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New Distribution Capability (NDC) is a set of technical standards developed by IATA to bring new retailing capabilities to the travel industry and travel distribution. The technology’s primary objective is to provide a more transparent and dynamic way of distributing and selling airline products, offering more tailored and relevant offers to travelers and an improved shopping experience.
There are several ways for travel sellers to source NDC content. They may choose to connect directly to the airlines’ IT systems or use a single connection to an aggregator solution to access to NDC content from multiple airlines - either from a GDS provider or others.
Adopting NDC requires a shift in business processes and workflows. Effective change management strategies, training and collaboration across the ecosystem are recommended to ensure smooth adoption across the organization.
NDC adoption has grown steadily in recent years. Today, a wide range of airlines and travel sellers worldwide have successfully implemented NDC in various capacities. More than 70 airlines are now certified by the IATA Airline Maturity Index.
NDC brings numerous benefits to various stakeholders in the travel industry – airlines, travel sellers, and travelers alike. The industry will gain from more retail‑oriented shopping and simplified business processes that will ultimately create exceptional end‑to‑end travel experiences.
NDC is simplifying the way airlines can create, enrich, display, and distribute tailored offers to customers. The technology allows them to better understand traveler intent and context, and create bundles based on the corresponding needs. They can also apply more flexible and dynamic pricing strategies using Continuous Pricing with no limitation on price points. With NDC, airlines can also present their products in a richer and more visual format, further enhancing the shopping experience.
Travel sellers are able to access a wider range of the airlines’ product portfolio including new type of ancillaries and promotional fares. With access to truly tailored offers and differentiated content, they can deliver added value, better comparisons and more personalised service to their customers.
Travelers will be able to receive different options and select the most appealing one based on their preferences. Specifically for corporate buyers, by having all the airline’s product and service information available, they will reduce the need for out-of-policy bookings. Travelers can also benefit from richer information around the offers from the airlines, allowing them to make more informed decisions when booking flights.