{"id":8506,"date":"2025-06-30T21:10:01","date_gmt":"2025-06-30T21:10:01","guid":{"rendered":"https:\/\/pros.com\/learn\/?p=8506"},"modified":"2026-02-23T19:33:07","modified_gmt":"2026-02-23T19:33:07","slug":"unlocking-airline-value-offer-order-management","status":"publish","type":"post","link":"https:\/\/pros.com\/learn\/blog\/unlocking-airline-value-offer-order-management\/","title":{"rendered":"Unlocking Airline Value with Offer &#038; Order Management"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p>The global airline industry is undergoing major transformation. Airlines are no longer just carriers of passengers; they are now retail ecosystems, driven by data and technology. At the heart of this digital revolution is <a href=\"https:\/\/pros.com\/industries\/airline-offer-order-management\/\" target=\"_blank\" rel=\"noopener\">Offer &amp; Order Management (O&amp;O)<\/a>, a modern framework reshaping how airlines create, sell, and fulfill travel experiences.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" width=\"597\" height=\"325\" class=\"wp-image-8507\" style=\"width: 800px; height: auto;\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/06\/Unlocking-Airlines-Image.jpg\" alt=\"Unlocking Airlines Thumbnail\" srcset=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/06\/Unlocking-Airlines-Image.jpg 597w, https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/06\/Unlocking-Airlines-Image-300x163.jpg 300w\" sizes=\"(max-width: 597px) 100vw, 597px\" \/><\/p>\n<p>But what do these concepts really mean for your airline, and where is the industry today?<\/p>\n<p>To get answers to these questions, we invited Daniel Friedli, CEO at <a href=\"https:\/\/travelinmotion.ch\/\" target=\"_blank\" rel=\"noopener\">Travel in Motion<\/a>, for an engaging session that demystifies the Offer and Order framework, explores the current landscape, and uncovers where airlines can unlock real value.<\/p>\n<p>This blog explores why Offer &amp; Order Management is paramount, how a modular approach to transformation creates value step-by-step, and how airlines can align commercial and IT strategies for success. If you&#8217;re a commercial leader or IT executive looking to future-proof your airline&#8217;s business model, this piece is for you.<\/p>\n<h2>Why Offers &amp; Orders Are Essential Now<\/h2>\n<p>Legacy Passenger Service Systems (PSS) have long been the backbone of the airline industry. However, these systems, while reliable, limit agility and scalability in today&#8217;s dynamic marketplace. Airlines using outdated systems face challenges in tailoring offers, meeting customer demands, and responding timely to market conditions.<\/p>\n<p>Offer &amp; Order Management modernizes this framework by enabling:<\/p>\n<ul>\n<li><strong>Dynamic Retailing:<\/strong> Tailored, real-time offers that adapt to customer preferences and market shifts.<\/li>\n<li><strong>Operational Efficiency:<\/strong> Streamlined processes that reduce servicing costs and human error.<\/li>\n<li><strong>Scalability:<\/strong> Systems that adjust seamlessly to support airline growth and innovation.<\/li>\n<\/ul>\n<p>Early adopters from <a href=\"https:\/\/www.iata.org\/en\/programs\/airline-distribution\/retailing\/consortium\/\" target=\"_blank\" rel=\"noopener\">IATA\u2019s Airline Retailing Consortium<\/a> have already begun integrating Offer &amp; Order systems and are setting the industry benchmark for modern retailing.<\/p>\n<h2>The Case for Modular Transformation<\/h2>\n<p>A common misconception is that adopting Offer &amp; Order Management requires a complete retail infrastructure overhaul and replacement of legacy systems. The reality? Airlines can transform incrementally, using <strong>modular architectures<\/strong> that layer new capabilities over existing systems.<\/p>\n<h3>Why Choose a Modular Approach?<\/h3>\n<ul>\n<li><strong>Phased Investment:<\/strong> Modular systems allow airlines to spread costs over time, delivering faster ROI with minimal disruption.<\/li>\n<li><strong>Interoperability:<\/strong> Airlines can avoid vendor lock-in and ensure new components integrate seamlessly with their current systems.