More and more traveller’s are becoming familar with the term “NDC" in relation to airfares, but what exactly does it mean, and why is it important for travellers to understand the implications of NDC fares? Let’s break it down simply.
What Is NDC?
NDC (New Distribution Capability) is a newer way for airlines to distribute their fares and other travel content. It was developed by the International Air Transport Association (IATA) to give airlines more control over how they sell tickets, bypassing traditional systems like the Global Distribution System (GDS), which includes platforms like Amadeus, Sabre, and Travelport.
With NDC, airlines can offer more personalised fares, services, and upgrades directly to customers or through agents using their own systems. This allows them to create customised offers such as seat upgrades, meals, Wi-Fi, or extra baggage.
Why Was NDC Introduced?
Before NDC, airlines relied on the EDIFACT system (Electronic Data Interchange for Administration) through GDS, which limited pricing flexibility and the number of fare classes airlines could offer. The GDS acts as a middleman between airlines and travel agents. Although efficient, it restricted airlines from creating the diverse pricing structures they desired.
NDC, on the other hand, uses modern XML technology, enabling airlines to:
- Create unlimited pricing options.
- Offer tailored services and upgrades.
- Update fares in real-time, allowing for dynamic pricing.
How NDC Fares Impacts Traveller’s
While NDC fares offer cheaper prices and more customised travel experiences, they come with certain challenges, particularly for after-sale services. Currently, the technology supporting NDC is still developing, and this means that some processes, especially making amendments or cancellations, are more time-consuming and complex and challenging for travel agents.
For example:
- NDC fares often take longer to amend. Travel agents can’t modify bookings as easily and may need to call the airline directly and at times wait online for hours. Changes may require multiple calls and considerable more effort to complete changes which is otherwise a simple process.
NDC Fares vs Non-NDC Fares: Service Fees
Due to the extra work involved in making changes to NDC bookings, the service fee for amendments is higher. Here’s a breakdown of the amendment fees:
- Non-NDC fares: $150 per person per change
- NDC fares: $250 per person per change.
This higher fee reflects the complexity and time required to modify an NDC fare. The technology behind NDC isn’t mature, so travel agents need to invest more effort to manage these bookings. Many traditional agencies have not even adopted the NDC fares.
Why Choose NDC?
Despite the current challenges, NDC represents the future of airline distribution, offering:
- Better deals and competitive pricing.
- Personalised travel experiences tailored to individual preferences.
- A direct link to the airline’s own systems, reducing reliance on intermediaries like GDS.
However, until the technology catches up, travellers should be aware of the extra time and cost associated with changes or cancellations to NDC fares.
In summary:
- NDC fares can offer cheaper, more customised options.
- Amendments are more complex, justifying a higher agent service fee.
So, if you book an NDC fare, know that while the initial price may be lower, the after-sale service is more involved, and the service fee for changes reflects that.
If you want to dive deeper into what NDC is and how it works, AltexSoft puts it all together by explaining how the outdated EDIFACT and the change NDC promises in this explanatory video.
Experience First Class Without the Hassle
For First Class travellers who value personalised service and want a seamless booking experience without the complications of NDC fare changes, contact our dedicated First Class agents. We understand the finer details of luxury travel and are here to ensure your journey is smooth, stress-free, and tailored to your preferences. You might like to also to checkout our article How to Choose the Right Travel Agent, timely information all traveller’s should consider. Let us handle the complexities while you enjoy the special attention you deserve. Reach out to our team today for a truly First Class experience from start to finish.
Frequently Asked Questions
NDC, or New Distribution Capability, is a modern airline distribution system developed by IATA. It allows airlines to offer more personalised fares, ancillary services, and dynamic pricing directly to customers or through connected travel agents. By bypassing traditional systems like GDS (Global Distribution System), NDC gives airlines greater control over their pricing and offers, resulting in better deals and tailored experiences for travellers. However, it can make the booking process more complex when it comes to after-sale services like amendments.
NDC offers cheaper fares and more personalised travel options. With NDC flight tickets, airlines can create and update pricing dynamically, providing travellers with customised services such as seat upgrades, meals, and other extras. NDC airline tickets also allow for more transparent pricing and special offers directly from the airline. While this system is still evolving, the personalised travel experiences and potential savings make it an appealing option for both business and leisure travellers.
New Distribution Capability was introduced by IATA to modernise airline distribution, addressing the limitations of the traditional GDS system. The older EDIFACT system restricted the number of fare classes and limited airlines’ ability to offer customised pricing. NDC flight tickets allow for dynamic pricing and personalised offers, enabling airlines to craft individual travel experiences while bypassing GDS fees. It empowers airlines to manage their content more flexibly and efficiently, offering a richer variety of services directly to travellers.
The main drawback of NDC is the complexity of after-sale services like amendments and cancellations. Since NDC tickets involve newer technology that is still maturing, travel agents often face difficulties when handling these tasks, as they must frequently contact airlines directly. This increases processing times and the likelihood of complications, which is why service fees are higher for NDC fare amendments. Until the technology is fully developed, travellers may find the after-sale experience more cumbersome compared to traditional GDS bookings.
