NDC in Travel: What It Is, Why It Matters, and Where It’s Going
A few years ago I was chatting with a travel agent friend of mine — we’ll call her Sarah — and she mentioned that one of her airline partners had just “gone NDC.” I nodded like I knew what she was talking about. I did not. So I went home and started reading, and honestly, the more I dug into NDC, the more I realized this is one of those quiet shifts that’s reshaping how the entire travel industry works.
Let me walk you through it.
So What Is NDC?
NDC stands for New Distribution Capability. It’s a standard developed by IATA — the International Air Transport Association — and its purpose is to modernize how airlines communicate with travel agents and booking platforms. The traditional system, which has been in place for decades, relies on Global Distribution Systems (GDS) like Amadeus, Sabre, and Travelport. These worked fine for a long time, but they’re built on old messaging technology that limits what kind of information airlines can share.
Probably should have led with this: NDC uses XML-based data transmission instead of the old EDIFACT messaging format. If that means nothing to you, think of it this way — the old system was like sending a telegram, and NDC is more like sending an email with attachments, images, and formatting. Way more information, way more flexibility.
How It Actually Works
NDC has three main components that handle different parts of the booking process:
- Offer Management — This is where airlines create and manage what they’re selling. Fares, seat availability, baggage options, meal upgrades, lounge passes, you name it. With NDC, airlines can bundle and present these offers however they want.
- Order Management — Once a customer decides to buy, this handles the booking itself. Order creation, payment processing, changes, cancellations. The whole lifecycle.
- Customer Information — Secure exchange of passenger details and preferences. This is what enables personalization — if the airline knows you always want an aisle seat and extra legroom, they can build that into their offer.
The end result is that airlines can sell more than just a seat from A to B. They can package up the whole experience — seat selection, bags, meals, Wi-Fi, priority boarding — and present it in a way that actually makes sense to the person booking. Under the old GDS model, everything looked the same. Every airline’s offering was displayed in basically the same format, which made it really hard to differentiate.
What’s In It for Airlines
This is where airlines get excited, and honestly I get why:
- Product differentiation — Airlines can finally showcase what makes them different. Rich content, branded fares, unique bundles. If you’ve invested in a great premium economy product, NDC lets you actually show it off instead of having it reduced to a fare code.
- Better personalization — With access to passenger data, airlines can tailor offers to individual travelers. Frequent flyer? Here’s a loyalty discount. Family traveling with kids? Here’s a package with extra baggage and pre-selected seats together.
- Revenue optimization — Dynamic pricing and upselling become much more effective when you can present rich, targeted offers instead of a flat list of fares.
That’s what makes NDC endearing to airline commercial teams — it gives them control over how their product is presented and sold, which they’ve been wanting for years.
What About Travel Agents?
Travel agents benefit too, though the transition hasn’t been painless. With NDC, agents get access to richer information — more details about what’s included in each fare, better visuals, clearer policies. They can offer their clients a better service because they actually know what they’re selling.
That said, the adjustment period is real. Agents need new tools and workflows. Some have had to invest in technology upgrades they weren’t planning for. It’s a transition, and like most transitions in this industry, it’s happening at different speeds depending on who you talk to.
The Implementation Challenge
Let’s be real — adopting NDC isn’t simple. Airlines have to update their distribution systems, which is a major technical undertaking. Travel agencies need compatible platforms. And everyone involved needs to agree on standards and protocols, which, if you’ve ever worked in a standards body, you know can be a slow process.
Despite the challenges, adoption is growing. Several major airlines — Lufthansa, British Airways, American Airlines, among others — have rolled out NDC-enabled booking. The early results have been positive, with airlines reporting better ancillary revenue and improved customer satisfaction scores.
IATA has been pushing hard to smooth the path. They offer certification programs, implementation guidelines, and technical support. It’s an ongoing effort, but the momentum is building.
What It Means for You as a Traveler
If you’re a regular traveler, NDC should eventually make your life a bit easier. More transparent pricing — you’ll see exactly what you’re getting with each fare option. More personalized offers based on your preferences and travel history. Fewer surprises at the airport because details about baggage, seats, and services are communicated more clearly upfront.
I’ve noticed this myself when booking with NDC-enabled airlines. The booking flow feels more like shopping online — you see the product, you see what’s included, and you can customize. Compared to the old approach of “here’s a fare code, good luck figuring out what it includes,” it’s a big improvement.
Concerns Worth Mentioning
Data privacy is the obvious one. More passenger data flowing between systems means more opportunity for things to go wrong. Airlines and agents need strong data protection practices — this isn’t optional, especially under regulations like GDPR.
There’s also a worry about fragmentation. If every airline distributes through their own NDC connection, comparing options across carriers could get harder for agents and consumers. The industry is aware of this and working on aggregation solutions, but it’s a legitimate concern that hasn’t been fully resolved yet.
Looking Ahead
NDC is still evolving. We’re in the earlier stages of adoption, and the full potential hasn’t been realized yet. But the direction is clear — the travel industry is moving toward richer, more flexible, more personalized distribution. Airlines want more control over their product presentation. Travelers want better information and more tailored options. NDC is the bridge.
It won’t happen overnight, and there will be bumps along the way. But the shift is real, and if you’re involved in travel — whether selling it, building the tech, or just booking your next vacation — NDC is worth understanding. Because it’s going to shape how you buy airline tickets for years to come.
