With the New NDC Push, What Travel Managers Should Consider
New Distribution Capability (NDC) standards allow airlines to offer more personalized and customized travel experiences to their customers. While EDIFACT can handle some ancillary services information, it may not support the full range of options and services that airlines want to offer, such as seat upgrades, baggage allowances, and other personalized services. This is why many airlines and distribution channels have been moving towards more advanced and flexible data exchange standards, like the New Distribution Capability (NDC) developed by IATA. NDC allows airlines to distribute richer content, better personalize their offers, and sell ancillary services more effectively through third-party vendors.
Digital transformation of the airlines’ ancillary offerings for travel agencies and enterprises is a good start for being able to capture this data in a more standardized format, however that means more considerations are needed to get a clearer picture of spend and leakage.
Does NDC flow into the existing systems
How to consider standardizing ancillary offering to be able to properly categorize and report on these ancillary products
Do certain processes with NDC cause travelers to book directly with airlines
For enterprises, it can be difficult to calculate total spend when employees are booking out of channel (and directly with airlines or elsewhere), and it's even harder to meet contractual thresholds when there is travel leakage. In addition, parts of ancillary services and bundles may be covered within the corporate travel policy, whereas other parts may not.
Establish clear travel policies: Create and communicate comprehensive travel policies that cover what is included for ancillary services and where to book them including seat upgrades, baggage allowances, what is part of the dining and beverage polices, and other personalized services. This will ensure employees understand the guidelines and make bookings in compliance with corporate requirements.
Monitor and enforce compliance: Regularly review employee booking behavior to identify any non-compliant bookings or policy violations. Use the data gathered to improve travel policies and educate employees on the importance of booking through approved channels.
Analyze and optimize travel spend: Leverage data from NDC bookings and other travel data sources to gain insights into travel spend patterns. This information can be used to negotiate better deals with suppliers, optimize travel policies, and identify areas for cost savings.
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