How NDC Reduces Costs for Corporate Travel Programs

Corporate travel managers constantly seek ways to optimise budgets while ensuring a seamless travel experience for all employees. NDC (New Distribution Capability) is a transformative force in the airline industry that promises substantial cost savings for businesses. 

In this blog, we aim to cover and explore how NDC corporate travel costs are reduced and examine its cost benefits while also revealing how NDC fares unlock new levels of efficiency and savings for businesses. 

The high cost of Traditional Distribution Channels

For years, corporate travel programs have relied heavily on Global Distribution Systems (GDS) platforms to book flights, hotels, and other travel services. While GDS platforms provide convenience, their use comes at significant costs: airlines pay fees to GDS providers to distribute fares through them - costs that are then passed along through ticket prices to customers.

NDC removes this middleman by connecting airlines directly with corporate travel buyers and agencies, bypassing GDS costs to offer more cost-effective fares to businesses. Real-time updates ensure travel managers have access to the latest offers and promotions.

How NDC Reduces Costs for Corporate Travel Programs

Before delving into the cost-saving prowess of NDC, let us uncover what NDC means for corporate travel programs. NDC is an XML-based data transmission standard developed by the International Air Transport Association (IATA). 

In this blog, we'll investigate how NDC corporate travel costs can be decreased while also exploring its cost benefits and demonstrating how corporate NDC fares unlock new levels of efficiency and savings for businesses.

Understanding NDC: A game-changer in Airline Distribution

NDC can save corporate travel programs time and money - let's examine its implications before discussing its cost-saving potential. 

NDC stands for New Distribution Capability XML-based data transmission standard developed by the International Air Transport Association (IATA). Simply put, NDC allows airlines to sell tickets directly to travel agents or corporations without using traditional Global Distribution Systems (GDS) - opening up endless opportunities for customisation, transparency, and savings.

The Cost Benefits of NDC for Corporate Travel Programs

NDC is a cost-reduction powerhouse, and here’s how businesses benefit from NDC:

1. Access to Lower Fares

Corporate travel NDC fares often offer exclusive savings unavailable through traditional booking platforms, with airlines bypassing GDS fees to offer lower ticket prices directly to businesses - providing immediate cost savings.

2. Elimination of Hidden Fees 

Traditional GDS systems tend to conceal add-on costs such as seat selection, baggage fees and meal preferences from view; with NDC, these charges are more clearly displayed so travel managers can more effectively budget for them and avoid unpleasant surprises.

3. Dynamic Pricing for Business Travel

NDC allows airlines to implement dynamic pricing strategies tailored to corporate needs, using real-time data to access fares that match booking behaviours - often providing better deals than static models.

Enhanced Control Over Corporate Travel Budgets

One of the standout NDC cost benefits is the unparalleled control it gives travel managers over budgets:

1. Tailored Packages

NDC deals allow airlines to customise corporate traveller packages by including additional amenities like premium seating, lounge access and priority boarding - creating packages designed specifically to meet their business traveller needs and ensure companies only pay for what they require.

2. Direct Negotiations with Airlines

NDC facilitates direct communication between corporations and airlines, creating stronger partnerships while opening the way to negotiated rates and loyalty programs that ultimately yield significant savings over time.

3. Smarter Data, Smarter Decisions

Travel managers benefit from NDC's advanced data-sharing capabilities when using its travel spending data for analysis, giving them access to insights that allow smarter decision making about travel spending - helping businesses identify cost-saving opportunities while streamlining travel policies.

Overcoming Challenges: The Road to NDC Adoption 

1. Integration with Existing Systems 

Corporate travel programs often rely on existing booking tools and expense management systems for managing travel bookings, booking expenses, managing invoices and costs, etc. Integrating NDC content into these platforms requires an investment of technology and resources - however, the long-term advantages in terms of reduced costs and improved efficiency outweigh these initial setup costs.

2. Training and Adaption 

Travel managers and corporate travellers need to adapt to the new system. Training programs and workshops can assist stakeholders in harnessing NDC to its fullest potential.

3. Ensuring Fair Competition 

As NDC adoption grows, ensuring fair competition among airlines is crucial. Regulatory bodies must monitor the implementation to prevent anti-competitive practices while ensuring that businesses have access to a wide range of options. 

The Future of NDC in Corporate Travel

NDC adoption remains in its infancy, yet its future looks promising. As more airlines and corporate travel programs embrace this technology, we can expect the following:

• Greater Transparency: Travel managers who gain greater insight into pricing and services will be better equipped to make more informed decisions.
• Increased Customisation: Airlines will continue to hone their offerings and provide even more tailored solutions for corporate travellers.
• Broader Adoption: With ongoing advancements, NDC will soon become the standard in corporate travel for businesses of all sizes.

Conclusion 

NDC is revolutionising corporate travel by providing its traveller with a plate filled with opportunities such as, reduced costs, transparency, and by streamlining processes. Even for businesses looking to optimise their travel programs, adopting to NDC Bookings is no longer an option, it is now a necessity. 

By leveraging NDC, corporate travel cost benefits, companies can also unlock significant savings while providing their employees with a seamless and personalised travel experience. The future of corporate travel is here and it is powered by none other than NDC. 

Contact us now by calling on 1800 889 2000 or writing to us at support@ndcdeals.org

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