What is NDC (New Distribution Capability)? A plain-language guide for travel agencies
NDC (New Distribution Capability) is a data standard created by IATA that lets airlines send their fares, extras and offers directly to travel sellers through modern technology connections (APIs), instead of relying only on the older global distribution systems.
Why NDC exists
For decades, airlines have sold through travel agencies mainly via global distribution systems (GDS) such as Amadeus, Sabre and Travelport. These systems are reliable, but they were built for a time when a ticket was mostly a seat on a flight. Today airlines sell bundles, seats, bags, meals and personalised offers, and the older connection makes it hard to show all of that to an agency's customers.
NDC is the airline industry's answer. It is an IATA programme, launched in 2012, that defines a common way for airlines to share rich content and offers with agencies and other sellers.
How flight distribution works with and without NDC
| Traditional (GDS) | With NDC | |
|---|---|---|
| Route | Airline, then GDS, then agency | Airline, then agency (directly, through a GDS, or through an aggregator) |
| Content shown | Fares and basic services | Fares, bundles, seats, bags and other extras |
| Pricing | Filed fares | Offers that can be tailored to the customer |
| Agency effort | One main connection | More connections, or one connection to an aggregator |
What it means for travel agencies
- Richer offers: customers can see airline bundles and extras, not only the base fare.
- Possible better deals: some airlines offer content or pricing through NDC that is not available elsewhere.
- More complexity: each airline implements NDC a little differently, and changes and refunds can be harder to handle.
- Technology decisions: your booking engine or back office must support NDC, either directly or through a provider that has done the connections.
Six questions to ask your technology provider
- Which airlines do you offer through NDC today?
- Do you connect directly, through a GDS, or through an aggregator?
- How do you handle changes, cancellations and refunds on NDC bookings?
- Can I see NDC and non-NDC fares side by side in one search?
- What are the fees per booking and per search?
- How long does it take to go live with a new airline?
Frequently asked questions
Does NDC replace the GDS?
No. The two exist side by side. Most agencies today use both, and several GDSs now carry NDC content too.
Do small travel agencies need NDC?
Not necessarily on day one. If your supplier or booking engine already offers NDC content, you may get it without building anything yourself. A short call can help you decide whether it matters for your market.
Is NDC a software product?
No. NDC is a standard, a shared set of rules for how data is exchanged. Software products and airlines implement it.
Who created NDC?
IATA, the International Air Transport Association, which represents airlines worldwide.