Air Canada Roles Out Its NDC Strategy – How It Affects Clients and TMC's

In today's rapidly evolving travel landscape, Travel Management Companies (TMCs) play a vital role in ensuring efficient and seamless corporate travel arrangements for businesses. One key development, the introduction of New Distribution Capability (NDC) technology, presents a new opportunity for TMCs, like BNW Travel, to enhance their services and deliver even greater value to their corporate clients. In this article, we delve into the significance of NDC access for TMCs, particularly in light of Air Canada's recent implementation of a Global Distribution Recovery Fee and its NDC strategy.

Understanding Air Canada's NDC Strategy

Air Canada recently unveiled its forward-thinking NDC strategy. This strategy, which revolves around providing travel agencies with enhanced content and a streamlined booking process, is a game-changer for the industry. An integral part of this strategy is the introduction of a Global Distribution Recovery Fee (GDRF), a surcharge applied to bookings made through traditional Global Distribution System (GDS) channels.  GDRFs are becoming common in the industry and are intended to discourage the use of the GDS for simple or point-to-point flights.  Though the GDS will remain essential for complex and multicarrier flights.  In addition to the GDRF, Air Canada will provide additional incentives to TMCs to assist with their NDC adoption.   

The Benefits of NDC Access for Travel Management Companies (TMCs)

  1. Access to Enhanced Content and Ancillary Offerings: NDC provides TMCs with direct access to enriched content and ancillary offerings from airlines. With NDC access, TMCs can offer their corporate clients personalized fare options, seat selection, baggage services, and other ancillary products, tailoring travel itineraries based on individual traveler preferences, and delivering a more personalized and value-added experience.
  2. Improved Customer Experience: By leveraging NDC, TMCs can offer a more seamless and personalized booking experience to corporate travelers. This level of personalization enhances customer satisfaction and fosters stronger relationships with corporate clients.
  3. Greater Flexibility and Access: NDC empowers TMCs with enhanced flexibility and agility in managing bookings. In the event of flight disruptions, TMCs can swiftly adapt travel plans, minimizing the impact on corporate travel arrangements and ensuring a smoother travel experience for employees.   In addition to providing the widest range of fares, NDC provides preferential seat access which can be critical in the event of a flight disruption.   
  4. Cost Optimization: NDC access provides TMCs with a broader range of fare types, discounts, and negotiated rates. This ability to secure the best value on air travel expenses can result in significant cost savings and improved ROI for corporate travel programs.
  5. Industry Evolution and Innovation: Embracing NDC positions TMCs at the forefront of industry advancements and future innovations. Staying ahead of industry developments allows TMCs to differentiate themselves in a competitive landscape and deliver cutting-edge services.

Why Your TMC Needs NDC Access

Having NDC access is crucial for TMCs seeking to deliver comprehensive and tailored corporate travel services. NDC enables TMCs to leverage enhanced content, provide a superior customer experience, ensure flexibility in managing bookings, optimize travel costs, and stay ahead of industry evolution and innovation.

While the integration of NDC technology may require collaboration and technical adjustments, the benefits of NDC access outweigh the challenges. TMCs can align their operations with the evolving airline distribution landscape, deliver exceptional services to corporate clients, and maintain a competitive edge in the industry.

Read our Article on NDC and GDS Content and how it improve you travel company! Elevating Your Travel Agency Business With NDC And GDS Content

BNW Travel’s corporate booking platform, VoyagePro, employs the ORX NDC booking platform offered by NDC Solutions Inc. thus providing BNW clients with seamless access to both GDS and NDC fares.

If you are looking for an NDC powered TMC, please reach out to us at BNW. If you are a TMC looking to integrate NDC fares into your corporate offering, contact NDC Solutions Inc and inquire about how the ORX platform may work for you. 

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