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Offer and Order – Looking to 2025 and beyond

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16 Benefits of building in-house modules Beyond vendor selection, airlines can benefit from developing some modules in-house and integrating them into their ecosystems. Building technology can be advantageous when airlines have specific needs or seek competitive advantages. This is particularly true in offer management, where proprietary pricing and product determination methods can be developed, as well as in order management and enhancing the digital customer experience. Proprietary processes, like superior disruption recovery systems, can significantly differentiate an airline in the market. Finding the right level of modularity TiM's consulting experience indicates that, while airlines can procure numerous small modules, they are often better served by acquiring specific groups of modules or components. The "Goldilocks principle" applies: each airline must find a modularity level that is "just right." Too many vendors can complicate procurement and operations, while too few may limit technological advantages and competitive edge. Adopting too many vendors prematurely may lead to operational challenges. Airlines should reference IATA's Procurement Considerations from its Modern Airline Retailing Consortium and establish principles regarding vendor collaboration and support for customisations. They should expect the benefits of procuring a platform (like access to existing integrations, for example) while retaining the ability to enhance their ecosystems. Implications for vendors Many airline IT vendors are releasing platforms capable of offer and order management and serving as central hubs that connect various modules. Airlines purchasing such platforms will find vendors have integrated their own modules and, in some cases, formed partnerships with others (e.g., OpenJaw's OOMS with Lufthansa Systems' financial accounting software). To honour airlines' desire for choice, vendors must be willing to integrate competitors' products, including those overlapping with their offerings. TiM believes that vendors should proactively forge partnerships, demonstrating commitment to a collaborative ecosystem. Each OOMS should provide options for integrating other vendors' modules, as airlines will demand this flexibility. This leads to vendors having to be prepared not only to provide configurable modules and platforms, but also to undertake bespoke integration efforts, delivering comprehensive platforms tailored to airlines' needs.

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