The NDC (New Distribution Capability) standard, created by IATA, is an XML-based data transmission standard for the travel industry
launched by IATA to enable API distribution, aimed at facilitating the exchange of data between airlines and business travel agencies.
NDC provides several capabilities:
- It allows airlines to publish and communicate more personalized and dynamic offers.
- It allows TMCs (Travel Management Companies) to offer travelers additional services (additional luggage, more room for legs, a more expensive meal, access to lounges in the airport, etc.).
Currently, most of the travel companies using Tripmole or ATPCO data to show leg room information of the plane, wifi availability, meal provided by the carrier or not, Seat layout, what is plane age, priority boarding, etc.
NDC is a recent IATA standard. It’s not compulsory but if you see the current situation like COVID pandemic most of carrier want to offer cheap fare and cuts unnecessary fares with more offers so they have to adapt NDC one day. otherwise OTA & GDS have more power.
Currently Airline have no access of end users they have to will either GDS or OTA so they not able to provide the customer with tailored services, add-ons and specific prices with more options.
NDC is important to make both revenue and cost cutting drivers.
Product attributes (differentiation): the ability to show competitive features that may be unique to the offer and therefore drive a purchase decision.
Fare Families: displaying multiple price points, with increased value, may drive “upsells.”
Ancillaries: displaying additional products (e.g., lounge access) may drive a purchase decision.
Airline companies adopt NDC mainly to stand out from the competition, and to increase revenue opportunities offered by additional products. They can use NDC in several ways, such as developing tailor-made offers for each customer account (flight + lounge, for example) and integrating third-party content (flight + shuttle service) or (Flight + Hotel)
Most of Airlines already using this (NDC) technology and two-third in the process of adoption here are some airlines that already adopted NDC technology: British Airways; Condor Flugdienst GmbH Airline; Thomas Cook Airlines Limited of Manchester Airline; Emirates Airline; American Airlines; Austrian Airlines; Brussels Airlines; Lufthansa Airline; Swiss International Air Lines; Aegean Airlines; Olympic Air; Singapore Airlines, etc.
From 2017 British Airways, and its subsidiary Iberia, for example, have decided to charge a fee of £8 for each reserved rate on systems that do not use a New Distribution Capability (NDC) connection. by this statement, you can understand how it will profitable for you to make more money than using GDS or other OTA.
How to implement IATA NDC
NDC is a set of standard XML messages that allow the airline back-office to communicate with partners such as TMCs, OTAs, GDS and interline partner airlines.
The communication is done via an API, that is securely published and made available for external calls.
Publishing the IATA NDC API can be done easily via an API Gateway. You should consider the following capabilities when looking for an API Gateway product:
A Gateway that integrates vertical and horizontal systems to provide an end-to-end solution
It allows you to publish APIs easily and securely, to connect seamlessly your back-office applications together and with your customers and suppliers, etc.
It allows you to publish APIs securely for consumption by user apps.
It allows you to follow your customers’ engagement and monetize their usage.
Lufthansa Group airlines will be pulled from the Sabre distribution system from the end of June. The group, which includes Lufthansa, Brussels Airlines and Austrian Airlines, has notified travel agents by email of the termination, which also affects those connected to Abacus, which Sabre bought in 2015. ~ News Sources
How to place order using NDC API:
Step 1: Search for offers using the Twai API (/offers/shop).
Step 2: Confirm pricing
Step 3: Book
Step 4: View created order
Step 5: change if required
Step 6: Complete order
Step 7: View the updated Order if required
NDC API Provider:
- Twai: Travel Technology company with IATA 4-level certified
- Amadeus: GDS company with IATA 3-Level certified