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NDC (New Distribution Capability) - A Game Changer for Air Travel



Trawex is connected to Flight NDC content and is integrating NDC technology into the airline's IT infrastructure through an XML API.



 

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NDC - New Distribution Capability

 

Today, technology is at the forefront of every industry. And, the aviation industry is no exception! New Distribution Capability (NDC) is a popular technology entrant that aims to bridge a gap between airlines and travel agents, OTAs, TMCs, and travel consultants.

NDC is an IATA standard that requires airlines to provide direct connections to travel agents and technology companies all over the world. These standards improve the effectiveness of communications between airlines and travel agents by offering full and rich airline content as well as providing a transparent shopping experience. Travel agents can access ancillary content as well as the last available seat for all fare types.

IATA’s New Distribution Capability (NDC) is an XML-based data transmission standard that allows for airlines to distribute their content to aggregators, travel agencies, and other third parties, in a single, smooth flow.

The NDC adoption will allow the airline or travel agents to have full insight across touchpoints, such as airfare, car rental, hotel, etc. It will also help with customer interactions throughout the journey. NDC is an excellent technology for customizing an end-to-end travel experience that caters to their user requirements.

With the NDC standard, airlines can display a standardized format that delivers brand differentiation, customization, and accelerated promotion response times.

The New Distribution Capability (NDC) initiative aims to give airlines the ability to retail their products across multiple channels. This transformation will provide travelers with a dynamic airline shopping experience while also creating new revenue opportunities for airlines and travel agencies.

The NDC initiative provides a unique approach for airlines to distribute their products and services through indirect channels. With several benefits for travelers, airlines, agencies, and aggregators, NDC strives to provide a more personalized airline shopping experience with additional revenue-generating opportunities for airlines and travel agencies.

Travel agents benefit from NDC by having access to all of the airline's onboard and ground services, and airlines benefit by accelerating sales through multiple channel presence. NDC is set to revolutionize airline retailing and distribution by addressing the entire airline distribution process.

 

What actually NDC is?

 

New Distribution Capability (NDC) is a travel industry-supported program from IATA. This new distribution platform:

 

  • Allows for the development and market adoption of a new XML-based data transmission standard (NDC Standard)

  • Improves communications capability between airlines and travel agents

  • Is available to any third party, intermediary, IT provider, or non-IATA member, to implement and use

  • Enables the travel and tourism industry to revolutionize the way air products are retailed to corporations, leisure, and business travelers, by addressing the industry’s distribution network limitations

  • Provides product differentiation and time-to-market, availability to full and rich air content along with transparent shopping experience

  • NDC provides a more efficient booking process for travelers and their managers, as well as richer content for a more personalized traveler booking experience.

  • A more personalized experience results in happier travelers and higher compliance with your overall travel program.

 

Why airlines develop new distribution channels?

 

  • Gain more control over their distribution strategy, allowing for differentiated offerings and reducing reliance on third-party distributors.

  • Generate new revenue from expanded offerings, such as ancillary products and services, to differentiate and market beyond a simple, text-based sort by price.

  • Save through shifting and recovering distribution costs by applying surcharges in the GDS and leveraging commercial negotiations with distribution companies.

  • Boost traveler engagement by gaining insight into shopper preferences and delivering personalized offers.

 

NDC components and the benefits they bring to Airlines

 

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NDC encourages airlines to take full control of distribution and encourages a reevaluation of an airline's inventory control and channel distribution strategies. With this flexibility, airlines can offer dynamic pricing that responds to market demands.

The NDC Standard is supported by airlines, travel management companies, online travel agencies, corporate buyers, global distribution systems, and other technology players. 

Through a collaborative approach, participants guarantee that the supporting schemas are functional and can be used by all irrespective of business focus, geographic location, size, target markets, and individual commercial policies.

An industry-standard will increase the efficiency of the airline distribution system, which will benefit airlines, agents, GDSs, IT providers, and travel start-ups.

Structured around seven distribution-related functions, the NDC Standard makes it possible to address the end-to-end airline distribution process, e.g. shopping, booking, etc., and to deliver enhanced user experiences.

