NDC versus GDS – navigating the skies of business travel

When arranging your business travel, how much consideration do you give to the type of airfare that you book? Although it’s a detail that’s often overlooked, making the right choice when it comes to flights can positively impact your business’ bottom line.  

When booking flights, you'll likely encounter two primary types of airfares — NDC (New Distribution Capability) fares and GDS (Global Distribution System) fares. Each of these has its own set of advantages and drawbacks. 

We look at the difference between NDC and GDS fares, giving you a better understanding of what they both offer. 

What are NDC fares? 

NDC is a relatively recent advancement spearheaded by the International Air Transport Association (IATA). It offers a more flexible and dynamic approach to airfares, allowing airlines to directly communicate with travel agents and businesses. On the other hand, GDS has been the traditional backbone of travel booking, connecting travel service providers with agents and corporations. 

NDC fares are designed to enhance communication between airlines and travellers. This technology allows for personalised offers, dynamic pricing, and rich content display, such as seat maps and ancillary services. 

We’ll be exploring the benefits of NDC fares in an upcoming blog, so keep an eye out if you’d like to learn more about the advantages of booking NDC fares for your business. 

Exploring GDS fares 

GDS has long been the stalwart of the travel industry, providing a centralised platform for booking flights, hotels, and car rentals. Its extensive network connects airlines, travel agents, and businesses, ensuring a wide range of options and competitive pricing. 

For businesses, GDS offers consistency and reliability. Enterprises can streamline their travel booking process by accessing a vast inventory of flights and services through one platform. This centralised approach simplifies expense tracking and enhances compliance with corporate travel policies. 

However, GDS fares may lack the personalised touch offered by NDC. The standardised nature of GDS transactions means fewer opportunities for customisation, which might not align with the evolving needs of modern businesses. 

The key differences between NDC and GDS 

When comparing NDC and GDS, it's essential to consider the key differences that set them apart. NDC focuses on enhancing customer experience by providing rich content and personalised offers. In contrast, GDS emphasises simplicity and consistency through its extensive network and centralised services. 

NDC's ability to offer dynamic pricing and personalised bundles can be advantageous for businesses seeking cost-effective solutions. Plus, NDC's innovative approach to airfare distribution places it in a unique position. By leveraging cutting-edge technology, airlines can transform their offerings from static fare lists to interactive experiences. This adaptability aligns well with the preferences of today's tech-savvy business travellers. 

However, GDS's wide reach and reliability make it a dependable choice for companies prioritising efficiency and standardisation. 

Choosing the right solution 

Selecting between NDC and GDS depends on your business's specific requirements. If personalisation, dynamic pricing, and direct communication with airlines are priorities, NDC might be the way forward. On the other hand, if a centralised booking process and extensive travel options are paramount, GDS could be the better choice. 

It's important for businesses to evaluate their travel objectives, budget constraints, and technological capabilities before making a decision. Collaborating with a travel management company, like Travel Counsellors for Business, can provide valuable insights and guidance tailored to your unique needs. Get in touch for a no-obligation chat about how we can support your business travel programme.