New Distribution Capability (NDC) is a modern standard developed by the International Air Transport Association (IATA). It allows airlines to share their content — including fares, availability, and offers — directly with travel agencies, third-party platforms, and other distributors in real time. This technology aims to enhance the shopping experience, streamline booking processes, and offer more personalized services to customers.
New Distribution Capability (NDC) is a transformative standard in the travel industry that allows airlines to connect more efficiently with travel agents, platforms, and other distribution channels.
NDC is changing how airlines distribute their content, offering benefits like improved data accuracy, personalized offers, and more direct control over how fares and services are presented.
How NDC Works
NDC facilitates a more flexible and efficient communication process between airlines and travel agencies. Traditionally, airlines and distributors relied on Global Distribution Systems (GDSs) to distribute fare and availability information, but these systems were limited in their ability to provide rich content or customized options.
NDC allows airlines to bypass this limitation by communicating directly with travel management systems.
The NDC platform enables:
Dynamic pricing: Airlines can offer personalized pricing and promotions based on customer data.
Real-time availability: Travel agents and platforms can access up-to-date information directly from airlines.
Customizable offers: Airlines can offer tailored bundles of services, such as seat upgrades, additional baggage, and more.
Key Benefits of NDC
NDC offers several advantages to both travel managers and customers, making it a crucial development in modern travel distribution:
More personalized offers: Airlines can provide dynamic, personalized experiences tailored to the specific needs and preferences of the traveler.
Improved transparency: Real-time access to updated information reduces the chances of errors or outdated data being passed along to customers.
Better control over content: Airlines can manage and present their offerings directly so that they’re accurately represented across all distribution channels.
Faster booking process: NDC streamlines the booking process, helping travel managers save time and avoid unnecessary complexity when making reservations.
Challenges of NDC
While NDC offers many benefits, travel managers should be aware of some potential challenges:
Adoption and integration: Integrating NDC with existing systems, such as travel management tools, can require additional time and investment.
Consistency across providers: Not all airlines or booking platforms may be fully NDC-compliant, which could result in inconsistencies when booking.
Training and education: Travel agents and managers may need to undergo additional training to fully understand how NDC works and how to use it effectively.
NDC and the Future of Corporate Travel
As more airlines and travel platforms adopt NDC, the potential for more streamlined, flexible, and personalized travel management will continue to grow. Travel management companies (TMCs) and corporate travel managers can take advantage of a more efficient and cost-effective process, while travelers can enjoy a more customized and dynamic experience.
Frequently Asked Questions
NDC enables corporate travel managers to access more personalized content and pricing directly from airlines, improving booking efficiency and traveler experience.
NDC allows airlines to more effectively control their content and offers; the increase in personalized services and real-time availability may improve customer satisfaction.
Not all systems are fully NDC-compliant yet, but the industry is moving toward greater integration. Travel managers should check for compatibility before switching platforms.
Accrual accounting is a method of recording financial transactions when they occur, regardless of when the cash transactions happen, ensuring that revenue and expenses are matched in the period they arise.