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{{AFC submission|d|nn|u=Oscarm2|ns=118|decliner=Dan arndt|declinets=20250106043429|reason2=v|ts=20250105214415}} <!-- Do not remove this line! -->

{{Short description|An airline industry-supported program intended to modernize the distribution of airline products}}
{{Short description|An airline industry-supported program intended to modernize the distribution of airline products}}
{{Draft topics|business-and-economics|transportation|engineering}}
{{Draft topics|business-and-economics|transportation|engineering}}
{{AfC topic|other}}
{{AfC topic|other}}
{{AfC submission|||ts=20250105214415|u=Oscarm2|ns=118}}
{{AfC submission|t||ts=20250105214253|u=Oscarm2|ns=118|demo=}}<!-- Important, do not remove this line before article has been created. -->


'''NDC (New Distribution Capability)''' is an airline industry-supported program, launched by the [[International Air Transport Association]] (IATA), aimed at developing and implementing a new data transmission standard for airline distribution. It uses extensible markup language (XML) schemas to enhance the way airlines sell their products, enabling them to deliver more personalized and dynamic offers to travel agents and consumers.<ref name="IATA-NDC">{{cite web |url= https://www.iata.org/en/programs/airline-distribution/ndc/ |title=New Distribution Capability (NDC) |publisher= IATA |access-date=5 January 2025}}</ref>
'''New Distribution Capability''' '''(NDC)''' is an airline industry-supported program, launched by the [[International Air Transport Association]] (IATA), aimed at developing and implementing a new data transmission standard for airline distribution. It uses extensible markup language (XML) schemas to enhance the way airlines sell their products, enabling them to deliver more personalized and dynamic offers to travel agents and consumers.<ref name="IATA-NDC">{{cite web |url= https://www.iata.org/en/programs/airline-distribution/ndc/ |title=New Distribution Capability (NDC) |publisher= IATA |access-date=5 January 2025}}{{primary source inline}}</ref>


== Overview ==
== Overview ==
{{no sources section}}
Most airline tickets have traditionally been distributed through [[Global Distribution System|Global Distribution Systems]] (GDSs) that rely on the older Electronic Data Interchange for Administration, Commerce, and Transport (EDIFACT) messaging standard. These legacy systems can limit the display of ancillary products and personalized fare bundles. By contrast, NDC uses XML to allow airlines to communicate their fare and product information more dynamically, offering features such as:
Most airline tickets have traditionally been distributed through [[Global Distribution System|Global Distribution Systems]] (GDSs) that rely on the older Electronic Data Interchange for Administration, Commerce, and Transport (EDIFACT) messaging standard. These legacy systems can limit the display of ancillary products and personalized fare bundles. By contrast, NDC uses XML to allow airlines to communicate their fare and product information more dynamically, offering features such as:
* A broader range of ancillary products (e.g. seat selection, baggage options, or upgrades)
* A broader range of ancillary products (e.g. seat selection, baggage options, or upgrades)
Line 14: Line 15:


== History ==
== History ==
* '''2012:''' IATA introduced the NDC initiative, identifying the need to modernize the existing airline distribution infrastructure.<ref name="IATA-NDC" />
* 2012: IATA introduced the NDC initiative, identifying the need to modernize the existing airline distribution infrastructure.<ref name="IATA-NDC" />
* '''2014:''' Early pilot programs tested initial XML schemas in controlled environments to demonstrate feasibility.
* 2014: Early pilot programs tested initial XML schemas in controlled environments to demonstrate feasibility.{{cn|date=January 2024}}
* '''2015–2016:''' More airlines and travel technology providers participated in proof-of-concept trials, creating direct and indirect distribution use cases.
* 2015–2016: More airlines and travel technology providers participated in proof-of-concept trials, creating direct and indirect distribution use cases.{{cn|date=January 2024}}
* '''2017:''' IATA released updated NDC schemas and guidelines, standardizing early deployments.<ref>{{cite web |url=https://www.iata.org/en/youandiata/publications/ndc/ |title=IATA NDC Schemas |publisher=IATA |access-date=5 January 2025}}</ref>
* 2017: IATA released updated NDC schemas and guidelines, standardizing early deployments.<ref>{{cite web |url=https://www.iata.org/en/youandiata/publications/ndc/ |title=IATA NDC Schemas |publisher=IATA |access-date=5 January 2025}}{{primary source inline}}</ref>
* '''2018 onward:''' Major airlines such as Lufthansa, British Airways, and American Airlines began incorporating NDC into their distribution strategies, accelerating adoption.
* 2018 onward: Major airlines such as Lufthansa, British Airways, and American Airlines began incorporating NDC into their distribution strategies, accelerating adoption.{{cn|date=January 2024}}


