NDC (New Distribution Capability) is a program developed by IATA to enable the travel industry to transform the way air products are retailed to corporations, leisure, and business travelers by using modern XML-based data transmission standards.
NDC allows airlines to offer personalized and rich content, improve their revenue management, reduce dependency on third-party distributors, and provide direct access to inventory with better control over pricing and offers.
Travel agencies gain access to more comprehensive airline content, including ancillaries and dynamic pricing, directly from the airlines, enabling better offers for customers and enhanced servicing capabilities.
NDC enables the sale of flights, baggage, seat selection, meals, lounge access, Wi-Fi, and other ancillary services, giving customers more choice and transparency throughout the booking journey.
NDC streamlines the booking process by allowing real-time communication between airlines and sellers, offering customized and dynamic pricing and removing limitations of traditional GDS-based bookings.
NDC is not a replacement for GDS but a complement. While some airlines may shift more content to NDC, GDS systems are evolving to support NDC connectivity and continue to play a role in distribution.
Airlines implement NDC by integrating APIs that comply with IATA standards. This often involves working with IT providers, NDC aggregators, or developing proprietary solutions for content distribution and servicing.
Challenges include technical integration, ensuring consistency of content across channels, partner alignment, and managing servicing capabilities post-booking such as refunds and changes.