What exactly are "legacy systems"?To truly understand the challenges posed by legacy systems, it’s important to understand their origin and role in the industry. Legacy travel management systems date back to the 1960s and 1970s when Global Distribution Systems (GDS) first emerged. Originally designed to centralize flight inventory for airlines, these platforms represented a technological breakthrough for their time. However, as technology has advanced, these systems have failed to keep up with the rapidly changing needs of today’s businesses. Despite a couple of updates over the decades, their core functionality has remained largely unchanged since the late 1970s. These systems are often patched together rather than reimagined. As a result, the booking systems that powered the travel industry for decades are now proving increasingly inadequate. |
The way people book travel is shifting, and for a good reason.
More companies are giving their employees the autonomy to book business travel themselves. This move empowers employees but also introduces new expectations. Today’s business travelers—especially younger professionals used to seamless online experiences—expect systems as intuitive as those they’ve encountered on platforms built on the "shopping basket" concept, like Amazon or leisure travel booking sites. The new modernized platforms are standing out, because they offer more tailor-made experiences and cater to more diverse travel needs (round trips, group trips), personal preferences (ex. seating preferences) and payment options.
This is one of the ways that legacy systems fall short - user friendliness. Their outdated interfaces and limited functionality create frustrating experiences for users accustomed to smooth and responsive platforms. While modern travel management systems simplify booking experiences with an everything-in-one-flow buyer experience, personalization options and easy changes, the legacy systems are a lot less agile. Patched systems often make booking everything in one go almost impossible, leaving travelers to book rail, flights and accommodation individually, if they are booking more complex trips - or scrambling to change one part of the booking, without rebooking the whole trip.
Seamless, intuitive experiences: Systems that are as easy to navigate and responsive as popular online platforms like Amazon or leisure travel sites
Personalized and tailored options: The ability to customize bookings, such as selecting seating preferences, adding extra baggage, or choosing travel dates and times that fit their personal needs
Everything-in-one flow: A streamlined booking process that allows users to book flights, hotels, and car rentals all in one go—without having to navigate multiple platforms or make separate bookings
Real-time updates: Instant notifications and updates to keep travelers informed, avoid booking ambiguity, and make real-time changes with minimal hassle
Mobile-friendly design: A platform that is accessible and fully optimized for mobile devices, so travelers can easily book and manage their trips on-the-go
Meeting these expectations isn’t just about convenience. It can directly impact productivity, traveler satisfaction, and compliance with corporate policies.
One of the biggest challenges of legacy systems is their complexity. Over the years, multiple patches have been added, but the systems themselves remain rigid and unable to meet the demands of today’s businesses. Travel managers and bookers often face a number of frustrations:
Limited and lost content access: Many legacy systems rely heavily on GDS, which will in turn limit the range of available inventory - both now and even more in the future. In contrast to NDC, GDS based systems rarely offer Low-cost carriers, and content like boutique hotels, and rail options are often excluded or have minimal coverage. As more airlines adopt NDC, the systems who only support GDS content will naturally loose content that was previously available, too. This can severely restrict the variety of travel options available, forcing travel managers to manually search for alternatives or use multiple platforms.
Fragmented Booking Processes: Legacy systems don’t support the “shopping basket” concept, where different travel services like flights, hotels, and car rentals can be linked together into a single itinerary. Each booking is handled individually, creating inefficiencies and complicating the overall travel management process.
Difficult trip modifications and lack of flexibility: When it comes to modifying bookings, legacy systems can be incredibly challenging to work with. Bookers often need to contact agents or the travel management team for changes, adding unnecessary steps and delays. Additionally, booking round trips or journeys with more than three segments is often not possible within the system’s limitations.
Decentralized Setup: Many companies operate across multiple locations or points of sale, but legacy systems often struggle to provide a centralized view. This lack of integration means international customers don’t have a unified platform and must rely on country-specific configurations, making it difficult to manage global travel policies - and making it hard for global companies to have visibility of all their company travel.
Limited Payment Options: Legacy systems also provide very little flexibility in payment options, which can be a huge obstacle for businesses and travelers who need diverse payment methods to suit different preferences or geographic regions.
