The New Distribution Capability (NDC) is a travel industry standard developed by the International Air Transport Association (IATA) to modernize how airlines distribute and sell their products, such as flights and ancillary services (e.g., baggage, seat selection, Wi-Fi). Introduced in 2012 and launched in 2015, NDC uses an XML-based data transmission standard to enable more direct, dynamic, and personalized communication between airlines, travel agents, online travel agencies (OTAs), and corporate travel management companies(TMCs). It aims to replace outdated systems and enhance the travel booking experience.

The New Distribution Capability (NDC) is a travel industry standard developed by the International Air Transport Association (IATA) to modernize how airlines distribute and sell their products, such as flights and ancillary services (e.g., baggage, seat selection, Wi-Fi).
Introduced in 2012 and launched in 2015, NDC uses an XML-based data transmission standard to enable more direct, dynamic, and personalized communication between airlines, travel agents, online travel agencies (OTAs), and corporate travel management companies(TMCs). It aims to replace outdated systems and enhance the travel booking experience.

Key Features and How It Works

• XML-Based Communication: Unlike the legacy EDIFACT protocol (a text-only system from the 1980s used by Global Distribution Systems or GDSs), NDC uses modern XML and APIs to share rich content like images, videos, detailed flight descriptions, and interactive seat maps.
• Direct Connectivity: NDC allows airlines to bypass traditional GDSs (e.g., Amadeus, Sabre, Travelport), reducing dependency on intermediaries and giving airlines more control over how their products is presented and sold.
• Personalized Offers: Airlines can tailor offers based on traveller preferences, loyalty status, or booking context, enabling dynamic pricing and customized bundles (e.g., a flight with extra legroom and Wi-Fi).
• Offer and Order Management: NDC shifts from static ticketing to a retailing model where airlines create real-time offers (e.g., fares, ancillaries) and manage orders (bookings, payments, changes) seamlessly across channels.

The process typically involves:

• A travel seller (e.g., OTA, TMC) sends a request to an airline’s NDC API with details like travel dates and passenger preferences.
• The airline’s system processes the request and returns tailored offers with rich content.
• The traveller books the offer, and the airline manages the order through fulfilment.

Why NDC Was Developed

• NDC addresses limitations in traditional airline distribution systems:
• Legacy Systems: GDSs rely on EDIFACT, which can’t handle rich media or real-time personalization, limiting airlines’ ability to differentiate their offerings.
• Lack of Control: GDSs aggregate and standardize airline content, restricting airlines’ ability to customize how their brand or products are displayed.
• Revenue Opportunities: Ancillary services are a major profit source, but GDSs make it hard to upsell these effectively. NDC enables airlines to bundle and market ancillaries directly.
• Customer Experience: Travelers expect modern, personalized booking experiences similar to e-commerce, which legacy systems struggle to deliver.

Benefits

For Airlines:

• Greater control over pricing, branding, and product presentation.

  Ability to offer dynamic pricing and personalized bundles.

• Reduced distribution costs by bypassing GDS fees.
• Access to customer data for better targeting.

For Travelers:

• Richer booking experience with visuals, detailed descriptions, and interactive
  features.
• Access to tailored offers, such as discounted fares or bundled services.
• Seamless booking of ancillaries (e.g., extra baggage) in one transaction.

For Travel Sellers (OTAs, TMCs):

• Access to exclusive airline content not available through GDSs.
• Ability to offer more options and personalized services to clients.
• Improved efficiency in managing bookings and ancillaries.

Industry-Wide:

• Encourages innovation through open APIs, allowing tech companies to
  develop new tools.
• Simplifies distribution, potentially lowering costs for all stakeholders.

Challenges

• Slow Adoption: As of 2025, only about 25% of IATA’s 300+ member airlines are NDC- certified, with adoption varying by region and airline size. For example, American Airlines made 40% of its fares NDC-exclusive in 2023, while others lag.
• Legacy System Integration: Many airlines and TMCs use outdated systems not designed for NDC, requiring costly and complex upgrades.
• Technical Complexity: Integrating NDC APIs across diverse platforms is challenging, especially for smaller players.
• Knowledge Gap: Surveys indicate 71% of travel buyers remain unclear about NDC’s benefits, highlighting the need for better education.
• Standardization Issues: Different airlines implement NDC in unique ways, creating interoperability challenges.
• Resistance from GDSs: GDSs, which dominate distribution, initially resisted NDC but are now integrating it (e.g., Sabre’s Beyond NDC program).

