New Distribution Capability
The New Distribution Capability (NDC) provides a new and innovative approach to the way airlines’ products and services are being distributed. NDC will enable airlines to fill the capability gap between their direct and indirect channels, providing identical retail capabilities across all channels. It supports product differentiation and customer personalization.
IATA is facilitating the definition and the establishment of industry standards to support and shape this new model for the benefits of the industry and all its stakeholders. The IATA Board of Governors made this initiative one of its 2012 Industry Priorities.
The case for NDC is clear – It is about providing passenger with more choice of products and services, more personalization, more transparency and increased competition among providers.
What this New Airline Distribution Model is about
- The Airline-Customer Relationship becomes interactive through all channels
- Airlines know who is making the request and thus, are able to personalize their offers
- Airlines construct the offers themselves and intermediaries aggregate responses from airlines
- The development of this new model is premised on full transparency and openness, with collaboration across the industry
All industry stakeholders are encouraged to participate as involvement in NDC initiative means the ability to influence future model.
- Increased transparency of what they are buying
- Greater access to airlines’ product and services
- Ability to compare airline offerings across many dimensions – not just price
- Recognition by airlines and personalized products offers
- Capability to sell all products through all channels
- Leverage the investments made for their direct channel and develop retail capabilities for all channels
- Greater ability to recognize and reward customers, provide personalized offers
- Better service for clients – greater consistency in products and services offered across the different channels
- Greater access to airline products (some of which currently are only available on direct channels) potentially leading to new service opportunities
- Improved capability for displaying wider range of products and services
- Stimulate innovation and offer more choice to consumers, open new business opportunities
The foundation Resolution supporting a New Distribution Capability (NDC) was formally approved by the IATA Passenger Services Conference (PSC) in October, 2012 and the industry business case was presented to the IATA Board of Governors in December 2012.
View the fact sheet & NDC roadmap (pdf)
Updated: March 2013