Traditional GDS vs Modern NDC: The Clash for Travel Distribution Dominance

Embracing Technological Advancements in the Travel Industry

In today’s fast evolving world, the travel industry is rapidly changing, with technology playing a one of the most important role in transforming how travel agencies and operators does the business. One of the things, that makes travel business easier – is GDS and NDC. Let’s touch the theme how in inovative way Airline tickets are being sold by the companies who have sometimes even no direct connection with Airlines. This is the post of Airline ticket sales distribution.

GDS (Global Distribution System) is a computerized network system that enables transactions between travel service providers, such as airlines, hotels, car rental companies, and travel agencies. Major GDS suppliers include Amadeus, Sabre, and Travelport. These systems provide travel agents with access to real-time availability, pricing, and booking capabilities for travel products, thus streamlining the booking process and ensuring accurate information flow, which is necessary.

History of GDS: The origins of the GDS can be traced back to the 1960s, when airlines began developing their own computer reservation systems (CRSs). The first CRS, Sabre, was developed by American Airlines in partnership with IBM and became operational in 1964. This technology allowed for real-time access to flight information and booking capabilities. Throughout the 1970s and 1980s, these systems evolved and were adopted by other airlines, leading to the development of multi-airline reservation systems. By the 1990s, the CRSs had transformed into the Global Distribution Systems we know today, encompassing a wider range of travel services beyond just airlines. The limitation of GDS is that you can not have wide variaty of Airlines services booked at non Airline’s website. Normaly it’s just for Flight tickets and baggage booking.

Users of GDS:

Travel Agents: Use GDS to book flights, hotels, car rentals, and other travel services for their clients.
Corporate Travel Managers: Rely on GDS to manage business travel arrangements efficiently.
Airlines, Hotels, and Car Rental Companies: Use GDS to distribute their inventory to a global market of travel agents and travelers.
Online Travel Agencies (OTAs): Integrate with GDS to offer a comprehensive range of travel products on their platforms.

NDC (New Distribution Capability) is a travel industry-supported program launched by IATA that enhances the capability of communications between airlines and travel agents. NDC aims to replace the old way data transmission standard used by GDS with a new XML-based standard, enabling airlines to distribute their content with more products than only Flight ticket and baggage and of course more effectively. With NDC, travel agents gain access to richer and more customized content, including ancillary services, dynamic pricing or even getting acess to register with Miles program.

History of NDC: The New Distribution Capability was introduced by the International Air Transport Association (IATA) in 2012. The initiative was driven by the need to modernize the distribution landscape in the airline industry, which had become increasingly complex and fragmented due to the limitations of the existing GDS technology. The old EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) standard used by GDSs was not designed to handle the dynamic and personalized content that modern consumers demand. By leveraging XML-based communication, NDC allows for a more flexible and dynamic interaction between airlines and travel agents, thus aligning with contemporary e-commerce practices.

Users of NDC:

Users of NDC:

Airlines: Implement NDC to offer more personalized and dynamic content directly to travel agents and customers.
Travel Agents: Use NDC to access richer and more customizable travel content, improving the booking experience for their clients.
Travel Management Companies (TMCs): Benefit from NDC by offering more tailored travel solutions and services to corporate clients.
Technology Providers: Develop and support NDC-enabled platforms and tools to facilitate the new standard for airlines and travel agents.

Take in mind that both GDS and NDC are great technologies:

GDS data is easier to get, while getting NDC data is very complex. For Technology companies to be able to read NDC data it takes up to one year of implementation, until they can provide NDC services for customers.

Implementing GDS and NDC Technologies: Why You Need a Partner Like Waavo

Travel technology plays a crucial role in aggregating and distributing GDS and NDC data. While these technologies enable travel agencies to access comprehensive and personalized travel solutions, the implementation process can be complex and challenging. This is where a reliable partner becomes essential.

At Waavo, we are proud to be an aggregator of both GDS and NDC data. Our advanced technologies and platforms enable us to provide robust solutions tailored to your needs. By partnering with us, you gain access to:

One Unified API: Simplify the integration process with our single API that aggregates GDS and NDC data, ensuring seamless access to a wide range of travel content.
Backend Systems: Our comprehensive backend systems support the administration of API operations, ensuring smooth and efficient transactions between operators and agencies.
Bug Fixing and Maintenance: We provide ongoing support to fix any issues that arise, ensuring your systems run smoothly and efficiently.
Customization and Flexibility: We understand that each travel business has unique needs. Our team is flexible and ready to develop customized solutions that meet your specific requirements.

Whether you are looking to expand your knowledge, implement sophisticated tools for travel agencies or explore new technologies for travel operators, our team is here to assist. Partnering with Waavo ensures you stay ahead in dynamic travel industry with exact technology you need and expert support.

We invite you to Explore more Waavo solutions as it might help you to find an innovative ways how to improve travel agency business with technologies.

Contact us for a consultation and discover how we can help you to succeed.