Understanding New Distribution Capability (NDC): A Game Changer for Airlines and Travel Agents

If you have ever booked a flight online or through a travel agent, you must have interacted with the traditional airline reservation system without even realizing it. For decades now airlines have used global distribution systems and passenger distribution systems to sell tickets, manage bookings and also share flight information. This setup no doubt is completely reliable but has its own limits especially when it comes to offering customized experiences or selling extras like baggage or seat upgrades.

In recent years, the airline industry has been shifting towards more customized travel. This means airlines want to offer way more than just a seat on a plane. They are likely to look forward to selling add-ons and customs offers based on your requirements. That’s where new distribution capability comes in the picture. It’s a revolutionary solution created by IATA to change how airlines and travel agencies like you communicate, distribute and sell flights.

You can currently see that NDC is reshaping airline income streams, improving customer satisfaction and also making the entire travel booking process more efficient. In this guide you can learn everything about NDC and how it works.

What is NDC?

NDC is a new distribution capability and industry standard developed by the international air transport association. The main purpose is to modernize and improve the way airlines distribute the content and communicate with travel agents like you or online travel agencies. The main objective is to replace the old, outdated messaging system used between airlines and travel agents. EDIFACT What’s undoubtedly good but limited in flexibility could not handle rich content like images or detailed descriptions on dynamic offers. On the flip side NDC uses modern technology like XML based messaging and APIs to allow more interactive customized and transparent communication.

You can think of EDIFACT as a simple text-based messaging system. It’s good for sending basic message information like flight times and fares but you cannot show anything flashy or customizable. On the other hand, NDC is like switching from your old phone to a smartphone. It’s a pause dynamic pricing rich content like you can show photos of seeds and customized offers all in real time.

How NDC works

• Traditional booking flow
  
  

Traditionally when you book a flight through a travel agent or OTA your request goes through GDS, which connects you to the airline’s passenger service system to check availability and prices. The somewhat rigid flow shows only fixed fares and basic information limiting the ability of the airline to promote add-ons or even customized offers.

• NDC booking flow
  
  

With NDC Flight Booking Software the booking process becomes much more dynamic. Instead of just routing everything through a GDS you can connect directly to airlines. This means you can access real time pricing for customized offers and rich content. Everything is in one place. For example, during booking you can see options to upgrade seats, add meals or purchase extra baggage all customized to your preferences. It’s great flight booking software for travel agents.

• Real world example
  
  

Consider finding a flight from New York to London. When you use the NDC enabled Airline Reservation System the system sends your request directly to the airline’s NDC API. The airline responds to you with basic economic fare with standard seating economy fare with priority boarding and economy fare plus meal with lounge access. As NDC supports customized information, if the airline knows that you often travel for business it can also automatically show offers with upgrades or even flexible tickets. You can just choose and book seamlessly with all add-ons and pricing clearly displayed.

As a travel agent this means a smoother booking flow and happier customers for airlines, it means better control of your product and higher revenue from ancillaries.

Key benefits of NDC for airlines

1. Rich content delivery

Traditionally when you book a flight through a travel agency or an online platform you mostly see basic flight number or class. But with NDC Flight Booking Software airlines can now share much richer content with you. This means you can view even photos of what the seats actually look like, see in-flight meal choices or even choose your seat from a real seat map. Airlines can also provide some add-ons like extra luggage, Wi-Fi lounge access and priority boarding all in one place. You can think of it like shopping for a phone online. Would you rather just see the brand and price or a full description of photos and reviews and love that’s what NDC brings to airline shopping. This rich content makes the booking process really transparent and more engaging.

2. Increased ancillary revenue

Ancillary revenue means all the money airlines earn from extra things like charging extra luggage, choosing a better seat, booking a meal or even buying insurance. In the past these extras were mostly available only on the airlines own website. So, travel agents like you could not sell all these. NDC changes that as travel agents or OTAs like you can now sell these add-ons directly just like airlines own websites. This flight booking software for travel agents also allows airlines to increase their earnings without needing to depend only on direct bookings. For example, if someone is booking a flight via you as a travel agent and also wants to add priority boarding and meal then you can offer those add-ons instantly to your customer. That wasn’t possible before. With NDC you can now see all these options and also more people can buy them, leading to better profits for airlines.