 

NDC (New Distribution Capability) is important because:

 

It offers a personalized shopping experience as well as access to customer data. Currently, the majority of customer personal data is retained by middlemen, OTAs, and GDSs. This means that airlines only receive basic information about their customers, which prevents them from personalizing the shopping experience, which has become a standard in modern travel eCommerce. The goal of the NDC standard is to give airlines direct information about their customers.

There is content and pricing autonomy. Another benefit of personalization is pricing autonomy. Currently, the majority of airlines publish their tariffs through ATPCO, the technology provider and primary source of pricing data. Having a third party act as an intermediary between revenue management and distribution channels means that airlines miss the opportunity of dynamic pricing. Dynamic pricing is the ability to generate personalized fare and travel package offers based on individual customer data. The new XML standard enables airlines to create their APIs and change prices individually, adding value to their offerings and adjusting prices for each customer individually.

The traditional GDS model only enables airlines to display prices and schedules. While tariff Meta-search engines and OTAs make it easy for travelers to compare pricing, airlines cannot fully compete by marketing their added-value services. This problem is solved by providing rich content that includes all service details.

There is a lowered reliance on legacy systems. The majority of airlines use legacy passenger service systems (PSS), which contain reservation information, fares, and flight schedules. The PSS's primary function is to display which seats are available for a given flight. PSSs may have poor performance, a variety of other limitations, and most PSS providers lag in terms of modernization. NDC will operate as a separate engine outside of legacy systems that allow for displaying data stored in PSS databases using airlines’ private interfaces.

The distribution network in the air travel industry contains many players in the market. Several intermediaries connect end customers with the actual airline, such as travel agencies, tariff publishers, GDSs, and so on. The majority of the major players appeared decades ago or morphed from older formations and continue to exist.

Nowadays, representatives from nearly all parties in airline distribution have embarked on the NDC initiative one way or another. According to the most recent IATA NDC program update, the number of certified deployments has risen to 65 carriers. Since 2017, when IATA reported only 50 airlines using NDC, the number appears to have increased significantly. 

However, when compared to the total number of airlines connected to the major three GDSs, which exceeds 400, NDC adopters appear to be in the minority. In 2018, IATA published a presentation of NDC standards, which includes new data on the number of airlines that have adopted NDC as well as IT providers.
Major airlines managed to develop their NDC solutions, which sometimes differ in execution.

 

What benefits does NDC provide?

 

  • Product differentiation - The new standards allow for rich content, enabling airlines to differentiate their product beyond just display prices and schedules. They will now include all service details.

  • Customer information access and personalization - With NDC's aid, airlines can now obtain direct information about their customers, making it easier for them to add more personalization. The goal of the NDC standard is to give airlines direct information about their customers.

  • Pricing autonomy - Another benefit is pricing autonomy. Until now, most airlines compiled their tariffs via ATPCO (pricing data source), but with NDC (the new XML standard), airlines can create their APIs. As a result, they have more pricing control, allowing them to adjust individual prices or change prices. Airlines can also create their travel package deals and personalize them to their clients.

  • Ancillary products and services - Due to EDIFACT (Electronic Data Interchange For Administration, Commerce, and Transport), airlines cannot include ancillaries (e.g. baggage insurance, onboard food) in offers. With NDC standardization, they will have ways to do this, giving them extra profits.

  • Less dependent on Legacy Passenger Systems (PSS) - The majority of airlines use PSS, which contains reservation information, fares, and schedules. The current system displays poor performance and lags in modernization. For greater efficiency, NDC utilizes airlines' private interfaces and presents data stored in PSS databases.

  • Increased revenue – Selling on-board services such as Wi-Fi, food, legroom, entertainment, free or discounted class upgrades, and so on through OTAs.

  • Increased customer retention by dynamically displaying the offerings on the travel agent portal (with videos/pictures/detailed descriptions).

  • Full control on payments management- giving multiple payment plans to Traveler

  • Air ancillaries and rich content- During and after the booking process, NDC Travel agency can access air ancillaries and rich content such as WIFI, baggage, meal, and seat selection.

  • Cost advantage & Greater Transparency- Direct communication between the travel agent and the airline provides a cost advantage on each booking. At the time of booking, the traveler has access to all of the products offered by the airline.

