NDC, or New Distribution Capability, is an initiative launched by the International Air Transport Association (IATA) to modernize the way airline products are distributed. It relies on an XML-based technological standard, enabling the identification of specific needs and enabling airlines to propose more personalized and dynamic offers to travel agencies and corporate customers. Thanks to NDC, carriers can better control the presentation of their products, offer additional services and improve the customer experience by providing more detailed and relevant information. This innovation is designed to meet business travellers' growing expectations of flexibility and personalization, and platforms like Duffel facilitate this transition by integrating airline offers directly into corporate reservation systems.
How is NDC transforming business travel?
NDC is transforming business travel by revolutionizing the way companies access airline offers. Thanks to this technology, companies can benefit from greater transparency and customization of services, including drug-related products. Travel agents and corporate travel managers can now access specific fares and services, tailored to the needs of their customers, such as seat options, extra baggage services, catering offers, pharmacy products, and even exclusive services for frequent flyers. What's more, NDC enables more direct communication between airlines and businesses, reducing intermediaries and the associated costs. Ultimately, this transformation leads to better management of travel expenses, an enhanced user experience and greater satisfaction for business travellers.
What are the benefits of NDC for companies?
NDC offers many advantages to companies, including :
Increased personalization: Companies can access tailor-made offers, adapted to the specific needs of their business travelers, enhancing the travel experience.
Cost transparency: NDC provides greater visibility on fares and additional services, making it easier to manage travel budgets.
Direct access to airline offers: By cutting out the middleman, companies can benefit from more competitive fares and exclusive promotions.
Flexibility and choice: Business travelers can choose from a wider range of services and options, such as preferred seating, extra baggage services and special meals.
Improved travel management: travel managers can better control and optimize travel expenses thanks to more accurate data and detailed reports.
Enhanced user experience: NDC enables smoother, more direct communication between airlines and companies, resulting in improved responsiveness and increased passenger satisfaction.
What challenges can companies face with NDC?
Companies can face several challenges when adopting NDC:
Technological integration: Implementing NDC requires investment in new technologies and compatible systems, which can represent a considerable cost and effort for companies.
Training and adaptation: Travel management teams and travel agents need to be trained in the new procedures and tools, which may entail a period of adaptation and transition.
Offer complexity: Increased personalization of offers can make comparing rates and services more complex, requiring additional tools and skills to effectively navigate the available options.
Data management: NDC generates a vast amount of data, and companies need to be able to analyze and use it effectively to optimize their travel strategies.
Security and confidentiality: With the increase in data exchanges, companies need to ensure that travelers' sensitive information is protected, and that confidentiality standards are respected.
Collaboration with suppliers: Companies need to build strong relationships with airlines and service providers to reap the full benefits of NDC, which may require negotiations and contractual adjustments.
How can companies prepare for NDC adoption?
To prepare for NDC adoption, companies can follow several key steps:
Needs assessment: Analyze the company's specific business travel needs and identify the potential benefits of NDC to meet those needs.
Investment in technology: Set up the technological infrastructure needed to integrate NDC, including compatible reservation and travel management systems.
Team training: Train travel managers and agents in the new NDC procedures and tools, to ensure a smooth and efficient transition.
Collaboration with suppliers: Establish strong partnerships with airlines and service providers to benefit from NDC's customized offers and competitive rates.
Data management: Develop data analysis capabilities to leverage NDC-generated information and optimize travel strategies.
Security and compliance: Implement robust security measures to protect traveler data and ensure compliance with current regulations.
Internal communication: Inform employees of the upcoming changes and the benefits of NDC to ensure their buy-in and cooperation throughout the transition process.
Monitoring and adjustment: Monitor the impact of NDC on business travel, and adjust strategies according to feedback and market developments.
What does the future hold for NDC in the business travel sector?
The future of NDC in the business travel sector is promising, with widespread adoption standardizing the industry. This technology will enable advanced personalization of offers, tailored to the specific needs of business travelers. Advances in artificial intelligence and machine learning will improve data analysis, offering a smoother, more intuitive booking experience. Companies will be able to better control their spending thanks to greater transparency and sophisticated management tools. NDC will foster close collaboration between airlines, travel agencies and businesses, and encourage more sustainable travel practices by optimizing itineraries and reducing carbon emissions.
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