== Objectives ==
== Objectives ==
{{no sources section}}
# '''Modernize Airline Retailing:''' NDC promotes consistency across direct and indirect sales channels, allowing airlines to showcase unified product offerings and fare bundles.
# Modernize Airline Retailing: NDC promotes consistency across direct and indirect sales channels, allowing airlines to showcase unified product offerings and fare bundles.
# '''Improve Communication and Collaboration:''' By adopting open XML standards, airlines, GDSs, and technology providers can exchange information more efficiently, fostering innovation.
# Improve Communication and Collaboration: By adopting open XML standards, airlines, GDSs, and technology providers can exchange information more efficiently, fostering innovation.
# '''Enable Personalization:''' NDC supports the use of traveler data (e.g., frequent flyer status, preferences) to tailor offers and fare bundles.
# Enable Personalization: NDC supports the use of traveler data (e.g., frequent flyer status, preferences) to tailor offers and fare bundles.
# '''Increase Competition and Innovation:''' Standardized schemas encourage new entrants (e.g., travel tech start-ups) to develop applications for shopping, booking, and servicing.
# Increase Competition and Innovation: Standardized schemas encourage new entrants (e.g., travel tech start-ups) to develop applications for shopping, booking, and servicing.


== Adoption and Implementation ==
== Adoption and implementation ==


=== Airline Adoption ===
=== Airline adoption ===
{{no sources section}}
A growing number of global airlines have embraced NDC to differentiate themselves with richer product offerings. Early adopters typically run NDC alongside legacy systems, gradually increasing the share of NDC-based distribution.
A growing number of global airlines have embraced NDC to differentiate themselves with richer product offerings. Early adopters typically run NDC alongside legacy systems, gradually increasing the share of NDC-based distribution.


=== Travel Agencies and GDS Integration ===
=== Travel agencies and GDS integration ===
{{no sources section}}
While some travel agencies and online travel agencies (OTAs) may connect directly to airline NDC application programming interfaces (APIs), traditional GDSs have also integrated NDC content within their platforms. This approach allows travel agents to view both legacy (EDIFACT) and NDC-based content in a single workflow.
While some travel agencies and online travel agencies (OTAs) may connect directly to airline NDC application programming interfaces (APIs), traditional GDSs have also integrated NDC content within their platforms. This approach allows travel agents to view both legacy (EDIFACT) and NDC-based content in a single workflow.


=== Certification and Levels ===
=== Certification and levels ===
[[International Air Transport Association|IATA]] manages an '''NDC Certification Program''' that categorizes participants—airlines, aggregators, and IT providers—by their level of capability (Level 1, 2, or 3).<ref>{{cite web |url=https://www.iata.org/en/programs/airline-distribution/ndc/ndc-certification |title=NDC Certification Program |publisher=IATA |access-date=5 January 2025}}</ref> These levels indicate maturity in handling various features such as offer management, booking, and post-sales servicing.
[[International Air Transport Association|IATA]] manages an '''NDC Certification Program''' that categorizes participants—airlines, aggregators, and IT providers—by their level of capability (Level 1, 2, or 3).<ref>{{cite web |url=https://www.iata.org/en/programs/airline-distribution/ndc/ndc-certification |title=NDC Certification Program |publisher=IATA |access-date=5 January 2025}}{{primary source inline}}</ref> These levels indicate maturity in handling various features such as offer management, booking, and post-sales servicing.


== Criticisms and Challenges ==
== Criticisms and challenges ==
{{no sources section}}
* '''Implementation Costs:''' Transitioning from legacy systems to NDC-compliant platforms requires significant investment in IT infrastructure and employee training.
* Implementation Costs: Transitioning from legacy systems to NDC-compliant platforms requires significant investment in IT infrastructure and employee training.
* '''Complexity in Transition:''' Running parallel EDIFACT- and NDC-based systems can add complexity for airlines, travel agencies, and GDS providers.
* Complexity in Transition: Running parallel EDIFACT- and NDC-based systems can add complexity for airlines, travel agencies, and GDS providers.
* '''Concerns Over Fair Competition:''' Some critics argue that well-funded airlines and agencies with direct connections might gain a competitive edge over smaller players.
* Concerns Over Fair Competition: Some critics argue that well-funded airlines and agencies with direct connections might gain a competitive edge over smaller players.
* '''Standardization Issues:''' Although NDC is an industry standard, varying implementations by different airlines can result in inconsistent user experiences and fragmented content.
* Standardization Issues: Although NDC is an industry standard, varying implementations by different airlines can result in inconsistent user experiences and fragmented content.