3. Real time pricing

in the old Airline Reservation System prices were updated in chunks every few hours or even once in a day. This wasn’t ideal. What if demand increased suddenly or what if the seats were filling fast? The airline could not react quickly. But with NDC pricing is dynamic and real time. This means that airlines can easily adjust the fares immediately based on the current demand. For example, two people are searching for the same flight, one of them is a frequent flyer while the other one is a new traveler. With NDC airlines can offer them different prices or customized bundles based on the profiles. It’s like how you shop online and see product suggestions based on what you have browsed before. This type of real time pricing helps airlines stay competitive.

4. Customized offers

Imagine this, you travel often for business and always choose an aisle seat, prefer vegetarian meals and never check a bag. with NDC the airline can just remember your preference and offer a custom package that is just right for you. Maybe they’ll send you a promotion with a free meal upgrade and your favorite seat already please select it. That’s the power of customization. What happens because NDC allows airlines to gather and use your customer information more effectively they can now offer travelers customized deals and discounts. They go way beyond just a random offer; they are tailored to you based on your past travels. This will help you improve your overall travel experience and can also build stronger loyalty.

5. Reduce dependency on legacy systems

Most airlines still use systems like global distribution systems. They are completely old, bulky and were designed decades ago. No doubt they still do the job, but they are not flexible for today’s fast-paced travel world. NDC helps airlines break free from all these systems. It uses modern APIs and cloud-based platforms to share information. This means faster updates, more accurate information and better integration.

Read More: What is a Hotel Booking Engine and How Does It Work?

NDC and impact on travel agents and OTA’s

• For OTAs and travel agents
  
  

NDC is not just good for airlines but it’s also perfect for travel agents or OTAs like you. In the past agents like you just had access to limited fare and flight information through GDS. You could not offer the same promotions as the packages that your customers would find on airlines websites. Now with NDC Flight Booking Software you have access to much more detailed and customized offers. This means you can compete better and offer your customers the same rich experience that you would get on the airlines own website. For example, now you can show real time seat maps, add baggage or suggest bundle services all without sending your customer to a different website. This improves your customers trust and also keeps the booking experience under one roof.

• Improved shopping experience
  
  

Thanks to NDC the shopping experience for the end customer whether booking online or an agent is getting much better. Your customers can now see all the options clearly. Instead of being forced to pick from basic economy, nominal business might even get more customized choices like economy seats with extra legroom plus one checked bag or business seat with lounge access plus Meal or chauffeur service. These customized choices help your customers feel more in control and satisfied with the purchase.

Challenges for travel agents

No doubt this flight booking software for travel agents brings a lot of benefits. It also comes with some growing pains. Number one you need to learn new systems and tools. As NDC works differently compared to traditional GDS your staff needs training. You might also need to invest in updated software or partner with a new tech provider. Integrating NBC content from multiple airlines can be challenging. Each airline might have its own way of structuring information or presenting offers. This makes it challenging for you to offer a uniform experience across all careers. Despite all the challenges you might feel the benefits of better content and improved commissions are truly worth it in the long run.

The competitive advantage

As a travel agency if you adopt the NDC Airline Reservation System when you have a big edge. You can offer better deals with richer content and more customized service as compared to your competitors who still rely on GDS only contents. You can build stronger relationships with airline partners and access exclusive deals. This translates to better value for your customers and stronger brand loyalty.

NDC in action case studies of airlines using NDC

• American airlines
  
  

American Airlines was one of the first major carriers to adopt NDC Flight Booking Software. They started using it to improve how they sell tickets through travel agencies. Thanks to NDC, American airlines today offer the same rich content hair bundles and seed upgrades through travel agents that they offer on the website. They also use the software to reward frequent Flyers with special offers and allow you to customize bookings more easily. As a result, they have increased their ancillary sales and also strengthened the relationship with travel partners.

• Lufthansa
  
  

Lufthansa also took a bold step by charging extra for booking made through traditional GDS, pushing more partners to choose NDC. By using this software Lufthansa now offers fare families special deals and customized content that you could not access before. The system is built to adapt prices based on demand and travel behavior. They have also worked with aggregators and tech partners to help you integrate with their NDC API making the transition smoother. Lufthansa’s approach shows how NDC can improve profitability and customer engagement at the same time.

• Singapore airlines
  
  

Singapore airlines is known for premium service and NDC helps them deliver that consistently even through third party sellers. Through their Kris Connect platform based on NBC they provide rich customized content directly to agencies like you. This includes dynamic pricing, real time suitability and customized packages. NDC has also allowed Singapore Airlines to create a more connected and consistent experience for all passengers like you no matter where you book. This has completely helped the airlines Stand out in competitive markets by offering premium services in a flexible way.

