GDS AND NDC BASICS
What is a Global Distribution System (GDS)?
A Global Distribution System (GDS) is a centralized technology platform that enables travel agencies and corporate booking tools to search compare and book airline flights and other travel services. GDS platforms aggregate flight schedules fares and availability from multiple airlines and distribute this content to travel sellers worldwide. Amadeus Sabre and Travelport are the three major global GDSs while Travelsky is the leading GDS in China.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
What is NDC and how does it work?
New Distribution Capability (NDC) is an XML-based communication standard developed by IATA which allows airlines to move away from one-size-fits-all offers and pricing. NDC enables airlines to create customized and dynamic offers including fare bundles and ancillary services and distribute them to travel sellers either directly or via aggregators.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
What is the difference between EDIFACT and NDC?
EDIFACT is a legacy messaging standard used in traditional GDS distribution while NDC is a modern XML-based standard developed by IATA. EDIFACT enables standardized but static content distribution whereas NDC enables dynamic personalized offer creation and richer ancillary content.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
Why are airlines investing in NDC?
Airlines are investing in NDC to gain more control over their product distribution reduce dependency on legacy GDS systems and to create personalized offers. NDC also enables airlines to distribute ancillaries and branded fares more effectively through indirect channels.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
Will NDC replace EDIFACT?
NDC will not immediately replace EDIFACT but the share of bookings distributed via NDC is increasing at the expense of EDIFACT bookings. Both standards currently co-exist in a hybrid distribution environment for many airlines. While NDC is currently seen as the distribution standard for modern airline retailing, EDIFACT still serves as the standard for global reach and servicing stability requiring airlines to manage both protocols simultaneously for the foreseeable future. The rapid ascent of Agentic AI has triggered questions about the future need for NDC but for now the consensus is that NDC will remain the go-to standard for modern airline distribution.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
What is ONE Order?
ONE Order is an IATA industry initiative that aims to unify airline order management. It replaces traditional booking records such as PNRs e-tickets and EMDs with a single unified customer order. This simplifies fulfillment delivery and accounting by creating a single source of truth for every traveler's journey.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
CHANNELS AND COSTS
What are direct and indirect distribution channels?
Airline distribution channels refer to the ways or channels airlines distribute tickets and ancillaries to customers. Direct channels include an airline's own website mobile applications and call centers offering direct customer relations. Indirect channels comprise third-party intermediaries such as GDSs, aggregators and Travel Agents such as Online Travel Agencies (OTAs) and Travel Management Companies (TMCs).
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
What are airline distribution/sales costs composed of and how can they be reduced?
Airline distribution/sales costs refer to the fees and expenses airlines incur when distributing/selling tickets through different channels. These costs can include GDS booking fees agency incentives technology integration and management expenses and operational costs such as forms of payment and marketing costs. Airlines can reduce these costs by optimizing the channel mix by increasing direct sales negotiating lower booking fees with intermediaries and implementing cost recovery mechanisms such as surcharges.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
What is a Full Content agreement in the context of a GDS?
In a Full Content agreement an airline commits to provide all of its content (fares, flights and seats) to a GDS in exchange for reduced GDS booking fees. While this allows for lower gross booking fees it severely limits the airline from shifting volume away from the GDS and often serves to reinforce strategic GDS dependence. Full Content agreements were initially created after airline websites became a competing channel to the GDS and travel agency.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
What other GDS commercial models exist?
Next to Full Content models there is the concept of GDS Parity where an airline's only obligation towards the GDS is to provide the same content as to any other GDS. Between Full Content and GDS Parity various hybrid models exist which allow for distribution freedom for the airline's own channels (third party parity) or direct connects (aggregator parity).
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
What KPIs should airlines track in distribution?
Distribution KPIs can help airlines measure the effectiveness and cost efficiency of channels. Key metrics may include net distribution cost per booking channel mix NDC adoption rates booking share by distribution partner and fare brand mix and ancillary attachment by distribution channel.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
RETAILING AND TECHNOLOGY
What is IATA's Modern Airline Retailing (MAR)?
Modern Airline Retailing (MAR) is an industry framework developed by the International Air Transport Association (IATA) that supports the transformation of airline distribution toward a retail-style model. MAR promotes standards such as NDC and ONE Order that allow airlines to move away from legacy PNR-based systems and create personalized customer experiences.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
What is airline retailing and how is it different from traditional distribution?
Airline retailing is a modern sales approach that focuses on merchandising and dynamic offer creation whereas traditional distribution focused on static one size fits all selling. Retailing allows airlines to bundle products personalize offers and manage pricing more flexibly across both direct and indirect channels. As part of airline retailing, airlines also hope to sell non-air products and services in connection with their own offerings.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
How is new technology changing travel agencies and TMCs?
New technology is transforming agencies into multi-source aggregators that simultaneously manage content from GDS, NDC Aggregators, airline web portals and direct connections. This shift requires agencies to invest in new workflows to ensure they can access the best available content for their clients.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
What are the biggest challenges in NDC implementation?
The biggest challenges in NDC implementation include technology integration, servicing capabilities, and alignment across industry stakeholders. Airlines, travel agencies, GDSs, and corporate booking tools must adapt their systems to support new distribution workflows. Navigating these challenges while still being bound by legacy GDS agreements is a major commercial hurdle to adoption.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
STRATEGY AND TRANSFORMATION
What does an airline's distribution strategy refer to?
An airline distribution strategy refers to how an airline distributes its products across different channels and technology platforms. It includes channel mix between direct and indirect channels, use of GDSs, adoption of NDC connections, partnerships with travel sellers and other distribution intermediaries and increasingly, integration of Agentic AI into the airlines' channel mix.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
What distribution strategy models are airlines using today?
Airlines use several distribution strategy models including traditional GDS-based distribution, hybrid models combining EDIFACT and NDC channels, and more direct approaches that rely on APIs or aggregators. Modern airlines currently operate multi-channel strategies to balance strategic independence, reach, and cost efficiency. Recently, airlines have begun exploring Agentic AI integrations and we expect Agentic AI to become a key concern of airline distribution strategies over the coming months and years.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.
How should airlines plan for distribution transformation?
A distribution transformation roadmap defines the steps airlines take to evolve their distribution capabilities. It typically includes assessing distribution models, defining target strategies, and implementing capabilities such as NDC, and modern airline retailing. These roadmaps are often aligned with the expiration of GDS agreements to maximize commercial leverage. Agentic AI will trigger additional urgency for distribution transformation, challenging airlines not just in terms of timelines, but also in terms of priorities.
At Oystin we support airlines by auditing distribution contracts and costs designing a tailored future-proof distribution strategy and supporting implementation of distribution negotiations.
How will developments in AI impact airline distribution strategies?
Artificial intelligence and Agentic AI in particular, is expected to reshape airline distribution by improving retailing opportunities and reducing reliance on traditional aggregation functions. AI can also help airlines generate more dynamic offers and better forecast demand. As distribution becomes more API-driven, the traditional aggregation role may diminish. However, airlines will need to ensure that currently existing commercial lock-ins and parity obligations are not repeated in an AI-driven distribution world. Agentic AI has begun challenging MAR transformation timelines and priorities and airlines have begun to reassess their capability requirements in light of Agentic AI.
At Oystin, we support airlines by auditing distribution contracts and costs, designing a tailored, future-proof distribution strategy, and supporting implementation of distribution negotiations.