Understanding New Distribution Capability: How Airlines are Changing the Way They Sell to Business Travellers

Airplane wing with clouds and sunny sky
Photo by Ross Parmly on Unsplash

New Distribution Capability (NDC) is an innovative way for airlines to sell their products and services to business travellers and travel managers regardless of the distribution channel. NDC promises to give business travellers a more personalised and relevant booking experience. Whilst it gives airlines more control over how they sell their products and services. However, traditional distribution channels, such as global distribution systems (GDS) and travel agents, still play a big role in selling airline products and services to business travellers.

New Distribution Capability has many benefits, including the ability to:

– offer more personalised deals to business travellers

– bypass intermediaries such as GDS and travel agents

– generate additional revenue from ancillary products

– enable a more transparent buying experience

– fast-track launching a new product or service

But, implementing NDC can be complex and expensive, especially for smaller airlines. Plus, there is a lack of standardisation among airlines and technology providers. This can make it difficult for travel managers to compare offers from different airlines.

Traditional distribution channels have their own advantages:

– a wide reach

– established infrastructure

– intermediary support

But, they often provide a one-size-fits-all approach to pricing. Plus, they can limit airlines’ ability to offer personalised products and services. There is also a dependence on intermediaries such as GDS and travel agents. This can also result in more fees for airlines and potentially higher prices for business travellers.

Many airlines, such as Air Canada, British Airways, and Delta Air Lines, are adopting NDC as part of their distribution strategy. NDC is still in its preliminary stages. But, it has the potential to revolutionise the way airlines sell their fares and ancillary products to business travellers.

In conclusion, both New Distribution Capabilty and traditional distribution channels have their pros and cons. NDC offers airlines the ability to provide more personalised and relevant products and services straight to business travellers. Whereas, traditional distribution channels provide established infrastructure and wide reach. As airlines continue to adopt NDC, it will be interesting to see how it evolves and impacts the business travel industry.