Breaking Down the New Distribution Capability: What You Need to Know
In recent years, the travel industry has undergone a significant transformation as a result of technological advancements. Airlines, travel agencies, and technology providers are exploring new ways to connect with customers and streamline their business operations. One such development is the New Distribution Capability (NDC), which is a set of technical standards that enable travel providers to distribute their products and services in a more personalized and dynamic way.
In this article, we will discuss the essential aspects of NDC and how it affects the travel industry.
What is the New Distribution Capability (NDC)?
The International Air Transport Association (IATA) developed NDC to enable airlines to distribute their products and services more effectively across all channels, including travel agencies, online travel agencies, metasearch engines, and corporate booking tools. NDC is intended to replace the existing legacy distribution systems, which are now more than 40 years old. NDC empowers airlines with the ability to offer more personalized and dynamic offers, ancillary services, and fare families, as well as enhancing the customer experience.
How does NDC Benefit the Travel Industry?
NDC offers several advantages to both airlines and travel providers alike. Firstly, it allows airlines to make personalized offers to customers by providing more relevant and customized options. Secondly, it enables airlines to distribute their ancillary services such as seat assignments, excess baggage, and lounge access more effectively. This, in turn, helps airlines increase revenue and improve customer satisfaction by offering customers a more personalized experience.
Travel providers can also benefit from NDC as it allows them to sell ancillary services associated with airline tickets more effectively. They can offer a more comprehensive suite of services than just flights, enhancing the overall customer experience.
Impact of NDC on Distribution Channel
NDC can have a significant impact on the distribution channel. Travel agencies and online travel agencies, which rely on traditional GDS (Global Distribution System), must adapt to this new distribution system to maintain their value proposition and to provide more personalized offers and services to their customers.
For instance, travel agencies may need to upgrade their existing technology to support the NDC integration or connect with specific NDC providers. Online travel agencies must ensure that their search engines support NDC-enabled airlines and their products. They must also integrate new APIs (Application Programming Interfaces) into their systems to access NDC content effectively.
Conclusion
NDC is an ambitious initiative intended to modernize the way airlines distribute their products to customers. NDC provides airlines with greater control over their product offerings, with more ancillary and fare options personalized to the customers’ needs. Travel providers also stand to gain as they are granted access to more meaningful products and selling opportunities, enhancing the overall customer experience. With the right implementation, NDC can provide a win-win situation for all industry stakeholders. The travel industry is undoubtedly adapting to the digital changes, and the NDC initiative will help in modernizing the way travel products are sold, thereby enhancing the customer experience.
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