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Offer and Order – Looking to 2025 and beyond

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20 Currently, airline offers are in the hands of each distribution channel. As a result, any change or innovation we at LHG aim to implement requires substantial effort and cost across multiple channels. To dynamically calculate certain offer components, real-time inventory data is essential within the offer system itself, not just within the PSS. Source: Lufthansa Instagram account When asked "What are some of the challenges Lufthansa Group has faced in implementing offer management on top of the legacy PSS?" Héléna Teixeria, Head of Offer Portfolio and Pricing solutions responded: aligned (one seat equals one inventory unit), which complicates the commercialisation of multiple seat-related products. Similarly, fare flexibility, which is bundled into fare rules rather than being a standalone, easily commercialised product. Finally, training and adoption present challenges. There is a significant learning curve around understanding the concept of Offer Management and how it differs from the traditional PSS, as well as its benefits. This challenge applies across all levels within the company, potentially slowing down the adoption of new systems and highlighting the importance of strong change management. Another important consideration is that legacy processes, particularly those related to fulfilment and servicing, significantly affect innovation in the offer space. Even the best offer is ineffective if it can't be fulfilled or serviced, leading to a need for substantial process re-engineering. In the legacy system, many product components are highly interdependent, restricting the flexibility to commercialise ancillary services. For instance, seats and inventory must be perfectly

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