10 Years of NDC: The Business Impact

10 Years of NDC: The Business Impact and Commercial Side of NDC — What Agencies Need to Know

By now, you’ve probably heard a lot about NDC — New Distribution Capability — and how it’s changing the travel industry, it’s been around for 10 years after all... But what does it mean for your business? And how can agencies make it work commercially? 

In this blog, we’ll explore the business impact of NDC, why it needs to work for agencies, how it’s changing airfare distribution, and what it means for incentives and profitability. 

Why NDC needs to work for agencies

At Travelport, we believe that for NDC to succeed, it has to work for everyone — airlines, agencies, and travelers. 

NDC bookings are handled through airline APIs rather than traditional channels. That means new processes for shopping, booking, making changes, cancellations, and customer service. 

But agencies have spent years fine-tuning their workflows to make searching, selling, and servicing as efficient and accurate as possible. These workflows are well-oiled machines — and NDC needs to fit into them, not disrupt them. 

Agencies need to be able to sell and support NDC content just like they do with other content sources. And it’s not just about booking. Agencies manage complex support queries, handle changes, and integrate with third-party services to deliver smooth customer experiences. 

For agencies to stay competitive and efficient, NDC must be fully integrated into the entire process — from search to service. 

How NDC is changing airfare distribution

NDC allows airlines to create trip “offers” that include flexible pricing, personalization, and better retailing. One of the key capabilities behind this is continuous pricing — also known as dynamic pricing. 

What is continuous pricing? 

With NDC, airlines can change ticket prices in real time based on demand, competition, and customer preferences. It’s a flexible pricing model that moves beyond traditional fare buckets. 

Before NDC, airlines used systems like ATPCO to file fares manually in a fixed format. These fares were based on general classes of service — economy, business, first — and any changes had to be submitted manually. 

NDC allows airlines to fine-tune pricing with smaller, more precise fare increments. That means better prices for travelers and optimized revenue for airlines. 

What does this mean for agencies? 

Agencies can offer more competitive pricing — but they need to be able to compare NDC and traditional content side-by-side. That’s where platforms like Travelport+ come in, enabling agents to view all content types in one place. 

Why the booking flow is different with NDC

NDC doesn’t just change pricing — it changes how itineraries are created and managed. 

With traditional methods like ATPCO, airlines file schedules and fares in advance. When an agency sends a shopping request, the GDS combines that data with real-time availability to generate itinerary options. 

Once booked, the Passenger Name Record (PNR) is stored in the GDS, allowing agencies to manage tickets, changes, and cancellations. 

With NDC, airlines generate offers in real time. These offers bundle schedules, pricing, and availability into customized options. While this allows for more flexibility, it also increases complexity — agents now have to navigate more choices, like: 

• Is baggage included? 
• Is Wi-Fi available? 
• Is the fare refundable? 
• What’s the difference between economy, economy plus, and economy saver? 

Once booked, the trip record is stored with the airline and synchronized with the GDS so agencies can manage changes. Platforms like Travelport+ ensure that NDC fits seamlessly into existing workflows — because consistency matters. 

How NDC helps agencies differentiate their business

NDC isn’t just about selling flights — it’s about helping agencies stand out. 

With NDC, agencies can: 

• Suggest extra services or packages based on traveler needs 
• Offer tailored options based on preferences and past behavior 
• Deliver personalized experiences that build loyalty 

Airlines are exploring ways to offer deals based on frequent flyer status, travel history, and corporate memberships. While this is still developing, it’s a major goal of NDC — and agencies can benefit by offering more relevant, customized options. 

Platforms like Travelport+ give agencies access to flexible systems that evolve with NDC — helping them stay ahead of the curve. 

How agencies can make money from NDC 

Now for the big question: how can agencies make money from NDC? 

The answer? The same way they do today — through a mix of: 

• Customer service fees 
• Supplier revenues 
• Technology incentives 

These revenue streams still apply to most NDC bookings. There may be differences in mark-ups or supplier incentives, depending on the agency and airline, but the fundamentals remain. 

And remember — profitability isn’t just about revenue. It’s also about efficiency. Agencies need to access and service NDC content in the most cost-effective way possible, ensuring the lowest total cost of adoption and integration. 

Do agencies earn incentives with NDC?

Yes — in most cases, GDS and supplier incentives or overrides still apply to NDC bookings. However, the way money flows may differ based on specific agreements between agencies and suppliers. 

It’s still early days. As NDC adoption grows, the full impact and opportunities will become clearer. Some airlines are offering adoption incentives, but these may not be permanent. Over time, steady-state economics will emerge — enabling both airlines and agencies to succeed. 

Why NDC varies by airline

Here’s one of the biggest ironies: NDC is a “standard” — but there’s no standard way to implement it. 

Each airline tailors its NDC strategy based on its business needs, technology, and goals. That leads to differences in: 

• Content availability: Some airlines offer exclusive fares via NDC, others use surcharges to differentiate. 
• Ancillary bundling: Some integrate ancillaries fully, others add them post-booking. 
• API and schema implementation: Airlines customize their APIs, leading to different shopping and booking experiences. 
• Service capabilities: Some allow full post-booking changes via NDC, others require direct contact. 
• Rollout strategies: Some airlines push NDC aggressively, others take a gradual approach. 

Bottom line: NDC isn’t one-size-fits-all. Agencies need flexible technology to manage these differences and ensure smooth operations across all airline partners. 

Final thoughts 

NDC is changing the business of travel — from how fares are distributed to how agencies earn revenue. It’s introducing new complexities, but also new opportunities. 

With the right tools and partners, agencies can integrate NDC into their workflows, deliver better experiences, and grow their business. 

Travelport+ is built with agencies in mind — not just airlines. Our NDC solutions are shaped by how agents work, think, and sell. Because modern retailing should work for them first. 

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