Challenges of implementing NDC

1. Technological barriers

Switching to NDC is not something like flipping a switch. Airlines and travel companies must also have modern IT systems to support it. A lot of airlines even today are using outdated software that doesn’t support API based communication. The backbone of NDC systems must be able to handle real time updates if NDC has to work. That means investing it in cloud technology and strong APIs. Not every company is ready for it.

2. Integration complexity challenges for travel agents

Even after an airline is ready the real challenge begins with integrating NDC with partners. You might be using a variety of tools or systems as a travel agent and getting NDC to fit in your existing workflow is not always easy. Every airline has its own version of NDC API. You need to integrate each one separately which can be time consuming for you and also complex. It’s like trying to plug in a dozen different phone chargers all with different shapes.

3. Cost considerations

Implementing NDC means money. Airlines need to upgrade systems to train staff and hire IT experts and also partner with new vendors possibly. This can cost millions for large carriers. At the same time travel agencies can also face similar costs.  you need to solidify your platforms, retain staff and make sure everything works smoothly with the airline APIs. It’s a long-term investment. The benefits are real, but you must know they are not instant.

4. Certification process

The International Air Transport Association created a certification program for NDC to ensure everyone follows the same guidelines. There are different certification levels for airlines and sellers. Getting certified is easy but keeping that certification upgrading as standards evolve takes a lot of effort. You need to test your system, submit documentation and also work with partners to prove that you are using NDC correctly. If you are a small agency this process can feel overwhelming. But certification is important as it helps you build just in the NDC ecosystem.

6. Lack of standardization

One of the biggest complaints NDC has today is that there is no single standard format that everyone uses. Airline A might structure the seat map differently as compared to airline B. 1 airline might label baggage as add-on and another might call it optional service. So as an agent this is extra work for you to connect and display everything correctly. Until there is more consistency across airlines managing multiple NDC connections will truly remain a technical headache for you Until there is a consistency.

Read More: Where to Find the Best Travel Technology Companies in the USA?

NDC VS GDS

• GDS in the NDC era
  
  

Global distribution systems like Travelport have powered flight bookings  for several years today. They have been around since before the Internet and are completely embedded in the travel industry. But now NDC is growing and GDS is adapting. They are building their own NDC gateways to give you access to NDC content through familiar interfaces. This is good news for agencies like you as you don’t have to learn brand new tunes. But it also means GTS must move fast and stay relevant. Some airlines are choosing to limit content on GDS or even charging extra for GDS. GDS still plays a very big role especially for corporate travel, multi airline itineraries and back-end operations. But they must evolve or risk becoming less central.

• NDC aggregators
  
  

Aggregators are like middlemen who take complex airline APIs and turn them into easier to use systems for travel sellers. Instead of connecting 20 different airlines one by one you can connect to an aggregator and get access to all of them. Some popular NDC aggregators include. Even GDS now works like aggregators to some extent. Aggregators can help you solve one of the biggest problems of NDC that is standardization. This makes it easier and faster for you to adopt NDC without needing a huge budget.

Choosing between GDS aggregators or direct API’s

So which option is the best for you? Large airlines might choose direct APIs with major OTAs to have more control and lower costs. But if you are a small to medium travel agency then you might prefer aggregators for simplicity and speed. If you’re a traditional agency then you might stick with GDS because of the existing system and multi airline support. There is no one-size-fits-all answer here. The best choice depends on your company’s size, budget and technical ability. But one thing is clear here that flexibility will be the key in future.

The future of airline distribution with NDC

• Growth of NDC adoption
  
  

NDC adoption is growing rapidly. Hundreds of airlines today are certified and many are actively using NDC in production environments. Big players like Lufthansa and American Airlines are already pushing NDC-based offers. So, in the next few years you can say that more headlines are expected to shift most of the bookings to NdC channels. The truth here is NDC is no longer the future, it’s the present.

• Market impact
  
  

As NDC becomes the new normal it will change the travel market in major ways. As a travel agent you have to offer more competitive and customized packages. Airlines will earn more from ancillaries. Customers will get a richer, seamless booking experience.

• Emerging technologies
  
  

NDC is not the only big tech shift that is happening in the travel world but also emerging tools like AI, machine learning and big data are transforming how airlines predict demand and adjust prices. Machine learning can truly improve customer service through smarter chat boots and support systems.

