{"id":9824,"date":"2026-08-13T13:49:32","date_gmt":"2026-08-13T13:49:32","guid":{"rendered":"https:\/\/pros.com\/learn\/?p=9824"},"modified":"2026-08-13T13:49:52","modified_gmt":"2026-08-13T13:49:52","slug":"modern-airline-retail-offer-management","status":"publish","type":"post","link":"https:\/\/pros.com\/learn\/blog\/modern-airline-retail-offer-management\/","title":{"rendered":"Modern Airline Retail: A Practical Roadmap to Offer Management\u00a0"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p class=\"wp-block-paragraph\">Airline retailing is undergoing a fundamental transformation. But becoming a modern retailer isn&#8217;t about replacing every legacy system or embarking on a multi-year technology overhaul. It&#8217;s about adopting the right capabilities, at the right time, within an open and modular architecture.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"870\" height=\"473\" src=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2026\/08\/Tier-1_AA_UA_Campaign2_BlogImage.jpg\" alt=\"\" class=\"wp-image-9825\" srcset=\"https:\/\/pros.com\/learn\/wp-content\/uploads\/2026\/08\/Tier-1_AA_UA_Campaign2_BlogImage.jpg 870w, https:\/\/pros.com\/learn\/wp-content\/uploads\/2026\/08\/Tier-1_AA_UA_Campaign2_BlogImage-300x163.jpg 300w, https:\/\/pros.com\/learn\/wp-content\/uploads\/2026\/08\/Tier-1_AA_UA_Campaign2_BlogImage-768x418.jpg 768w\" sizes=\"(max-width: 870px) 100vw, 870px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In this article, we&#8217;ll explore the principles behind modern airline retailing and how airlines can take practical, incremental steps toward total offer optimization. Throughout the article, you&#8217;ll hear directly from PROS experts through short video insights from the IATA Modern Airline Retailing webinar.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Principles Behind Modern Airline Retail<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Modern airline retailing starts with a different way of thinking.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of relying on tightly coupled systems and monolithic platforms, airlines are increasingly adopting modular architectures built around interoperability, AI, and continuous innovation. The goal isn&#8217;t simply to modernize technology; it&#8217;s to create an ecosystem where best-of-breed capabilities work together to deliver better commercial outcomes.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This foundation begins with modern offer management, powered by connected capabilities such as product management, offer optimization, distribution, and AI. Rather than existing as isolated applications, these capabilities operate within an open architecture aligned to industry standards like the IATA Business Reference Architecture, allowing airlines to evolve their technology without becoming locked into a single vendor.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Why an Open Ecosystem Matters<\/strong><\/p>\n\n\n\n<script src=\"https:\/\/fast.wistia.com\/player.js\" async><\/script><script src=\"https:\/\/fast.wistia.com\/embed\/zyu39oab6x.js\" async type=\"module\"><\/script><style>wistia-player[media-id='zyu39oab6x']:not(:defined) { background: center \/ contain no-repeat url('https:\/\/fast.wistia.com\/embed\/medias\/zyu39oab6x\/swatch'); display: block; filter: blur(5px); padding-top:56.25%; }<\/style> <wistia-player media-id=\"zyu39oab6x\" aspect=\"1.7777777777777777\"><\/wistia-player>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Foundation of Modern Offer Management<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Modern offer management is only as effective as the product and inventory data behind it. To create dynamic offers, airlines need to separate products, inventory, and pricing into independent capabilities rather than relying on traditional fare structures.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A modern Product Catalog becomes the central source of truth for products, bundles, and ancillary content, while Stock Keeper provides real-time visibility into what can be sold. Together, they supply the information that offer management needs to create richer offers, streamline product management, and support a flexible, modular retailing architecture.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25b6 Watch the video below to learn how Product Catalog and Stock Keeper provide the foundation for modern offer management.&nbsp;<\/p>\n\n\n\n<script src=\"https:\/\/fast.wistia.com\/player.js\" async><\/script><script src=\"https:\/\/fast.wistia.com\/embed\/wp4enlwyh6.js\" async type=\"module\"><\/script><style>wistia-player[media-id='wp4enlwyh6']:not(:defined) { background: center \/ contain no-repeat url('https:\/\/fast.wistia.com\/embed\/medias\/wp4enlwyh6\/swatch'); display: block; filter: blur(5px); padding-top:56.25%; }<\/style> <wistia-player media-id=\"wp4enlwyh6\" aspect=\"1.7777777777777777\"><\/wistia-player>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Offer Management Becomes the Commercial Decision Engine<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Once the foundation is in place, the next challenge is transforming how commercial decisions are made.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Traditional airline systems often separate revenue management, pricing, merchandising, and shopping into independent processes. Modern offer management brings those capabilities together, enabling airlines to optimize pricing and offers based on booking request attributes, inventory, and current demand conditions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Revenue management remains central to this process. Continuous pricing and dynamic offers don&#8217;t replace decades of revenue optimization expertise\u2014they extend it. The result is a single commercial decision engine that combines inventory, pricing, products, and booking request parameters into every offer.