleration of NDC adoption by airlines, what are the opportunities for startups like yours to solve new pain points? What are these pain points for intermediaries, if they are to stay relevant in the new world?

Startups like ours have a compelling opportunity to tackle emerging pain points within the industry. As airlines navigate varying stages of NDC implementation and the share of low-cost carriers continues to surge, intermediaries find themselves grappling with the challenge of maintaining relevance in this new realm of airline distribution.

Their traditional focus on trip planning, booking, and servicing has expanded to include intricate airline integrations. While the pivotal role of Global Distribution Systems (GDSs) remains intact, the pressing need for comprehensive multi-source shopping and servicing, encompassing GDS, NDC, and LCC content, has become more paramount than ever.

However, the absence of a standardized framework presents a formidable hurdle. Hence, the indispensable ability to normalize heterogeneous data structures from diverse airlines, facilitating both shopping and servicing functionalities, emerges as a cornerstone for delivering a harmonized and elevated travel experience to discerning passengers. To thrive in this ever-evolving landscape, intermediaries must wholeheartedly confront these challenges head-on and craft innovative solutions that foster seamless, tailor-made encounters for their customers.

Q: What’s the biggest pain point you think need to be solved? Why is servicing such a big pain point? Who should be responsible for servicing?

The foremost pain point in my opinion that necessitates urgent resolution is the prevalent reliance on outdated templates that were formulated during the pre-internet era. The airline industry is undergoing a transformation, with airlines progressively evolving into retailers. This transition has been characterized by varying timeframes and unique pain points for each airline based on their individual progress.

Servicing, a perpetual challenge within the industry, was particularly felt during the initial phases of the pandemic. Regrettably, despite the best opportunity the industry had in the three years, there has been minimal advancement in enhancing automated service delivery. The travel seller bears the ultimate responsibility for managing customer bookings and curating a positive travel experience, considering the significant impact on their brand reputation.

Thus, it becomes imperative for airlines to establish a highly efficient and responsive infrastructure capable of effectively handling post-booking servicing. Nonetheless, the intricate systems and processes operating behind the scenes have contributed to the complexity of automated service provision, even as airlines strive to transition into the new era of airline retailing.

Q: How are you solving it?

We are addressing this pain point by providing a comprehensive platform that simplifies and streamlines the servicing process for travel intermediaries and airlines. With the increasing adoption of NDC by airlines and the varying capabilities of airlines in terms of servicing, it has become complex and costly for OTAs and travel management companies to handle these bookings.

We have developed a proprietary technology powered by AI, ML, NLP, and LLM capabilities. This new technology enables us to offer post-booking automation for both GDS and NDC bookings through a single API. Regardless of where the bookings were made, whether through the GDS or the NDC channel, our platform is source agnostic, providing a unified solution.

Our API facilitates automated booking changes and cancellations, empowering travel intermediaries to efficiently manage post-booking processes. This automation can be seamlessly integrated into the traveler interface through the API or utilized through a UI platform for call centre agents. By offering this solution, we cater to both airlines and travel agents, providing them with the tools they need to enhance their servicing capabilities.

Q: Do you feel that after eight years of talking about NDC, its time has finally arrived and everyone now has to get onboard or risk being left behind?

While Online Travel Agents have been the fastest to adopt to the new world with differentiated Content for their customers, Business Travel Agencies have been increasingly challenged by the 2 C’s of the traditional 4 C’s, Care and Control. The gap is being bridged faster than ever. The era of airline retailing is here to stay as it serves both the airline and the traveller’s interest, be it managed traveller or the leisure traveller.

Q: NDC does not affect low cost airlines – and their capacity is growing. According to OAG, LCCs now make up almost of third of total airline capacity. What’s the opportunity there for low cost airline aggregators/platforms?

Low-cost carriers (LCCs) play a significant role in the airline industry, constituting almost a third of total airline capacity, as reported by OAG. This underscores the importance of LCCs in the market. However, it is crucial to recognize that each market has its own unique dynamics, with countries in South Asia exhibiting LCC market shares ranging from 40% to 70%. In such a landscape, aggregators of LCCs hold value within the ecosystem.

Nevertheless, it is essential for LCC aggregators to go beyond offering discounted pricing to customers and provide additional value that goes beyond just discounted airline pricing strategies. Aggregators who can effectively navigate and enhance pricing strategies of airlines will likely have better long-term opportunities in the market.