The aviation industry is experiencing revolutionary change fueled by innovation in technology, higher passenger expectations, and heightened competition. Among the most revolutionary changes in this industry is the New Distribution Capability (NDC) — a new standard of data carriage launched by IATA aimed at revolutionizing the distribution of airline content.
But strict adherence to NDC is more than technical compliance. It calls for a solid platform capable of addressing real-world distribution issues — and that's where OpenNDC enters the picture. With flexibility, scalability, and intelligence built in, OpenNDC supports airlines not only in detecting but also overcoming the most daunting obstacles in the distribution environment.
In this blog, we describe how OpenNDC delineates major market issues in airline distribution and establishes functional solutions to future travel retailing.
What is OpenNDC?
Before going into challenges and resolutions, let's define OpenNDC first. OpenNDC is an abbreviation for a new-generation airline travel technology platform meant to empower and complement airline distribution based on New Distribution Capability standards. OpenNDC is an intelligent connector among airline reservation systems, NDC APIs, and distribution channels, and supports dynamic pricing, offer personalization, and more effective content delivery.
In contrast to traditional distribution channels, OpenNDC empowers the airline — enabling them to offer branded fares, ancillaries, and tailored propositions nimbly and cost-effectively to the traveler.
How OpenNDC Works
It is knowing how OpenNDC operates that enforces the magnitude of its innovation. OpenNDC integrates seamlessly with other airline systems and aggregates content from multiple channels. It leverages NDC's XML-based standards to present real-time and personalized offers in the form of flexible APIs.
Common Market Challenges in Airline Distribution
Airline business worldwide has a number of challenges with distribution, most of which are originating from ancient systems, low data visibility, and insufficient flexibility required. The following encapsulates the most important problems OpenNDC addresses.
1. Fragmented Distribution Channels
The Challenge:
Airlines like delivering content to different channels through distinct systems. This creates non-consistent offers, price variations, and operation inefficiencies.
OpenNDC's Solution:
OpenNDC unifies content management and places all distribution channels in one intelligent framework. This provides price consistency, rule of fare, and product consistency — whether the book is via a travel partner or directly with the airline.
2. Limited Personalization and Static Offers
The Challenge:
Legacy systems offer little or no personalization. Most airline content is static and fails to address the expectations of today's traveler for a customized experience.
OpenNDC Solution:
OpenNDC enables dynamic, data-based personalization. By monitoring traveler interests, history, and behavior, the platform enables airlines to present real-time customized fare packages, promotions, and ancillary offers.
3. Inflexible Pricing Models
The Challenge:
Legacy distribution inhibits airlines from applying dynamic price changes in response to the market situation, actions of their competitors, or customer segmentation.
OpenNDC's Solution:
With OpenNDC, airlines are able to apply dynamic price capabilities. Airlines can define rules for price updates, promotions, or instant discounts — enhancing agility and revenue optimization.
4. High Distribution Cost
The Challenge:
Over-reliance on legacy systems has a propensity to push distribution costs higher, extend settlement cycles, and compress margins.
OpenNDC's Solution
By establishing direct connections and unbundling much of the distribution pipeline, OpenNDC minimizes overhead. It also makes inventory visible at the highest level without adding cost — a cost-efficient mode of distribution.
5. No Product Differentiation
The Challenge:
Fare displays within most of the old systems do not allow for price and schedule, and no space is available to highlight the special products or airline value.
OpenNDC facilitates the presentation of high-quality content such as branded fares, graphics, baggage information, and seat plans — all directly integrated into the offer. This supports brand differentiation and customer satisfaction.
6. Slow Time-to-Market
The Challenge:
Adding a new route, sale, or bundle offer on conventional platforms can take weeks or months due to the inflexibility of configurations.
OpenNDC's Solution:
OpenNDC is nimble by nature. Airlines can implement changes instantly, test out new fares, or feature promotions by season with little lead time.
Why OpenNDC?
Today's airlines require a distribution solution that is scalable, adaptable, and smart. Here's why OpenNDC is the best fit:
NDC-Native Architecture: Designed from the ground up with New Distribution Capability
Airline-Controlled Distribution: No third-party price or content control
Growth Revenue Opportunities: Dynamic bundling, upselling, and cross-selling functionality
Future-Proof Technology: Scalable APIs that remain ahead of evolving requirements
Rich Reporting & Analytics: Data insights to maximize highest revenue and customer engagement
How OpenNDC Creates a Sustainable Competitive Advantage
By solving these fundamental challenges in full measure, OpenNDC redefines how airlines conduct business in the distribution landscape. This is how it creates a sustainable competitive advantage:
Enhances customer satisfaction with more transparent and personalized offers
Drives profitability through effective distribution and responsive pricing
Facilitates quicker innovation in merchandising and retailing
Extends brand loyalty by providing consistent and compelling content across touchpoints
Final Thoughts
In the competitive landscape of today, airlines need to rethink their product and service organization. The time of fixed content, priced offerings, and one channel is disappearing. OpenNDC is paving the path to introduce this change by enabling airlines to find and address their greatest distribution issues on a platform architected end to end on New Distribution Capability standards.
Whether you need to refresh your technology stack, drive revenue growth, or provide an enhanced passenger experience, OpenNDC provides the tools, vision, and flexibility you need to thrive.
The future of airline distribution is brighter, faster, and more integrated — and OpenNDC is the platform that's making it possible.