{"id":8592,"date":"2025-07-07T16:44:55","date_gmt":"2025-07-07T16:44:55","guid":{"rendered":"https:\/\/pros.com\/learn\/?p=8592"},"modified":"2026-02-23T21:23:56","modified_gmt":"2026-02-23T21:23:56","slug":"industry-perspective-offer-order-management-journey","status":"publish","type":"post","link":"https:\/\/pros.com\/learn\/blog\/industry-perspective-offer-order-management-journey\/","title":{"rendered":"Industry Perspective on the Offer and Order Management Journey"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p>The airline industry is transforming how it sells and distributes services, integrates retail systems, and engages travelers. A major focus of the modern retailing transformation is centered on modernizing toward an <a href=\"https:\/\/pros.com\/industries\/airline-offer-order-management\/\">offer and order management<\/a> setup. Airlines are moving away from decades-old legacy Passenger Service Systems (PSS) and toward offer optimization, native order systems, personalized retailing, and AI-driven solutions.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/07\/TEMPLATE_Uberflip-industry-perspective-blog-1.jpg\" \/><\/p>\n<p>This blog explores the current state of offer and order management in the airline industry, the strategic priorities for the next few years, key challenges, and how technology is enabling this transformation.<\/p>\n<h2>Momentum Builds for Native Orders<\/h2>\n<h3>Where Are Airlines Today?<\/h3>\n<p>The airline industry has seen significant progress in modernizing airline distribution systems with NDC and the customer experience. Leading airlines like <strong>Turkish Airlines<\/strong> are now actively working to implement Order Management as a system of record, which simplifies operations by replacing traditional PNRs (Passenger Name Records) and ticketing with a seamless, customer-centric order-based approach.<\/p>\n<p>This shift is no longer just a long-term vision; it\u2019s happening now. Industry bodies like IATA and <a href=\"https:\/\/www.iata.org\/en\/programs\/airline-distribution\/retailing\/consortium\/\" target=\"_blank\" rel=\"noopener\">IATA\u2019s Airline Retailing Consortium<\/a> are playing a crucial role in facilitating airlines\u2019 and technology providers\u2019 journey towards 100% Offers &amp; Orders end-state. Their publication of extensive documentation and frameworks has been instrumental in demystifying offer and order transformation, enabling stakeholders across the industry to get on board.<\/p>\n<div style=\"background-color: #ffffff; padding: 40px; border-radius: 7px; margin-bottom: 14.4px;\"><strong>\u201cThe Airlines Retailing Consortium is a group of advanced airline adopters that works through IATA to accelerate the journey towards a legacy-free end state of 100% Offers &amp; Orders. The Consortium was established around three years ago, and now it includes 17 airlines\/airline groups who are producing thought leadership on the way forward. While IT providers and other airline partners are not members, they are consulted and committed to supporting the transition. Everyone is welcome to <a href=\"https:\/\/www.iata.org\/en\/programs\/airline-distribution\/retailing\/consortium\/#tab-2\" target=\"_blank\" rel=\"noopener\">download the Consortium publications<\/a>.\u201d<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\/07\/Oleg-IATA-Headshot.png\" alt=\"Oleg Kit, headshot\" width=\"150\" height=\"150\" \/><\/td>\n<td style=\"border: 0; background-color: white; vertical-align: middle;\">\n<div><strong>Oleg Kit<\/strong><br \/>\nSenior Manager Airline Retailing, IATA<\/div>\n<div><img decoding=\"async\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/07\/IATA-Logo-2.png\" alt=\"IATA Logo\" width=\"100\" \/><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div style=\"background-color: #ffffff; padding: 40px; border-radius: 7px; margin-bottom: 14.4px;\"><strong>\u201cThe documentation that IATA created on behalf of the Airline Retailing Consortium is written very well and we are using it for each member on board to understand how we can proceed forward, especially with the procurement considerations.\u201d<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\/07\/Lokman-Headshot.png\" alt=\"Lokman Ayas, headshot\" width=\"150\" height=\"150\" \/><\/td>\n<td style=\"border: 0; background-color: white; vertical-align: middle;\">\n<div><strong>Lokman Ayas<\/strong><br \/>\nOffer &amp; Order Solutions Manager, Turkish Airlines<\/div>\n<div><img decoding=\"async\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/07\/Turkish_Airlines-Logo-2-1.png\" alt=\"Turkish Airlines Logo\" width=\"200\" height=\"35\" \/><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h3>Early Benefits for Adopters<\/h3>\n<p>Airlines that have committed to these transformations are reaping clear rewards:<\/p>\n<ul>\n<li><strong>Enhanced Customer Experiences:<\/strong> More targeted and dynamically priced offers improve satisfaction and increase conversion rates.