Sep 12

New Distribution Capability (NDC)

What it is and what you need to know

Published on: 09/12/2024

The New Distribution Capability (NDC) is a travel industry standard developed by IATA to enhance the way air products are sold, providing a full and rich air content and transparent shopping experience to both travelers and travel agencies.

Do NDC fares impact only business travelers?

No. Even though business travelers may be more impacted due to approval needs and overall corporate travel policies, NDC fares are available for both leisure and business travelers and those rules apply the same way.

Will I see the NDC fares on my company's booking tool?

You may see the fares if you book on the NEW Concur UI. If your company has determined to use the NEW Concur UI for your travelers, then NDC fares are visible. Depending on your company's policy, you may not be allowed to book NDC fares. If allowed, we recommend reading on for more details and what to look out for.

Tangerine Travel Advisors are also able to book NDC fares and will do so based on your company's policy and guidance. If you would like to learn more, please reach out to your internal Travel Manager or your Account Manager at Tangerine Travel.

How does NDC impact my reservations?

In general, one of the challenges of NDC is that each air carrier is responsible for the development of their NDC Program and for the approach they will take. NDC fares can sometimes be misleading about what is allowed afterwards if a change is needed, for example.

The example below shows how NDC fares are marked on the NEW Concur UI:

Example from the New Concur User Interface

What are the differences between NDC and standard fares?

Most NDC fares are in the Basic Economy category, but they are not restricted to it as you can find NDC fares in Main Cabin, Premium, Business and First Class.

When booking an NDC fare, travelers need to look for the details included (or not) within that fare, such as seat assignment, baggage allowance, post-booking changes, points for rewards program and others (see example below).

Currently, when an exchange is allowed with an NDC fare, it is only exchangeable for another NDC fare (as fare rules permit), and standard fare credits can only be used towards another standard fare purchase.

Example from the New Concur User Interface

Keep in Mind:

Not all airlines have adopted the standard yet, which can cause confusion when searching for flights and understanding what is allowed with one carrier and not with another.
NDC fares may be cheaper than standard fares, but travelers need to understand why and what the implications may be when choosing an NDC fare.

Stay tuned to our newsletters for more updates as NDC content continues to evolve.

Sources:

Iata.org, "IATA - Distribution with Offers & Orders (NDC)"

Businesstravelnews.com, "The Pace of Change: Suppliers Make Progress on NDC"