BY THE WAY ( A PSA )
NDC 101 : HOW TO NAVIGATE THE SHIFT IN BOOKING
The travel industry is about to move away from its traditional ticket-buying technology . Here ’ s how you can prepare .
WORDS / JOY HARRINGTON
WHO IS DANNY / SHUTTERSTOCK . COM
The decades-old global distribution system ( GDS ) technology that has facilitated the sale of airline tickets and other travel services is being disrupted by a newer , airline-driven technology . This tech promises benefits for travel advisors and their customers alike , including real-time pricing and inventory , easier product development and customization and new service bundles based on customer preferences .
But be aware : Critics warn that the migration will not be simple . For travel advisors , that could mean investments in new technology platforms and training , workflow disruptions and fragmented offerings .
WHAT IS NDC ? New distribution capability ( NDC ) is an industry-supported , XML-based communications protocol developed by the International Air and Transport Association ( IATA ). The current technology , GDS , emerged in the 1980s and allowed multiple airlines to integrate their inventory into a single platform . But the major GDS providers , including Amadeus , Sabre , Travelport , Expedia Group and Booking Holdings ( behind popular platforms Priceline and Booking . com ), typically collect commission or transaction fees — from travel agencies and other travel buyers — for each booking made through their platforms .
Basically , you could consider GDS a middleman selling an airline ’ s products to customers . NDC , then , removes the middleman , eliminates or reduces the booking fees that airlines pay and enables airlines to exert more control over their inventory distribution and revenue strategies .
“ NDC creates value in the travel industry and is one of the first steps in the digital transportation journey for airline distribution ,” according to IATA in a pamphlet for travel sellers . The value ? According to IATA , the booking process for travel advisors is simplified , as all offer
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