<\/li>\n<li><strong>Operational Agility:<\/strong> By replacing rigid legacy systems, airlines can collaborate more effectively across departments and innovate faster.<\/li>\n<li><strong>Revenue Growth:<\/strong> Retailing new products and services beyond flights gives airlines a competitive edge.<\/li>\n<\/ul>\n<div style=\"background-color: #ffffff; padding: 40px; border-radius: 7px; margin-bottom: 14.4px;\"><strong>\u201cFirst of all, the first mover airlines clearly see a first mover advantage. They really put their skin in the game. The Offers &amp; Orders transformation covers three types of benefits: cost, revenue, and customer experience benefits. In addition, the decommissioning of the PSS and other legacy systems is something that is clearly on the radar of different airlines, and they often see that as a part of the transformation.\u201d Oleg Kit, Senior Manager Airline Retailing, IATA<br \/>\n<\/strong><\/div>\n<p>The competitive urgency is clear. Leading airlines like Turkish Airlines, Lufthansa Group, Air Canada, Finnair, Air France-KLM, Saudia, to name a few, and startups such as Riyadh Air are all shifting gears to lead the market and avoid being left behind.<\/p>\n<h2>Priorities for Airlines Over the Next 12\u201318 Months<\/h2>\n<p>To accelerate this evolution, airlines are focusing on key strategic priorities in the near term.<\/p>\n<h3>Transition to Native Orders<\/h3>\n<p>Switching from PSS to <strong>order management systems<\/strong> should be the foundation of any airline&#8217;s modernization strategy. Native orders allow airlines to integrate their product offerings across systems seamlessly, replacing outdated methods of managing passenger data and revenue.<\/p>\n<div style=\"background-color: #ffffff; padding: 40px; border-radius: 7px; margin-bottom: 14.4px;\"><strong>\u201cIn the short term, we would like to achieve creating native orders that we can use and consume in other systems. Otherwise, if we still keep PNRs, tickets and EMDs in the game, they are restricting us to reach the full potential. That\u2019s why the most important thing in this journey is to replace the PSS or create an order that you can consume in different systems.\u201d Lokman Ayas, Offer &amp; Order Solutions Manager, Turkish Airlines<br \/>\n<\/strong><\/div>\n<p>The key is building flexible, modular systems that are adaptable to future demands. Retrofitting current monolithic systems with half-measures could lead to inefficiencies down the road.<\/p>\n<div style=\"background-color: #ffffff; padding: 40px; border-radius: 7px; margin-bottom: 14.4px;\"><strong>\u201cWhat we don&#8217;t want (as an industry) is the e-ticket story &#8211; taking a paper ticket and just making an electronic version of it. If we do the same thing with our legacy PSS and just put it into new technology, the industry won&#8217;t benefit.\u201d<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 loading=\"lazy\" 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 loading=\"lazy\" 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>Offer Optimization Through Data<\/h3>\n<p>Airlines must focus on harnessing high-quality data, including shopping request data and passenger attributes, to enhance offer precision. By leveraging this data, airlines can create more relevant and targeted offers, improve segmentation, and implement <a href=\"https:\/\/pros.com\/learn\/blog\/optimal-price-to-issued-ticket-airline-dynamic-pricing-really-works\" target=\"_blank\" rel=\"noopener\">dynamic pricing<\/a> strategies that boost conversion rates. AI-driven pricing precision plays a key role \u2014 not only in determining the right price for the initial flight or right-to-fly but also in optimizing pricing across ancillaries and bundles. This approach ensures more meaningful and value-driven offers, ultimately driving higher revenue per customer.<\/p>\n<h3>Adopt API-Driven Open Architectures<\/h3>\n<p>Legacy systems are a bottleneck. Airlines need to prioritize <strong>open, modular architectures<\/strong> that enable a best-of-breed approach for each airline\u2019s commercial strategy, and easier communication between offer management, order management, and delivery systems, especially when separate modules are provided by different IT vendors. Flexible systems allow airlines to pick the technology that best suits their business case, as well as test and scale new products with minimal disruptions.<\/p>\n<h2>Enablers and Overcoming Challenges<\/h2>\n<h3>The Role of Standards<\/h3>\n<p>One of the technological hurdles is the need to constantly evolve and mature standards to meet the business needs, the needed scale and complex use cases in the industry. Frameworks like NDC (New Distribution Capability) and ONE Order provide a foundation, but there is still work to be done to ensure they fully support the complexity of airline operations.