Airline pricing has changed significantly in recent years. As traveler needs continue to grow and become more specific, the industry is moving away from old fare ladders toward real-time, personalized pricing. Leading this shift is IATA’s New Distribution Capability (NDC), a modern standard that allows airlines to offer smarter pricing and helps travel sellers provide better options. With NDC airfare airlines and travel agents can offer more dynamic pricing and tailored options to meet each traveler’s needs.
Traditionally, airlines have distributed fares through GDS (Global Distribution Systems), which rely on EDIFACT, an outdated communication protocol. Airlines file prices in advance through ATPCO, using a fare ladder system that assigns fixed price points to each seat class (RBD). While this system has served the industry for decades, it comes with major limitations:
This is where NDC airfare brings a major improvement offering dynamic, real-time pricing tailored to current market conditions.
But not all agencies handle data the same way. Most travel agents only type card details into a secure GDS. That distinction matters.
NDC replaces this legacy model with a direct connection between airline and seller, offering:
NDC enables airlines to skip the middlemen (GDS/ATPCO) and deliver personalized offers instantly based on real-time conditions.
Let’s take a closer look at how NDC airfare supports smarter pricing strategies:
Together, these enable airlines to:
Traditional GDS platforms present several limitations when compared to NDC airfare systems:
These outdated methods cause delays, limit personalization and reduce fare competitiveness. In contrast, NDC airfare consolidates pricing and availability into a single, real-time airline response enabling smarter, faster selling.
Travel sellers using NDC-connected platforms can unlock a range of advantages:
Airline retailing is moving toward dynamic, flexible and personalized pricing models. NDC airfare is the key driver of this shift, giving both airlines and travel agents the tools to respond to real-time demand, customer behavior and competitive conditions.
As more airlines adopt NDC, traditional static pricing is quickly becoming a thing of the past. Now is the time for travel businesses to embrace modern distribution models and maximize their revenue potential.
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