Abstract
Abstract Purpose of study The objectives of the study were to analyze the effects of transformation from GDS to NDC from the perspectives of the travel agencies in Oman; to find out the concerns of the travel agencies in Oman with regards to the implementation of NDC and to compare the benefits of NDC content with GDS from the perspectives of the travel agencies in Oman. Design/Methodology/Approach A questionnaire survey, telephone, and personal interview were conducted with 19 top leading travel agencies in Muscat region, Oman. Each Travel agent manager was given the questionnaire through google forms for the questionnaire. The telephone/ personal interview was also conducted. Around 78 employees were targeted out of which only 13 responded. The data collected was analyzed using Statistical package. Findings The findings support the fact that Oman being a small market with many small and medium players’ implementations of NDC is slow. The current pandemic has slowed it down even further. But their help being offered in terms of training and awareness by the NDC platform and some major airlines to speed up the adaptation. The study showed that the high cost of technological implementation is going to be one of the major barriers to complete switch to NDC system. As of now, the travel agents will be settling for GDS with NDC. Research Implications The adaptation by NDS has been slow especially by airlines. With IATA pushing the implementation, major airlines are slowly but surely adapting it as they can see the benefits they can derive. The customers too are benefiting from direct buying. The travel agencies in Oman especially small and medium-sized travel agencies are the ones who are most affected and there is not enough research being done to find what is it that is stopping them from adapting. Social Implications The pandemic has devastated the travel industry overall. Many small and medium businesses have been forced to shut due to lockdowns. Further, more people becoming comfortable with online shopping and willing to spend less, it will be a while before travel agents can start earning the same level of revenue they were enjoying before the pandemic. This will have an impact on unemployment as well as the inability to meet loan commitments. This can have a ripple effect. Originality/Novelty Few academic research has been carried out on NDC, especially in the Middle East. This research is the first of its kind which is dedicated to travel agents from Oman. The fact that NDC is set to revolutionize the shopping experience for the consumer one cannot ignore the fact that it is set to blow a dent in the revenues of the Travel agents.
Highlights
Until the mid-1980s, travel agencies were using Computer Reservation System (CRS) as a traditional way of communicating travel information
In the late 1980s, CRS paved the way for the Global Distribution System (GDS) which provided a speedy, efficient, and secure means of access to travel and tourism information and booking via the internet or a direct connection
From the quantitative analysis, the obtained result was as follows: Among the perceived benefits of the respondents through New Distribution Capability (NDC), ‘Offer personalized services based on travel history and choices’ ranked first followed by ‘Better Customer Service’ and ‘Better Revenue than GDS’
Summary
Until the mid-1980s, travel agencies were using Computer Reservation System (CRS) as a traditional way of communicating travel information. In the late 1980s, CRS paved the way for the Global Distribution System (GDS) which provided a speedy, efficient, and secure means of access to travel and tourism information and booking via the internet or a direct connection. GDS typically allows users to book hotel rooms and rental cars as well as airline tickets. They provide access to railway reservations in some markets these are not always integrated with the main system. As CRS favored the airlines that owned them, by 1984 it paved the way for GDS. Major CRS operations that book and sell tickets for multiple airlines are known as GDS
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