<\/p>\n<p>Given this reality, hybrid models must serve as a bridge until standards are robust enough to support full-scale adoption of native orders. Airlines need to prioritize <strong>cross-departmental alignment<\/strong> to avoid commercial and technological roadblocks.<\/p>\n<h3>Managing Change<\/h3>\n<p>Change management remains one of the greatest challenges facing airlines today. For transformation to succeed, employees at every level must understand the reasoning behind these changes and be equipped with the tools necessary to implement them effectively. Stakeholder education is essential. Bringing IT, operations, finance, and other departments into alignment early will reduce friction as airlines standardize their processes and tools.<\/p>\n<h3>Ensuring Vendor Flexibility and a Modular-first Approach<\/h3>\n<p>Many existing contracts with IT vendors are not designed for the flexibility required to implement open, modular systems. Airlines need to work with vendors to renegotiate terms that prioritize innovation and interoperability while mitigating risks.<\/p>\n<div style=\"background-color: #ffffff; padding: 40px; border-radius: 7px; margin-bottom: 14.4px;\"><strong>\u201cOne of the challenges PROS spots are contracts. Going forward, airlines need to make sure openness and modularity are built in there, not just from a technical perspective, but moreover from commercial and contractual perspective.\u201d<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 loading=\"lazy\" decoding=\"async\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/07\/Christopher-Allison-Headshot.png\" alt=\"Christopher Allison, headshot\" width=\"150\" height=\"150\" \/><\/td>\n<td style=\"border: 0; background-color: white; vertical-align: middle;\">\n<div><strong>Christopher Allison<\/strong><br \/>\nDirector, Offer &amp; Order Management, PROS<\/div>\n<div><img decoding=\"async\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2025\/07\/PROS_Logo_Dual_2024.png\" alt=\"PROS Logo\" width=\"100\" \/><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2>Technology as the Transformation Catalyst<\/h2>\n<h3>Co-Creation Between Business and IT<\/h3>\n<p>For technology to enable meaningful change, <strong>business goals and IT processes must be aligned<\/strong>. Airlines and technology providers should co-create solutions that are shaped by real-world needs. This collaborative approach ensures technology investments deliver measurable business value.<\/p>\n<p>An excellent example of this is the use of <a href=\"https:\/\/www.iata.org\/en\/programs\/airline-distribution\/retailing\/business-reference-architecture\/\" target=\"_blank\" rel=\"noopener\">IATA\u2019s Business Reference Architecture<\/a>, which aligns capabilities across teams to ensure consistent understanding and streamlined implementation.<\/p>\n<h3>Modular Innovation<\/h3>\n<p>Airlines like Turkish Airlines are emphasizing <strong>modular system design<\/strong>. Instead of overhauling entire legacy systems at once, they\u2019re phasing their transitions using smaller, interoperable modules connected through APIs. This phased transformation minimizes risk and allows quick wins along the way that generate value for the airline, as well as for travelers.<\/p>\n<h3>AI and Product Catalogs<\/h3>\n<p>AI is emerging as a powerful asset for modernizing offer and order management. From dynamic pricing to enriched customer insights, AI enables airlines to optimize their strategies in ways that were previously unattainable.<\/p>\n<p>Modern <strong>product catalogs<\/strong>, powered by AI, ensure consistency across offers and orders, delivery systems, and financial systems, while unlocking new opportunities to bundle and retail experiences beyond airfare.<\/p>\n<div style=\"background-color: #ffffff; padding: 40px; border-radius: 7px; margin-bottom: 14.4px;\"><strong>\u201cPROS together with ATPCO, is already looking at how we can enable the product catalog to be deployed without having to bring all of your partners along at the same kind of pace to help accelerate those airlines that want to move away from the paradigm of product and price being linked together.\u201d Christopher Allison, Director, Offer &amp; Order Management, PROS<br \/>\n<\/strong><\/div>\n<p>By separating Product and Stock Management from operations and the PSS, solutions like <a href=\"https:\/\/pros.com\/solutions\/airline-portfolio-management\/\" target=\"_blank\" rel=\"noopener\">PROS Portfolio Management<\/a> can empower airlines with flexibility and innovation in their product strategy, paving the way for revenue growth.