NDC · GDS · Direct connect
NDC vs GDS vs direct connect: how travel agencies and OTAs should choose
Short answer: keep a GDS (or an aggregator) as your broad, low-maintenance base, add NDC where an airline’s best content is only there, and build a direct connection only for the few carriers that move your numbers. The right mix depends on your routes, your volume and how much servicing your team can absorb.
I work on this from the booking record up: GDS reservations and ticketing, then building and running an OTA that sells GDS, NDC and LCC content side by side. This guide is the version I wish agencies in Malaysia and Southeast Asia had before choosing a channel.
The three ways to get airline content
GDS (Amadeus, Sabre, Travelport). One connection gives you many airlines, mature ticketing through BSP, and standard servicing for voids, refunds and reissues. The trade-off: some carriers now hold back fares, bundles or ancillaries from traditional GDS channels, and GDS costs sit somewhere in your economics.
NDC (IATA’s New Distribution Capability). An XML standard that lets airlines send richer offers: branded fares, bundles, seats and bags, and dynamic prices. You can take NDC through a GDS, through an aggregator, or directly from each airline’s NDC API. Content is often better; servicing is less uniform. See NDC explained for the basics.
Direct connect (airline APIs, including LCC APIs). You integrate one airline at a time. You get exactly what that airline offers, but every connection is its own build, certification, payment flow and servicing process. Low-cost carriers often sit here because their content is not fully available through GDS channels.
Side-by-side comparison
| What matters | GDS | NDC (via GDS/aggregator) | Direct connect |
|---|---|---|---|
| Airline coverage | Broadest, one connection | Growing, varies by carrier | One airline per build |
| Content and ancillaries | Standard fares, some carriers restricted | Richer offers, bundles, seats, bags | Everything the airline chooses to expose |
| Build effort | Low once integrated | Medium | High, repeated per airline |
| Servicing (void, refund, reissue) | Mature and standardised | Improving, uneven by carrier | Airline-specific, often manual |
| Best for | Breadth and operational stability | Carriers whose best content is NDC-only | A few high-volume carriers and LCCs |
Where agencies get this wrong
Choosing on shopping, not servicing. Search and booking are usually the first things to work. The cost shows up later, in voids, refunds, exchanges, schedule changes and ADMs that your team has to handle by hand. I wrote about this in “Easy to connect” is a trap.
Comparing channel fees instead of total cost. A cheaper channel can still cost more once you add build and certification time, payment and settlement differences, incentive terms and servicing hours.
Connecting every airline directly. Each direct connection is a product you now maintain. Most agencies need direct connections for a short list of carriers, not the whole market.
Ignoring duplicate content. When the same flight arrives from GDS, NDC and a direct API, your results need de-duplication and clear rules on which source wins, or customers see confusing prices.
A decision checklist
- List your top routes and carriers by bookings and margin, not by search volume.
- Check each carrier’s best content: which channel shows the lowest fare, the bundles and the ancillaries your customers buy?
- Measure the gap. If NDC or direct content is only marginally better, stay on GDS for that carrier.
- Price the servicing: who handles voids, refunds and schedule changes, and how many hours a month will it take?
- Check ticketing and payments: BSP coverage, payment methods, currencies and settlement for each channel.
- Start with one carrier, measure conversion and servicing load for a quarter, then decide on the next.
What this looks like for agencies in Malaysia and Southeast Asia
Regional sellers usually need three kinds of content at once: full-service carriers through GDS or NDC, low-cost carriers that are strong on short-haul routes, and specialist demand such as Umrah travel. That mix is why a single-channel strategy rarely works here, and why de-duplication and servicing rules matter as much as the connections themselves.
Frequently asked questions
Is NDC replacing the GDS?
Not outright. GDSs now carry NDC content themselves, so for many agencies the practical question is whether to take NDC through a GDS or aggregator, or connect to an airline directly.
Do I need a direct NDC connection to get the best fares?
Only for airlines that hold back fares, bundles or ancillaries from other channels and that matter on your routes. For the rest, aggregated NDC or GDS content is usually enough.
What is the hardest part of NDC for a travel agency?
Servicing. Shopping and booking are usually live first; voids, refunds, exchanges and schedule changes are where integrations break and manual work grows.
How should an agency in Malaysia start?
List your top routes and carriers, check which channel shows the best content for each, and connect directly only where the gap is large and the volume justifies the build and servicing cost.
Not sure which mix fits your routes? Take the free Distribution Self-Check (three minutes), or read The Future of GDS. If you need a booking platform or integration built, see Tech Solutions.
