By John Balloch, Chief Engagement Officer – Global aviation and GDS, corporate travel management
If you’ve been working in travel for a while and have a deep understanding of airline distribution and its mechanics, you’ll know how much things have changed.
For decades, we've relied on fare filings, those familiar lettered “buckets” in the Global Distribution System (GDS). They served the industry well, but were also very rigid. Prices change only when the airline updates these “buckets,” which could be hours, days or weeks.
Now, we are in a new era defined by continuous pricing. This shift gives airlines more flexibility to set fares dynamically, leveraging data and algorithms to respond instantly to market demand, competition and even customer behavior. For business travel, this change will have ripple effects through the way we buy, sell and benchmark air content.
What exactly is continuous pricing?
Think of it this way: Continuous pricing moves away from static fare levels. (New Allocation Feature) NDC allows for multiple smaller steps between fare buckets, rather than having fare buckets rise significantly.
Think of NDC as the conduit and infrastructure that allows these dynamic offers to flow between airlines, travel management companies (TMCs) and booking tools. Ongoing pricing flows through pipes. This is one of the strategies airlines are using to provide more targeted, data-driven offers to travelers.
This is a very effective revenue management tool for airlines. For buyers, this is a new frontier in transparency, value measurement and travel plan design.
What does this mean for travel managers?
This is where things get interesting. Forecasting and benchmarking, at the heart of every travel plan, are changing. You can no longer rely solely on the fare on file. When prices change dynamically, you want to see trends, patterns, and real-time analysis, not individual price points.
Historically, travel managers could reference fares on file to track spend and predict future pricing. When fares become dynamic and personalized, this model starts to blur.
Instead, travel planning will need to rely more heavily on trend data, real-time analytics, historical averages and insights provided by TMC. Forecasting will become less about the “exact price” on a given day and more about modeling patterns over time.
It’s a shift that rewards agility. The more you understand about your data, the better you can determine what is “good value” for your organization.
What exactly does “best fare” mean in the current climate?
For years, “best fare” meant “lowest fare.” But with continued pricing, this mentality will change. The right fare may not be the cheapest; it's the one that provides the best results within your travel policy. Maybe it's more flexible, includes accessibility features, or simply makes your traveler's journey smoother.
Think of it this way: If a slightly higher fare reduces change fees, improves comfort, or increases productivity, that's valuable. That's why travel managers will rely on TMC analytics to prove smarter decisions, not just cheaper ones.
Do TMC and GDS still matter?
As airlines develop more direct distribution strategies, a question I hear often is: “Do TMC and GDS still matter?” The short answer is yes, more than ever.
TMC and GDS remain critical for scale, comparison and service. Corporate travel programs rely on a single platform to compare fares, manage bookings and get support. The role of TMCs, aggregators and GDSs is evolving from simply distributing fares to ensuring integrity and integrity of content across multiple channels.
TMC will focus on ensuring customers know the full picture: all available fares, flexibility at every level and transparent insights to make the best decisions for their business.
How do you deal with ongoing pricing?
Let’s be honest, change can be uncomfortable. Continuous pricing can make fare structures appear unpredictable, which can create challenges when managing a budget.
key? Improve your benchmarks, improve communications, and keep travelers informed. Continuous pricing is not about paying more; It’s about paying smarter. With the right analytics and partnerships, you’ll adapt quickly and continuously demonstrate value and control.
Will continuous pricing replace traditional fare filing?
I don't think continuous pricing will replace traditional fare declarations overnight. At least in the short term, we will be operating in a mixed environment, with some airlines implementing continuous pricing and others maintaining documented fare structures. But there is no doubt where the trend is headed.
As adoption grows, we will see a more retail-like aviation market emerge. Each offer is tailored to the customer, with value defined by data rather than static price points.
This is an exciting evolution for our industry. The more we as travel management companies, airlines and travel buyers embrace these changes, the more opportunities we have to create value for travelers and businesses.
Continuous pricing is not just a technology story; This is one person's story. It’s about how we as an industry adapt to deliver smarter, more flexible travel.
Partnerships between airlines, technology providers and TMCs will determine the next chapter. I believe this is one of the most positive developments we have seen in the airline distribution space in many years and will ultimately lead to better results for everyone involved.
About the author:
John Balloch is CTM's Chief Partnerships Officer for Global Aviation and GDS and is directly responsible for negotiating with our service providers to deliver creative, innovative solutions to our customers.
