Why should airlines care about offer and order management?
April 13, 2022
Revenue opportunities
Technological advancements could help unlock significant revenue opportunities – estimated at $40bn by 2030 across the airline industry according to a 2019 study by McKinsey & Company.
Enabling airlines to better meet the traveler needs will enhance differentiation in a crowded marketplace, promote loyalty and deliver profitable, sustainable revenue growth.
What are offers and orders?
In part one of our new series, we examined how transitioning to an offer and order model would greatly enhance the traveler experience by addressing key pain points. Now, we turn our attention to airlines, exploring how technological advancements could help unlock significant revenue opportunities.
Offers include the different pieces of an itinerary that come together to form a trip. Today, offers primarily consist of airfares and air ancillaries. Over time, offers will expand to include other types of content – for example, lodging, ground transportation and other ancillaries.
Once a traveler selects an offer, it becomes an order. The ONE Order model sets the stage to simplify a variety of long-standing processes related to fulfillment, settlement and reporting, which can help airlines reduce costs and save time.
Today, airlines…
Have limited visibility into individual traveler preferences.
Face difficulty selling and servicing a broad range of personalized offers.
Struggle to manage complex partnership agreements due to inadequate system capabilities.
In the future, with offer and order management, airlines can…
Create, fulfill and service more personalized and higher margin content.
Use real-time data flows from offers and orders to grow revenue and reduce costs.
Embark on new partnerships for air and non-air products, improving choice for customers.
Offer and order management opens new growth opportunities and gives the travel industry more flexibility in terms of what can be sold, merchandised and managed.
The future of the airline PSS
We start to bring offers and orders to life by exploring the fundamental building blocks of a retail-led solution for airlines.
