New Distribution Capability
NDC was originally created as a way to bypass the GDS providers, but slowly these providers(GDS) have become more involved in the process. The basic idea is that NDC is supposed to give indirect distribution channels, such as GDS and metasearch, the same capabilities as an airline’s website.
NDC is just a Messaging Standard, empowering airlines to become retailers across all channels, NDC enables airlines to use a single messaging standard to distribute their product to Global Distribution Systems (GDS), Aggregators(Kiwi, Mystifly), Travel Agents, Online Travel Agencies (OTAs), Online Booking Tools (OBTs), Travel Management Companies (TMCs) and directly to the traveller.
Using NDC single messaging standard Airlines can easily communicate Full & Rich Content information such as Ancillaries Product- Lounge Access, Seat selection, Pre-Checked Bags, Baggage, Upgrades, Meals, Car Rentals, Travel Insurance, Wifi on Board, Extra Leg Room, Fast-Track Boarding, and Rich content (HD Quality pictures and videos of products).
Airlines spend a huge amount on the product however the way Airlines currently sell does not allow for differentiation against competitors. NDC facilitates the distribution of product offers combined with rich content, to give customers and agents more compelling information to differentiate
NDC is basically a way to standardize this so companies don’t have to reinvent the wheel when creating direct connections. Instead of using multiple APIs, they can use the IATA standard for connecting to travel agencies, aggregators/GDS, etc.