Predictions on:
New Distribution Capability

New Distribution Capability (NDC) will be a game changer in the travel tech space

Almost half of travel buyer respondents of GBTA’s Business Outlook poll stated new industry technologies, such as NDC, will pose the most significant technological challenges in 2024.

When asked to rank their risk-related priorities for 2024, one in five surveyed (22%) ‘expect integrating NDC distribution channels will be most prioritized by their company’.

Most buyers (71%) strongly feel they still need more information and education on NDC (although this is a decrease from April 2023’s poll, which sat at 81%) – and half (50%) say they have not started to implement NDC. And 36% feel that third parties, such as travel management companies (TMCs), should now be ready to handle NDC bookings – up from a figure of 29% in April.

Whatever the concerns and benefits around it, NDC will remain a game changer in the travel tech space going into 2024.

"That's because access to really rich content across different platforms is going to become increasingly important next year,” Keichline explains. “Particularly as business travelers are getting more savvy, looking up things on their own, saying ‘I found a cheaper ticket’. So being able to provide them with rich content that works best for them and their organizations will be crucial.”

Reed & Mackay COO and CEO Europe Julie Oliver points out that while NDC is, arguably, still on a journey, it’s here to stay and buyers and TMCs alike need to get on board with it. “However, as we head into 2024, it’s going to make TMCs rethink how we respond to our clients’ needs,” she adds. “When you get to the nuances of the fare buckets NDC produces, this is where a business travel consultant will be trained to understand and decipher what those mean for the clients – resulting in enhanced dedicated service.

“Plus, with good partner relationships with airlines, we have the opportunity to feedback to them where there are challenges. For example, business class and corporate clients aren’t going for the $100 fares so they can’t sit in an airline queue with a query about their ticket for three hours and neither can we as the TMC looking to serve them. This needs to be looked into.”