What’s the deal with GDS and NDC?
|
For companies still relying on legacy travel systems, it’s becoming increasingly important to understand the shifting landscape of travel technology and how these changes could impact your business. While legacy systems have served their purpose for decades, they are increasingly unable to keep up with the demands of modern travel—especially as more airlines and service providers embrace new technologies like NDC (New Distribution Capability), and weed out GDS.
What's the risk of staying?
Using an outdated system means your company may be missing out on rich content, better pricing, and more flexibility. Legacy systems are often limited by their reliance on traditional GDS platforms - a system that is projected by IATA to be sunset by 2030. Users are already feeling the difference, with GDS' lack of variety in content resulting in a less-than-ideal shopping experience, limited product differentiation, longer times to market, and less competitive pricing, compared to NDC enabled platforms. Over time, this can lead to “leakage,” where employees book outside of the system due to limited choices or better deals elsewhere—ultimately costing your company more.
What can modern platforms offer?
Modern travel management platforms, like Goodwings, offer a solution by integrating GDS, NDC, and LCC content into one platform. This allows you to provide your employees with more travel options, including cost-effective LCC choices and specialized services, all while ensuring better pricing and reduced leakage. The added flexibility of NDC means that airlines can deliver tailored offers directly to the platform, resulting in more dynamic pricing and a seamless booking experience.
Making the switch to a modern platform may seem daunting—data migration, retraining, and integration can be time-consuming. However, the rewards of transitioning to a system that supports both traditional GDS content and innovative NDC-driven offerings far outweigh the challenges. Not only will your company benefit from expanded content variety and more competitive prices, but you'll also see improvements in booking efficiency, real-time updates, and better control over travel policies.
If you want to remain competitive in today’s rapidly changing corporate travel landscape, adopting a system that supports NDC content as well as your travelers needs and expectations, is no longer just an option—it’s a strategic necessity. By embracing modern travel tech, your company can future-proof its travel management, ensuring a more streamlined and cost-effective process for your employees and managers alike.
What is NDC? NDC (New Distribution Capability), is a modern data exchange standard developed by the International Air Transport Association (IATA) to improve how airlines distribute and sell their services. Unlike legacy systems, NDC enables airlines to offer more personalized content, dynamic pricing, and ancillary services (such as seat upgrades and baggage). It allows for more flexibility, real-time updates, and better integration with modern technologies, providing a seamless experience for both travelers and travel managers. |
What is GDS? GDS (Global Distribution Systems) are centralized platforms that aggregate travel content from airlines, hotels, car rental companies, and other travel services. They have been the backbone of the travel industry for decades, allowing travel agents and corporations to access booking information. Major GDS providers include Amadeus, Sabre, and Travelport. While essential for distributing travel content, GDSs are increasingly seen as outdated due to their rigid structures and limited access to newer services, driving the adoption of modern solutions like NDC. |
What Is EDIFACT? EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) is a global standard for electronic data exchange, originally developed in the 1980s by the United Nations. It was designed to facilitate the transmission of business documents and transactions between organizations, particularly in industries like transportation and logistics. In the travel sector, EDIFACT has been used for decades to enable airlines, travel agencies, and other service providers to share and process booking, pricing, and scheduling information. While it was revolutionary at the time, EDIFACT has become outdated due to its rigid structure, limited flexibility, and inability to support the personalized, dynamic features that modern travelers expect. As the industry moves toward more innovative solutions, EDIFACT is gradually being replaced by more advanced technologies like NDC (New Distribution Capability). |
What is IATA? The International Air Transport Association (IATA) is a trade association of the world’s airlines. Founded in 1945, IATA represents approximately 350 airlines, which account for more than 83% of global air traffic. Its mission is to promote safe, secure, and efficient air travel and to advocate for the interests of the aviation industry. IATA plays a key role in setting standards for aviation safety, security, and environmental sustainability. Through its influence, IATA works with governments, regulatory bodies, and industry partners to create policies that benefit both the aviation sector and its passengers. Additionally, IATA supports airlines in optimizing their operations, improving customer service, and meeting sustainability goals such as achieving net-zero carbon emissions by 2050.
|