What do you need to know about New Distribution Capability (NDC)? First, it’s one of the biggest changes to take place in the travel retailing industry in years. Plus, it’s been a key feature in corporate travel programmes for some time now.
And it’s here to stay. While NDC may still present some challenges, a travel management company (TMC) can provide valuable support to navigate those. Plus a TMC can demonstrate how NDC could improve your corporate travellers’ overall experience.
What is NDC?
Launched by IATA – the trade association for the world’s airlines – NDC is an industry-supported XML standard that modernises how airfares and services are distributed. In short, it’s set to enable more personalised and richer air content for business travellers.
Is NDC ready across the board?
Airlines have been introducing NDC at different speeds. “The movement was generally started by the European carriers and, from there, it has moved swiftly and now all the major carriers are on that journey,” Reed & Mackay Director, Air Partnerships, Richard Lindsay explains.
“It’s only in the last year or so that airlines’ technology has become ready to take NDC bookings from TMCs. Some carriers still have a few functionality gaps or limitations, but they are closing these very quickly. NDC can be a challenging topic, which is why working with a TMC, with an in-depth understanding of the complexities, can really support a corporate travel programme.”
How can corporate travel programmes benefit from NDC?
Ultimately, NDC enables corporate travel managers to find the richest content and best prices. It will generate cost-savings across travel spend, by giving travel managers and bookers – via their TMCs – access to better, more tailored fares based on their travellers’ needs.
But it’s not just about cheaper individual fares, Lindsay adds. It’s also about being able to offer clients a simplified way of booking, saving the booker time, as well as money, from the travel budget. “One of our major benefits is having our own tech stack, so when we develop NDC connection it goes directly into our online and offline booking capabilities,” Lindsay says. “The NDC rate is visible in every platform.”
Will NDC personalise travel more effectively?
Overall, NDC will deliver a more personalised experience to the business traveller. Which should also lead to better outcomes for traveller wellbeing. Although full-scale personalisation is still in its infancy, there is an optimistic outlook.
“Airlines want to provide the best experience for the traveller possible and can offer more tailored offers via a TMC through NDC,” Lindsay adds. “To date that’s been limited across all carriers. However, longer term, there’s a transition towards Offers and Orders (the next stage of IATA Modern Airline Retailing vision) and, the theory is, that will unlock better personalised experiences. As airlines transition towards this scheme we expect this will open up those more tailored experiences.”
Are airlines acting on customer feedback about NDC?
It’s no secret that travel managers are still asking questions about some issues corporate travel programmes encounter when booking via NDC. Yet a TMC that has strong partnerships with airlines is helping move these issues on. “We’re taking feedback from clients who have embarked on working with NDC and explaining any pain points they might have directly to the airlines. The airlines can then use these insights to evolve,” Lindsay says.
Where is Reed & Mackay on the NDC journey?
Clients can access direct NDC content from British Airways while NDC content from American Airlines, Lufthansa, Qantas, Singapore Airlines and Emirates is integrated into Reed & Mackay’s platform. And, throughout this year, NDC content from other airlines has been prioritised for integration. With airlines at different stages in their NDC journey, Reed & Mackay will turn on content as and when it’s ready, ensuring clients continue to have the best booking experience.
