Navan, an online travel management and expenses app, recently released its NDC Savings Index, an extensive report that analyzed the impact of New Distribution Capability’s (NDC) rollout within corporate travel programs. The report looked at millions of flight bookings across 12 airlines between Feb. 16 and May 16, 2024.
Over that period, nearly one in four flights booked on Navan was made via NDC, and certain customers with NDC-enabled content “saw potential savings, per airline, ranging from 3.3%-16.6%.”
Our Analysis: NDC Is Here to Stay — But Its Rollout Should Keep Travel Agencies in Mind
Many airlines offer NDC already, or plan to adopt the technology soon, but travel advisors are wary of a rushed implementation. Case in point: In May, American Airlines rolled back its NDC implementation strategy due, in part, to pressure from travel agencies after some fares were removed from legacy GDS systems, and AAdvantage loyalty points would have been withheld from passengers booking with a travel agent.
However, if Navan’s data is any indication of what’s to come, NDC won’t be going away any time soon. Advisors booking flights for their clients would be wise to study up on the technology and prepare to adapt to its inevitable implementation. Airlines, on the other hand, should be rolling out NDC responsibly, and recognizing the critical role travel advisors play in facilitating air travel sales.
Fast Facts: Here’s How NDC Has Affected Air Bookings So Far
- According to the report, 24% of all flight bookings in the U.S. through Navan were made via NDC. In Europe, NDC accounted for nearly one-third (31%) of all flight bookings with Navan.
- Navan has currently integrated NDC into its app across 15 global airlines.
- Larger travel programs using NDC saw up to a six-digit savings, annually. These savings ranged from 3.3%-16.6%, due to a lack of GDS surcharges, exclusive fares and additional price points available.
- Navan’s data shows that up to 57% of fares published by an airline could be missing within a travel management tool (depending on the route), which could lead to distrust, lack of visibility and overspending by travelers.
- Navan’s Net Promoter Score, which measures customer satisfaction and loyalty, consistently increased during the report’s testing period, up 13% this year.
- Read the full NDC Savings Index report on Navan’s website.
What They Are Saying: NDC Will Drive the Travel Industry’s Modernization Efforts Forward
“There's a huge difference between simply enabling NDC versus what Navan is doing, which is leading the way with an NDC roadmap that drives the industry's modernization efforts forward,” said Rich Liu, CEO of Navan Travel. “As a tech company, we’re designed to quickly adapt to new technologies. Being an early adopter of NDC has allowed us to create a standard for how TMCs [travel management companies] should optimize NDC content. The NDC Savings Index is the result of those efforts — illustrating the potential savings and traveler value of NDC done right.
“With all the changes in the industry, we needed a platform that was agile enough to accommodate new technology and processes,” added Melissa Watson, group travel and corporate events director at Informa. “Informa is now seeing good savings from NDC via Navan; we’re on track to save around $215,000 this year.”
"Navan’s journey with NDC and American Airlines began as early as 2018, and a lot of work has been completed to define NDC and create an experience that meets the needs of modern business travelers,” said Anthony Rader, director of airline retailing technology at American Airlines. “Through Navan’s efforts, they have been able to provide our mutual customers more choices with bundles and ancillaries, a seamless booking experience and added servicing benefits."
