The Evolution of Travel Distribution: From GDS to NDC

New Distribution Capability (NDC)

NDC forced GDSs to implement more modern data transmission channels to distribute ancillaries to customers.

It is based on a new, single, flexible, and standard language for all air content.

Benefits of NDC

The technology behind this distribution system is planned to generate the following benefits:

1. Encourage innovation, personalization, and brand recognition;
2. Enable further product differentiation and faster time-to-market;
3. Offer travel sellers easier access to real-time, accurate data, rich imagery,
4. Provide exciting new offers created by airlines;
5. Travelers can enjoy more services and a more personalized travel experience;
6. Offer more options for travel sellers (e.g., concert tickets, etc.). More options mean more revenue for the travel industry.

History of Travel Distribution

1992-2000: Distribution Regulations and Growth of GDS

Travel agencies were allowed to purchase their own hardware and software, being free to distribute any airline (global distribution). Transformation from CRS to GDS.

GLOBAL DISTRIBUTION SYSTEM - GDS: New Software, New Hardware, New Products

CRS: Provides information about airlines and stores information, conducts transactions for air travel.

GDS: You can reserve a ticket, book a room, or rent a car. It is a huge database that updates information about inventory and hotel rates.

1996: Creation of the First Online Travel Agency - Travelocity

1996: Microsoft Launches Expedia

2006: Travelport, the 3rd Giant GDS, Soon Buys Worldspan

PMS (Property Management System)

PMS is software that facilitates a hotel's reservation management and administrative tasks.

The most important functions include front-desk operations, reservations, channel management, housekeeping, rate and occupancy management, and payment processing. PMS facilitates the main processes in a hotel related to internal and external operations.

PMS Modules

We may divide these modules into three different stages of the process:

1. Reservation and Distribution;
2. In-stay Experience;
3. Back-office, Reporting

Technology that Allows Communication of Online Travel Agencies and PMS: API

Application programming interface allows for connecting data streams and functionalities between different software products.

They work as control panels for developers to link different software components without dealing with source code. An application programming interface (API) is a set of routines, protocols, and tools for building software applications.

Travel API is basically a set of web services to access travel deals from different travel providers and consolidators. An API is the messenger that runs and delivers your request to the provider.