A future proof solution architecture for offer - order capabilities and a detailed transition plan will be fundamental to fully realise modern airline retailing, all the way. The current decades old standards, technology and processes are not fit for the 21st century customer experience. A move to a system of "offers and orders" with the customer at the centre and similar to retailing concepts is needed.
You can compare it to a car: With smart engineering and design of chassis and interior a lot can be done to make a vintage car look and behave like a modern one. And it makes a lot of sense to start this way. Our best of breed digital commerce platform Triplake does exactly this, combining and pricing flights and ancillary services in real time, using context or customer specific information, breaking the legacy barriers to enable a personalised experience for the passengers along the journey - AND full control for the driver.
But if you want to turn it into a state of the art electric car which will allow you to do anything at anytime, have a reach allowing long distances, be efficient with solar panels to charge, offer full flexibility and make you feel comfortable and relaxed like being in the best ever ambassador car, then you will need to change the engine and almost all of the cables and other tech pieces deep inside the car. This will take away all limits and enable a platform like Triplake to do even more, faster, seamless and create full control and flexibility for the driver.
IATA drives as a key priority the vision for airlines to put the customer at the centre and become true retailers. The industry body created a consortium of advanced airline adopters that will work together through the association. Participants include American Airlines, Air France-KLM, British Airways, Emirates, Finnair, Iberia, Lufthansa Group, Oman Air, Singapore Airlines and Xiamen Airlines.
This is more important than ever in the current post pandemic environment where digital shopping and experiencing has got increasingly normal for customers. Jeff Bezos, Executive Chairman at Amazon, already in 1998 described in his letter to shareholders that customers "will be loyal to us — right up until the second that someone else offers them a better service".
Most airlines have been slow in updating their digital eco system to be able to create a viable experience to grow their direct customers base, adopting latest retailing techniques. They are not able to easily create, manage, and track offers and orders with the customer at the centre, nor to create personalised and dynamic customer propositions and dynamic price points in real time.
Our deeply experienced consulting team helps airlines to plan the right future architecture and the transition strategy to ensure that modern retailing will become a reality for your airline.
Enable your customers to get peace of mind for their day of travel. Pro-actively share relevant information create personalised offers in advance, generating additional revenue. Allow a contactless process at the airport on the day of travel based on biometrics.
Create additional value for travellers and make their digital experience effortless. Enable more flexible and dynamic pricing structures, relevant automated discounts, personalised bundles and digital payment options for your customers across the journey.
Leverage New Distribution Capability - NDC - interfaces to offer more choice to customers including third party content and intermodal. Generate revenue regardless of through which channel customers booked.
Collaborate effectively with third parties with a single access point for their customer orders, simplified and seamless delivery and processes along the journey for the airline and travel sellers.
Our aim is to create value for travelers by meeting their needs. We know that passengers want a seamless digital experience; and they expect consistent service irrespective of how they purchased their travel. With the strength of a global consortium of leading airlines behind us, the next few years are set to see an accelerated and comprehensive transformation of the customer experience
We challenged ChatGPT and prompted it - using the latest GPT-4 version - as follows: “Write a 300 words text about the airline industry’s upcoming transition to offer & order management”.
This is the surprisingly precise and clear response:
The airline industry is in the midst of a major transition as it moves towards a new approach to managing the sale and distribution of air travel products. The shift is from the traditional global distribution system (GDS) model to a more modern approach called offer and order management.
Offer and order management is a new method of selling air travel products that enables airlines to create and distribute personalized offers to customers. It is based on the principles of retailing, where airlines are able to create unique offers that meet the specific needs and preferences of individual customers. This approach allows airlines to differentiate themselves from their competitors and provide a better customer experience.
The transition to offer and order management is being driven by several factors. One of the main reasons is the changing nature of customer expectations. Customers are no longer satisfied with a one-size-fits-all approach to air travel. They want more personalized and tailored experiences that meet their individual needs and preferences. Offer and order management enables airlines to provide this level of personalization.
Another factor driving the shift to offer and order management is the rise of new distribution channels. The traditional GDS model is no longer the only way to distribute air travel products. New channels such as direct channels, metasearch engines, and online travel agencies (OTAs) are becoming increasingly important. Offer and order management enables airlines to distribute their products across multiple channels and reach a wider range of customers.
The transition to offer and order management is not without its challenges. One of the main challenges is the complexity of the new system. Offer and order management requires airlines to adopt new technology and processes, and to integrate with multiple distribution channels. This can be a daunting task for airlines, particularly smaller ones with limited resources.
Despite these challenges, the transition to offer and order management is essential for airlines that want to remain competitive in the modern travel industry. By providing personalized offers and distributing their products across multiple channels, airlines can differentiate themselves from their competitors and provide a better customer experience. As such, the airline industry is likely to continue its transition towards offer and order management in the years to come.