Exploring the NDC (New Distribution Capability): A Game Changer in Airline Retailing

The airline industry is undergoing a significant transformation, thanks to the New Distribution Capability (NDC). NDC is a travel industry-supported program launched by the International Air Transport Association (IATA) that enables airlines to bypass traditional distribution systems and connect directly with travel agents and consumers. This XML-based data transmission standard is revolutionizing the way air products are retailed, offering a more dynamic and personalized shopping experience.

What is New Distribution Capability (NDC)?

NDC is an IATA-supported program that enables airlines to distribute their content in a more flexible and personalized way. It allows airlines to define their own product offerings and pricing, and to distribute them through multiple channels, including travel agents, online travel agencies, and their own websites. NDC also enables airlines to provide more detailed information about their products and services, such as seat maps and baggage fees, and to offer more personalized options, such as extra legroom or priority boarding.

What Came Before NDC?

Before NDC, the airline industry used traditional distribution systems like Global Distribution Systems (GDS) to distribute their content. GDS is a centralized system that stores information about flight schedules, fares, and availability, and provides it to travel agents and other distributors. However, GDS has several limitations, including:

• Limited product differentiation: GDS only allows airlines to display a limited amount of information about their products and services.
• Limited time-to-market: GDS can take several weeks or even months to update, which means that airlines may not be able to quickly respond to changes in demand or market conditions.

History of NDC

NDC was first introduced by IATA in 2012, and has since evolved to become a widely adopted standard in the airline industry. The NDC standard has undergone several revisions, with the most recent version (NDC 21.1) being released in 2021. NDC has been adopted by many airlines, including major carriers like American Airlines, Delta Air Lines, and United Airlines, as well as by several travel technology companies, such as Amadeus, Sabre, and Travelport.

Some examples of how NDC is being used in the industry include:

• American Airlines has developed an NDC-powered platform that allows travel agents to book and manage flights, hotels, and car rentals in a single transaction.
• Delta Air Lines has launched an NDC-powered website that provides customers with more personalized options, such as extra legroom and priority boarding.
• United Airlines has developed an NDC-powered mobile app that allows customers to book and manage flights, as well as access their loyalty program information.

Why New Distribution Capability (NDC) Matters?

The airline industry has long struggled with transparency in retailing, making it difficult for customers to compare prices and services across different airlines and travel agencies. The traditional distribution systems, such as Global Distribution Systems (GDS), have limitations in providing detailed information about airline products and services. This lack of transparency has led to a need for a new standard in airline retailing, which is where New Distribution Capability (NDC) comes in.

NDC addresses the industry’s distribution limitations by providing a standardized XML-based data exchange format that enables airlines to distribute their products and services more effectively. With NDC, airlines can now provide detailed information about their offerings, including rich content and personalized offers, to travel agents and customers. This increased transparency enables customers to make informed decisions and compare prices and services more easily….. Read More…..