Issue link: https://pros.com/learn/i/1527449
18 Several airlines have expressed a desire to first reap revenue benefits from "offers" and cost-saving and customer experience improvements from "orders." However, many recognise that to significantly reduce the burden of current business processes, a renewal of accounting practices is necessary. Business processes and organisational change are significant areas of focus for 2025 and beyond. With the help of TiM, airlines are re-evaluating their business processes to avoid re-introducing past complexities and workarounds, which could limit the agility of new platforms and potential customer benefits. For example, airlines are questioning the necessity of processing exchanges as done in the past and considering the impact of removing booking classes on downstream systems. Ensuring that new platforms meet today's needs in the simplest way requires substantial effort. While industry initiatives like IATA's Modern Airline Retailing Consortium provide some solutions, and vendors will contribute ideas, much of the work must be tailored by each airline individually. This is uncharted territory, as airlines have traditionally relied on working through standard-setting bodies like IATA and ATPCO to design processes. The flexibility of new standards now allows airlines to create their own pricing, product and service experiences, necessitating internal strategic planning. Owning the next generation of Offer PROS is a firm supporter of the value-driven approach toward the retail transformation. Our partnerships with airlines are showcasing that value creation can be realised every step of the way, supporting various business strategies. To unlock value down the path toward Offer Management, a core requirement is for airlines to gain ownership and autonomy in three key offer areas: • Offer Optimisation is the ability for airlines to advance their revenue management and tailor the right product mix to every customer at a revenue-optimal price. Carriers need to identify the use cases and capabilities needed to drive more meaningful retailing with dynamic offers by optimising their products, pricing, or both. Core approaches in offer optimisation are understanding price sensitivity and customer willingness-to-pay to better forecast demand, dynamic (continuous) pricing outside of pre-filed fares and class codes, and dynamic ancillary pricing based on segmentation and market context. Any of these strategies can drive between 1% and 6% revenue uplift while getting an airline closer to modern retail practices. • Offer Creation and Retailing is the ability for airlines to liberate their distribution and respond directly in real- time to a shopping request for any airline direct channel (website, NDC, or other). The challenge is that shopping volumes and look-to-book ratios are expected to increase and get more dynamic as the industry progresses toward Offers and Orders. Accuracy, scalability and channel control are the value drivers for airline-led offer creation and retailing today, helping airlines achieve up to double-digit reduction of distribution cost while delivering more relevant offers. • Last but not least is Offer Marketing and the ability to effectively broadcast and present the airline's dynamic offers across marketing channels. With third-party travel players like online travel agencies (OTAs) and metasearch engines (MSEs) growing their marketing investment, airlines need to effectively steer customer acquisition strategies to increase conversion and stay top of mind for travelers across touchpoints such as email, social media, display ads and more. Justin Jander, Senior Director, Product Management, PROS