MAY 10TH, 2023

We are committed to keeping you informed about NDC developments and how it is affecting your travel program. We understand that you want a program that optimizes savings, safety and traveler satisfaction.

In continuation of our NDC education series, we have established this bi-monthly newsletter to answer and address your questions and concerns around NDC.

New Distribution Capability (NDC) is a technology standard introduced by the International Air Transport (IATA) in 2015 which allows airlines to provide travelers with rich personalized choices. It is important to note that NDC is not a booking system or platform. It is a XML based data transmission standard that provides a connection between airlines and booking channels such as travel agencies, corporate travel management companies and travel technology providers.

Note that the NDC channel in the current eco system is new and in its infancy on how to shop, book, ticket and manage the reservation and corporate programs.    

The below questions are from you, our valued clients. Please note that the data in our responses is subject to change. 

Why do airlines develop new distribution channels?

In summary, new distribution channels are developed by airlines to gain more control of their products and customers' buying trends. NDC allows differentiated product offerings and personalized bundled packages. This results in generating more revenue and more loyal travelers for the airline.

American Airlines stated they were going to pull up to 40% of its domestic content from the Global Distribution System (GDS) effective April 3, 2023. What is the current impact? 

1. Basic economy brand content largely removed
2. Main cabin brand content reduced
3. Main cabin flexible brand content remains in the GDS but prices may differ based on the channel
4. Discount restricted first class removed in some markets

The difference in fares appear to be impacted mostly for reservations within 160 days of departure. Travel within 5 days of departure remain mostly at par with some market specific differences.

Are international reservations impacted by AA NDC?

At this time AA, via the NDC channel, does not allow multiple carriers on a reservation, therefore, it could have an impact on international reservations. Traveling overseas presents possible savings opportunities when reviewed for rate of exchange benefits, trip-within-trip, reducing mileage surcharges [i.e. split tickets] within a multi-segment international trip. World Travel, Inc. recommends offline bookings for multi-segment international trips.

Are other airlines enabling a NDC channel?  

Yes, however, the difference is that many of the carriers will maintain full content in the GDS. This will allow the industry to work through the NDC industry challenges. We may see Air Canada disrupt their distribution model. However, it is important to note that distribution challenges are not new to the travel industry. Overcoming industry content challenges has always been a top priority for World Travel, Inc.  

Why isn’t the TMC community embracing the AA NDC channel?

Technology upgrades and enhanced service offerings are viewed positively and are embraced. World Travel, Inc. is excited at what NDC will do for the industry.

Here at World Travel, Inc., our emphasis is on the traveler and our valued customers. We recognize these four key factors in our recipe for operational success.

1. Distribution
2. Content
3. Point of Sale Display
4. Service at Both a Company and a Traveler Level

Currently, there are extreme limitations within all four key factors. With this in mind, we continue to be committed to source the content that is relevant to our customers. NDC is a large-scale project for the entire industry. We will release functionalities in phases as the functionality allows to shop, book, ticket and manage the reservation on a scalable level.

We are in this together. 

To view previous educational NDC content such as our Webinar, Q&A guide and Symposium session, visit our resource page.