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Why offer optimization is more than pricing<\/strong><\/p>\n\n\n\n<script src=\"https:\/\/fast.wistia.com\/player.js\" async><\/script><script src=\"https:\/\/fast.wistia.com\/embed\/j3g6waltif.js\" async type=\"module\"><\/script><style>wistia-player[media-id='j3g6waltif']:not(:defined) { background: center \/ contain no-repeat url('https:\/\/fast.wistia.com\/embed\/medias\/j3g6waltif\/swatch'); display: block; filter: blur(5px); padding-top:56.25%; }<\/style> <wistia-player media-id=\"j3g6waltif\" aspect=\"1.7777777777777777\"><\/wistia-player>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How revenue management evolves into offer optimization<\/strong><\/p>\n\n\n\n<script src=\"https:\/\/fast.wistia.com\/player.js\" async><\/script><script src=\"https:\/\/fast.wistia.com\/embed\/clf7ij459p.js\" async type=\"module\"><\/script><style>wistia-player[media-id='clf7ij459p']:not(:defined) { background: center \/ contain no-repeat url('https:\/\/fast.wistia.com\/embed\/medias\/clf7ij459p\/swatch'); display: block; filter: blur(5px); padding-top:56.25%; }<\/style> <wistia-player media-id=\"clf7ij459p\" aspect=\"1.7777777777777777\"><\/wistia-player>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Modernize Without Starting Over<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the biggest barriers to transformation is the belief that modernization requires replacing existing systems.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In reality, the most successful retailing strategies acknowledge that legacy technologies will continue to play an important role for years to come. Rather than forcing airlines to abandon today&#8217;s pricing and distribution processes, modern offer management enables airlines to introduce new capabilities while remaining compatible with existing infrastructure.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This incremental approach reduces risk, accelerates adoption, and allows airlines to deliver business value throughout the transformation, not just at the finish line.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Bridging today&#8217;s pricing systems with tomorrow&#8217;s offer management platform<\/strong><\/p>\n\n\n\n<script src=\"https:\/\/fast.wistia.com\/player.js\" async><\/script><script src=\"https:\/\/fast.wistia.com\/embed\/rm5svr0pof.js\" async type=\"module\"><\/script><style>wistia-player[media-id='rm5svr0pof']:not(:defined) { background: center \/ contain no-repeat url('https:\/\/fast.wistia.com\/embed\/medias\/rm5svr0pof\/swatch'); display: block; filter: blur(5px); padding-top:56.25%; }<\/style> <wistia-player media-id=\"rm5svr0pof\" aspect=\"1.7777777777777777\"><\/wistia-player>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>A Practical Roadmap to Total Offer Optimization<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Modern airline retailing isn&#8217;t a destination, it&#8217;s a journey.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While the long-term vision is total offer optimization, airlines don&#8217;t need to leap directly to the end state. Instead, they can progressively build capabilities such as bid price optimization, continuous pricing, dynamic ancillary pricing, and AI-driven offer optimization.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Leading airlines are already demonstrating that these innovations can be implemented within today&#8217;s technology landscape, delivering measurable commercial value while laying the foundation for the future.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The maturity journey toward total offer optimization<\/strong><\/p>\n\n\n\n<script src=\"https:\/\/fast.wistia.com\/player.js\" async><\/script><script src=\"https:\/\/fast.wistia.com\/embed\/qwfwc3xcas.js\" async type=\"module\"><\/script><style>wistia-player[media-id='qwfwc3xcas']:not(:defined) { background: center \/ contain no-repeat url('https:\/\/fast.wistia.com\/embed\/medias\/qwfwc3xcas\/swatch'); display: block; filter: blur(5px); padding-top:56.25%; }<\/style> <wistia-player media-id=\"qwfwc3xcas\" aspect=\"1.7777777777777777\"><\/wistia-player>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Continuous pricing in production today<\/strong><\/p>\n\n\n\n<script src=\"https:\/\/fast.wistia.com\/player.js\" async><\/script><script src=\"https:\/\/fast.wistia.com\/embed\/kmf3boq6fi.js\" async type=\"module\"><\/script><style>wistia-player[media-id='kmf3boq6fi']:not(:defined) { background: center \/ contain no-repeat url('https:\/\/fast.wistia.com\/embed\/medias\/kmf3boq6fi\/swatch'); display: block; filter: blur(5px); padding-top:56.25%; }<\/style> <wistia-player media-id=\"kmf3boq6fi\" aspect=\"1.7777777777777777\"><\/wistia-player>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Transition to the Future Airline Retail Platform<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The future of airline retailing isn&#8217;t defined by a new platform\u2014it&#8217;s defined by a new architecture.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of relying on a single system to manage every commercial process, airlines are moving toward modular services for inventory, products, offers, orders, and customer interactions. This evolution allows each capability to innovate independently while remaining connected through open standards and interoperable interfaces.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The result is a technology ecosystem that is more agile, more resilient, and better equipped to support the next generation of airline retailing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Continuous pricing in production today<\/strong><\/p>\n\n\n\n<script src=\"https:\/\/fast.wistia.com\/player.js\" async><\/script><script src=\"https:\/\/fast.wistia.com\/embed\/kmf3boq6fi.js\" async type=\"module\"><\/script><style>wistia-player[media-id='kmf3boq6fi']:not(:defined) { background: center \/ contain no-repeat url('https:\/\/fast.wistia.com\/embed\/medias\/kmf3boq6fi\/swatch'); display: block; filter: blur(5px); padding-top:56.25%; }<\/style> <wistia-player media-id=\"kmf3boq6fi\" aspect=\"1.7777777777777777\"><\/wistia-player>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently Asked Questions<\/strong>&nbsp;<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1786462570314\"><strong class=\"schema-faq-question\"><strong>What is modern airline retailing?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">Modern airline retailing is an approach that brings together modular capabilities for products, inventory, pricing, offers, orders, and distribution within an open, interoperable architecture. It enables airlines to evolve their retailing capabilities incrementally rather than relying on a single monolithic platform.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1786462584280\"><strong class=\"schema-faq-question\"><strong>What is modern offer management?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">Modern offer management connects capabilities such as product management, pricing, revenue management, offer optimization, and distribution to support dynamic offer creation. These capabilities can work together within a modular architecture while continuing to support existing airline technology and processes.