Airline Distribution Redefined: From Legacy Protocols to Modern Connectivity
A significant shift is taking place in the airline sector. With the advancement of technology, the ways in which customers use services is changing as their requirements deepen. More importantly, the shift is happening in sales where airlines now have to adapt to the New Distribution Capability or NDC as compared to the traditional EDIFACT messaging standard used before.
In this post, we will discuss some of the primary differences between the two systems and delve deeper into how this change impacts airline retailing, travel technology, and the entire booking experience.
Understanding the Foundation: Legacy Systems In Airline Distribution
For quite some years now, the backbone of the global airline industry has been the Electronic Data Interchange for Administration, Commerce, and Transport — or EDIFACT. This protocol allowed airlines to send standardized booking and ticketing information to GDSs, Global Distribution Systems and used by travel agents and third parties for inventory access.
EDIFACT was important to the growth of global travel, but it was created while real-time digital commerce personalization and marketing were still being developed. It's inflexible because it cannot manage rich content or dynamic pricing models because of rigid structures, which is something travelers today expect.
Increased competition for innovation forced airlines to adopt customer-centric models that were faster and smarter.
New Distribution Capability (NDC) Overview
NDC, short for New Distribution Capability, is a modern standard based on XML set data strings that allows airlines to “broadcast” content in real time like APIs to travel agents and other third parties.
By circumventing intermediaries who diminish content, NDC allows airlines to give real-time aid with images, descriptions, seat maps, baggage allowances, fare bundles, along with a lot more, which enhances customer experience while providing airlines with control over how their products are marketed and sold.
NDC as a new capability grants airlines retail like freedom to customize offers by traveler profiles. Unlike EDIFACT displays which are fixed fare and product laden, NDC brings agility, responsiveness, flexibility, and personalization.
Why The Shift is Important
The transition to NDC is not just a technological advancement — it is an evolution of the content airline systems are using. This is the reasoning for the shift with all oligopolistic industries as:
Dynamic pricing: Airlines have added capabilities to shift fares based on demand, time of year, customer status, and much more.
Personalized Offers: Passengers can be shown relevant ancillaries, loyalty deals, and service packages, enabling greater personalization.
Rich content distribution: Travel merchants are able to view and utilize images, videos, and seat maps and these aids improve transparency as well as the booking experience.
Strengthened direct Relations: Fewer airline intermediaries means more direct access and airlines are more able to control how their services are showcased by third party partners devoid of heavy reliance on traditional GDSs.
This improves the business in terms of revenue, distribution cost, and customer satisfaction.
Developer and Integration pros
NDC provides a new API-based system that developers and travel vendors trust, which is easier to unite with existing systems, scale, and innovate on. Unlike EDIFACT which requires intuitive understanding with legacy systems, nose NDC API lotions are easy to follow set internet norms and are usable within all systems and platforms.
Moreover, incorporation with NDC opens pathways to new retail models as offer and order management frameworks that transcend the boundaries of a conventional Passenger Service System (PSS).
Hurdles of the Move Towards NDC
Implementing an NDC strategy is promising, but it does come with some challenges:
Lack of Uniformity: The NDC framework may be uniform, but methods of implementation differ across airlines.
Training & Shift of Work Patterns: The travel industry requires training on modern software applications with new processes.
Costly Start: Long-term strategic benefits may not be available without upfront technology investment on equipment and training.
However, the more these frameworks are adopted, the more these hurdles will become tolerable—and the benefits are always overriding the disadvantages.
Adoption and Response from The Industry
A growing number of airlines now sell NDC content directly on their websites and through select third-party aggregators. Major industry travel providers are integrating NDC functionality into their systems, and trade bodies are continuing to advocate for alignment.
As of now, this modernization is being sought by developers, agencies, and OTAs wishing to remain relevant competitively, further emphasizing the need for readily available information on the topic.
Visit IATA’s NDC program for implementing and evolving standards to receive information from reputable sources.
Closing Remarks
The move from EDIFACT to NDC is not simply a change of protocol – rather, it reflects a new approach towards airline retailing, customer centricity, and digital flexibility. In the broader context of EDIFACT vs NDC, this shift highlights the industry’s evolution toward more dynamic and personalized travel experiences. For travel tech developers, agencies, and platforms, comprehension and integration of this emerging standard is becoming increasingly vital.