<\/p>\n<h2>The Retailing Future of Airlines<\/h2>\n<p>The future of offer and order management lies in <strong>selling experiences, not just flights<\/strong>.<\/p>\n<h3>AI-Driven Customer Interaction<\/h3>\n<p><a href=\"https:\/\/pros.com\/news\/revolutionary-ai-agents-transform-business-efficiency-user-engagement\/\" target=\"_blank\" rel=\"noopener\">AI agents<\/a> are likely to play a central role in how customers engage with airlines. Whether it\u2019s personalized chatbots or AI-powered dynamic bundling, the possibilities are endless. Airlines must design today\u2019s systems with tomorrow\u2019s AI-native interfaces in mind.<\/p>\n<h3>Creating Value Beyond Tickets<\/h3>\n<p>The shift to selling experiences is already underway. Branded fares and ancillary revenue streams have proven that passengers value options tailored to their needs. Whether it\u2019s personalized in-flight experiences, hotel and rental car bundles, or exclusive vacation packages, airlines now have the tools to curate compelling journeys for travelers.<\/p>\n<h3>Real-Time Adaptability<\/h3>\n<p>The path forward is agile. Airlines must be ready to <strong>adapt to evolving demands and technologies in real time<\/strong>, ensuring their systems evolve to the latest industry and technological API standards and remain future-ready, as customer expectations continue to rise.<\/p>\n<h2>Charting the Path Forward<\/h2>\n<p>The evolution of offer and order management holds immense potential for airlines to transform revenue generation, customer engagement, and operational efficiency. But as with any significant transformation, success depends on preparation, collaboration, and innovation.<\/p>\n<p>Airlines that prioritize customer-centric <a href=\"https:\/\/pros.com\/solutions\/airline-offer-optimization\/\">offer optimization<\/a>, native orders, and modular technologies will be well-positioned to thrive in this new era of retailing.<\/p>\n<p>Are you ready to make the leap? <a href=\"https:\/\/pros.com\/contact-pros\/\">Connect with us at PROS<\/a> for tailored solutions to accelerate your offer and order transformation.<\/p>\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-1771881690261\"><strong class=\"schema-faq-question\">What is native order management in airlines?<\/strong> <p class=\"schema-faq-answer\">Native order management replaces PNRs and tickets with a single order record that simplifies servicing and enables seamless retail experiences.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771881706204\"><strong class=\"schema-faq-question\">Why are airlines moving away from Passenger Service Systems (PSS)?<\/strong> <p class=\"schema-faq-answer\">Legacy PSS limit flexibility and integration, preventing airlines from delivering personalized offers and adopting modern retailing capabilities.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771881717453\"><strong class=\"schema-faq-question\">What role does IATA play in the Offer &amp; Order transformation?<\/strong> <p class=\"schema-faq-answer\">International Air Transport Association provides frameworks, standards, and consortium guidance that help airlines progress toward a 100% Offers &amp; Orders mode<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771881727031\"><strong class=\"schema-faq-question\">How does offer optimization improve airline revenue performance?<\/strong> <p class=\"schema-faq-answer\">Offer optimization leverages customer data and AI to deliver targeted pricing, bundles, and ancillaries that increase conversion and revenue per traveler.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771881737216\"><strong class=\"schema-faq-question\">Why are modular and API-driven architectures important for airlines?<\/strong> <p class=\"schema-faq-answer\">Open architectures enable interoperability, reduce vendor lock-in, and allow airlines to deploy best-of-breed retail capabilities incrementally.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771881747476\"><strong class=\"schema-faq-question\">What challenges do airlines face during the Offer &amp; Order journey?<\/strong> <p class=\"schema-faq-answer\">Key challenges include evolving standards, change management, vendor contract limitations, and aligning business and IT stakeholders.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771881760021\"><strong class=\"schema-faq-question\">How will AI shape the future of airline retailing?<\/strong> <p class=\"schema-faq-answer\">AI will power dynamic pricing, intelligent product catalogs, personalized customer interactions, and real-time bundling of travel experiences.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Gain an industry perspective on airline offer and order management and how modern retailing strategies are transforming airline distribution, pricing, and revenue 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