AIRLINE RETAILING TRANSFORMATION: THE ROLE AND IMPACT OF NEW DISTRIBUTION CAPABILITY (NDC)
Keywords:
New Distribution Capability (NDC), Airline Retailing Transformation, Personalized Airline Offerings, Direct Distribution Channels, Dynamic Pricing StrategiesAbstract
This comprehensive article examines the transformative role of New Distribution Capability (NDC) in revolutionizing airline retailing and distribution strategies. The article explores how NDC, an XML-based data transmission standard introduced by the International Air Transport Association (IATA), addresses the limitations of traditional Global Distribution Systems (GDS) while enhancing distribution capabilities, improving customer experiences, and boosting operational efficiency. Through a detailed analysis of NDC's adoption trends, implementation challenges, and impact on various aspects of airline operations, this article provides insights into the changing landscape of airline commerce. The article investigates the direct connections facilitated by NDC between airlines and travel agents, the reduction in dependence on intermediaries, and the implications for competitive pricing strategies. Furthermore, it delves into the enhanced customer experience through personalization, the operational efficiencies gained, and the competitive advantages of NDC adoption. The article also addresses current challenges in NDC implementation, including technical integration hurdles and industry standardization issues, while exploring emerging trends such as increased automation, AI-driven personalization, and potential blockchain integration. By synthesizing current industry practices, academic research, and future projections, this article offers a holistic view of NDC's role in shaping the future of airline distribution, providing valuable insights for industry stakeholders and researchers alike
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