What is NDC?
New Distribution Capability (NDC) is an innovative industry standard developed by the International Air Transport Association (IATA) to revolutionize the distribution and sale of airline tickets. This standard is designed for use by airlines, aggregators, and travel agencies, enabling better communication and data exchange between these entities. Unlike a database or software, NDC is a technological standard that facilitates personalized offers, fares, and additional services. This allows airlines to directly interact with agencies or travel management companies, enhancing the customization of travel offerings.
How NDC Works?
NDC operates by setting standards for data exchange, which are accessible to all parties, including third parties, intermediaries, and IT providers. The primary goal is to enable airlines to create and distribute personalized travel offers and services. Certification levels for NDC are awarded based on the ability to send or receive NDC messages, enhancing the efficiency and customization of travel services.
Booking with GDS vs. NDC
Since the 1960s, Global Distribution Systems (GDS) like Amadeus and Sabre have been the backbone of airline ticket distribution through travel agencies. These systems rely on the outdated EDIFACT standard, which lacks flexibility for modern demands.
NDC addresses this by offering:
- Rich Content Access: Including photos, videos, sounds, and virtual reality.
- Real-Time Information: Access to up-to-date fares, products, and policies.
- Personalized Services: Based on travel history and customer preferences.
- Transparent Shopping Experience: Making all airline products and services available, allowing for easy comparison of flights and fares.
Benefits of NDC
NDC provides numerous benefits over traditional GDS, such as:
- Enhanced Product Differentiation: Airlines can distribute a full range of products, including ancillary services like extra baggage or seat reservations, using rich media formats.
- Improved Customer Experience: By offering personalized travel options and transparent shopping experiences.
- Direct Airline Communication: Travel agents can directly interact with airlines through aggregators, bypassing the need for GDS.
Current Booking System for Travel Agencies
Traditionally, travel agencies use GDS to book flights, relying on three primary sources:
- Schedules: From Innovata or OAG databases.
- Fares: Compiled and distributed by the Airline Tariff Publishing Company (ATPCo).
- Seat Availability: Checked through the Airline Reservation System.
GDS returns search results based on these criteria, but with NDC, the process becomes more streamlined and direct, enhancing the ability to offer tailored deals and track customer behavior.
NDC Access and Roles
NDC is accessible to various stakeholders in the travel industry:
- Airlines: Create and provide content.
- Aggregators: Act as intermediaries, integrating airline content into their systems.
- Sellers: Develop booking platforms using aggregator or direct airline content.
- Technology Providers: Assist in implementing NDC for all parties.
NDC Certification Levels
NDC certification ensures the provision of various services, categorized into four levels:
- Level 1 – Post Booking Ancillaries: Additional services like seat reservations or baggage for existing bookings.
- Level 2 – Offer Management: Purchase and booking capabilities with some restrictions.
- Level 3 – Offer and Order Management: Full purchase, booking, and limited changes or cancellations.
- Level 4 – Full Offer and Order Management: Comprehensive booking, purchasing, and extensive post-booking management.
Conclusion
The New Distribution Capability (NDC) standard is transforming the travel industry by providing a flexible, efficient, and customer-centric approach to airline ticket distribution. By enabling rich content, real-time information, and personalized services, NDC offers a significant upgrade over traditional GDS systems, benefiting airlines, travel agencies, and travelers alike. For more information, visit www.airretailer.com