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1786462614333\"><strong class=\"schema-faq-question\"><strong>How does revenue management support offer optimization?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">Revenue management remains central to offer optimization. Capabilities such as demand forecasting, inventory optimization, bid price optimization, and continuous pricing can provide a foundation for making pricing and offer decisions based on booking request attributes, inventory, and current demand conditions.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1786462634644\"><strong class=\"schema-faq-question\"><strong>Do airlines need to replace their existing systems to modernize retailing?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">No. Airlines can take an incremental approach by introducing new retailing and offer management capabilities while maintaining compatibility with existing pricing, revenue management, and distribution infrastructure.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1786462656320\"><strong class=\"schema-faq-question\"><strong>What is total offer optimization?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">Total offer optimization represents the evolution toward bringing pricing, inventory, products, and offer creation together within a connected commercial decision framework. Airlines can progress toward this model through capabilities such as bid price optimization, continuous pricing, dynamic ancillary pricing, and AI-driven offer optimization.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1786462670480\"><strong class=\"schema-faq-question\"><strong>Why is a modular architecture important for airline retailing?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">A modular architecture allows capabilities such as inventory, products, offers, and orders to evolve independently while remaining connected through open standards and interoperable interfaces. This can give airlines greater flexibility to adopt new capabilities over time without becoming dependent on a single monolithic system.\u00a0<\/p> <\/div> <\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Transcript for reference:<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Clip 1\u00a0<\/strong><br>Things that we have as sort of our tenants or pillars of the modern airline approach, we are taking our expertise in revenue management and moving that into the office space. So we want to take our leadership position in the revenue management space and make that into a leader position in the offer space. One of our key focuses is on the modularity and the interoperability between different vendors and different systems that are needed to power modern airline retail. That has to be of central component and we really believe in that space. And then next is focus on AI. So from the beginning of PROS, the whole point of PROS was to use data science to power the revenue management system. So as data science has evolved into what we&#8217;re seeing today across AI, that&#8217;s a natural evolution for us as well. And we really focus on partnerships. This is something we really value heavily. You&#8217;ll see some of this throughout the presentation today. Partnerships for us are a central component because we want to innovate on things that really matter to the industry. So we select and work with key industry experts and leaders to make sure that we&#8217;re bringing solutions to the market that are really valuable. And then in terms of value, our focus is really on not thinking about a big bang approach. We don&#8217;t want to end at the top of the steps where we want to go. We want to think about the steps that it takes to get to that solution so that we&#8217;re providing incremental value at each step along that journey. We&#8217;re going to even show you those steps as we move forward here.\u00a0<\/p>\n\n\n\n<button id=\"readMore\" class=\"expand\">Read full transcript<\/button>\n\n\n\n<script data-wp-block-html=\"js\">\ndocument.addEventListener('DOMContentLoaded', function () {\n    const button = document.getElementById('readMore');\n    const content = document.getElementById('readmore-content');\n\n    button.addEventListener('click', function () {\n        if (content.style.display === 'none') {\n            content.style.display = 'block';\n            button.textContent = 'Hide transcript';\n        } else {\n            content.style.display = 'none';\n            button.textContent = 'Read full transcript';\n        }\n    });\n});\n\n<\/script>\n\n<div id=\"readmore-content\" style=\"display:none\">\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Clip 2.\u00a0<\/strong><br>Quickly just touch on is the pros platform itself. So across the pros platform, there&#8217;s a few key areas that we&#8217;re focused on. The first is I&#8217;m going to focus on this middle part across the section here. And the middle part really is our core components that we&#8217;re looking at. If offers are our main central focus, then what we have to start with is the product management piece. And the product management piece focuses on product catalog stock keeper and then the supplier automation to bring third party suppliers into the product management process. The purpose there is to say if we know what we can sell, then we can make better offers. Then in the middle part here with the offer management side offer optimization is our central point where we say now that we know what we can sell, how do we construct the offer, meaning what products do we want to offer and what price do we want to offer for those products. And then once you have that offer created, now we have to construct that from once we know the optimal offer. Now we have to construct that into something that is consumable in the airline industry with a technology stack that scales to the to the volumes that we&#8217;re going to have across all the different channels that need to consume those offers. And then the last piece is you&#8217;ve understood how to create those optimal offers. You know how to distribute them out to the market. But what you really want is you want to drive people to your direct channel and offer marketing as our means of driving people to the direct channel. And so that that way you can really have control over the offers. That&#8217;s done through better search engine optimization for landing pages and dynamic ads that you can create inside of the platform so that then you&#8217;re driving passengers to your direct channels. And then at the top here is the sales channels. So specifically Pros offers an IVE solution. And NDC solution and a group sales solution all serving as channels that interact with those offers that are created in the middle layer that you see there. And of course the entire platform sits on top of AI as its core functionality that we&#8217;re building on top of. And that includes what you know about pros from forecasting and optimization techniques that we&#8217;ve been around for a very long time. But also the prescriptive or sorry also the generative and agentic AI that we&#8217;re bringing into these solutions as well that are really important for the evolution of modern airline retailing as we think about the new AI revolution that&#8217;s happening right now.