What is NDC in Travel?

New Distribution Capability (NDC) is a travel industry-supported program. Initiated by the International Air Transport Association (IATA), it aims to modernize the distribution of airline products through the use of a standardized XML schema. NDC creates an opportunity to transform the way air products are retailed to corporations, leisure, and business travelers by addressing the industry’s distribution limitations.

Understanding NDC

NDC is essentially a data transmission standard. It enables airlines to distribute their content directly and instantly to travel agents and customers. Traditional distribution methods, namely the Global Distribution Systems (GDS), have constraints. They often limit how airlines display and sell their products. NDC overcomes these constraints by allowing richer and more dynamic content.

Benefits for Airlines

• Control Over Content: Airlines regain control over how their products are displayed and sold.
• Personalization: Airlines can offer personalized products with detailed descriptions, images, and tailored offers.
• Revenue Opportunities: By offering tailored ancillary services, airlines can increase revenue.
• Real-time Information: NDC ensures up-to-date fare and availability information.

Advantages for Travel Agencies

• Access to Rich Content: Agencies gain access to richer product descriptions and ancillary services.
• Improved Service: Agents can provide better and more personalized service to clients.
• Comprehensive Offers: Agencies can bundle airfares with auxiliary services like baggage, seat selection, and meals.

Benefits for Travelers

• Transparency: Travelers see detailed product descriptions before purchase.
• Customization: Travelers benefit from personalized offers and bundle options.
• Enhanced Experience: The booking experience is more comprehensive, involving more options and visibility into what is included in their fare.

Technology Behind NDC

NDC is powered by a standardized XML schema. XML facilitates data exchange between systems, ensuring seamless integration of airline content across various platforms. Through APIs (Application Programming Interfaces), different systems can communicate effectively, making it easier for content to be distributed and booked.

Implementing NDC

The implementation process involves several steps. Airlines must develop or acquire the IT capability to support NDC. Travel agencies need to adapt their current systems to be compatible with NDC standards. GDS providers also play a crucial role. They must upgrade their systems to process NDC-enabled content.

Challenges With NDC

Transitioning to NDC is not without challenges. One challenge is the cost associated with upgrading or developing new IT systems. There is also a need for industry-wide standardization to ensure compatibility among various stakeholders. Training and support for travel agents and other users are essential to harness the full potential of NDC adoption.

Case Studies and Adoption

Different airlines have adopted NDC with success. Lufthansa was one of the forerunners. They implemented NDC to provide agents with richer content and tailored offers. American Airlines has also been at the forefront, enhancing their direct connect solutions. The benefits observed include improved user experience and revenue optimization.

The Future of NDC

The trajectory of NDC points towards expanding adoption. The benefits it offers to airlines, travel agents, and travelers are clear. In the upcoming years, more stakeholders are expected to embrace NDC. This will likely lead to a more cohesive and transparent travel booking experience. However, ongoing collaboration among all parties involved will be crucial for its continued success and evolution.