In recent years, the travel industry has seen significant advancements in technology, particularly in the way that flights are booked. One of the most notable developments in this area is the introduction of the New Distribution Capability (NDC), a new standard developed by the International Air Transport Association (IATA) that aims to modernise the way airlines distribute and sell their products.
So, what exactly is NDC, and how will it change the way that flights are booked? In this blog, we take a closer look at this emerging technology and explore its potential impact on the travel industry.
What is NDC?
NDC is a new messaging standard that enables airlines to distribute their products more efficiently and effectively. It allows airlines to provide more detailed and dynamic information about their fares, products, and services to travel agents and other distributors.
Prior to NDC, airlines relied on the traditional Global Distribution System (GDS) to distribute their products. While the GDS is still widely used today, it has some limitations that make it less than ideal for modern air travel. For example, the GDS is largely text-based, which makes it difficult for airlines to provide rich media such as photos and videos. Additionally, the GDS is limited in terms of the types of information that can be shared, making it challenging for airlines to differentiate their products from one another.
NDC addresses these limitations by providing a more dynamic, flexible, and multimedia-rich platform for airlines to distribute their products. With NDC, airlines can provide detailed information about their products and services, including photos, videos, and other multimedia content. They can also provide more personalised and tailored offers to customers based on their preferences, travel history, and other data points.
How will NDC change flight booking?
The introduction of NDC is expected to have a significant impact on the way that flights are booked. Here are a few ways in which NDC is expected to change flight booking:
- More personalised offers: With NDC, airlines will be able to provide customers with tailored offers based on their preferences, travel history, and other data points. This means customers receive highly personalised offers based on their needs and interests, resulting in an increase in booking conversions.
- Greater transparency: NDC is designed to provide more detailed and transparent information about flights, including the types of products and services that are included in each fare. This empowers customers to make well-informed decisions about which flights to book, leading to improved
satisfaction and loyalty. - Dynamic pricing advancements: NDC enables airlines to implement dynamic pricing, allowing prices to adjust in real time based on supply and demand. This could mean more competitive pricing and therefore
greater value for customers. - Direct booking: NDC also enables airlines to sell their products directly to customers, bypassing traditional distribution channels such as travel agents and online travel agencies. This streamlined and efficient booking process has the potential to yield lower prices for customers while enhancing overall convenience.
The introduction of NDC represents a significant shift in the way that flights are booked and distributed. By providing a more flexible, dynamic, and multimedia-rich platform for airlines to distribute their products, NDC has the potential to revolutionise the travel industry and provide greater value and satisfaction for travellers.
The Inspiretec platform comes with a built-in travel CRM and a reservation platform to support the entire travel booking journey, from lead acquisition to search, cost and book. Our travel platform offers a host of modules for online bookings and self-service and has NDC flight integration as well as the main GDS air booking systems.
Get in touch if you’d like to see how the Inspiretec platform can support your travel brand.
AUTHOR
Gavin Richards
CHIEF TECHNOLOGY OFFICER
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