What is New Distribution Capability (NDC)?
New Distribution Capability is an XML-based data transmission standard (NDC Standard) that was launched by the International Air Transportation Association (IATA) to transform the way the travel industry sells its products and address the shortcomings of the existing airline distribution system.
The benefits of NDC
The NDC standard ensures that these ticket sellers stay up-to-date on each airlines’ newest offers and products. This enables you to see the entire range of products and services that are available to you.
NDC benefits include:
You get direct access to upgrades, exclusive packages, or limited-time offers even if you buy from a third party.
Your entire experience can be customized to your preferences.
You can compare all airline options, including their various services, products, and promotions, as well as their prices.
Airlines can distribute their products more widely and quickly through third-party agents or sites, and travel agents can sell the same content that airlines offer on their websites.
How does Airline Distribution work?
Groupy is a leading travel technology company that provides B2B / B2C travel software, travel CRM, accounting software, car rental software, bus reservation system, and mobility solutions to global travel and tourism companies. We provide complete end-to-end and seamless content integration via NDC connectivity. Our primary goal is to provide omnichannel service via highly scalable and effective solutions.
The Travelport JSON Air APIs now support New Distribution Capability (NDC) content in addition to standard GDS content. NDC is a travel industry-supported program launched by IATA for the development and market adoption of an XML-based standard for data exchange between airlines and travel agents.
It connects travel agents to airline systems and gives them access to differentiated content that is often only available through the airlines' direct channels. NDC increases the amount of innovation in how airlines sell, market, and distribute their products.
Groupy is a one-stop shop for all your travel website needs. We provide a wide range of services to help you become a market leader. We use NDC-XML messaging to assist airline service operators in managing and distributing fares. We have vast experience integrating flight booking engines. We provide you with a variety of business tools that allow you to sell both B2C and B2B.
Our customer-centric advanced technology solutions optimize the needs of travel agents. We make technology accessible and affordable to a large number of travel agencies around the world by providing innovative, popular, and simple-to-use travel booking systems.
Our advanced inventory management gives a fast and flexible solution for addressing the challenges of customer segmentation and inventory processing for all distribution channels.
We offer a fully integrated travel booking System with the latest flight booking system features such as an Online booking engine, GDS booking system, and Airline Reservation System for travel agents and travel companies worldwide.
With Groupy, you can provide your customers with a fast and reliable booking experience that allows them to search, design travel plans, and manage their bookings according to their preferences. We offer complete airline reservation system solutions for travel agents, tour operators, travel agencies, and travel companies, etc.
We offer a fully automated airline ticketing system that allows you to book tickets anytime, anywhere and help you in increasing sales and improving client satisfaction. We work with all leading GDS providers to offer the best possible help to the customers who visit your travel portal.
Groupy is fully experienced in help businesses in GDS integration using their API services. Our airline ticketing booking software includes boarding pass APIs for mobile check-in, baggage fees, in-flight amenities management, and airport transfer booking software systems. Thus, we are helping our partner travel agencies and OTAs grow their businesses.
Airline Reservation System software is required to manage flight ticket booking, flight schedule, and delivery of necessary information to the end-user. To be competitive in the market in terms of turnover and profit generation, airlines must have an active and best reservation system.
Technically, airline reservation systems consist of the exchange of data through global distribution systems such as Amadeus, Sabre, Galileo/Travelport, which consolidates the worldwide airline availability and pricing information and share through web services APIs / XMLs.
Using these web services on airline reservation system interfaces, airline availability and pricing information can be published on a user-friendly GUI interface. The end-user can choose a flight and proceed with the booking.
The GDS system has evolved into the backbone of the airline reservation system and is now a prominent player in the airline industry. Global distribution systems are consolidators/aggregators that provide travel agencies with a booking reservation software.
Travel services include airline booking, hotel reservation system, and car rental reservation system. GDS systems are more than just booking tools; they also serve as a communication channel and consolidator.
We provide travel agency software that is integrated with these travel inventory supplying GDSs and allows end-users to book flights from various LCCs and airline companies.
