The Latest from Traxo

The Impact of New Distribution Capability (NDC) on Corporate Travel Management

Written by Lacey Williams | Nov 27, 2024 6:15:00 PM

The airline industry has undergone a significant transformation by introducing New Distribution Capability (NDC), a standardized API (Application Programming Interface) that enables airlines to sell their products more effectively. NDC has revolutionized how airlines distribute their content, and its impact is felt across the corporate travel management landscape. In this blog, we'll explore how NDC changes the way airlines sell their products, and how it affects travel managers in terms of fare transparency, access to content, and policy compliance. We'll also highlight how Traxo helps travel managers navigate these changes by ensuring visibility and control over NDC bookings and providing the necessary data for informed decision-making.

How NDC Changes the Way Airlines Sell Their Products

Traditionally, airlines relied on Global Distribution Systems (GDSs) to distribute their content to travel agencies and online travel agencies (OTAs). However, this model limited their ability to showcase their products and services in a personalized and dynamic way. NDC addresses this limitation by providing airlines with a direct connection to their customers, enabling them to offer tailored products and services, and increasing their revenue potential.

With NDC, airlines can now offer ancillary services, such as seat selection, baggage fees, and meal options, as part of the initial booking process. This allows them to generate additional revenue streams and provide a more personalized travel experience. NDC also enables airlines to offer exclusive content, such as discounted fares or special promotions, to specific customer segments.

The Impact on Travel Managers

While NDC offers benefits to airlines, it presents several challenges for travel managers. Here are some of the key implications:

  • Fare Transparency
    NDC makes it more difficult for travel managers to compare fares across different airlines and distribution channels. With multiple sources of content, it's challenging to ensure that travelers are booking the most cost-effective options.
  • Access to Content
    NDC restricts access to airline content, making it harder for travel managers to find and book the best options for their travelers. This can lead to a lack of visibility into airline inventory, making it difficult to manage travel policies and budgets.
  • Policy Compliance
    NDC makes it more challenging for travel managers to ensure policy compliance, as travelers may book outside of approved channels or opt for non-compliant fare options.

How Traxo Helps Travel Managers Navigate NDC

Traxo's innovative technology helps travel managers navigate the complexities of NDC by providing visibility and control over NDC bookings. Here are some ways Traxo supports travel managers:

    • NDC Booking Visibility
      Traxo's platform aggregates NDC bookings from multiple sources, providing travel managers with a single, unified view of all travel bookings.
    • Improved Policy Compliance
      Traxo's platform enables travel managers to set and enforce travel policies, ensuring travelers book within approved channels and fare options.
  • Empowering Choice
    For organizations that would like to offer employees more flexible booking options or a completely open travel policy, Traxo ensures every booking is captured regardless of its origin source, ensuring risk and expense management are upheld throughout.
  • Data Insights
    Traxo provides travel managers with actionable data insights, enabling them to make informed decisions about travel spend and policy updates, and fostering more productive supplier negotiations.

NDC Makes Complete Visibility Challenging: Traxo Solves the Problem

NDC has transformed the airline industry, and its impact is being felt across corporate travel management. While NDC presents challenges for travel managers, Traxo's innovative technology helps navigate these changes by providing visibility and control over NDC bookings, ensuring fare transparency, and supporting policy compliance. By leveraging Traxo's platform, travel managers can make informed decisions, optimize travel spend, and ensure a seamless travel experience for their employees.

In today's fast-paced and rapidly changing travel landscape, it's essential for travel managers to stay ahead of the curve. By embracing NDC and leveraging Traxo's technology, travel managers can unlock new opportunities for cost savings, policy compliance, and traveler satisfaction.