AVIAPRO CONSULTING BLOG
New Distribution Capability (NDC): The Path to Future Personalized Travel
2 April 2023
Numerous projects for personalized travel have been put forth and discussed over the past ten years, and the discussions are still going on. Different attempts were taken by aviation experts in IATA, distributors, online travel agencies, vendors, suppliers, and partners to discuss the future of airline distribution and retailing as a way to provide a personalized travel product. It was challenging to determine who wanted to be the key player in this major transformation. In the present, it is without a doubt the seller, not the intermediaries, that controls the process of creating the offer. The process of selling the right bundle to the right customer at the right price at the right moment is the core of future distribution.
In this context, IATA introduced NDC (New Distribution Capability) as a significant revolutionary initiative to modernize airline distribution. A new, XML-based data transmission standard is being developed and is being backed by IATA through an industry initiative known as NDC. By allowing airlines to directly make sales offers in real time and allowing them to define and price their products in a variety of ways, the NDC standard improves the ability for airlines to communicate with travel agencies. It makes standard airline material, which was previously only accessible on the airline's website before NDC activation, such as pictures of the aircraft cabin, a list of ancillary products, and a list of add-on services, available to ticket agents all over the world.
The advantages of NDC are many. First and foremost, the NDC standard improves the airline’s ability to distribute its goods to trade partners, consolidators, and partner sellers in a contemporary manner. Better booking experiences and upsell possibilities are what NDC means for the sellers. Additionally, NDC offers the chance to enhance the entire airline distribution process, for example, by introducing flight information and ancillary goods in a quicker, richer, and more dynamic manner. Airlines can provide better customer experiences thanks to personalized offers, comprehensive material, and flexible pricing. With NDC, the airline generates offers based on the shopping request flow. Offer refers to the availability of flights and seats with airfare that may be combined with other goods like ancillary services. When a customer or seller takes an offer, it becomes an order and is given a special-order reference number, like a PNR in a conventional GDS environment.
At AviaPro Consulting, we collaborate with you in a professional way to enable your company to fully benefit from the upcoming distribution revolution. We are proud to help airlines outperform not only industry standards but also their competitors by adopting the right positioning. By adopting NDC, through AviaPro Consulting, the following benefits are promised:
- Real time and global scale content delivery.
- Immediate connection with buyers to complete transactions quickly.
- Decisions on real time inventory and pricing for customized offers backed by effective forecast.
- Bundling ancillaries based on personalized /customized offers.
- Cooperation with third parties to dynamically provide additional services.
- Data driven decision based on insights and analytics.
Connect with AviaPro to better understand how you can take advantage of New Distribution Capabilities. Please reach out to Ali at ali.kassir@aviaproconsulting.com or connect with him on LinkedIn.
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