Understanding New Distribution Capability (NDC): A Game Changer for Airlines and Travel Agents

Understanding New Distribution Capability (NDC): A Game Changer for Airlines and Travel Agents

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If you have ever booked a flight online or through a travel agent, you must have interacted with the traditional airline reservation system without even realizing it. For decades now airlines have used global distribution systems and passenger distribution systems to sell tickets, manage bookings and also share flight information. This setup no doubt is completely reliable but has its own limits especially when it comes to offering customized experiences or selling extras like baggage or seat upgrades.

In recent years, the airline industry has been shifting towards more customized travel. This means airlines want to offer way more than just a seat on a plane. They are likely to look forward to selling add-ons and customs offers based on your requirements. That's where new distribution capability comes in the picture. It's a revolutionary solution created by IATA to change how airlines and travel agencies like you communicate, distribute and sell flights.

You can currently see that NDC is reshaping airline income streams, improving customer satisfaction and also making the entire travel booking process more efficient. In this guide you can learn everything about NDC and how it works.

What is NDC?

NDC is a new distribution capability and industry standard developed by the international air transport association. The main purpose is to modernize and improve the way airlines distribute the content and communicate with travel agents like you or online travel agencies. The main objective is to replace the old, outdated messaging system used between airlines and travel agents. EDIFACT What's undoubtedly good but limited in flexibility could not handle rich content like images or detailed descriptions on dynamic offers. On the flip side NDC uses modern technology like XML based messaging and APIs to allow more interactive customized and transparent communication.

You can think of EDIFACT as a simple text-based messaging system. It's good for sending basic message information like flight times and fares but you cannot show anything flashy or customizable. On the other hand, NDC is like switching from your old phone to a smartphone. It's a pause dynamic pricing rich content like you can show photos of seeds and customized offers all in real time.

How NDC works

Traditional booking flow

Traditionally when you book a flight through a travel agent or OTA your request goes through GDS, which connects you to the airline's passenger service system to check availability and prices. The somewhat rigid flow shows only fixed fares and basic information limiting the ability of the airline to promote add-ons or even customized offers.

NDC booking flow

With NDC Flight Booking Software the booking process becomes much more dynamic. Instead of just routing everything through a GDS you can connect directly to airlines. This means you can access real time pricing for customized offers and rich content. Everything is in one place. For example, during booking you can see options to upgrade seats, add meals or purchase extra baggage all customized to your preferences. It's great flight booking software for travel agents.

Real world example

Consider finding a flight from New York to London. When you use the NDC enabled Airline Reservation System the system sends your request directly to the airline’s NDC API. The airline responds to you with basic economic fare with standard seating economy fare with priority boarding and economy fare plus meal with lounge access. As NDC supports customized information, if the airline knows that you often travel for business it can also automatically show offers with upgrades or even flexible tickets. You can just choose and book seamlessly with all add-ons and pricing clearly displayed.

As a travel agent this means a smoother booking flow and happier customers for airlines, it means better control of your product and higher revenue from ancillaries.

Read More: https://traveltekpro.com/understanding-new-distribution-capability-ndc-a-game-changer-for-airlines-and-travel-agents/

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