New M.O. founder and partner Mike Qualantone calls for renewed energy and shared vision to support New Distribution Capability, if it is to succeed beyond being a moneygrab by airlines.
In May
1961, President John F. Kennedy stood before Congress and set a bold vision:
the United States would land a man on the moon. He secured funding, expanded
NASA’s scope, and rallied the nation behind a common goal. Eight years later,
on July 20, 1969, Apollo 11 landed on the moon.
Kennedy’s moonshot worked because it was more than just an aspiration. It was a shared
mission. He united all stakeholders, removed obstacles and ensured funding and
operational support across every level.
In 2012,
IATA’s then-Director General, Tony Tyler, launched a moonshot for commercial
aviation: New Distribution Capability. The vision was ambitious—modernizing
airline retailing, moving away from EDIFACT data transmission and giving
airlines more control over their products. But unlike Kennedy, IATA and the
airlines failed to engage, rally or gain the support of all the relevant
parties.
No
Mission Control
More than a
decade later, NDC remains fragmented and inconsistent. Airlines pursued their
own implementations, GDSs and agencies bore massive unaccounted-for costs, and
corporate customers were left in the middle of a blame game.
John
Kotter’s classic change management principles—creating urgency, forming a
coalition and removing obstacles—were ignored. IATA announced NDC without first
securing buy-in (or even any input) from agencies, GDSs or corporate customers.
Unlike NASA, which was empowered to coordinate a unified effort, IATA left each
airline to figure it out on their own—resulting in multiple, incompatible
versions of NDC. The lack of common standards has led to complexity, added
costs and a travel buying experience that is, in many ways, worse than
before.
While OTAs
have driven much of NDC’s early adoption in leisure travel, corporate bookings
are far more sophisticated—requiring integrated tools, compliance checks and
policy controls. These complexities were largely overlooked. As progress failed
to materialize, airlines removed content and took punitive action on agencies
and GDSs. This is where NDC’s failure is most apparent. Instead of a
coordinated effort that benefited all parties, it became a patchwork of
self-interest, forcing intermediaries and customers to absorb the costs while
airlines reaped the rewards.
Cost of
Fragmentation
The
consequences of this misalignment are staggering. Moving from EDIFACT-based
processes to NDC required a massive overhaul of technology, workflows and
infrastructure, but IATA and airlines offered no financial support or
incentives to ease the transition. The burden fell entirely on agencies, GDSs
and corporate buyers.
Despite
early promises of a seamless, customer-centric experience, the reality has been
far from it. Many airlines tried to make it seem simple and positioned the
agencies and GDSs as holding on to legacy and outdated systems, all to push
their own priorities. This was further complicated by some airlines removing
NDC content from traditional channels while pursuing direct sales strategies.
Many corporate buyers now report higher costs, reduced transparency and a lack
of parity in their preferred booking channels.
Surcharges
Say the Quiet Part Out Loud
The latest
developments make the true intent of many airline strategies clear. In May
2025, The Beat reported that another major airline is now applying per-segment
“aggregator surcharges” on NDC bookings made via GDSs—fees that vary by
geographic market. Dominant European and Australian airlines are leading these
efforts to add fees and inhibit GDS and agency bookings. These fees are in
addition to existing EDIFACT GDS surcharges, creating a layered system of
penalties for choosing traditional distribution partners.
The result?
Agencies and GDSs that spent years adapting to NDC are now being hit with new
costs—just as they catch up. These surcharges don’t reflect pass-through GDS
costs; they’re inflated, opaque and variable. And critically, they apply even
when booking NDC content—undermining the argument that NDC was ever about
better offers, shopping or servicing.
This isn’t
modernization. It’s monetization.
It’s like
grocery stores charging customers 3 percent to use a credit card—but at far
higher rates and with even less transparency. If NDC was about better retailing
and customer experience, why impose surcharges at all? The answer is
simple: Fees are the clearest evidence yet that NDC has become a tool to drive
direct bookings, offset distribution costs and create new revenue streams—rather
than deliver innovation or value to the end customer. This shift is underscored by a renewed
airline push for direct connect APIs – just as NDC adoption accelerates.
Profit Over
Progress
Last year,
the movie Fly Me to the Moon questioned whether Neil Armstrong and Buzz
Aldrin’s moonwalk was an elaborate ruse. Of course it wasn’t, but the same
can’t be said of NDC. Many now wonder whether the original promise of NDC was
genuine. If it had been, airlines would have prioritized interoperability,
seamless servicing and standardized processes. Instead, we’ve seen a strategy
designed to maximize airline revenue while pushing costs onto GDSs, agencies
and corporate buyers—with no clear industry-wide governance, no unified
technical standard, and no shared strategic goal.
Past
Lessons, Future Solutions
New M.O.
supports innovation like NDC, but it must be done in the right way and benefit
the customer. To be clear, NDC is still achievable, but only with a
collaborative, transparent, travel-focused approach. Delta has consistently
prioritized the needs of both customers and partners in its distribution
approach, for example. The industry needs more
of this. Here’s a roadmap:
Partnership – Airlines working collaboratively
with agencies, GDSs, OBTs and other technology companies so we can move forward
faster. American Airlines’ renewed engagement
with partners to accelerate NDC adoption is a recent improvement.
True
Interoperability –
Seamless servicing capabilities that match, if not exceed, current
EDIFACT-based solutions.
Shared
Investment –
Airlines must take some of the financial responsibility for the costs imposed
on their distribution partners.
Corporate
Buyer Involvement –
Managed travel programs need a real seat at the table, ensuring NDC delivers
value beyond just airline profits.
If airlines
continue to push NDC as a zero-sum game, where their gains come at the direct
expense of GDSs, agencies and buyers, the road ahead will remain turbulent. If
they take a lesson from JFK, embracing a shared vision with shared
responsibility, NDC can still fulfil its original promise.
Right now,
it’s not a moonshot. It’s a mission stalled by self-interest and a refusal to
fly together.