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A relatively recent technology standard, NDC, has emerged in airline distribution. It is expected to significantly transform the market and unlock additional opportunities for both airlines and travelers.
What is NDC
NDC (New Distribution Capability) is an industry data exchange standard in travel, developed by the International Air Transport Association (IATA). It is based on XML and outlines how airlines, aggregators, and intermediaries should interact when selling flights and ancillary services.
It is through NDC that fares, service information, applicable rules, and personalized offers can be transmitted in an organized manner. This approach makes airline content more flexible and transparent for all participants in the sales chain.
How NDC Works
The initiative aims to create a unified communication standard between airlines and intermediaries—online travel agencies, corporate TMCs, and other technology platforms. This standard encompasses a set of protocols and algorithms that dictate how data is generated, processed, and transmitted to the provider.
Essentially, an airline directly describes its products using NDC and distributes that content through its connected partners. In response, the platform sends a request, receives the most up-to-date fares, services, and conditions, and then presents the final offer to the customer via a convenient online flight ticket interface here.
As a result, agents and travelers gain access to a comprehensive range of fares and services—including customized packages and promotional offers. In turn, airlines can achieve more precise personalization and tailor fares based on a passenger’s preferences provided with their consent.
NDC enables airlines to manage their own content and reduce their reliance on traditional Global Distribution Systems.
The Impact of NDC on the Travel Industry
The primary goal of NDC is to provide more tools for travel market participants. Airlines and digital services now have the opportunity to reconfigure the distribution of flights and ancillary services while also experimenting with new merchandising formats.
When an airline is no longer constrained by outdated standards, it gains additional sales channels and product packaging scenarios—from dynamic pricing to comprehensive offers for business clients and groups. For those involved in corporate travel services, this opens the door to more flexible corporate policies and transparent budget savings.
As NDC becomes more widely adopted, competition among content providers will increase, and distribution costs for airlines could decrease. Ultimately, passengers will have more options and be able to choose tickets that best suit their price range, desired service package, and fare change/refund conditions.
Tech companies that actively adopt NDC have the opportunity to expand their range of offerings—integrating more carriers, combining various fare options, displaying detailed conditions, and selling additional services ranging from seat selection to insurance and baggage. This is also an important step for those involved in budget hotel bookings, because customers expect a consistent level of convenience and transparency for both flights and accommodations.
Large international carrier groups have been among the first supporters of the NDC industry standard.
Examples of NDC Implementation by Airlines
Several airlines have long been experimenting with direct distribution and are actively promoting the transition to NDC. Pilot projects and phased scaling have demonstrated that this standard can securely and reliably transmit data to technology companies without relying solely on GDS.
Connected aggregators gain access to enhanced content: branded fares, both paid and complimentary services, packages for corporate clients, and flexible change policies. For a service that offers flexible date flight searches, this is particularly important: NDC enables the accurate display of a wide range of options and the selection of the optimal solution for a specific travel need.
The Role of Technology Platforms
Modern B2B platforms for business travel and online agencies are increasingly integrating with NDC channels from various carriers. This allows them to consolidate multiple fare sources into a single interface and provide end users with a more comprehensive market overview.
These platforms handle the complexities of technical integration, unified booking procedures, post-sale customer service, and reporting for companies. As a result, corporate clients enjoy a familiar purchasing process accompanied by an expanded range of offers and fares, including special conditions for booking hotels for business travelers.
How NDC Impacts Market Participants
NDC for Airlines
For airlines, NDC is a way to put the passenger at the center while maintaining control over their own product. Carriers gain the ability to:
- deepen the personalization of fares and service bundles;
- promptly launch promotions and special offers;
- flexibly manage ancillary services and their pricing;
- create branded fare families for different customer segments.
As a result, airlines can expand the range of services they offer, increase their average revenue per ticket, and build customer loyalty by more accurately addressing the needs of travelers and companies that regularly purchase flight tickets for their personnel.
NDC for Travel Service Providers
Travel service providers—from online agencies to corporate travel platforms—can use NDC to display more detailed flight information during the booking process. This:
- reduces the number of “surprises” for the passenger;
- speeds up the selection process;
- allows for precise, personalized recommendations;
- facilitates the management of changes and post-sale add-ons.
Additionally, NDC simplifies the integration of various content sources within a single interface, where—in addition to flights—a customer can find a hotel, add a transfer, insurance, and other services. This approach makes the overall service more comprehensive and convenient for users.
Modern services strive to make managing flights and accommodations intuitive and transparent for all parties—from passengers to corporate procurement departments. If you value a combination of flexible distribution, transparent rules, and an extensive range of services, it makes sense to consider platforms that already support NDC and offer convenient corporate travel management.
If needed, experts from these services will advise you on how to optimally configure your travel policy, integrate special corporate fares, and combine economy flight tickets with airlines and accommodations for different categories of employees.