\u00a0<br>So in terms of how this is going to look, what we&#8217;re going to show you is a view of what our end state is for the offer management platform. And when we look at that, then we&#8217;re going to go into some details of the specific components for that.\u00a0<br>\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Clip 3\u00a0\u00a0<\/strong><br>This is the IATA business reference architecture that was published a couple years ago. It&#8217;s been a great framework that works across all the different things that you as airlines need to work on in order to bring modern airline retailing to the forefront. What we&#8217;re doing specifically is around a few key areas. What you just saw on our platform, you know that the focus is going to be on offer management and product management. Those are central components. And then we&#8217;re also bringing the seller and channel management in some pieces of customer and contract management to the picture. What you really see we&#8217;re focused on the areas that drive the best offers in the market. And then we&#8217;re going to work with other modular components across the industry. Other vendors, other airlines that are building their own, will work with them to deliver our offers to the order delivery and financial management systems and to interact with the CRM that the airline brings on their own. So you can see we&#8217;re really focused on delivering the best offers to the market. And then once we&#8217;re able to deliver those best offers, how do we then interact with the other systems that are necessary across the board?\u00a0<br>\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Option 2.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Speaker 1&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I just wanna focus for a little bit of time on the product management domain, and also why the product management domain is so important as part of the commercial architecture. So, obviously, we all know and love ATPCO and the combination of pricing product in their fare records as a construct that underpins our industry architecture and has done successfully for a long time. But if we are to move to be true retailers and be able to dynamically create and ultimately price every offer in all channels, we need to separate out the product aspect and the product definition from the price determination.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And that&#8217;s why&nbsp;the offer management system and offer optimization does that, Justin will walk through in a moment in more detail, but I wanna focus on the product management piece and product catalog being where the product definition takes place.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So if we can move the slide.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, yeah, in terms of the PROS product management domain, we have three core components: the product catalog, stockkeeper, and supplier automation.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The product catalog being that central repository of all product data, the attributes, eligibility, and combinability, bundling rules, and basically everything that the&nbsp;other systems may need to know about the products.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And the stockkeeper is that independent system of record tracking stock counts and tracking the allocations of stock units for any product at a SKU level. And both of these modules we&#8217;ve developed, using our expertise clearly in the airline industry, but also in the industries that we supported prior to the&nbsp;focus on the travel technology. We had many customers using our catalog as a foundation and powering their commerce solutions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And they&nbsp;were for highly transactional products, highly configurable&nbsp;products, and, of course, we have both in our industry. So, it was a great experience and expertise to grow upon.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And, yeah, we&#8217;ve applied our&nbsp;airline knowledge on top, and that&#8217;s what&#8217;s driving the development of our catalog and stockkeeper solutions. We also have the supply automation module, and this is the module designed to help scale your relationships with third parties, be they airlines under the Supply Standard Retailer Supplier Interline Agreement Framework of the future or any of the third parties to help manage and grow that&nbsp;ecosystem.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And if we move on, and this is what the ecosystem looks like when we deploy at a very high level, and we&#8217;ll grow this out as we go through the webinar today. The product catalog and stockkeeper are deployed alongside the offer management system, and product updates and stock updates are used by offer optimization to help come up with the price.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And the offer construction module obviously brings together products, stock, and price and&nbsp;creates the offers ready to be distributed. And, obviously, those offers are distributed as classless offers into the modern airline retailing-supported channels, the direct channel, and NDC. Support for the hybrid model and&nbsp;legacy partners, we&#8217;ll talk to later on&nbsp;in the transition section.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moving on. I just wanted to touch on the product catalog and actually how it has to support a lot of data coming from the outside and obviously expose data to various components and stakeholders in the modern airline retailing world. So, we&#8217;re getting, obviously, scheduling events happening across the airline, new flights scheduled, schedule updates, and that&#8217;s obviously feeding into the catalog, and those events trigger the creation and update of products in the catalog based on the various rules that are configured.