A Business Travelers Guide to NDC

If you're involved in corporate travel, you've likely heard the acronym NDC being discussed with increasing frequency. NDC, which stands for New Distribution Capability, is a technology standard developed by the International Air Transport Association (IATA) to modernize the way airlines sell their products. While it sounds technical, its impact is very real, affecting everything from the fares you see to the way you book your flights. For travel managers, understanding NDC is crucial to ensuring your company has access to the best travel options.

What Problem Does NDC Solve?

For decades, airlines have used Global Distribution Systems (GDS) to distribute their fares to travel agencies. This system, built on old technology, was great at handling basic fare and schedule information but was very limited in its ability to sell anything else. Airlines struggled to offer ancillary products like seat selection, Wi-Fi, or bundled fare packages through these traditional channels.

NDC is an XML-based data transmission standard that allows airlines to connect directly with travel sellers (like a corporate booking tool) via modern APIs. This direct connection bypasses the limitations of the old GDS, allowing airlines to offer their full range of products and content.

What Does This Mean for Business Travel?

1. Access to More Content: Increasingly, airlines are making certain fares, especially their cheapest promotional fares, available only through their NDC channels. If your company's booking tool is not NDC-enabled, your employees may not be seeing the best available prices.

2. Richer, Bundled Offers: NDC allows airlines to sell "bundles." For example, an airline could create a "Corporate Traveler Pack" that includes a standard economy fare, a pre-paid checked bag, seat selection, and in-flight Wi-Fi, all for a single price that is cheaper than buying each component separately.

3. Personalization: NDC enables airlines to personalize offers. An airline could recognize a high-value corporate client or a top-tier frequent flyer and offer them an exclusive discount or a complimentary ancillary product directly in the booking tool.

4. A More Seamless Booking Experience: The ability to book not just the flight but also select a seat, add a bag, and purchase other extras in a single, seamless transaction creates a much better and more efficient traveler experience.

How to Prepare for the NDC World

The airline industry's transition to NDC is well underway. To ensure your travel program is not left behind, you need to:

• Partner with a Modern TMC: The most important step is to work with a Travel Management Company (TMC) that has a clear and robust NDC strategy. A forward-thinking TMC will have already built direct integrations with major airlines to pull in their NDC content alongside traditional GDS content.
• Ask the Right Questions: Ask your travel provider, "How are you integrating NDC content into your booking platform?" and "How do you ensure our travelers are always seeing the best available fare, regardless of its source?"

NDC represents a fundamental change in the plumbing of the travel industry. By embracing it, you can ensure your company benefits from lower costs, more choice, and a better booking experience.