<\/li>\n<li><strong>Flexibility:<\/strong> Modular solutions can adapt to changes in strategy and market conditions without overhauling the entire system.<\/li>\n<\/ul>\n<p>For example, instead of replacing their entire PSS environment, hybrid models combine legacy systems with best-in-class modules for offer optimization and personalized distribution.<\/p>\n<h2>Building the Business Case for O&amp;O Transformation<\/h2>\n<p>Unlike traditional investments, the benefits of Offer &amp; Order Management start accruing <strong>before<\/strong> full implementation. Airlines can deliver continuous value at every stage of the transition, allowing the airline to generate revenue and reinvest in the transformation.<\/p>\n<div style=\"background-color: #ffffff; padding: 40px; border-radius: 7px;\"><strong>&#8220;&#8230;value generation doesn&#8217;t have to happen at one point in time, at the end of your journey. As a matter of fact, optimally, value generation will happen continuously as we move on, step by step.&#8221;<br \/>\n<\/strong><\/p>\n<table style=\"border-collapse: collapse; width: 100%; margin-top: 10px;\" border=\"0\">\n<colgroup>\n<col class=\"col-img\" style=\"width: 22.6406%;\" \/>\n<col class=\"col-text\" style=\"width: 77.3356%;\" \/><\/colgroup>\n<tbody>\n<tr>\n<td style=\"text-align: center; border: 0; background-color: white; vertical-align: middle;\"><img decoding=\"async\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/06\/Daniel-TM.png\" alt=\"Daniel Friedli, headshot\" width=\"150\" height=\"150\" \/><\/td>\n<td style=\"border: 0; background-color: white; vertical-align: middle;\">\n<div><strong>Daniel Friedli<\/strong><br \/>\nCEO, Travel in Motion<\/div>\n<div><img decoding=\"async\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/06\/TiM-Logo.png\" alt=\"Travel in Motion Logo\" width=\"200\" height=\"35\" \/><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h3>Key Value Drivers<\/h3>\n<p><strong>1. Enhanced Distribution:<\/strong><\/p>\n<ul>\n<li>Shifting from traditional channels to NDC (New Distribution Capability) reduces dependency on costly intermediaries and allows putting emphasis on the Offer.<\/li>\n<li>Improved interline connectivity expands market reach.<\/li>\n<\/ul>\n<p><strong>2. Optimized Offers:<\/strong><\/p>\n<ul>\n<li>AI-powered segmentation and personalization drive ancillary sales and increase per-passenger revenue.<\/li>\n<li>Streamlined bundling and unbundling allow for more relevant customer options.<\/li>\n<\/ul>\n<p><strong>3. Reduced Servicing Costs:<\/strong><\/p>\n<ul>\n<li>Elimination of agency debit memos (ADMs) and manual processes reduces post-sale expenses.<\/li>\n<li>Increased automation minimizes errors in pricing, refunds, and servicing.<\/li>\n<\/ul>\n<h3>Real-World ROI Insights<\/h3>\n<p>Airlines that adopt O&amp;O systems typically begin seeing substantial ROI in <strong>Year 4 or 5<\/strong>. Industry benchmarks suggest a <strong>$7+ incremental revenue per passenger boarded (PB)<\/strong>, with continuous value growth as the system matures.<\/p>\n<div style=\"background-color: #ffffff; padding: 40px; border-radius: 7px; margin-bottom: 14.4px;\"><strong>&#8220;The $7 there, that&#8217;s not a number that we made up, that&#8217;s a number that comes from McKinsey. We kind of use that to orientate ourselves. The number is repeated by IATA in their business case, and IATA breaks that down into different factors contributing to those $7 of value creation.&#8221;<br \/>\n<\/strong><\/p>\n<table style=\"border-collapse: collapse; width: 100%; margin-top: 10px;\" border=\"0\">\n<colgroup>\n<col class=\"col-img\" style=\"width: 22.6406%;\" \/>\n<col class=\"col-text\" style=\"width: 77.3356%;\" \/><\/colgroup>\n<tbody>\n<tr>\n<td style=\"text-align: center; border: 0; background-color: white; vertical-align: middle;\"><img decoding=\"async\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/06\/Daniel-TM.png\" alt=\"Daniel Friedli, headshot\" width=\"150\" height=\"150\" \/><\/td>\n<td style=\"border: 0; background-color: white; vertical-align: middle;\">\n<div><strong>Daniel Friedli<\/strong><br \/>\nCEO, Travel in Motion<\/div>\n<div><img decoding=\"async\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/06\/TiM-Logo.png\" alt=\"Travel in Motion Logo\" width=\"200\" height=\"35\" \/><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>For example:<\/p>\n<ul>\n<li><strong>Scenario 1:<\/strong> An airline that incrementally integrates offer optimization components starts generating noticeable ROI within 2 years.