NDC Airline Ticket Fares Explained: What Travel Agents and Corporate Travelers Need to Know

The airline industry is no stranger to change, and with the rise of the New Distribution Capability (NDC), a wave of transformation is already underway. As travel agents and corporate travellers navigate the landscape of NDC fares, it is essential to understand what this new ticketing approach entails. 

In this blog, we explore the key elements, benefits, and implications of NDC fares and how they are shaping modern corporate travel.

What Is NDC? 

NDC stands for New Distribution Capability, a technology standard created by the International Air Transport Association (IATA) to streamline and modernize the airline ticketing process. Traditionally, airlines rely on Global Distribution Systems (GDS) to offer tickets to travel agents, who sell them to travellers. In contrast to this, NDC provides a direct link between airlines and agents, enabling a more personalised and transparent approach. 

Understanding NDC’s approach

With NDCs' approach to airline booking, distributing fares, offering special discounts, and additional services, bypassing some of the limitations and fees associated with traditional GDSs has become simpler. In the case of corporate travellers, this means access to customised NDC tickets with options crafted to specific travel requirements, while travel agents can offer their clients enhanced flexibility and unique NDC deals. 

Why NDC Matters

NDC fares bring significant advantages for corporate travel, with increased control over the booking process, personalized fares, and a greater range of choices. Here’s how NDC can benefit corporate travelers. 

Benefits for Corporate Travelers

• Access to Tailored Offers: Airlines can offer personalized NDC fares and upgrades directly to corporate clients, including specific perks like extra baggage, priority boarding, or lounge access. This personalization is valuable for companies that prioritize comfort and convenience for their employees.
• Better Fare Transparency: With NDC, corporate travel managers can access clear pricing and see precisely what's included, which helps with budgeting and streamlining the booking process. This increased transparency is beneficial when managing travel policies and costs.
• Enhanced Ancillary Services: NDC fares often come with add-on services that are easy to customize. For example, corporate travelers might find NDC deals that include in-flight Wi-Fi, flexible seating options, or meals tailored to dietary preferences.

The Shift from GDS to NDC: What Travel Agents Should Know

For years, Global Distribution Systems (GDS) have been the primary channels for travel agents to access airline inventory and book tickets. While GDSs are still a vital part of the industry, NDC is reshaping the landscape. Here’s what travel agents need to know about this shift:

• New Content and Fares: Airlines using NDC can offer exclusive fares and content that may not be available through GDS. This unique access can give travel agents an edge in providing more competitive options for corporate clients.
• Increased Flexibility and Customization: NDC allows travel agents to book additional services directly from the airline, making it easier to bundle fares with extra features. With NDC fares, agents can create a more tailored experience, which is a significant advantage in the highly competitive travel industry.
• Impact on Commissions and Fees: Since NDC offers a more direct connection, it can impact commission structures for agents. While GDS fees are often a necessary expense, NDC allows for potential cost savings. It's vital for agents to assess the changes in their pricing models and stay updated with NDC developments.

The Advantages of NDC Fares in Corporate Travel

For corporate travel managers, NDC tickets offer a new level of control and insight into travel spend. Here’s why corporate travel with NDC is gaining traction:

• Streamlined Travel Management: With NDC fares, travel managers can tailor services to align with company policies and individual traveler needs, ensuring a simplified approach that promotes compliance and cost savings.
• Exclusive Deals and Customizable Options: Airlines using NDC can provide exclusive deals, offering more value to corporate clients. For instance, an NDC deal might include loyalty rewards or discounts on future travel, making it a more attractive choice for businesses with regular travel needs.
• Enhanced Data Insights for Better Decision-Making: NDC allows travel managers to access more detailed data on bookings, spending, and preferences, leading to better insights. This data empowers managers to negotiate with airlines, optimize travel budgets, and ultimately improve the corporate travel experience.

Conclusion 

The New Distribution Capability is changing the way travel agents and corporate travelers access and experience airline services. By offering personalized fares, greater transparency, and exclusive deals, NDC is setting the stage for more efficient and tailored travel experiences for travel agents and corporate clients alike. 

Embracing NDC fares is not just about adapting to a new trend, instead, it is about seizing an opportunity to elevate the corporate travel experience in a competitive and evolving industry.

If you haven't already experienced the benefits of NDC Ticket Booking and airline technology, now is the time to explore how it can enhance your travel booking experience.

FAQs

1. What is an NDC fare, and how does it differ from traditional fares?

An NDC fare is a ticket distributed directly from an airline to travel agents through a modern API, bypassing traditional GDS systems. This allows airlines to offer tailored pricing, packages, and exclusive offers directly to clients, often making NDC tickets more customizable.

2. Are NDC fares more affordable than GDS fares?

Not necessarily, but they often come with more transparency and added value. Airlines might offer exclusive deals or bundled services, which can present better overall value, especially for corporate clients looking for specific amenities.

3. Can travel agents access NDC fares?

Yes, but they need to be equipped with compatible technology. Many agents are adapting their systems to access NDC fares, allowing them to offer competitive, customized options to their clients.

4. How can NDC impact loyalty programs for corporate travellers?

NDC can enhance loyalty programs by enabling airlines to target offers and rewards to corporate travellers directly. This can result in better and more personalized benefits for employees who frequently travel for business.

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