Understanding NDC in Travel: Enhancing Airline Distribution and Corporate Booking
The travel industry, especially the corporate travel sector, is witnessing a surge in interest around NDC (New Distribution Capability). This modern data transmission standard promises better pricing transparency, personalized offers, and rich content, enhancing the overall traveler experience while reducing costs. For corporate travel managers, accessing fares from low-cost carriers (LCCs)—often missing from traditional global distribution systems (GDS)—is a challenge that NDC addresses effectively.
LCCs dominate air travel in regions like the Asia-Pacific, accounting for more than 50% of the market share. The adoption of NDC ensures broader access to these carriers, improving both choice and value for corporate travel programs.
What is NDC in travel?
NDC (New Distribution Capability) is an XML-based data transmission standard developed by the International Air Transport Association (IATA). It aims to overcome the limitations of legacy systems like GDS by enabling airlines to distribute richer, more customized content. With NDC, airlines can showcase ancillaries such as meals, Wi-Fi, seat upgrades, and baggage options—something traditional systems often fail to do.
Unlike a booking tool or platform, NDC is a technical communication standard that helps airlines, travel agencies, TMCs, and corporate booking tools connect and share information more effectively.
Why Was NDC Introduced?
NDC was created to resolve several challenges posed by legacy distribution systems like GDS:
- Lack of Personalization
Traditional systems don’t allow airlines to offer customized recommendations based on a traveler’s profile, such as frequent flyer status. - Slow Rollout of Offers
Airlines can publish offers instantly on their own websites, but travel agencies may take months to display these in their systems. - No Product Differentiation
GDS platforms offer limited capabilities for sharing rich content like videos and branded fare options, making it harder for airlines to stand out.
With NDC, airlines can replicate their web content across agency channels, ensuring travelers see the same dynamic pricing, offers, and add-ons.
Benefits of NDC in the Travel Industry
Here are the key advantages of adopting NDC:
- Personalized Shopping Experience
Airlines can customize offers based on traveler data, ensuring relevant and targeted promotions for corporate customers. - Product Differentiation
Airlines can showcase branded fares, premium seating, or onboard amenities more effectively, helping travelers make informed decisions. - Rich Content Integration
From images and videos to bundled services, airlines can provide more comprehensive product information. - Dynamic Pricing Capabilities
NDC allows airlines to tailor prices in real-time based on demand, customer profile, and market factors.
Challenges and Limitations of NDC
Despite its benefits, the widespread implementation of NDC comes with a few challenges:
- High Cost of Adoption
Both airlines and travel agencies must invest heavily in integrating and maintaining NDC-compliant systems. - Lack of Standardization
Since every airline can customize their NDC integration, the lack of a uniform model makes it hard for travel agents to consolidate content from multiple carriers. - Resistance to Change
Many agencies and travel managers are still comfortable using legacy GDS platforms, which limits NDC adoption. - Optional Participation
Airlines and travel suppliers are not mandated to adopt NDC, which slows industry-wide implementation.
The Future of NDC in Corporate Travel
As corporate travelers demand more personalized experiences and cost-effective options, NDC is poised to become a central pillar of airline distribution. Travel management platforms help bridge the gap by integrating GDS and NDC content in a unified system. These platforms ensure access to real-time airfares from both traditional and low-cost carriers, enhancing booking convenience and policy compliance.
Conclusion
The evolution of NDC in travel signifies a pivotal shift from legacy systems to more transparent, content-rich, and personalized airline distribution. It benefits all stakeholders—corporate travelers, travel managers, airlines, and agencies—by improving the booking experience and optimizing cost management.
Platforms play a key role in accelerating the adoption of NDC, offering centralized access to hybrid inventories, including LCCs and international carriers. With growing adoption and ongoing technological improvements, NDC is shaping the future of business travel.
NDC in Travel—FAQs
What is NDC in the travel industry?
NDC is an XML-based communication standard by IATA to enable rich content and personalized offers between airlines and travel intermediaries.
Why is NDC important for corporate travel?
It offers better pricing, access to exclusive content, and personalized offers, making business travel more efficient and cost-effective.
What are the key challenges of NDC?
High implementation costs, lack of uniform standards, and resistance from agencies still using traditional GDS platforms.
How does NDC differ from GDS?
While GDS provides access to basic fares and schedules, NDC enables airlines to distribute ancillary services, promotions, and dynamic pricing.
Which companies are currently using NDC?
According to IATA, over 245 organizations—including airlines, travel agents, and technology providers—have adopted NDC as of 2021.
