How NDC Boosts Commission Opportunities for Travel Agencies

In the constantly evolving industry of airline distribution, one term that has risen to place in the spotlight is NDC - New Distribution Capability. Although it could be an industry buzzword, NDC is transforming how travel agencies conduct business. When it comes to commissions, this is important.

We at NDC Deals, we're committed to helping travel companies succeed in this changing world. This blog will examine the ways NDC is for agencies that travel can open up new earning opportunities, give more airline access, and make booking more effective than ever.

What is NDC?

NDC is a shorthand for NDC stands for New Distribution Capability. It's a transmission standard for data developed through the IATA (International Air Transport Association). In simple words, NDC allows airlines to deliver their information directly to the travel industry without relying upon Global Distribution Systems (GDSs).

Through this direct connection, airlines can provide better information on their products, more personalized deals, and most importantly, the most transparent and lucrative commissions to agencies.

Why Travel Agencies Are Losing Out on Traditional Systems

Under the previous GDS model Many airlines cut down or eliminated all base commissions. Agencies were forced to depend on service charges and markups in order to stay operating. When commissions were provided however, they were often inconsistent and unclear.

Agents were doing more work to earn less.

NDC alters this by permitting airlines to regain control of their distribution, and create commission structures that are customized straight to agents.

How NDC Increases Commissions for Travel Agencies

Let's examine the ways in which NDC commissions have made an impact.

1. Transparent Commission Structures

In the NDC Booking system for booking, commissions are displayed ahead of time. Agents can see commission rates prior to the date of the quote, which gives the agency more control and clarity.

Airlines offer:

• Higher base commissions.
• Incentives based on volume or performance.
• Commissions on services that are added, such as food, seating, baggage, and even upgrades. 

This transparency helps agencies make better decisions and to earn more money from each sale.

2. More Personalization, More Profit

With NDC airline distribution, travel agencies can now make customized travel packages for their customers. From extra leg room to Wi-Fi, every additional feature could also result in an additional commission on behalf of the agent.

The shift from ticket sales to providing personalised experiences creates value for the customer as well as the agency.

3. Access to Exclusive Content

NDC airlines' partnerships allow agencies access to content not available via GDS systems. They include:

• Exclusive or lower prices or exclusive.
• The first access for limited-time offers.
• A unique ancillary, such as carbon offset or access to lounges.

A greater variety of content will mean more booking possibilities and more commission-earning possibilities.

Why This Shift Matters Right Now

Airlines are looking to decrease their dependence on GDSs and lower the costs associated with them. However travel agents require better margins to remain at the top of their game. Customers also expect personal service and flexibility.

NDC solves all these problems.

The travel industry is recovering, it's the right time to take advantage of this advanced distribution system. NDC for travel agencies isn't an option, but it's becoming an essential requirement to ensure survival and growth.

What Changes With the NDC Booking System?

The most significant difference is how content is accessible and displayed.

A NDC booking system offers:

• More attractive images and product descriptions.
• Offers that are personalized and real-time.
• Clear breakdowns of commissions
• An easy shopping experience for agents and customers

It is simple to use and frequently integrates with the existing platforms. Agents don't have to change their workflow completely, they just need to update it.

Making the Shift: How Travel Agencies Can Start Using NDC

The technology changes can be overwhelming However, they don't have to be.

Here at NDC Deals, we help agencies by providing:

• Access to a variety of airlines that are NDC-connected
• Transparent commission plans
• Continuous support and guidance to assist with the implementation

No matter if you operate an independent boutique business or run a larger business We're here to make sure NDC will work for you.

NDC Airline Partnerships: Who's On Board?

A number of world's top airlines have already embraced NDC and are now offering better prices via the direct connection.

Some of these are:

• Lufthansa Group
• British Airways
• American Airlines
• Emirates
• Singapore Airlines
• Qatar Airways

These airlines offer early access to deals, commissions on ancillary and special offers to NDC partners.

Agents that use their own NDC Booking system are reaping the advantages.

GDS Vs. NDC: It's Not All or Everything

Certain travel agencies are concerned about the possibility that changing to NDC will mean a complete abandonment of GDS. Many successful travel agencies use both.

A hybrid model allows agencies to:

• Continue to book content from the past through GDS
• Get personalized offers and high commissions through NDC
• Select the most suitable system for every booking 

In the future, as more airlines are focusing on NDC, this dual strategy could shift to an NDC-focused strategy.

How to Maximize Commissions Through NDC

Here are some concrete actions agencies could follow:

1. Identify High-Value NDC Airline Partners
Consider the airlines your customers frequent and have solid NDC programs.

2. Train Your Team
Be sure that your agents know how to market NDC content. A customized bundle and ancillary products can help you maximize commissions.

3. Use a Robust NDC Platform
Choose a platform with full transparency of commission rates, and also supports dynamic pricing and high-quality content.

4. Work with Experts Similar to Us
At NDC Deals We've assisted agencies improve their systems and boost earnings by providing better NDC access and assistance.

Why NDC is the Future of Airline Distribution

The world of travel is evolving rapidly. Airlines want direct involvement. Customers want more customized experiences. Agents want better tools and a fair pay scale.

NDC airline distribution fulfills all of these requirements. It helps agencies get back in charge and provides them with the tools needed to create better travel experiences for their customers and earn higher commissions.

Travel agencies aren't simply ticket sellers. With NDC they can now be considered consultants for travel, offering customized solutions and getting fairly compensated for it.

Final Thoughts: Embrace NDC and Unlock New Growth

NDC is a major change for agencies that deal in travel. It goes beyond an enhancement in technology. It is a paradigm shift in the way the travel ecosystem functions.

By adopting NDC:

• You'll get clearer and more efficient commission structures.
• You have access to richer content from airlines and personalised offers
• You can build stronger relations with airlines
• Your clients are better served and you increase your profit margin

We are NDC Deals, we've helped agencies of all sizes to make this transition with ease. If you're eager to ensure the future of your agency and make most of the opportunities in the future we're prepared to help.

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