So above all you need to know that NDC is a game changing technology in the airline industry. It’s a rethinking of how air travel is brought to sell for airlines. It’s a way to take back control from third parties and grow income. For agents like you it’s a chance to offer better service and keep your customers loyal. Like all big changes it will take time, but the industry is clearly moving in the right direction.

If you are an airline or a travel agency, now is the time for you to start your NDC journey. Look into certification, explore tech partners like TraveltekPro and start testing and learning. The earlier you get involved the better your chance of staying competitive in the rapidly changing space. 

FAQ’s

1. What is the distribution of capabilities?

The “distribution of capabilities” refers to the methods and technologies used by airlines and travel service providers to distribute their products—such as flight tickets, ancillaries, and promotional fares—across various sales channels. This includes global distribution systems (GDS), online travel agencies (OTAs), direct APIs, and the emerging New Distribution Capability (NDC). Over time, these distribution capabilities have evolved from simple command-line systems to rich, content-driven, API-based platforms like NDC. The goal is to make the airline content more dynamic, personalized, and accessible to both travel agents and end customers, improving the booking experience while boosting airline revenue opportunities.

2. What is NDC for travel agents?

NDC (New Distribution Capability) is a transformative XML-based data transmission standard developed by IATA  to modernize how travel agents access airline content and services. For travel agents, NDC unlocks a new level of transparency and personalization. It enables them to access rich content, real-time pricing, customized fare bundles, ancillary products, and seat maps—benefits that were previously exclusive to airline websites. With NDC integration, agents can now offer their customers a more engaging shopping experience, including personalized promotions and upsells, within a single, seamless booking interface. It also empowers travel agencies to remain competitive in a rapidly digitizing market by offering differentiated services aligned with traveler preferences.

3. What is the difference between NDC and Direct Connect?

NDC and Direct Connect both aim to improve how airlines share content with partners, but they differ in scope and standardization. NDC is an industry-wide, standardized messaging protocol developed by IATA, using XML and APIs to ensure consistency across airline content and integrations. It enables interoperability and streamlines how travel agents and OTAs access dynamic offers from multiple carriers. Direct Connect, on the other hand, is a custom, non-standardized API built individually by airlines to distribute their content directly to specific partners, often bypassing GDS systems. While Direct Connect gives airlines more control, it lacks the universal compatibility that NDC provides. NDC essentially builds on and improves the concept of Direct Connect by offering a standardized, scalable framework for the entire industry.

4. What is the new distribution capability of airlines?

The New Distribution Capability (NDC) is a next-generation airline distribution standard introduced by IATA to transform the way airlines sell their products. Traditionally, airlines relied on legacy GDS systems using EDIFACT protocols, which limited their ability to display rich content or create personalized offers. With NDC, airlines can now distribute detailed product information, such as fare families, baggage options, seat selection, and bundled services, in real time and with greater flexibility. It allows airlines to connect directly with travel agents and OTAs through APIs, enhancing their ability to tailor offers, increase ancillary revenue, and improve the traveler’s booking experience. NDC marks a major shift toward a more retail-focused, customer-centric approach in airline sales.

5. What is the difference between GDS fares and new distribution capability (NDC) fares?

The primary difference between GDS fares and NDC fares lies in the level of customization, content richness, and pricing flexibility. GDS fares are typically standardized and based on static inventory, often showing only base prices and limited ancillary options. These fares are distributed using older EDIFACT technology, which lacks the capability to display dynamic or personalized offers. In contrast, NDC fares are dynamically generated and can be tailored to the specific needs or profiles of travelers. With NDC, airlines can offer differentiated pricing, include rich media content, and bundle ancillaries like baggage, seat upgrades, or meals—similar to what is available on their websites. As a result, NDC fares provide more value, personalization, and revenue opportunities for both airlines and travel agents.

6. Are NDC fares refundable?

Whether NDC fares are refundable or not depends entirely on the fare rules set by the airline offering the ticket. NDC is a distribution standard, not a fare type, so it does not inherently determine refundability. Airlines have the flexibility to distribute both refundable and non-refundable fares through NDC channels. What makes NDC unique is that it can display detailed fare conditions more transparently, including refundability, change policies, cancellation fees, and applicable terms, in real time during the booking process. This ensures that travel agents and customers are fully informed before making a purchase, reducing post-sale confusion and improving the overall customer experience. Therefore, travel agents using NDC can easily identify whether a specific fare is refundable and communicate that clearly to their clients.