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But as the travel landscape shifts and airlines push for greater control over their inventory and pricing strategies, a new player has entered the arena: New Distribution Capability (NDC).
Except – it’s not really new, is it?
First introduced by IATA (that’s the International Air Transport Association, basically the airline industry’s rulemakers) over a decade ago, NDC has been ‘the next big thing’ for years.
But while it might not be fresh out of the box, its impact on corporate travel is only now becoming impossible to ignore.
At its core, NDC is IATA’s initiative to modernise airline retailing by enabling direct connections between airlines and travel sellers through an XML-based API (which is just tech speak for a system that lets different platforms talk to each other in real-time).
The goal? To create a more dynamic, personalised booking experience that allows airlines to sell their products the way they do on their own websites.
But what does this actually mean for corporate travel, and why does it matter? Let’s get into the specifics.
Beyond the Buzzwords: What NDC Really Changes
With traditional GDS models, airlines load fares into a centralised system, which TMCs and online travel agencies then access to book flights. This has worked well for decades, but airlines have had limited ability to differentiate their products.
Want to sell a fare that includes extra baggage, lounge access, or a Wi-Fi bundle? That’s historically been tricky through the GDS. Enter NDC.
With NDC, airlines can push out rich content – including bundled fares, real-time pricing and even promotional offers – directly to travel buyers.
They can also introduce dynamic pricing, meaning rates aren’t just static fares but can shift based on demand, customer profile, or booking behaviour. Think of it like buying a concert ticket: the price you see today might not be the price you get tomorrow, depending on how quickly seats are selling.
For corporate travel, this means access to more varied fare options, but it also introduces complexities in managing policy compliance, price consistency and content fragmentation.
Fragmented Content: The Growing Pain of NDC Adoption
One of the biggest challenges of NDC adoption is content fragmentation – the uneven distribution of fares and products across different booking channels.
Here’s what that actually looks like in practice:
- Inconsistent Access to Fares – Some airlines make exclusive fares available only via NDC, meaning TMCs relying solely on one content source may not see the full spectrum of options. This forces corporate buyers to either use multiple booking tools or risk missing out on cost-effective fares.
It’s like trying to buy a pair of trainers online, only to realise one retailer has the colour you want, another has your size, and a third one offers the best price… but none of them have it all in one place.
- Limited Comparison Shopping – GDSs have historically been great at allowing agents to compare multiple airlines side by side. With NDC, different airlines have different levels of adoption, meaning fare and ancillary comparisons across carriers become more difficult.
- Operational Inefficiencies – Until TMCs and technology providers fully integrate NDC content, agents may have to search across multiple platforms to piece together the best fare options. This slows down the booking process and introduces potential errors in policy compliance.
Ever tried to book a simple flight and ended up with 12 browser tabs open? That.
While these challenges are real, they’re not insurmountable. TMCs are already working on tech-driven solutions to bridge these gaps, ensuring corporate buyers don’t feel the friction of this evolving model.
NDC and the Corporate Traveller Experience
For business travellers, the shift to NDC could offer some tangible benefits:
- Greater Fare Transparency – Airlines can offer more customised fare bundles, allowing travellers to see exactly what’s included rather than dealing with unexpected add-on costs at check-in.
- More Personalisation – Some airlines are using NDC to offer targeted promotions, like discounted upgrades or additional perks based on past booking behaviour. Kind of like how your streaming service suggests a show you might like – sometimes spot on, sometimes questionable.
- Seamless Changes & Disruptions – In theory, direct connections should allow for faster modifications and real-time adjustments to itineraries. However, this depends on how well TMCs and technology providers integrate these capabilities into their platforms.
On the flip side, corporate travel managers need to
ensure these benefits align with company travel policies. Without a consolidated view of all options, leakage – where travellers book outside of preferred channels – becomes a growing concern.
How TMCs Are Bridging the Gap
As NDC adoption grows, TMCs play a crucial role in making this transition seamless for corporate clients. Here’s how:
- Multi-Source Content Aggregation – Leading TMCs are integrating NDC content alongside GDS fares and direct airline connections to provide a single, comprehensive view.
- Policy & Approval Controls – Ensuring that NDC fares fit within corporate travel policies is essential. TMCs are developing tools that allow clients to access NDC fares while maintaining compliance.
- Enhanced Reporting & Duty of Care – One of the biggest concerns with fragmented content is visibility. TMCs are working to ensure that regardless of booking source, travel data is captured for risk management and reporting purposes.
The Reality Check: What’s Next for NDC?
While NDC represents a fundamental shift in airline distribution, it’s not a plug-and-play solution. Yet.
Adoption rates vary widely between airlines, with some fully embracing the model and others still in early testing phases.
Likewise, technology providers are racing to refine booking tools that seamlessly integrate NDC content without sacrificing efficiency.
For corporate travel programs, the key takeaway is this: NDC isn’t a silver bullet. Nor is it a problem to be solved. It’s simply a reality to be managed.
TMCs that invest in the right technology and partnerships will be best positioned to help clients navigate this transition smoothly.
The bottom line? The way we book corporate travel is changing. NDC will continue to evolve, bringing new capabilities and new challenges.
But with the right strategy, companies can embrace these changes without disruption – ensuring their travellers stay on the move without missing a beat.
About Platinum Travel Group
At Platinum Travel Group, we’re committed to staying ahead of industry shifts, ensuring our clients benefit from both innovation and stability.
Our team actively works with key airline and technology partners to deliver a seamless travel experience – balancing the advantages of NDC with the structured efficiency corporate travel demands.
