The Role of NDC in the Ancillary Revenue Streams: Seat, Meal Selection, and Beyond

In the current landscape of the airline industry, ticket sales signify only the initial phase of a transaction. Airline companies have started to depend more on ancillary services, which include upgrades like seat selection, special meals, and additional baggage to enhance revenue as well as optimise the customer experience. This is where NDC (New Distribution Capability) comes into play with its innovation in the marketing, display, and sales process of these services on digital platforms.

If you're wondering how NDC ancillary services simplify the process of selling seats, meals, and more, we'll explain it in straightforward terms in this blog.

What Is NDC and Why Is It Important?

NDC, as created by the International Air Transport Association (IATA), is a new communication standard that enables airlines to distribute their content directly to travel agents and customers through API connections. NDC also allows airlines to sell their entire product catalogue, including real-time personalised bundles and ancillaries, unlike older Global Distribution Systems (GDS).

Picture it as a more advanced system that enables airlines to shift from fixed offers to tailored, customer-specific deals. Be it a window seat with extra legroom, a three-course meal, or lounge access, NDC showcases these offerings in detail during the booking process.

Why NDC Is a Game-Changer for Ancillary Sales

Older GDS systems often show fares with no view of ancillary services. A meal or a seat upgrade is usually hidden and only appears after selecting the ticket, which is a missed sales opportunity and frustrating for the customers.

NDC changes all of that.

With NDC, airlines are capable of offering and displaying ancillary services with fare options, enabling travellers to personalise their flights from scratch. This not only incorporates the base fare but also the add-ons that come with it, presented through images and descriptions.

Let's explore how some specific ancillaries work.

‍

NDC Seat Selection: No Guessing

Seat selection remains one of the most sought-after ancillaries for air travellers, but only if certainty is involved.

Through NDC seat selection, customers can access interactive seat maps to view and browse extras like photos and seat features (extra legroom, sitting near the lavatory). Front-row aisle or quiet-zone window seat, with NDC, they can claim it immediately rather than during the final checkout.

This increases both transparency and conversion. When travellers view their booking and notice additional services that come with a price tag, they're more likely to opt in and pay more for some added comfort or services.

NDC Meal Selection: Customisation on the Menu

No longer is "Chicken or Pasta?" the only in-flight option available. Today's travellers look for meals that cater to their diet, culture, and lifestyle, and even those prepared by Michelin-starred chefs, think vegan, keto, gluten-free.

With NDC meal selection, airlines can show structured menus with descriptions, prices, and imagery. The option to pay for these meals during flight selection gives passengers (or their agents) the ability to book meals, guaranteeing value for airlines through a great upsell.

Last-minute meal requests and inventory mismatches are resolved. Everyone wins.

Dynamic Bundling: More Value, More Revenue

Another brilliant NDC feature is dynamic bundling. This means airlines can create and advertise offers that incorporate multiple ancillary services in one offer, such as, but not limited to, seat upgrades, meals, and checked baggage.

A "Business Lite" bundle, for example, could offer an exit-row seat with a premium meal, while a "Family Saver" pack might combine priority boarding with children's meals and designated seating. These bundles are capable of real-time adjustments based on passenger requirements, type of travel, and even budget.

That's how NDC ancillary sales shift the focus from individual upsell sales to value-based, intelligent group sales.

‍

Personalisation and Targeted Offers

With its API-driven framework, NDC allows airlines to issue personalised recommendations. If a traveller regularly purchases extra bags or opts for vegetarian meals, those offers can be tailored to their subsequent purchases.

This ensures a customised shopping journey and cultivates loyalty and retention. Through NDC ancillary services, airlines can also promote loyalty rewards or targeted offers to their frequent flyers, making travellers feel appreciated and valued.

Live Seat Availability and Clear Pricing

Older systems have a lot of lag in servicing and offer seat selections where the payment gateway might be unavailable before payment confirmation. You may pay for services without knowing the actual fee, and there's no refund.

With NDC, everything is instantaneous, real-time inventory and pricing. Premium seating, speciality meals, and other amenities that incur additional charges will always be displayed and accessible if available. Otherwise, suitable replacements are provided immediately, so you don't have to look around for options, even transaction-free.

Enhanced Control and Trust for Arrangers

Given today's travellers, information should be clear and upfront without any hidden details. NDC makes it possible.

Passengers can look at the fare details, compare bundled offers, and add required extras with minimal effort. This level of trust and transparency enhances client satisfaction and is more critical for business passengers and families looking to cherish their trip together.

How We Help Distribute NDC Deals

For seamless shopping, we connect you and your customers with NDC-compliant airline systems. Through our platforms, these offers are accessible through NDC seat selection, NDC meal selection, or bespoke travel bundles, making booking simple.

We empower agents and travellers to utilise the full advantage of NDC-enhanced bookings with real-time updates, tailored offers, and ancillary displays integrated into the booking.

‍

Final Thoughts 

The advancement of airline retail is not limited only to flights but rather to the entire journey. With NDC ancillary sales, airlines now have the ability to sell how today's travellers want to buy: visually and instantly, with complete control.

From customised meals to intricate seat selection and bundled experience packages, NDC ancillary services enable airlines to generate greater revenues while providing passengers with superior travel experiences.

So, the next time you or your client book a flight, remember that it's more than just the base fare. Because of NDC, the sky is no longer the limit, but just the start. 

Contact us by calling us at 1800 889 2000 or write to us at support@ndcdeals.org