NDC enables airlines to provide more dynamic and personalised offers directly to consumers and travel agents compared with Global Distribution Systems (GDS). Despite the ‘new’ in the title NDC was launched about 10 years ago. The programme is supported by the International Air Transport Association (IATA).
NDC works through direct distribution channels. For instance, airlines can use their own websites and apps to offer content, like tickets, types of seats and prices etc. It means airlines have more control over what they offer and to whom. They also avoid paying GDS surcharges, which in theory means they can offer cheaper fares to travel agents and consumers.
The evolution of NDC is having a growing effect on the travel industry. Some airlines have embraced NDC, to varying degrees, while others continue to rely on traditional distribution channels like GDS.
It has certainly meant more choice for Online travel agents (OTAs) and Travel Management Companies (TMCs) which have traditionally relied on GDSs. It gives them access to a broader range of products and services from airlines, at more competitive prices.
Search engines can also integrate NDC allowing them to offer even more comprehensive results for consumers searching for the best travel solution.
Even GDSs are working to integrate NDC into their platforms as they look to offer more value to travel agents who pay to use their systems. The GDSs are finding it hard to ignore NDC as they are aware that it allows airlines to offer products based on the personal preferences of travellers.
NDC and GDSs play important roles in the airline distribution ecosystem but they serve different purposes. Travel agents wanting to offer the most comprehensive offer will no doubt take advantage of both systems. However, depending on the evolution of NDC this may change in the future.
An issue for GDSs is the perceived expense of using them. We have seen several airlines remove their content from GDSs or charge consumers a surcharge for booking through a GDS.
The ecosystem is ripe for disruption. This is where Journey Mentor comes in. Journey Mentor works with both NDC and GDSs to offer travel agents and TMCs the best of both worlds. The agent can see what is on offer across all of the market and can choose the best product for their customer.
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