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Third-party supplier data and third-party products, obviously, product data needs to get into the catalog as well. And we also get a feed from the ATPCO catalog solution of your own products and of other airline products, especially in the hybrid case where the existing fare records.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8230;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Looks like we have lost Chris.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I I think we dropped. You&#8217;re back.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Good. I&#8217;m sorry. See you now.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">No worries. I needed I needed ten seconds to work.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I was just saying that the ATPCO connection, it helps us&nbsp;in the hybrid case, and I&#8217;ll describe that in more detail later. And product catalog data and product data is used clearly by the offer management system, but also a subset of that data is exposed to sellers and aggregators in the form of the airline profile to help with their shopping decisions. Supply catalog shared to other airline partners in particular to help them shop&nbsp;in a smart way. And also, we can feed product data back to the ATPCO catalog for distribution to other airlines or suppliers, and, again, in the hybrid case, which I&#8217;ll describe later. So, yeah, if we move on.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And with all of this complexity, the bigger range of products and the more complex way that you can describe your products and the richer information that&#8217;s there, and obviously,&nbsp;that brings complexity in terms of the user experience. So one thing that&#8217;s a focus is for us is not just on building out the best product database we can but also the best tools for us to build and manage those products as well. So, obviously, it&#8217;s all based on self-service and automation so that, yeah, you can empower your users to&nbsp;handle your products&nbsp;in the most effective way.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And, also, with AI agents deployed both for catalog navigation as things get more complex, and also to recommend, for example, bundles, static bundles to be used by offer management, not replacing the dynamic bundles that may be created in the offer construction and optimization phase, but using various data points from around the airline to serve a product combinability and bundling recommendations in the catalog prior to the offer phase.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And now I just wanna change tack to the Stock Keeper real quick. And we recognize the need for it to be as the heart of the airline, all is on. So, clearly, the stockkeeper is gonna be central to both offer management. And, obviously, when it comes to order creation and and delivery, we need to make sure that that Stock Keeper is always available.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It also, we see the need for it to be independent from the PSS and the order management system. The Stock Keeper isn&#8217;t just lumped inside of an operational system because that&#8217;s where it has lived before.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s clear that it&#8217;s a commercial system that should be used to support the growth of the business and not tied to an operational system.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&nbsp;really needs to&nbsp;have that commercial focus.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We also understand the need for very granular stock counters. So it&#8217;s not just a case of counting the number of seats on an aircraft.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I&#8217;ll describe in more detail some of the counters that we support.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And finally, obviously, clearly, the stock data is needed across the ecosystem internally for you as an airline but also needs to support the hybrid world as other airlines and the rest of the ecosystem catches up. And, again, we&#8217;ll describe that in in more detail in the transition phase.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now in terms of the counters, this is a view of a stock record, very basic. It&#8217;s configurable, so there are more counters that&nbsp;can be used, but I just wanna walk through some of the typical ones. So you can click once, then we have, basically, the SKU, which is that unique identifier for the stock record, the stock keeping units linked to one or more product IDs. So if you have, for example, two economy products linked to the same stock counter, of course, that&#8217;s supported. And now moving on, we obviously can define the original capacity of a given product. It might be the number of seats on an aircraft, for instance.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And then you can define how many of those you want to be considered for sale. Obviously, that can be less, the same, or more than the initial capacity. For example, if more, it supports overbooking scenarios.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But rather than the capacity, the allowed for sale counter is what will be used in all the computations for what can be sold.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can also define which stock has been removed. So we&#8217;re not removing a count from capacity or allowed for sale. We&#8217;re actually counting separately which stock has been specifically removed and why it&#8217;s no longer allowed for sale given the initial capacity. So it can be, of course, a broken seat on an aircraft.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It could be for whatever weight and balance sheet, whatever reason you want to remove a unit of stock, it&#8217;s recorded and tracked. And then the usable stock by offer management, which is a, obviously, key metric, is then computed from and, well, it can be defined as to how it&#8217;s computed based on these counters, but, yeah, ultimately, it&#8217;s computed by what you&#8217;re allowing for sale. Obviously, remove any removed stock and then any of that have been allocated against any orders.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I&#8217;m clicking once more.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In terms of what we&#8217;re counting against orders, basically, any stock that has been allocated to a committed order, so an order essentially that&#8217;s been paid or committed, payment has been committed, obviously, clearly, that&#8217;s tracked. And also anything that&#8217;s been allocated to an order, so unit of inventory or unit stock has been counted but has not yet been paid, that&#8217;s also counted.