What is NDC? A Travel Manager's Guide

In the world of corporate travel, few acronyms have generated as much buzz and confusion as NDC. Standing for New Distribution Capability, NDC is a technology standard created by the International Air Transport Association (IATA) to modernize how airlines sell and distribute their products. It's a fundamental shift away from the decades-old legacy systems that have powered travel for generations.

For travel managers, understanding NDC is no longer optional. It's essential for ensuring your company has access to the best fares, the richest content, and the most efficient booking processes. This guide will demystify NDC, explaining what it is, why it's important, and how to prepare your travel program for this new era.

What Was Wrong with the Old System?

For decades, airlines have relied on Global Distribution Systems (GDS) like Sabre, Amadeus, and Travelport to distribute their fares to travel agencies and corporate booking tools. This system, built on a pre-internet technical language, was reliable but extremely limited. It was very good at transmitting basic fare and schedule data, but it struggled with anything more complex.

Ancillary products—like seat selection, priority boarding, Wi-Fi access, and bundled fare packages (e.g., "Economy Plus")—couldn't be easily sold through the GDS. This forced airlines to sell their product like a simple commodity, competing almost solely on price.

What is NDC and How Does it Fix This?

NDC is not a new GDS or a single platform. It is a technical standard, an XML-based language that allows airlines to connect directly to travel sellers (like a corporate booking tool) via APIs. This direct connection opens up a world of possibilities.

Think of it like this: the old GDS system was like a black-and-white text message. NDC is like a modern, interactive website.

With NDC, airlines can:

• Offer a Full Range of Products: Airlines can now sell all their ancillary products and bundled fares directly through corporate booking tools. An employee can book a flight and, in the same transaction, select their seat, add a checked bag, and purchase Wi-Fi.
• Provide "Rich Content": Airlines can display photos, videos, and detailed descriptions of their products, such as the features of a premium economy seat.
• Personalize Offers: NDC allows airlines to create personalized offers based on a traveler's loyalty status or a company's corporate contract. A top-tier frequent flyer might be offered a complimentary upgrade, or an employee of a key corporate account might see exclusive discounted fares.

Why Does NDC Matter to Your Travel Program?

The transition to NDC is not just a technical backend change. It has real-world implications for your company.

• Access to the Best Content: Increasingly, airlines are making their best fares and ancillary products exclusive to their NDC channels. If your travel management company (TMC) or booking tool is not NDC-ready, your travelers may not be seeing the cheapest fares or the most convenient options. They are missing out on potential savings and a better travel experience.
• Cost Savings: By bundling services (like a fare that includes a checked bag and Wi-Fi), NDC can often offer better value than buying each component separately. It also gives you more levers to pull for cost control beyond just the base fare.
• Improved Traveler Experience: A seamless booking process where the traveler can customize their journey from start to finish leads to higher satisfaction and better compliance with your travel program.

How to Prepare Your Company for NDC

As airlines accelerate their push toward NDC, travel managers need to be proactive.

• Ask the Right Questions of Your TMC: The most important step is to talk to your TMC or travel management platform provider. Ask them:
  • "What is your strategy for NDC?"
  • "Which airlines have you integrated with via NDC?"
  • "How is NDC content displayed in your booking tool?"
  • "How do you handle servicing and changes for NDC bookings?" (This is a critical point, as servicing these bookings can be more complex than traditional GDS bookings).
• Educate Your Team: Explain to your stakeholders, particularly in finance and procurement, why access to NDC is important for cost savings and traveler satisfaction.
• Review Your Travel Policy: Your travel policy may need to be updated to account for ancillary products. For example, should the company pay for seat selection or priority boarding? The policy needs to provide clear guidance.

NDC represents a fundamental shift in the airline industry. While the transition may have some growing pains, the end result will be a more dynamic, personalized, and efficient marketplace. By partnering with a forward-thinking TMC like Routespring that has embraced NDC, you can ensure your travel program is ready for the future.

Ready to see how NDC-powered booking can benefit your program?