The world of corporate travel management is constantly evolving, and one of the most significant developments in recent years is the introduction of New Distribution Capability (NDC). NDC is a new standard for airline distribution that aims to modernize and simplify the booking process for travel agencies, travel management companies, and corporate travel departments. In this blog post, we will explore what NDC is and what it means for corporate travel management.
For those of you that are up to speed on NDC and closely following the news from American Airlines that they will pull 40% of their fares from EDIFACT-channels in April 2023, you should know that Traxo is ready. While this move will result in increased leakage due to key fares only being available through NDC and direct channels, Traxo customers will maintain 100% visibility into their employees’ bookings, even as more suppliers adopt the NDC model.
What is NDC?
New Distribution Capability is a technical standard developed by the International Air Transport Association (IATA) to facilitate the exchange of information between airlines, travel agents, and other industry players. NDC enables airlines to distribute their products and services through multiple channels, including their own websites, mobile apps, and third-party platforms. It also provides travel agents with access to more detailed information about airlines' products and services, such as baggage fees, seat availability, and ancillary services.
NDC is a departure from the traditional Global Distribution System (GDS) model, which has been in use for more than 40 years. The GDS model relies on a limited set of standardized data formats that have become outdated and inflexible in today's fast-paced digital environment. NDC, on the other hand, allows airlines to provide more personalized and customized offers to travel agents and corporate travel departments.
What are the benefits of NDC for corporate travel management?
NDC has several potential benefits for corporate travel management, including:
While NDC has the potential to revolutionize airline distribution and corporate travel management, there are also several challenges that need to be overcome for it to be successful. Some of the main challenges include:
American Airlines' plans to adopt the New Distribution Capability (NDC) will have significant implications for corporate travel. For travel management teams that rely solely on TMCs to gather booking data, this shift may result in significant disruptions to booking visibility. Since many travelers will be forced to book fares via American Airlines directly, these bookings may not be captured in real-time or at all without a travel data aggregation solution like Traxo in place.
According to Phocuswire, American Airlines announced that travel agencies need to be connected to the carrier's New Distribution Capability technology by April 2023 to ensure access to its full range of third-party public channel content. Without this NDC connection, American estimates that agencies will lose access to "over 40% of fares available today via third-party legacy technology channels."
American Airlines' adoption of NDC is a step towards more advanced and personalized travel options. While this can be beneficial for both airlines and customers, it will require travel management teams to adapt and stay up-to-date with the changing landscape of airline distribution, including managing the increased complexity of airline offers and ensuring compliance with travel policies and budgets.
Fortunately, as pointed out in a recent article by The Company Dime, Traxo’s ability to capture booking details from any originating source solves the visibility hurdle. With Traxo, details on corporate travel bookings are available for travel management teams well before trips occur, no matter how employees book their travel.
To learn more about how Traxo provides complete booking details from every source and sets travel managers up for future success, get in touch with a Traxo data expert today!