  • NDC Hybrid content engine- It empowers TMCs and Corporate to procure comprehensive fare from airline direct connect through GDSs, LCCs, and aggregators in the same search.

 

Trawex is powered by NDCs

 

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Trawex is a certified IATA NDC Level 3 Travel Technology Solution Provider. NDC enhances the ability of airlines and travel agents to communicate by providing full and rich airline content as well as a transparent and seamless shopping experience.

Trawex is linked to Flight NDC content. Our professional team has extensive experience integrating Flight NDC technology into the airline's IT infrastructure. In addition, we collect all Flight NDC content in a single place and distribute it across systems via XML API. For airlines, we offer the best Flight NDC Integration.

This Flight NDC gives online travel agencies access to customized airline products and services. Incorporating Flight NDC in the online travel portal of airlines will assist in decreasing flight distribution costs and generating revenue streams for the business.

We're expanding our expertise in Flight NDC Integration for the distribution of NDC Flight Content. All flight content is delivered via the Flight NDC API. We offer connection of flight NDC for a booking agent to earn more NDC-style flight bookings with the best Flight NDC Content. This includes ancillary services such as seat upgrades, transfers, and hotels, and more to provide customers with the best options.

We offer the best Flight NDC content for airlines. We provide dynamic packages like Flight + Holiday, Flight + Hotel, and more to help their customers plan an ideal vacation.

We perceive NDC as an opportunity to do things better, to provide seamless access to the best travel content, and to provide a fully customizable travel experience.

We are increasingly focusing on the deployment of NDC-enabled solutions so that we can continue to assist you in improving efficiency and optimizing operating costs while keeping you up-to-date with the latest technology.

We enabled NDC content in a hybrid structure so that it emerges with all other suppliers' content and appears in a generic form across all sales channels. Companies in corporate travel can use NDC to access air ancillaries and rich content such as Wi-Fi, baggage, meal, and seat selection both during and after the booking process.

It provides a cost advantage while also providing greater transparency through direct communication between travel agents and airlines on every booking. It will make it easier for travelers to access all of the products offered by the airline at the time of booking.

The NDC hybrid content engine enables TMCs and corporations to obtain comprehensive fares from airline direct connect via GDSs, LCCs, and aggregators in a single search.

By implementing the NDC Standard and utilizing the Trawex platform, the airline will be able to differentiate its products and services, distribute the entire product portfolio, including ancillaries and promotional fares, appealingly present the airline's products using rich formats such as photos and videos, and expand the amount of information available on each product: attributes, facilities, policies, passenger reviews, etc. and offer value-added products and services when applicable in addition to other non-air product offerings like hotels, cars, activities, event and concert tickets, and insurance.

Travel agents can now search, compare, and sell all of the airline's products and services, including ancillaries and non-air products such as hotels, cars, activities, and insurance, using the Trawex technology platform.

Trawex connects to many airlines and GDSs using the IATA NDC standard to receive real-time flight availability, pricing, and offers, both bundled and unbundled.

Trawex enables you to build, manage and scale a world-class corporate travel management program with ease. Give your customers the best booking experience around, unrivaled inventory, and hands-on, personalized support.

Our focus is on the customer's benefits. We’ve always sourced content in multiple ways by leveraging connections with our technology partners. We are committed to sourcing content that is relevant to our clients' programs, whether it is GDS, NDC, or low-cost carrier (LCC) content.

Our NDC initiative will ensure that our customers continue to have access to the best possible fares while also improving their ability to access airline ancillary products. It will also help our airline partners in efficiently implementing their NDC strategies.

For us, NDC isn’t a “one and done” project. Given its scope, complexity, and ongoing evolution, we’ll release new features in phases, ensuring that we deliver the benefits of NDC to our clients in an organized, prioritized manner.

Trawex is dedicated to developing cutting-edge travel software solutions for our customers. Now by acquiring NDC Level 3 certification, we will be able to provide richer content to our customers and Trawex will be implementing this facility for its customers for additional value.

Get in touch with us to find out more about how you can benefit from NDC-enabled solutions!

 

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