During the last 30 years, the process of selling airline seats has remained largely unchanged. So it raised some eyebrows when the International Air Transport Association (IATA) revealed plans to launch its New Distribution Capability (NDC) back in 2012.
Today, however, the NDC is beginning to gain traction, addressing the industry's distribution limitations, and enabling more efficient communication between airlines and TMCs.
IATA describe the NDC as a: "travel industry-supported program for the development and market adoption of a new XML-based data transmission standard." Yes, their description is a bit jargon-heavy, but put simply, IATA has created a new chunk of computer code to help increase travel-industry sales by making retailing an Amazon-esque experience.
Why Now and Why NDC?
Though it has been nearly five years since its introduction, the NDC Standard is beginning to gather steam.
For the first time, 2017 marks an occasion where 15 of the top 20 airlines (by revenue) have either deployed components of the NDC Standard or plan to do so within the year ahead.
But what does that mean for TMCs?
Initially, when the Standard was proposed, it was interpreted as a solution that would shun existing distribution systems. This caused considerable concern among TMCs as GDSs are a key link in the distribution chain, they act as a primary gateway to airline content, and, when tailored correctly, help save time and money.
Since then, it's been made clear that the Standard will utilise GDSs to offer enhanced products to TMCs. So although progression and adoption have been slow up until now, the time for TMCs to become NDC ready is upon us.
What is NDC Ready?
NDC ready refers to the capability of a TMC's travel programme, policies, and supply chain to handle, and potentially take advantage of, changes to airline retailing the NDC will introduce.
Though this is a daunting process, our download aims to provide insight on the key points of the NDC Standard, outline some of the perceived benefits and drawbacks of adoption, and provide information on the steps to becoming NDC ready.
The NDC standard is a complex topic that impacts the entire travel industry, and we, like everyone else, are paying close attention to the changes the standard will introduce. This guide was created with the aim of helping TMCs navigate these new conditions, get up to speed with the NDC, and take advantage of the opportunities presented by the future of airline product distribution. To learn more, download "Get Ready for NDC - A Guide to Preparing Your TMC for Adoption".
