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The new level of cooperation between the eSky Group and the airlines belonging to the Lufthansa Group follows a closer partnership between the CEE market leader and the European leading aviation group. In 2020, eSky Group was one of the first companies choosing to implement the Lufthansa Group's NDC as one of its sources for sourcing flight offers.
We at eSky Group prioritize innovative solutions that are transforming the travel industry. NDC is a part of this digital transition, while our close cooperation with Lufthansa Group shows how airlines and online travel agencies can work together for the customers’ benefit. Being the first in the world to switch to offering flights exclusively through this channel is a testament that both for us and Lufthansa Group, customers always come first. We are setting an example to other travel industry players that such a partnership generates tangible advantages for both parties – Jakub Bajorski, Chief Product Officer at eSky Group, commented.
Now, as a result of close technology and product cooperation, the company has decided to sell Lufthansa Group offers exclusively based on NDC technology, which opens up new possibilities from the perspective of eSky's service offering. NDC technology allows eSky Group customers worldwide to offer access to a wide range of fares and products from all airlines belonging to the Lufthansa Group (Air Dolomiti, Austrian Airlines, Brussels Airlines, Eurowings Discover, Lufthansa, and SWISS) at prices offered through the airline's direct channels.
We are thrilled to announce that eSky Group has achieved an exceptional level of NDC adoption, selling almost all offers on NDC with Lufthansa Group airlines. This is marking a significant milestone in our partnership. I commend eSky Group for developing an advanced distribution technology and becoming the pioneer in providing customers with a wide range of flights and ancillary products from Lufthansa Group airlines. We are thankful for the continuous partnership – Johannes Walter, Head of Channel Partners at Lufthansa Group airlines, added.
The switch to NDC on the eSky Group's services on a global scale will provide users with attractive offers from Air Dolomiti, Austrian Airlines, Brussels Airlines, Eurowings Discover, Lufthansa and SWISS , not only in terms of lower prices on airline offers, but also a range of ancillary products including the option to purchase checked baggage, seat selection, access to business lounges or other ancillary products. This also opens up new opportunities for cooperation between the companies in other areas.
New Distribution Capability (NDC) is a cutting-edge technology that aims to improve the way airline tickets and related services are distributed. NDC allows airlines to directly access agents with their offerings, resulting in significant cost reductions. In addition, airlines have greater control over the sales process and more effective relationships with travel agents. In turn, travel agents have access to more detailed information on seat availability, baggage fees, meal options and other additional services. They can therefore manage the presentation of the offer more easily and tailor it better to their customers' needs, as well as inspire them to travel.
The NDC also improves the flow of information, facilitates the automation of sales processes and, as a result, increases the speed and reliability of transactions. Furthermore, as part of the eSky Group's commitment to providing exceptional customer service and convenience, the implementation of NDC technology will be accompanied by enhanced servicing capabilities and automated changes. With the integration of NDC, customers will benefit from streamlined and efficient ticketing processes, allowing for smoother transactions and faster responses to inquiries.
The implementation of NDC technology in 2020 has allowed the eSky Group to significantly increase air ticket sales on flights operated by the Lufthansa Group airlines. Following the implementation of NDC, the eSky Group tripled its airline ticket sales on flights operated by Lufthansa Group airlines, and their share in the regular lines' sales structure increased from just over 5% in 2019 to almost 14% last year.
eSky's partnership with the Lufthansa Group has proven that NDC technology is the future of modern airline retailing. The eSky Group distributes 35 airlines using this technology. By the end of 2023, NDC technology will account for approximately 50% of sales in the segment of scheduled airlines sold on eSky Group’s platforms.