NDC for Lodging: A new era of hotel distribution?

Several technology firms, including DerbySoft and Katanox, are leading the charge to modernize hotel distribution

For years, the hotel industry has struggled with outdated distribution models, fragmented technology, and costly intermediaries. But a new movement, likened to "NDC for lodging," is gaining momentum. Inspired by the transformation of airline retailing through New Distribution Capability (NDC), this shift aims to give hotels more control over their inventory, streamline connectivity, and reduce dependency on traditional distribution channels.

The problem with traditional hotel distribution

Historically, hotels have relied on online travel agencies (OTAs), global distribution systems (GDSs), and third-party aggregators to reach corporate and leisure travelers. While these intermediaries offer exposure, they also come with high commissions, limited pricing flexibility, and fragmented data access. Unlike airlines, which have modernized their distribution through NDC, hotels still operate within rigid, decades-old frameworks.

Enter "NDC for Lodging"

Several technology firms, including DerbySoft and Katanox, are leading the charge to modernize hotel distribution. These companies are developing solutions that offer direct API connectivity between hotels, corporate buyers, and travel management companies (TMCs). The goal? To enable dynamic pricing, richer content, and seamless booking experiences without the friction of legacy systems.

Key benefits for hotels and buyers

Greater control for hotels: Direct API connectivity allows hotels to set their own rates, offer exclusive packages, and personalize the booking experience without relying on OTAs or GDSs;

Better data insights: Direct distribution means hotels and corporate buyers have access to more accurate, real-time data on pricing, availability, and traveler preferences;

Cost efficiency: Cutting out unnecessary intermediaries reduces distribution costs, allowing hotels to reinvest in guest experiences and loyalty programs;

Improved booking experience for corporations: Travel buyers and TMCs can access more flexible rates, bundled services, and richer hotel content through direct integration.

Challenges and road ahead

While "NDC for lodging" presents a compelling vision, adoption remains a hurdle. Many hotels still depend on OTAs and GDSs for visibility and revenue. Additionally, large-scale implementation requires investment in new technology and operational shifts in how hotels manage their inventory and pricing.

However, as more players embrace direct connectivity and open distribution models, the industry may finally break free from its outdated structures. If successful, "NDC for lodging" could usher in a new era where hotels, corporate buyers, and travelers all benefit from a more transparent and efficient ecosystem.