Airline industry has witnessed a major shift towards personalized travel experiences and informed travel experiences with the evolution of New Distribution Capability (NDC). NDC empowers airlines to build a more direct relationship with B2B customers and provide personalized offers to customers requirements. This range of technologies offers airlines to deliver the personalized contents with additional ancillary offerings which are not available through legacy channels like GDS. By adopting to NDC, airlines can increase their customer satisfaction and responsiveness towards the changing preferences and behaviour of customers.
What is an NDC?
The International Air Transportation Association (IATA) introduced the New Distribution Capability (NDC) to revolutionize existing communication standards and enhance distribution capabilities. NDC marks a major shift from legacy systems that have been in use since the 1980s. In essence, it’s an XML-based standard that enables airlines to deliver rich content and ancillary services directly to travel agencies and customers.
What are the benefits of NDC for travel agents?
Rich Content
Unlike traditional distribution methods that only share prices and schedules, NDC provides access to rich content, including images and text relevant to customers. Travelers gain detailed insights about the fares they are buying, enabling upgrades to higher fare tiers and clearly displaying associated benefits. Policies regarding baggage, extra legroom, Wi-Fi, meals, seats, and upgrades are easily communicated alongside the fare.
Ancillary Services
With NDC, customers can purchase ancillary services like seat upgrades, Wi-Fi, extra legroom, baggage, lounge access, and meals, which were not previously available through conventional methods. This opens new revenue streams for travel agents while enhancing the shopping experience by allowing customers to customize their travel according to their preferences.
Personalized Customer Experience
NDC allows airlines to offer a tailored shopping experience. They can create personalized offers based on customer profiles and loyalty status, enabling targeted promotions. For instance, airlines can include additional services like lounge access for corporate travelers, offering a bespoke experience.
Flexible Pricing
One of the biggest challenges for airlines is adjusting prices in response to real-time demand, a limitation of traditional systems. NDC facilitates real-time pricing adjustments and the creation of new pricing models, introducing the concept of “dynamic pricing.” This benefits both airlines and customers by offering more flexible and competitive pricing options.
Streamlined Booking Process
NDC simplifies booking by giving travel agents direct access to airlines’ inventory and pricing. Agents no longer need to contact airlines manually or rely on multiple platforms for information. The process becomes faster and more efficient, saving time and enabling agents to handle more bookings. Automation reduces manual tasks and resource requirements, streamlining the booking process and lowering costs.
Access to Exclusive Offers and Promotions
By adopting NDC, Travel Management Companies (TMCs) gain access to exclusive offers and promotions directly from airlines—deals unavailable through traditional booking channels. These exclusive offers allow TMCs to create unique and attractive travel packages for their clients, elevating the overall travel experience and making it more enjoyable and memorable.
How Can Travel Agents Implement NDC APIs Effectively?
To integrate NDC successfully, travel agencies need a technology provider with proven expertise and a strong API infrastructure. Choosing the right partner is essential to ensure a seamless implementation process.
Key Considerations for Travel Agents:
Compliance with NDC Standards
Ensure the technology provider’s NDC API aligns with the latest standards established by the International Air Transport Association (IATA). Adhering to these standards guarantees compatibility with other industry players, enabling smooth communication and data exchange.
Data Security and Privacy
Data security is paramount when adopting NDC. Travel agents must evaluate the provider’s security measures, data encryption protocols, and compliance with data protection regulations. It’s critical that the provider prioritizes the confidentiality and safeguarding of sensitive customer information.
Experience and Expertise
Look for a technology provider with extensive experience in NDC integration. A proven track record in delivering NDC solutions to travel agents is essential. Their knowledge of industry standards, technical skills, and understanding of the travel agency landscape should be key factors in your decision.
Robust API Infrastructure
Assess the provider’s API infrastructure to ensure it is reliable and capable of handling the necessary data volumes and transactions. Features like scalability, security, and high availability are critical to meet your agency’s needs as it grows.
Who Can Help with NDC-Based Solutions?
Selecting the right technology partner is a crucial step in NDC integration. This is where ADO stands out as the ultimate solution, addressing all key considerations. With significant experience in NDC integration, a focus on compliance with NDC standards, robust data security measures, and a reliable API infrastructure, ADO is well-equipped to meet the needs of travel agencies.
ADO’s NDC solution is a transformative offering for the travel industry, delivering a comprehensive and tailored approach. Beyond API solutions, ADO provides a fully white-label B2B platform that combines NDC content with traditional GDS content. This hybrid approach offers the best of both worlds, significantly reducing time to market and enabling quick deployment for travel agencies.
