New Distribution Capability (NDC) Explained: A Glossary for Travel Managers

Navigating the New Distribution Capability (NDC) world in corporate travel can be daunting, especially when confronted with technical jargon. We've put together this glossary to help you grasp the essential terms and concepts associated with NDC. It will get you up to speed on the terminology related to the airline industry's revolutionary data exchange technology.

Ancillary Services

Ancillary services refer to the additional perks and services offered by airlines, such as seat selection, priority boarding, and checked baggage. NDC aims to simplify the process of selling these extras through travel agents, extending beyond airline websites.

Travel API

An Application Programming Interface (API) serves as a bridge for seamless communication between various software systems. This technology enables airlines, travel agencies, and partners to exchange real-time data, providing personalized travel options, a core focus of NDC.

Direct Distribution

Direct distribution occurs when airlines sell their products and services directly to travelers through their own websites and mobile apps.

Dynamic Pricing

Dynamic pricing is a strategy employed by airlines to adjust fares in real-time based on demand, availability, and market conditions. NDC APIs facilitate the exchange of real-time data between airlines and travel agents, allowing for spontaneous price adjustments.

IATA (International Air Transport Association)

IATA, the trade group for the airline industry, spearheaded the NDC initiative to enhance how airline content is distributed.

NDC (New Distribution Capability)

NDC, short for New Distribution Capability, is an initiative led by the International Air Transport Association (IATA). It leverages XML data exchange technology to revolutionize how airlines sell and market their products. NDC enables airlines to create and deliver relevant offers to customers, regardless of the distribution channel.

GDS Integration

Global Distribution System (GDS) integration is a computerized network utilized by travel agencies and online booking platforms. It provides access to and booking of various travel-related services, including airline reservations, hotel accommodations, and car rentals.

Indirect Distribution Channels

Indirect distribution channels involve airlines using alternative methods, such as GDSs and other intermediaries, to sell their products and services. These intermediaries connect to airlines' NDC APIs to access and display offers, fares, and ancillary services.

Minimum Marketable Product (MMP)

The Minimum Marketable Product (MMP) is an evolving framework developed by BNW Travel. It outlines the essential capabilities required to make NDC work effectively for business travel.

XML (Extensible Markup Language)

XML is a data exchange language that supports rich content and retail sales. NDC utilizes XML to enhance how airlines promote and sell their products, making the process more engaging and informative.

By familiarizing yourself with these NDC-related terms, you'll be better equipped to navigate the evolving landscape of corporate travel and make the most of the innovative solutions offered by BNW Travel.

EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport)

EDIFACT is a well-established computer language used by travel suppliers and global distribution systems (GDSs) to deliver travel content. However, EDIFACT has limitations in transferring rich content, which can hinder airlines' ability to effectively sell and promote their products.

Offer and Order Management Processes

Offer and order management processes involve tailoring offers to individual traveler preferences and needs (offer management) and efficiently managing bookings and transactions for the selected options (order management). NDC has elevated these processes to new levels of sophistication.

Rich Content

Rich content encompasses detailed visual information that airlines can provide to travel sellers and intermediaries to promote their product offerings effectively. This content goes beyond traditional fare and timetable information, including videos, images, seat maps, and detailed descriptions, enhancing the airline ticket purchase experience.

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