What is NDC?



New Distribution Capability (or NDC) bridges the capability gap between what airlines retail on their own websites and what indirect distribution systems, such as the GDS, retail on behalf of airlines. NDC is a communications standard that allows airlines and any other interested party to merchandize bundled travel products with rich content. NDC enables the travel industry to build robust, standardized distribution systems that present airline product information in a dynamic, customer-centric manner. It removes traditional cryptic commands and displays, replacing them with simple messaging content. These distribution systems can be used by airlines and travel agents, enabling standardized communication between airline passenger reservation systems. NDC enables an Airline to directly make promotional offers through the GDS to travel agents who are the 'sellers'. This is instead of the third party intermediary system preparing the offer to the travel agent. These offers can be aligned in terms of their content and pricing to real-time inventories rather than being based upon previously filed products. It can price bundles of products dynamically, and may personalize the product offer if the traveler identifies himself to the airline. NDC therefore enables the airline to control the product offer in indirect channels to the same extent as through direct channels (airline websites). 2.3 NDC Goals NDC is designed with the following goals in mind: 

• Product control: To allow airlines to construct, own and present their products in any distribution system; • Comparison shopping: To standardize the display of product attributes that facilitates comparison shopping;

 • Airline-shopper interaction: To support a standard web-based approach that enables interaction between airlines and shoppers; 

• Product personalization: To personalize products and meet all customer preferences and needs as well as price; • Shopper authentication: To authenticate the shopper’s identity (consumer or travel agent) in compliance with applicable data privacy laws;

 • E-Commerce: To support a shopping basket approach, adding and removing products, as is the standard for e-commerce; 

• Seamless shopping: To enable the user to purchase airline products in a consistent manner across all channels. For example, the user can benefit from loyalty programs through both direct and indirect channels; 

• Branding and merchandizing: To support airline branding and merchandizing as well as providing the shopper with an enhanced customer experience, through the use of rich content;

Cross channel marketing: To enable airlines to easily present their offers through their distribution channels of choice; 

• Error prevention: To eliminate synchronization errors between information available on GDS and an airline’s true flight information. These errors lead to travel agents being subjected to debit memos when the fare collected is different from the fare the airline expects.

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