Impact on the Travel Industry

• Corporate Travel: NDC enables TMCs to offer tailored corporate packages, with 87% of travel managers reporting cost savings through NDC-enabled connections.
• Consumer Experience: Travelers enjoy a more e-commerce-like booking process, with real-time offers and transparent pricing.
• Market Dynamics: NDC fosters competition by allowing airlines to differentiate products and letting new players (e.g., aggregators like Duffel) enter the market.
• Controversy: Some airlines, like American Airlines, have pushed NDC aggressively,limiting GDS access to certain fares, which has disrupted relationships with travelagents and sparked debates about fairness and readiness.

Example in Action

Imagine booking a flight on an OTA like Expedia. With NDC:

• You see a personalized offer from an airline, including a discounted fare, a seat with extra legroom, and in-flight Wi-Fi, with photos of the seat and cabin.
• The OTA retrieves this offer directly from the airline’s NDC API, not a GDS, ensuring real-time accuracy.
• You book the bundle in one transaction, and the airline manages changes (e.g., adding baggage) directly, streamlining the process.

Future Outlook

NDC bookings grew to 20% of total bookings by mid-2024, up from 10% the previous year, and adoption is expected to accelerate in the late 2020s. As more airlines, GDSs, and tech providers embrace NDC, it could become the dominant distribution standard, transforming air travel into a more personalized, efficient, and transparent experience. However,
overcoming technical and cultural barriers remains critical.

Key Impacts on Corporate Travel

Personalized and Flexible Booking Options:

• Tailored Offers: NDC allows airlines to provide TMCs with dynamic, real-time offers customized to corporate travellers’ needs, such as preferred routes, fare classes, or bundled ancillaries (e.g., priority boarding, lounge access). For example, a frequent business traveller might receive an offer combining a flexible fare with Wi-Fi and a premium seat based on their loyalty status or
  company policy.
• Rich Content: Through NDC APIs, TMCs can display detailed visuals (e.g., seat maps, cabin images) and descriptions, helping travellers make informed choices aligned with corporate travel policies.
• Policy Compliance: NDC enables TMCs to integrate corporate travel policies (e.g., preferred airlines, budget caps) directly into the booking process, ensuring travellers see compliant options first.

Cost Savings and Transparency:

• Access to Exclusive Fares: Airlines can offer NDC-exclusive fares or bundles not available through traditional Global Distribution Systems (GDSs). A 2024 survey by Navan found that 87% of travel managers reported cost savings through NDC-enabled connections, as these fares often include discounts or waived change fees for corporate clients.
• Ancillary Revenue Opportunities: NDC allows TMCs to seamlessly upsell ancillaries (e.g., extra baggage, lounge access) within corporate budgets, reducing out-of-policy spending by travellers.
• Transparent Pricing: Dynamic pricing through NDC ensures travellers see real-time costs, minimizing surprises like hidden fees.
• Streamlined Booking and Order Management:
• Unified Workflow: NDC’s “offer and order” model simplifies booking, payment, and post-booking changes (e.g., rebooking, cancellations) by managing everything through a single airline order ID. This reduces manual interventions by TMCs.
• Real-Time Updates: Corporate travellers’ benefit from instant updates on flight changes or cancellations, critical for tight business schedules.
• Direct Connectivity: NDC enables TMCs to connect directly to airline systems, bypassing GDSs, which can lower transaction fees and speed up processes.

Enhanced Traveler Experience:

• Modern Booking Interface: NDC delivers an e-commerce-like experience with rich media and interactive tools, making it easier for business travellers to book flights and services via TMC platforms or corporate booking tools.
• Mobile Integration: Many NDC-enabled platforms support mobile apps, allowing travellers to manage bookings, ancillaries, and loyalty benefits on the go.
• Loyalty Integration: Airlines can recognize corporate travellers’ loyalty status during booking, offering perks like free upgrades or priority services, enhancing satisfaction.

Data and Reporting Benefits:

• Improved Data Access: NDC provides TMCs and corporations with detailed booking data (e.g., travellers preferences, spending patterns), enabling better forecasting and policy optimization.
• Duty of Care: Real-time traveller tracking through NDC orders helps TMCs ensure safety and compliance, especially during disruptions like flight cancellations or emergencies.

Challenges in Corporate Travel Adoption

Integration Complexity:

• Many TMCs and corporate booking tools rely on legacy systems not designed for NDC, requiring significant investment to integrate NDC APIs. Smaller TMCs may struggle with these costs.
• Different airlines implement NDC uniquely, creating interoperability issues that
  complicate TMC workflows.

