How B2B Travel Agents Can Increase Profit Margins by Booking Airline Tickets Through NDC

January 28, 2025
NDC Fare

As the travel industry continues to evolve, B2B travel agents are under pressure to stay ahead of the curve, delivering better value to customers while boosting profit margins. One significant tool in this transformation is the New Distribution Capability (NDC) standard. 

Designed by the International Air Transport Association (IATA), NDC offers agents better control over inventory, pricing, and customer data, enhancing both sales efficiency and customer satisfaction. In this blog we discuss how B2B travel agents can leverage NDC to unlock new revenue streams, optimise workflows, and deliver tailored customer experiences. 

Aeroplane flying images

Understanding NDC and Why It’s a Game-Changer for B2B Travel Agents

The New Distribution Capability, or NDC, is an XML-based data transmission standard from IATA. While traditional GDS has been in the spotlight for the travel industry for a long time, they often limit the options and flexibility available to agents. 

NDC bypasses these limitations by offering travel agents direct access to rich, airline-specific content, making it possible to offer tailored options like seat selection, extra baggage, lounge access, and more. 

For travel agents, NDC bookings mean a new level of control over the booking process. Agents can deliver more precise, value-added offerings that fit the needs of today’s travellers, including corporate clients looking for premium, personalised travel services. 

Maximizing Profit Margins with the Advantages of NDC

  1. Boosting Profit margins through direct inventory Access

By accessing airline inventory directly through NDC, travel agents can exclude or reduce dependency on GDS channels and their associated fees. This direct line not only lowers cost but also paves the way for agents to pass on better pricing to clients, strengthening client loyalty and improving profit margins. 

By booking tickets through NDC travel agents can provide more competitive pricing options and exclusive fare types, which allows agents to stay ahead of the competition. With the flexibility to build unique, client-focused packages, B2B travel agents can leverage NDC as a cost-effective distribution channel while driving increased profitability. 

  1. Maximising Revenue with Ancillary Sales and Customizable Add-Ons

One of the key NDC benefits for travel agents is the ability to offer and upsell ancillary products. Through NDC, agents can bundle add-ons such as in-flight meals, extra baggage, Wi-Fi, and seat upgrades directly at the time of booking. Ancillary sales can enhance the client experience and provide a valuable revenue boost for agents. 

Ancillary options don’t just add revenue, they add a touch of personalisation to each booking, making the travel experience more enjoyable and personal for clients. With NDC, travel agents have the flexibility to meet diverse client needs, earn their loyalty, and improve brand reputation, ultimately contributing to higher profit margins. 

  1. Streamlined Processes and Real-Time Updates for Improved Efficiency

With NDC, travel agents receive real-time data directly from airlines, meaning updates on availability, pricing, and changes are instant. The real-time access minimises the need for double-checking inventory and allowing agents to respond as soon as possible to client requests while improving operational efficiency and saving time. 

The real-time capabilities of NDC bookings streamline the entire booking process, giving agents an edge in delivering accurate information and adjusting itinerates without any delay. This efficiency creates a good impression and satisfies the clients while reducing the time spent on managing bookings while allowing agents to focus on higher value tasks and enhancing overall productivity. 

  1. Cutting Costs by Reducing Reliance on GDS Channels

One of the primary NDC advantages for B2B travel agents is the potential for cost savings. Traditional GDS systems incur fees on every transaction, which can edit into profit margins, particularly on high-volume bookings. NDC’s direct distribution model allows agents to cut back on these fees and lower the cost of each booking. 

Lower distribution costs translate into higher savings that can either be retained to increase profitability or pass along to clients. With this cost advantage, B2B agents are able to improve margins on each booking while creating a more sustainable, cost effective model for their businesses. 

  1. Strengthening Airline Relationships to Offer Exclusive Deals

NDC for travel agents facilitates a more direct connection with airlines, allowing agents to negotiate exclusive rates, promotions, and add-ons that are passed on to their clients. This stronger airline relationship can be leveraged to secure special offers for high value clients, which created a competitive advantage in the market. 

Exclusive deals help agents to attract more clients, while the ability to offer unique services strengthens client trust and loyalty. As relationships with airlines grow, agents also benefit from insights into upcoming promotions, making it easier to plan and prepare for peak travel sessions. 

  1. Enhanced Personalization for Modern Travelers

Today’s travellers expect more than just transportation; they want personalised experiences. NDC enables travel agents to create highly tailored travel packages by offering rich content from airlines such as flexible fare options, corporate-specific bundles, and client-focused services. For business travellers, these personalised services are particularly appealing, as they can choose options that cater to their needs. 

With NDC, agents can curate bespoke itineraries for clients, making each booking a unique and memorable experience. This level of personalization builds client satisfaction and brand loyalty, ultimately resulting in repeat business and a stronger reputation in the market. 

Conclusion 

To summarise, NDC isn’t just a technical upgrade; it’s about transforming travel. From personalized deals to seamless processes, NDC Deals ensures every trip feels tailor-made.

For travelers, it means better value and more choices. For airlines, it boosts revenue and customer satisfaction. For the industry, it’s a step toward smarter, more connected experiences.

NDC airline distribution is more than a technological upgrade—it’s a strategic move toward a smarter, more customer-focused industry. By addressing traditional system limitations and unlocking new opportunities, NDC is shaping the future of air travel.