NDC Personalization: Hype or Real Revenue?

Added: 2026-05-28

[00:00:00]the revenues behind NDC, the promises, the future. So, based on Lufthansa's number, Lufthansa Consulting's number, they're estimating that uh each passenger will generate additional $5.30 in revenue per booking uh using NDC technology and personalization.

[00:00:22]How do you see that personalization happening? Let's just say that's true.

[00:00:25]Let's just say we can make a lot more money personalizing. You know, how how do you see that can be tailored to the user, not overwhelm the user? I think maybe we think of user too narrow in this case. You think of it just like travel agent. Most of your customers aren't logged in, right? They don't say, "Hey, I'm uh Mr. Smith and here's my frequent flyer number or here's all of my frequent flyer numbers that I'm going to send to all of the carriers, let them sort of understand all of that signal."

[00:00:53]Which they don't have all the signal, so they still don't They know what you may have booked, but they don't know what you've looked at, what you've decided against. Um but I think you're going to see more segmentation of personalization. Um is this does this person fit the persona of a family going on vacation? Uh are they a business traveler going for this amount of time? So, they will try to curate products that um are better tailored to that to that consumer segment. It's a more natural way of of getting scale signal that if you if you then wanted to say, "Hey, these are my gold customers." You can keep narrowing down, but uh it's going to take a while to get there. It's um going back to that shopping volume look to book, the more the more segmented you create algorithms to create unique content, the more shopping you drive.

[00:01:41]So, there's and the [snorts] more expensive that shopping request comes cuz now it needs to understand more context uh to that request. So, it I think it we've been asking for this for 8 years.

[00:01:52]And we're going to get there. We're we're not there.

[00:01:54]And I will make it faster to get there, but it's it's still going to take time.

[00:01:58]Okay. So, back to your your first question around that $5 2 second 2 cents per customer. Mhm. Um I do think that airlines will want to create new products and new services.

[00:02:10]And if you're to go back to the current the legacy way of doing things through a direct to insert new products and new services it's not it's not easy. Yeah.

[00:02:20]And NDC the whole point of NDC is to give airlines flexibility to introduce new products and services and bring them to market uh without having to wait. I I do think that you're going to see airlines able to realize that vision and um create the incentive that's that's required to pay to pay for all the investments that they're making uh in the technology.

[00:02:39]Yeah.