Learning Curve:

• A 2024 industry survey indicated that 71% of corporate travel buyers were unclear about NDC’s benefits, reflecting a knowledge gap. Training travel managers and agents on NDC’s capabilities is essential but time-consuming.
• Corporate travellers may need guidance to navigate new booking interfaces
  or understand NDC-driven offers.

Airline Adoption Variability:

• While major airlines like American Airlines, Lufthansa, and Singapore Airlines have embraced NDC (e.g., American Airlines made 40% of fares NDC- exclusive in 2023), adoption is uneven globally. This limits the availability of NDC benefits for corporate programs relying on diverse airline partners.
• Some airlines prioritize leisure travel over corporate, delaying NDC rollout for
  business-focused features.

GDS Dependency:

• Many corporate travel programs still rely on GDSs (e.g., Sabre, Amadeus) for their established infrastructure. Airlines pushing NDC-exclusive fares (e.g.,Lufthansa’s 2015 surcharge on GDS bookings) can disrupt TMC relationships and create friction for corporations accustomed to GDS workflows.
• GDSs are now integrating NDC (e.g., Amadeus’s NDC program), but the transition is incomplete, creating a hybrid environment that complicates operations.

Change Management:

• Shifting to NDC requires corporations to update travel policies, renegotiate airline contracts, and adapt procurement processes, which can face internal resistance.
• Ensuring traveller compliance with NDC-enabled platforms (vs. booking directly on airline websites) remains a challenge.

Practical Implications for Corporate Travel Stakeholders

For Corporations:

• Action: Update travel policies to leverage NDC-exclusive fares and ancillaries,and partner with NDC-ready TMCs to maximize savings and compliance.
• Benefit: Reduced travel costs (e.g., 5-15% savings on airfare reported by early adopters) and better traveller satisfaction through personalized options.
• Example: A multinational firm using an NDC-enabled TMC can access Lufthansa’s corporate bundles, including flexible fares and lounge access, tailored to its executives’ needs.

For TMCs:

• Action: Invest in NDC API integration and train staff to handle NDC workflows.
  Build direct airline partnerships to access exclusive content.
• Benefit: Differentiate services by offering unique airline products,
  strengthening client relationships and increasing revenue from ancillary sales.
• Example: TMC’s NDC integration allows it to offer real-time American Airlines
  fares with bundled Wi-Fi, streamlining bookings for corporate clients.

For Business Travelers:

• Action: Use corporate booking tools or TMC platforms to access NDC-driven offers, ensuring policy compliance and access to perks.
• Benefit: A seamless, personalized booking experience with real-time options and loyalty benefits, reducing travel stress.
• Example: A sales manager booking via an NDC-enabled platform sees a tailored Delta offer with a flexible fare, extra legroom, and lounge access, allwithin company policy.

Industry Trends and Outlook

• Adoption Growth: By mid-2024, NDC accounted for 20% of global airline bookings, with corporate travel driving significant uptake due to its focus on cost control and traveller experience. Adoption is expected to reach 40% by 2028.
• Major Players: Airlines like United, Emirates, and Qantas are expanding NDC for corporate programs, while TMCs are leading integration efforts.
• Technology Enablers: Aggregators and tech providers are simplifying NDC adoption for TMCs and corporations, reducing integration barriers.
• Airline Strategies: Some airlines offer NDC-specific corporate incentives, such aswaived change fees or bonus loyalty points, to encourage adoption by business travellers.
• Controversy: Aggressive NDC pushes (e.g., American Airlines’ 2023 GDS fare restrictions) have strained relationships with TMCs, but dialogue is improving as GDSs adopt NDC.

Example in Corporate Travel

• A corporate travel manager at a tech firm uses an NDC-enabled TMC to book flights for a team attending a conference. The TMC’s platform, connected to United Airlines’ NDC API, offers:
• A tailored bundle with economy-plus seats, priority boarding, and flexible rebooking
  for $50 less than GDS fares.
• Visual seat maps and cabin details, helping the team choose preferred seats.
• Real-time updates when a flight is delayed, with instant rebooking options. The manager saves 10% on airfare, stays within budget, and ensures traveller satisfaction, while the TMC earns a commission on ancillaries.

Conclusion

NDC transforms corporate travel by enabling cost savings, personalization, and efficiency, but its adoption requires overcoming technical, cultural, and industry barriers. For corporations and TMCs, investing in NDC now positions them to capitalize on a more
dynamic, traveller-centric future. As adoption grows, NDC could redefine corporate travel as a seamless, data-driven experience akin to modern e-commerce.