== See also ==
== See also ==
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{{reflist}}
{{reflist}}



== External links ==
== External links ==
* [https://www.iata.org/en/programs/airline-distribution/ndc/ IATA – New Distribution Capability (NDC)]
* [https://www.iata.org/en/programs/airline-distribution/ndc/ IATA – New Distribution Capability (NDC)] {{primary source inline}}
* [https://navan.com/blog/technology-and-innovation/what-is-new-distribution-capability-explained New Distribution Capability Explained] {{unreliable source inline}}
* [https://en.wikipedia.org/wiki/Open_Axis_Group Open Axis Group] – A precursor to NDC that established XML-based distribution standards.
* [https://navan.com/blog/technology-and-innovation/what-is-new-distribution-capability-explained] - New Distribution Capability Explained


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Latest revision as of 08:11, 6 January 2025

New Distribution Capability (NDC) is an airline industry-supported program, launched by the International Air Transport Association (IATA), aimed at developing and implementing a new data transmission standard for airline distribution. It uses extensible markup language (XML) schemas to enhance the way airlines sell their products, enabling them to deliver more personalized and dynamic offers to travel agents and consumers.[1]

Overview

[edit]

Most airline tickets have traditionally been distributed through Global Distribution Systems (GDSs) that rely on the older Electronic Data Interchange for Administration, Commerce, and Transport (EDIFACT) messaging standard. These legacy systems can limit the display of ancillary products and personalized fare bundles. By contrast, NDC uses XML to allow airlines to communicate their fare and product information more dynamically, offering features such as:

  • A broader range of ancillary products (e.g. seat selection, baggage options, or upgrades)
  • Customized, personalized offers based on passenger preferences and loyalty data
  • Real-time access to airline inventory and promotions

History

[edit]
  • 2012: IATA introduced the NDC initiative, identifying the need to modernize the existing airline distribution infrastructure.[1]
  • 2014: Early pilot programs tested initial XML schemas in controlled environments to demonstrate feasibility.[citation needed]
  • 2015–2016: More airlines and travel technology providers participated in proof-of-concept trials, creating direct and indirect distribution use cases.[citation needed]
  • 2017: IATA released updated NDC schemas and guidelines, standardizing early deployments.[2]
  • 2018 onward: Major airlines such as Lufthansa, British Airways, and American Airlines began incorporating NDC into their distribution strategies, accelerating adoption.[citation needed]

Objectives

[edit]
  1. Modernize Airline Retailing: NDC promotes consistency across direct and indirect sales channels, allowing airlines to showcase unified product offerings and fare bundles.
  2. Improve Communication and Collaboration: By adopting open XML standards, airlines, GDSs, and technology providers can exchange information more efficiently, fostering innovation.
  3. Enable Personalization: NDC supports the use of traveler data (e.g., frequent flyer status, preferences) to tailor offers and fare bundles.
  4. Increase Competition and Innovation: Standardized schemas encourage new entrants (e.g., travel tech start-ups) to develop applications for shopping, booking, and servicing.

Adoption and implementation

[edit]

Airline adoption

[edit]

A growing number of global airlines have embraced NDC to differentiate themselves with richer product offerings. Early adopters typically run NDC alongside legacy systems, gradually increasing the share of NDC-based distribution.

Travel agencies and GDS integration

[edit]

While some travel agencies and online travel agencies (OTAs) may connect directly to airline NDC application programming interfaces (APIs), traditional GDSs have also integrated NDC content within their platforms. This approach allows travel agents to view both legacy (EDIFACT) and NDC-based content in a single workflow.

Certification and levels

[edit]

IATA manages an NDC Certification Program that categorizes participants—airlines, aggregators, and IT providers—by their level of capability (Level 1, 2, or 3).[3] These levels indicate maturity in handling various features such as offer management, booking, and post-sales servicing.

Criticisms and challenges

[edit]
  • Implementation Costs: Transitioning from legacy systems to NDC-compliant platforms requires significant investment in IT infrastructure and employee training.
  • Complexity in Transition: Running parallel EDIFACT- and NDC-based systems can add complexity for airlines, travel agencies, and GDS providers.
  • Concerns Over Fair Competition: Some critics argue that well-funded airlines and agencies with direct connections might gain a competitive edge over smaller players.
  • Standardization Issues: Although NDC is an industry standard, varying implementations by different airlines can result in inconsistent user experiences and fragmented content.

See also

[edit]

References

[edit]
  1. ^ a b "New Distribution Capability (NDC)". IATA. Retrieved 5 January 2025.[non-primary source needed]
  2. ^ "IATA NDC Schemas". IATA. Retrieved 5 January 2025.[non-primary source needed]
  3. ^ "NDC Certification Program". IATA. Retrieved 5 January 2025.[non-primary source needed]
[edit]