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And then we also have moving on the pending and waitlist counters.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The pending is kind of akin to a temporary hold. Maybe not to be confused with the the typical kind of whole book and hold scenarios today, but that could be someone, for example, who is in the checkout flow in your IBE.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We count how many we can count, and you can use that in certain computations if you wish, how many orders may end up being allocated or how many units of stock may be allocated to orders in the future.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Clearly, that hasn&#8217;t been kind of decremented from the remaining counter yet, but it&#8217;s obviously&nbsp;a&nbsp;good data point to use&nbsp;in offer management decisions in the&nbsp;future.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Clip 4.\u00a0<\/strong><br>Once we kind of have that product in the stock setup, the next question is how does that feed into the offer management system? And so, for us offer management really consists of two key pillars. And I show them before, but I think it&#8217;s really important that we emphasize this because from our side offer management really has to consist of an offer optimization step and an offer construction piece. Why we separate those two out is because what we don&#8217;t want is we don&#8217;t want and the offer management side to just have a line item that says price and just sort of assume that price gets generated for all of these offers that we&#8217;re creating. Instead, offer optimization has to be a first-class citizen in the offer management piece because the history that we have with building revenue management is going to absolutely continue moving forward in the offer optimization space. And so we want to make sure that that&#8217;s clear that offer optimization is a central part of offer management. And then once you have that offer, that optimal offer created, then you can actually go and construct that for the industry and distribute it out to the world. Now, how does that look from the PROS side? So, for us, we want to illustrate what this offer platform looks like. So, it starts out with the PROS offer management box and I&#8217;m certain you can guess that we&#8217;re going to fill in that box with some things. But before we do that, we want to just level set on how the process flows. So, this sort of represents a capability set of capabilities but also how the interaction works with the other systems. So, first off, you have the channel\u00a0points, upsell check touch points and reshopping touch points that make a call out from a channel into the offer box. Now the offer management system obviously has to have a lot of data that can feed into it so that it can make its decisions. That data consists of things like orders from the order management system, customer data from the CRM. It also includes the stock keeper and product catalog that Chris just showed us before. And we also have to have the offer store for the historical offers that we&#8217;ve created that all feed into the offer management box. So now, what we have is the offer management box understanding the requests that came in for an offer from the specific channel. And we understand all the data that feeds into the offer system so that, then, the offer system can start doing its job. Now, this starts first with the initialization of the offer through the offer construction piece. This sets up all of, kind of the determination of what we can actually sell to the passenger. So, before we send it to the offer optimization system, we need to understand from the product catalog not just what we can sell but specific to the context in the request what can we sell? So, we do this context determination. We look at what products we can sell, any sort of ranking that we have. We build itineraries. All of this creates the package of what we can actually sell to this passenger given all of the constructs from the stock keeper, the catalog, the CRM, the order system and the offer store all feeding us that information. Naturally, the next step is once we have that first bit of the offer constructed, knowing what we can sell the passenger, we go into the offer optimization step. And this is where the key components of revenue management, dynamic pricing of both right to fly and ancillaries, the bundling concepts and the segmentation, and we also have this pricing, RM strategy engine there. So, think about this as like forecast demand influences that you have in place today. Those types of things all still live inside of offer optimization because those are feeding into the overall offer optimization step so that then we can create what are the products that we&#8217;re going to sell to the passenger and what are the prices that we&#8217;re going to apply to those. And now that you&#8217;ve completed that offer optimization step, you go into the finalization piece with offer construction again. Now we need to go through and say, okay, well what are the taxes and fees and surcharges that we have based off of that offer that was generated in the offer optimization box? Do we have any sort of post pricing discounts that we want to apply, any promotions? Also, any sorting and filtering that we want to apply because we&#8217;re going to tell the channel that&#8217;s going to receive this offer. We&#8217;re going to tell them what orders should you display that in. And so all of that comes with it. And the last piece is the rich media site. So one of the things about creating an offer is if you want to sell somebody a hamburger, it&#8217;s great to be able to show a picture of that hamburger. And so the rich media says in addition to the offer saying there&#8217;s included this meal or this particular item and the price for it, we also say this is the photo you should use to display that. So, all of that creates the offer that then we have a response back to the channel that says here is the offer that we&#8217;ve created through the offer management system at PROS. So, this is the end state where we&#8217;re going to get to and what we&#8217;re building right now out. And the key part there is that the way we&#8217;re approaching this is that we already have the capabilities through traditional shopping and merchandising as well as through traditional revenue management, pricing, etc. We&#8217;re bringing those components into