Why Do You Still Not Have an NDC API Gateway? Modernize retailing with Astra. Fast.
The airline industry is transforming at breakneck speed. NDC APIs are no longer a buzzword. They’re the backbone of modern airline retailing and distribution. Yet, many airlines still operate without a robust NDC API, risking lost revenue, higher costs, and lagging behind competitors. If your airline is still on the fence, the real question is: Why do you still not have an NDC API Gateway? In our previous blog, we talked about controlling your modern retailing growth with the Astra NDC API Gateway. Now, let’s talk about what could be holding you back and how we can help.
The Market Reality
- Despite industry momentum, only 12% of indirect airline sales globally use NDC APIs today. Over 50% of Tier 1 and Tier 2 airlines have implemented NDC APIs, but most of the world’s airlines still lag. However, the opportunity is big. NDC penetration is forecast to reach 90–100% by 2030–2032. (Source: TPC research)
- Mature airlines are showing significant cost savings from the NDC strategy. For example, the Lufthansa Group has reduced distribution IT costs by €165 million in four years after NDC adoption, even before passenger numbers returned to pre-pandemic levels. (Source: Lufthansa Annual Report 2023)
- With enhanced NDC API adoption, airlines can create additional value worth $45B by 2030 through richer content, ancillaries, and dynamic offers. (Source: McKinsey)
- Ancillary revenues are projected to grow at a CAGR of 13.1% to 19% (2022-2030), with multiple industry reports indicating continued strong expansion. This is a major driver of growth that can be served by an NDC API.
The Real Pain: Why Airlines Delay NDC API Adoption
Airlines consistently cite these challenges when considering NDC:
- Travel agency onboarding and adoption: Getting agencies to connect and transact efficiently is a major pain point.
- High transaction costs and Look-to-Book (L2B) ratios: Legacy systems drive up costs and reduce conversion.
- Integration with existing systems: Legacy PSS makes API integration complex and slow.
- Content complexity: Airlines want seamless order management, rich content, and personalized offers without fragmentation.
- Rich media and non-air content adoption is still low—only 12 airlines have implemented rich media, and 11 have implemented non-air content, mostly on older NDC versions
- Vendor lock-in and slow implementation: Legacy tech providers can take months (or longer) to deliver, while Astra can deploy quickly.
Astra NDC API: The Fast Track to Modern Airline Retailing
Astra is built for airlines that want to lead, not follow, in modern retailing. Astra’s NDC API is purpose-built for full-service carriers with significant indirect sales and at least 2 million annual passengers, especially in the Middle East, Africa, and Asia-Pacific, where NDC adoption is accelerating but many airlines still lack a modern solution. Here’s what sets Astra apart:
Comprehensive Booking and Servicing: Empower agencies to manage orders, changes, cancellations, payments, and refunds, with easy onboarding.
Advanced Analytics & L2B Optimization: Soon, Astra will offer a dashboard to optimize L2B ratios and overall performance, helping airlines cut costs and boost revenue.
Seamless Integration: Astra’s API-first design works with any PSS, giving you full control over your offer and distribution.
Scalable, Modular Airline API: Operate smoothly even during peak demand with AWS cloud infrastructure. Integrate only what you need, when you need it. Add modules like rich media content as your strategy evolves.
Rapid Deployment & Future-Proof Standards: Deploy your NDC API quickly, outpacing legacy tech, with the latest IATA NDC Standards v21.3 and beyond.
Rich Media Content and Non-air Ancillaries: Astra’s NDC API roadmap includes rich media and non-air ancillaries – key value-added services airlines expect.
The Competitive Edge: Why Wait?
Traditional systems and slow-moving tech vendors lock you into rigid, costly, and outdated distribution models. Astra empowers you to:
- Reduce distribution costs by transitioning from legacy tech dependence.
- Enhance ancillary revenue with seamless upselling of extras and bundles.
- Deliver personalized, differentiated offers directly to travel sellers, boosting conversion and loyalty.
- Gain full data ownership for smarter pricing and customer engagement.
- Accelerate your digital transformation with minimal disruption and maximum agility.
For Airline Executives: The Time for NDC is Now
If you’re representing airline distribution modernization, the mandate is clear:
- Maximize revenue with modern retailing and direct distribution.
- Break free from vendor lock-in and legacy dependencies.
- Future-proof your airline’s competitiveness.
Astra is already trusted by leading airlines and is built to address the specific pain points of mid-tier airlines.
The Competitive Edge is Yours for the Taking
Airlines using Astra benefit from:
- Faster time-to-market with plug-and-play deployment and reduced IT effort.
- Scalable, cloud-based architecture that is ready for fluctuating demand.
- Complete control over distribution strategy, define your own rules for content, offers, ancillaries, and partners.
- Continuous innovation with a roadmap for rich media, L2B dashboards, and advanced NDC Standards.
Still Don’t Have an NDC API Gateway? Let’s Build Your Future
NDC APIs are the foundation of modern airline retailing. Astra NDC API Gateway delivers the speed, flexibility, and innovation you need to win in today’s market. Don’t let legacy systems or slow-moving vendors hold you back. Contact us today.