How do travel companies benefit from New Distribution Capabilities?
NDC is an XML-based data transmission standard that aims to address many of the limitations of the air travel industry's current distribution channels.
It is a well-known data protocol that allows airlines and travel agencies to exchange electronic information. It enables airlines to provide the same rich and dynamic content to agencies that they do on their website (including ancillaries).
We expand on the standardized communication approach to replace multiple and rigid booking, ticketing, delivery, and accounting methods with a single and flexible order management process. As a result, the existing capability gap between their direct and indirect channels has been closed.
Adopting the new standards will allow airlines to sell whatever they want, when they want, to whomever they want across all channels. Not only will they be able to make better and more relevant offers, explain what is and isn't included in bundled pricing, but customers will also be able to pick and choose what they want to pay for and what they don't. The benefits of IATA's initiatives are very clear and powerful, and they are a game-changer for the industry.
The following are the key stakeholders involved in making NDC:
Airlines supplying the products and services
Intermediaries and aggregators (resellers),
Travel agents acting on behalf of Travel Management Companies (TMCs) and corporate buyers who purchase the travel trips
Travelers are the ultimate customers making the trip.
NDC completely transforms their ability to merchandise and control their offers. They Can
Distribute all of their products to agencies and travel management companies, including ancillaries.
Offer value-added products and services based on their needs, if customers choose to disclose them.
Display more information about their products (bundled and unbundled), including detailed descriptions of distinguishing features and media such as photographs, images, and so on.
Increase opportunities for differentiation and innovation by bringing new products to market faster, which aids in differentiation.
Take advantage of personalization opportunities by providing a shopping experience based on customer preferences.
For Intermediaries / Aggregators
This represents a major change in the way airlines distribute their products. Today, the intermediary is a GDS, which accesses inventory and fare databases to generate the offer and then allows passengers to book, pay, and issue a ticket. These are extremely complex and diverse functions.
For example, credit card payments are processed directly by the GDS, which interacts with a payment service provider to authorize the payment. In an NDC environment, the aggregator only sends shopping and order requests to the airline host environment.
The concept of aggregation is a vital part of the NDC-based distribution model. The intermediary is an aggregator, and its role is to transfer information from the travel agent to the airline. Aggregators do three things:
Determine which airlines to contact when you receive shopping requests from travel agents.
Send shopping and other requests to the relevant airlines.
Consolidate airline offer responses and present the results to travel agents.
They too benefit from NDC by having:
Access to all of the airline's products and content, including promotional fares.
Dynamic pricing and product information are available.
The ability to provide comparison shopping for ancillary products based on more than just perceived value.
The ability to provide tailored services based on a customer's travel history and preferences, if they choose to be recognized.
For the Travel Agent
Travel agents are the primary target audience for NDC. It also represents an even higher percentage of their revenues as the type of itineraries that stick to the indirect channel tend to have higher face value because they are often related to corporate travel with complex itineraries and long-haul travel.
Rich content view of travel options
Greater transparency of fares across providers
Ability to personalize offers based on context
Greater reporting capability
In simple words, NDC increases the transparency of travelers' total spend for Travel Agents and TMCs. The premise is that instead of travel agents only having access to the fare cost, with the traveler then individually booking and expensing ancillary products, NDC allows all costs of a flight to be captured within the original booking.
Travel expense management, contract negotiations, and customer support corporations, in particular, continue to channel their employees' travel needs through agents to save time and money.
One of the most appealing features of NDC is the ability to offer personalized fares. Allowing airlines to service passengers with a fully customer-centric approach, dynamically pricing and personalizing their products. This means, if the traveler agrees, elements of personal information are released to airlines when the initial fare is searched. Airlines will then return a fare based on these specifications.
To an extent, this feature is already in use when booking a flight directly with an airline via their websites, where they can identify and engage their customers with specific offers based on their previous journeys. This is a positive development for travel agencies because it encourages employees to book through their TMC rather than arguing that a better fare is available directly.