an offer management box taking the independent and kind of standalone products and bringing them together into a true offer management solution that leverages those as capabilities inside of an offer management box. And I think that&#8217;s a really important distinction because the things that we&#8217;re doing in modern airline retailing with offer management aren&#8217;t unique to what we&#8217;re doing today. It&#8217;s just today they&#8217;re very fragmented into different processes, and offer management allows us to bring those together into a centralized place, allowing us to think about the decisions that are being made across the entire offer process. And really, that&#8217;s important because again with today&#8217;s fragmented approach, you may not know what was offered to the passenger from the first time they visited your website to the second time or even what they were offered during the shopping flow versus later on during check-in. And that&#8217;s the type of thing we want to bring to this approach so that now we&#8217;re making better offers as we move forward with creating offers for the passenger.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Clip 5.\u00a0<\/strong><br>I want to just highlight a few things on the offer optimization side with our key pillars. There&#8217;s three things that we really see is the key pillars for it. First is Revenue Management. I like to emphasize this very strongly here. The core concepts of revenue management aren&#8217;t going away. This is often talked about that like revenue management is dead and things like that. I don&#8217;t buy into that at all, and PROS doesn&#8217;t buy into that. And the reason is because the things that we&#8217;re doing in Revenue Management set us up for success in the offer optimization space. And so by having the core concepts of overbooking and decrement, the bid prices that we create, all of those things that we&#8217;re doing today, are still going to be central in the offer optimization space. And so, I assume for most of you as airlines, you&#8217;re not planning to stop doing overbooking, you&#8217;re not planning to stop understanding the capacity constraint of your flights. So those are still going to be central components. It&#8217;s how that&#8217;s used in the overall optimization process. And so that actually goes to the next step on continuous pricing. So being able to move to continuous pricing is a natural step. Revenue management today sets controls for availability. That doesn&#8217;t mean that revenue management, the process that it&#8217;s doing, isn&#8217;t extendable to a continuous pricing world. And so obviously continuous pricing opens up the door to having more price points, ultimately being able to find the exact right price for a given context of the passenger. And so really this is the next natural step. And this can be done in a world where you still filed fairs where you do discounts off of the filed fairs all the way into a world where you&#8217;re just directly calculating the price. And this works in both right to fly and a dynamic ancillary pricing approach. So, ancillaries and right to fly are central pieces to the offer optimization step.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Clip 6\u00a0<\/strong>\u00a0<br>So, in terms of offer creation, there are three key areas as well that we&#8217;re really focused on here. The first is this idea of the legacy pricing translator. And when we think about this, it&#8217;s interesting when you&#8217;re talking about building out the brand-new offer management system, the first thing that we&#8217;re going to talk about is the legacy pricing translation. And the reason for that is the legacy pricing isn&#8217;t going away anytime soon. And many of you know that for all the different ways that you&#8217;re using that today. So, as we think about the offer construction side, we really have to make sure that we&#8217;re still enabling you to use the constructs that you have today with ATP co-filed fares and so forth. And so that&#8217;s a central part of the offer construction and offer management platform is being able to map back to what&#8217;s still in place today. Now ultimately where we know the industry wants to go is this idea of being able to directly calculate the price for the given product and the bundle for the given product. And so, what we&#8217;re focused on is building out a platform that allows us to work in where we want to go but also maps back to that legacy approach that we have in place today. And that&#8217;s really important because we&#8217;re able to think about it from a holistic perspective as we create the offer construction platform piece of offer management.\u00a0<br>\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Clip 7\u00a0<\/strong><br>One thing we talked about before in the beginning was creating incremental steps to the ultimate goal that we have, which is total offer optimization. Now, total offer optimization means a lot of different things to a lot of different people. From a PROS perspective, the whole concept is to really understand the passenger profile, not now at the individual passenger level, but at a segmentation level. Understand the passenger, create an offer for that passenger that they really like based on the characteristics of their segment and then apply a price that ultimately maximizes revenue for the airline and drives conversion as well for the passenger. Now, ultimately, we can create the science that goes with that, create the AI algorithms that define that. But there&#8217;s also a lot of incremental steps that you can take that drive value as you work towards that. And from PROS experience, trying to make one big jump to the end state has a lot of issues when you start trying to give this out to adoption to the market, whether it&#8217;s to your sales team, whether it&#8217;s to your users in the Revenue Management side, a lot of people have to be bought into the new concepts that you&#8217;re bringing. So instead, what we&#8217;re focused on is creating these steps along the journey to that. The first on the left-hand side, we kind of break this up into right to fly and ancillaries. This isn&#8217;t an exact prescribed set of steps. You can mix and match to some of the left, some of the right. You can also skip steps if your airline&#8217;s ready for that. But the whole idea here is to first say you need to be doing dynamic availability and using bid prices because bid prices are a foundational component of the right supply dynamic pricing side. Once you have that, you need to start thinking about things in terms of