New Distribution Capability: Key Components

Distribution is one of the top topics of airline industry. Since the airline seats are perishable commodities, every airline tries to distribute its seats to gain the maximum advantage of revenues and profitability. The global distribution systems, or the GDSs in short, are one of the main channels for effecting this distribution. There are many GDSs doing round in the aviation industry and these are the chief sources of finding the inventories for the various airlines and for various sectors of flights at a global level. The airlines may or may not subscribe to these distribution systems for selling their seats but it is quite common to find almost all major airlines selling their inventories at these resources. IATA has come up with a new distribution system, called by the same name as New Distribution Capability (NDC).

The NDC has been devised as a distribution medium to take care of the shortcomings of the existing distribution systems. As you must be aware that the airlines have the direct and the indirect channels of filling their capabilities, both on domestic and international flights, with the introduction of the NDC it will become possible for the airlines to provide identical retail capabilities on the various channels. This will make it convenient for all the passengers to reach these capabilities across these various channels seamlessly. Another major benefit of the NDC is that it provides the facility of personalization and customization just as the airlines do so on their own websites.

The NDC is also expected to help the airlines generate more revenues rather than cutting the costs associated with the distribution. Though NDC is a novel concept, it has met with severe criticism on various provisions from industry experts. These experts fear that the personalization of services or products requires providing personal details which might not be liked by the people. They also apprehensive about maintaining the price transparency of the flight tickets and throwing the data privacy rights to the winds.

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