Key NDC Adoption Statistics

Overall Booking Share:

• By mid-2024, NDC accounted for approximately 20% of total airline bookings globally, doubling from 10% the previous year. This growth reflects increasing adoption, particularly in corporate travel, where tailored offers and cost savings are prioritized.
• Projections suggest NDC could reach 40% of global bookings by 2028, driven by corporate travel programs and airline investments in digital retailing.

Airline Adoption:

• As of 2025, only about 25% of IATA’s 300+ member airlines are NDC- certified, indicating slow but steady progress. Major airlines like American Airlines, Lufthansa, British Airways, and Iberia were early adopters, with American Airlines making 40% of its fares NDC-exclusive in 2023.
• Finnair plans to transition fully to NDC by 2025, including removing all domestic itineraries from legacy EDIFACT distribution, signalling a strong corporate travel focus.

Corporate Travel Impact:

• 87% of corporate travel managers report that NDC-enabled connections help save money, citing access to exclusive fares and bundled ancillaries tailored to business travellers.
• NDC adoption is higher in corporate travel than in leisure, as TMCs prioritize dynamic pricing and personalized offers to meet corporate policies and traveller needs.
• 71% of corporate travel buyers remain unclear about NDC’s benefits, highlighting a knowledge gap that slows adoption in some organizations.

Market Growth Projections:

• The global NDC market is expected to grow at a compound annual growth rate (CAGR) of 15.4% from 2023 to 2033, driven by demand from
  corporations and business travellers.
• The NDC market size was valued at XX million USD in 2023 (exact figure not specified in sources) and is projected to reach multimillion USD by 2029, with North America and Europe leading due to advanced technology adoption.

Regional Adoption:

• North America, particularly the U.S., leads NDC adoption due to large players like American Airlines and United Airlines, with the market expected to grow significantly through 2030.
• Europe follows closely, with airlines like Lufthansa and British Airways driving adoption, supported by a high CAGR from 2022–2029.
• Asia-Pacific, Latin America, and Middle East & Africa lag but show growth potential as airlines invest in digital retailing post-COVID.

Post-COVID Adoption Surge:

• The COVID-19 pandemic slightly increased NDC adoption as airlines sought to stabilize revenue through ancillary sales and digital retailing. Customers’ comfort with online transactions during lockdowns further supported NDC growth.
• Airlines reduced reliance on GDSs during low booking volumes, using NDC to connect directly with corporate clients and cut distribution costs.

Corporate Travel-Specific Adoption Insights

• TMC Adoption: Leading TMCs have integrated NDC APIs to offer corporate clients exclusive airline content, with TMC reporting significant uptake due to real-time fare access and ancillary bundling.
• Cost Savings: NDC’s ability to offer dynamic pricing and unbundled fares has led to 5–15% savings on airfare for early-adopting corporate programs, particularly for flexible fares and ancillaries like lounge access.

Challenges Slowing Adoption:

• Legacy Systems: Many TMCs and corporate booking tools rely on outdated systems, making NDC integration costly and complex.
• Technical Complexity: Integrating NDC APIs requires system upgrades and compatibility adjustments, a barrier for smaller TMCs.
• Education Gaps: The lack of understanding among corporate buyers (71% unclear on benefits) delays investment in NDC-enabled platforms.
• Airline Variability: Uneven adoption across airlines limits NDC’s availability for corporate programs with diverse airline partners.

Industry Trends Supporting Adoption

• GDS Integration: GDSs like Sabre (Beyond NDC program) and Amadeus (NDC[X]) are now incorporating NDC, easing the transition for TMCs and corporates reliant on GDS infrastructure.
• Aggregator Role: Technology aggregators are simplified NDC integration for TMCs, boosting adoption in corporate travel.
• Airline Incentives: Airlines offer corporate-specific NDC perks, such as waived change fees or bonus loyalty points, to encourage adoption by business travellers.

Conclusion

NDC adoption in corporate travel is accelerating, with 20% of bookings globally using NDC by mid-2024 and a projected CAGR of 15.4% through 2033. Corporate travel benefits significantly, with 87% of managers reporting cost savings and enhanced personalization. However, only 25% of airlines are NDC-certified, and challenges like legacy systems and education gaps (71% of buyers unclear on benefits) hinder broader uptake. North America and Europe lead, while TMCs and airlines like American Airlines drive progress. As GDSs
and aggregators bridge technical gaps, NDC is poised to reshape corporate travel by 2028.