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Lesley's Column

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27th July 2015

Why NDC matters to you

There has been a lot of discussion about NDC over the last few years so it is surprising that some buyers still don’t know what NDC is or the impact it will have on the way they manage their business travel.

This lack of awareness may be due to the fact that many are still not really sure if it really does mean anything to them and their business or how they can properly use it.

IATA’s New Distribution Capability (NDC) represents a unique opportunity to modernise air travel distribution.

Currently, airlines use internet programming language (XML) on their websites and are able to offer travel consumers an online shopping experience similar to what they can find on retail websites such as amazon.com.

However, the global distribution systems (GDSs) use a less flexible pre-internet message protocol, and this legacy infrastructure cannot efficiently support modern retailing practices such as personalised and customised offers.

An airline that offers some extra leg room or a special meal option cannot entice the customer with this added value when selling through travel consultants because the GDSs cannot currently present that information effectively.

For the travel buyer/manager it’s important to understand the impact on travel procurement and how travel is managed in a corporate environment. It will be important to control it and understand the opportunities it may bring.

So where is the development now? Several major global carriers conducted trials last year, testing the likes of codeshare flights, insurance upsells and mobile bookings.

Change always brings challenges, but NDC should lead to a better-informed shopping environment for air travel that will deliver value to passengers and create business opportunities across all aspects of the industry.

It’s time to start thinking about the opportunities it may offer your travel programme.