<\/li>\n<li><strong>Scenario 2:<\/strong> A full-scale O&amp;O implementation may take longer to achieve ROI, but delivers higher long-term value.<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"wp-image-8507\" style=\"width: 800px; height: auto;\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/06\/Sample-Airline-Value.png\" alt=\"Sample of an airline's value generation based on different scenarios\" \/><\/p>\n<p style=\"text-align: center;\"><em>Travel in Motion<\/em><\/p>\n<h2>Navigating the Transition to O&amp;O<\/h2>\n<p>Implementing Offer &amp; Order Management requires strategic planning, collaboration, and adaptability. Here\u2019s how airlines can turn vision into execution.<\/p>\n<h3>1. Assess Readiness<\/h3>\n<p>Every airline&#8217;s transformation roadmap is unique. Start by evaluating the current tech stack, business processes, and organizational maturity. Consultants and vendors can bring valuable expertise to this evaluation, helping to identify strengths and gaps. Tools like POCs (proof-of-concepts) and scenario modeling also play a key role in this process.<\/p>\n<h3>2. Create a Tailored Roadmap<\/h3>\n<p>Roadmaps should prioritize high-impact areas, such as <a href=\"https:\/\/pros.com\/solutions\/airline-offer-optimization\/\" target=\"_blank\" rel=\"noopener\">offer optimization<\/a> and direct distribution, while planning gradual integrations for other components.<\/p>\n<p>Key Focus Areas:<\/p>\n<ul>\n<li>System interoperability<\/li>\n<li>Vendor selection and management<\/li>\n<li>Process redesign to align with a digital-first approach<\/li>\n<\/ul>\n<h3>3. Enable Organizational Collaboration<\/h3>\n<p>A successful transformation involves teamwork between commercial and IT departments:<\/p>\n<ul>\n<li><strong>Commercial leaders<\/strong> can champion the customer-centric benefits of O&amp;O, ensuring buy-in across revenue management, distribution, and digital sales.<\/li>\n<li><strong>CIOs and CDOs<\/strong> play a pivotal role in prioritizing cloud-native, modular ecosystems that inspire confidence internally and externally, and allow for growth and scale.<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"wp-image-8507\" style=\"width: 800px; height: auto;\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/06\/Unlocking-Airlines-Image-3.png\" alt=\"Organizational Collaboration Image\" \/><\/p>\n<p style=\"text-align: center;\"><em>Travel in Motion<\/em><\/p>\n<h2>Aligning Commercial Ambitions with IT Muscle<\/h2>\n<p>Airlines need more than just technology to succeed with Offer &amp; Order Management; they need alignment between commercial and IT goals. Key leadership imperatives for navigating this shift include:<\/p>\n<ul>\n<li><strong>Strengthen Data-Driven Decision-Making:<\/strong><\/li>\n<\/ul>\n<p>Commercial departments rely on IT to provide actionable insights from customer data, enabling personalization and <a href=\"https:\/\/pros.com\/learn\/airline-retail\/cost-of-inertia-airline-retailing\/\" target=\"_blank\" rel=\"noopener\">dynamic pricing strategies<\/a>.<\/p>\n<ul>\n<li><strong>Bridge Communication Gaps:<\/strong><\/li>\n<\/ul>\n<p>Regular collaboration between teams ensures commercial goals align with technical capabilities.<\/p>\n<ul>\n<li><strong>Invest in Training:<\/strong><\/li>\n<\/ul>\n<p>Upskilling both commercial and IT staff ensures the organization can make the most of the capabilities O&amp;O systems offer.<\/p>\n<h2>Unlock Value with Offers &amp; Orders<\/h2>\n<p>The transformation to Offer &amp; Order Management isn\u2019t just a technical upgrade; it\u2019s a shift in how airlines perceive and deliver value. By adopting a <strong>modular, flexible approach<\/strong> and focusing on continuous value generation, airlines can position themselves for long-term success in today\u2019s competitive market . IT vendors and expert consultants are here to support you every step of the way, working together with the industry community to drive meaningful change and shape the future of air travel. Let\u2019s make it happen \u2014 together.