{"id":40058,"date":"2024-03-06T16:57:40","date_gmt":"2024-03-06T16:57:40","guid":{"rendered":"https:\/\/www.itilite.com\/blog\/\/"},"modified":"2024-03-06T16:57:40","modified_gmt":"2024-03-06T16:57:40","slug":"what-is-new-distribution-capability","status":"publish","type":"post","link":"https:\/\/www.itilite.com\/in\/blog\/what-is-new-distribution-capability\/","title":{"rendered":"What is New Distribution Capability in Air Travel Booking in the US?"},"content":{"rendered":"
<\/div>\n
\"What<\/figure>\n\n\n\n
<\/div>\n\n\n\n

Traditional channels, predominantly Global Distribution Systems (GDS), were characterized by a notable lack of flexibility in the realm of airline distribution. This blog explains to you what is new distribution capability and how it benefits both airlines and travelers. <\/p>\n\n\n\n

New Distribution Capability (NDC) is an initiative led by the International Air Transport Association to modernize how air travel products are retailed to consumers. NDC aims to transform the airline distribution business from one based on static content to dynamic and personalized offers. This inherent rigidity posed significant challenges for airlines, hindering their ability to distinguish their offerings and provide tailored experiences to travelers.  <\/p>\n\n\n

<\/a><\/p>\n\n\n\n

What is New Distribution Capability?<\/h2>\n\n\n\n

NDC or New Distribution Capability is a new data transmission standard developed by the International Air Transport Association to modernize how air travel products and services are retailed to travelers.<\/p>\n\n\n\n

Previously, airlines distributed their fares, schedules, availability, and other products through the Global Distribution System, which was very limiting. NDC provides an XML-based data transmission standard that allows airlines to distribute customized and personalized offers across any sales channel, not just traditional ones like travel agencies.<\/p>\n\n\n\n

What\u2019s the purpose of New Distribution Capability?<\/h2>\n\n\n\n

The role of NDC in travel booking is to enable airlines to provide relevant offers tailored to individual customers rather than using the “one size fits all” approach of the GDS systems. With NDC, airlines can distribute tailored pricing, rich content like photos\/videos, interactive seat maps, ancillary products, and personalized recommendations. While understanding what new distribution capability is it also allows them to merchandise their products better and control how their brand is presented and sold across channels.<\/p>\n\n\n\n

At its core, NDC transforms the old “ticketing” mindset into modern “retailing” focused on the customer experience. By adopting the NDC standards, airlines gain more control over their distribution and can provide travelers with a more seamless, personalized booking experience across any device or platform.<\/p>\n\n\n\n

So, NDC was IATA’s way of changing this. They wanted airlines to have more control over what they offer. Instead of relying solely on these services (GDS), airlines could now create special packages with extra services and adjust their offers based on what travelers want now, not just what these systems could handle.<\/p>\n\n\n\n

Who developed the NDC standards?<\/h2>\n\n\n\n

In 2012, the International Air Transport Association (IATA) introduced the NDC (New Distribution Capability) concept in response to the evolving air travel landscape. NDC standards, developed by IATA, represent a paradigm shift in the distribution of airline products and services. <\/p>\n\n\n\n

At its core, the role of NDC in travel booking is to address the constraints associated with the traditional “indirect” booking process, where Global Distribution Systems (GDSs) play a central role in aggregating flight content for distribution.<\/p>\n\n\n\n

How Do NDCs Work? <\/h2>\n\n\n\n

NDC allows airlines to distribute and retail their products and services through an XML-based data transmission standard. This allows airlines more control and flexibility over how their offers are displayed and sold through various channels. The key components of what is new distribution capability involves:<\/p>\n\n\n\n