<\/p>\n<div style=\"background-color: #ffffff; padding: 40px; border-radius: 7px; margin-bottom: 14.4px;\"><strong>If your airline is exploring the O&amp;O transformation or looking for expertise, tools, and technology to accelerate your progress, it\u2019s time to act. The <a href=\"https:\/\/pros.com\/pros-platform\/\">PROS Platform<\/a> can empower your team with the offer precision, scalability, and agility to thrive in the new era of airline retailing. <a href=\"https:\/\/pros.com\/contact-pros\/\">Learn more and take the first step toward your transformation today<\/a>. <\/strong><\/div>\n<style>\n  @media screen and (max-width: 600px) {\n    .col-img {\n      width: 40% !important;\n    }\n\n    .col-text {\n      width: 60% !important;\n    }\n  }\n<\/style>\n<h2>Frequently Asked Questions<\/h2>\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1771875071425\"><strong class=\"schema-faq-question\">What is Offer &amp; Order Management in the airline industry?<\/strong> <p class=\"schema-faq-answer\">Offer &amp; Order Management is a modern retailing framework that enables airlines to create, price, sell, and service travel offers dynamically in a single order record.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771875086737\"><strong class=\"schema-faq-question\">Why are airlines moving beyond legacy Passenger Service Systems (PSS)?<\/strong> <p class=\"schema-faq-answer\">Legacy PSS limit flexibility and personalization, making it harder for airlines to deliver real-time offers and adapt to changing market demand.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771875096956\"><strong class=\"schema-faq-question\">Does adopting Offer &amp; Order Management require replacing existing systems?<\/strong> <p class=\"schema-faq-answer\">No. Airlines can implement O&amp;O incrementally using modular architectures that integrate with legacy systems and reduce transformation risk.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771875109216\"><strong class=\"schema-faq-question\">How does Offer &amp; Order Management increase airline revenue?<\/strong> <p class=\"schema-faq-answer\">O&amp;O enables AI-driven personalization, optimized bundling, and expanded NDC distribution, driving ancillary sales and higher revenue per passenger.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771875119247\"><strong class=\"schema-faq-question\">What ROI can airlines expect from Offer &amp; Order transformation?<\/strong> <p class=\"schema-faq-answer\">Airlines often see incremental value early, with industry benchmarks suggesting about $7 additional revenue per passenger over time.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771875128447\"><strong class=\"schema-faq-question\">What are the key steps to start an Offer &amp; Order transformation?<\/strong> <p class=\"schema-faq-answer\">Assess readiness, define a phased roadmap, prioritize interoperability, and focus on high-impact areas like offer optimization and direct distribution.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771875138774\"><strong class=\"schema-faq-question\">Why is collaboration between commercial and IT teams critical for O&amp;O success?<\/strong> <p class=\"schema-faq-answer\">Alignment ensures customer-centric retail strategies are supported by scalable technology, data insights, and efficient operational processes.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn how offer and order management helps airlines unlock value through personalized retailing, operational efficiency, and modular transformation.<\/p>\n","protected":false},"author":43,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[152],"tags":[60,47,46,66,48],"class_list":["post-8506","post","type-post","status-publish","format-standard","hentry","category-blog","tag-industry-airlines","tag-label-blog-post","tag-language-english","tag-product-airline-retail","tag-type-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Unlocking Airline Value with Offer &amp; 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