price elasticity, really modeling the behavior of demand as it relates to changes in price. So, as you increase price, how does demand change? How does demand react to that change? Then once you have that price elasticity, you can naturally do a continuous pricing step. Because now if you understand elasticity, you can pick the right point on that curve to understand what price you should charge the passenger that maximizes revenue. And that pairs with the bid price side. And I won&#8217;t go into details today, but if you&#8217;re interested, we certainly can go into more detail. The way that we do continuous pricing works in a class-based, RBD-based world to create those discount factors. But then that drives the next step into how do we create more context-aware price elasticity. So, the first step in elasticity is just doing that as sort of the average dimensions of elasticity. But the next step is what are the other things that drive elasticity for your passengers, and creating that more dynamic elasticity estimation process then drives a better price. And then all of that steps into from the price estimation side, how can we determine the right price without the barrier of RBD in this process? It may be the case that you still need distribution lanes with RBDs, but it doesn&#8217;t mean that your revenue management and pricing side has to be tied to those prices. And so that&#8217;s something we&#8217;re looking at is how do you bring the RBD approach to this. And I&#8217;ll note on the left-hand side here, these numbers are real numbers that we&#8217;ve seen in terms of revenue uplift when implementing those various solutions. And so, all of those things are things that we&#8217;ve implemented in some form or fashion in those different steps with different airlines. On the right-hand side, this really takes us into the ancillary piece. It starts with just doing dynamic ancillary pricing and then takes you into doing the upsell amounts between brands. This is a key unlock here. And what you&#8217;re going to hear a lot on the theme on the right-hand side is: if you want to get the true offer optimization, you might have to throw away the entire concept of brands. And what my experience is and what we&#8217;ve seen in the market is that airlines aren&#8217;t ready to throw away the concept of brands. You spent a lot of time getting passengers to understand what those brands are. So that&#8217;s why the first unlock in terms of brands is to dynamically price how much you upsell between those brands. That&#8217;s a huge opportunity because that&#8217;s an area that&#8217;s very unexplored in today&#8217;s world. Then you can start doing a la carte bundle creation. So after the brand has been selected, you can then do an a la carte bundle dynamically. And then we can start thinking about the future of brands. Do you want to have a predefined set for the selection mechanism to choose from? That&#8217;s what we mean by dynamic brand determination. Ultimately stepping into product bundling, which then says, how do we actually create those brands if you want dynamically creating the full bundle? And then that takes you into offer optimization where now we&#8217;re creating the concept of right to fly and products together in a single decision process. Now I went through that really quickly, and I went through that quickly because we&#8217;re short on time. If you&#8217;re interested in any more detail, we can certainly go into that as we move forward. Now, the next thing that we want to talk about is how do you transition to because naturally you can see that this is a transition path, right? Ultimately, you&#8217;re working up through these steps to create this transition as you go through these up to total offer optimization. But it&#8217;s not just the transition that happens on the offer optimization side but also on the offer construction site. How do we put all of this together into a picture? Now.\u00a0<br>\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Clip 8.\u00a0<\/strong><br>First, I want to highlight just a few things because also in this transition is where we&#8217;re exploring how modularity works between this. And so, we have three examples of airlines that have deployed or are deploying the continuous pricing concept in the world where it still works inside of the RBD system of ATPCO by working through the discount adjustment factors that we&#8217;re creating through continuous pricing and then applying those. And those are a few examples with Lufthansa, Air Canada and Japan Airlines that are working with this. And so, we&#8217;re really excited about the opportunity that this is creating. And it&#8217;s been a really great testimony to how we can take something in today&#8217;s world and modernize the continuous pricing approach, but still inside of the constructs that we have with file fairs, the PSS, and so forth that are still required in the market today.\u00a0<br>\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Clip 9.\u00a0<\/strong><br>How do we create this flow from today&#8217;s world to the future world? So, what I&#8217;m going to level set with is the concept of today&#8217;s world has a PSS that feeds P&amp;R inventory and schedule all baked inside of the PSS, feeds that into the revenue management system, the revenue management system feeds controls to some sort of availability or continuous pricing box, and that&#8217;s for PROS, that&#8217;s the RTDP solution there. That gets the PSS feeds that real time inventory. And then once that&#8217;s all held in that system, then you have the requests come in from a channel. The channel feeds and asks the shopping engine for price and\/or availability. The answer comes back as an RBD-based availability. The adjustment factor included with that. And then the shopping engine knows how to look up that availability, find the right price, find the right fare basis code, etc, that matches and apply the adjustment factor, and send that out to the channel. So now, the answer that&#8217;s been given out to the channel is an ATPCO RBD-based price with an adjustment factor applied. So that level sets on what&#8217;s possible in today&#8217;s world. The transition here is how do we start thinking about this changing in the new world as we think about it moving forward. And one big step as we think about it moving forward is we introduce the concept of order, stock keeper, and catalog into the process. And so now, the order system provides the orders. The stock keeper provides stock, the inventory concept, and the catalog provides the concept of the sellable products to those. So now you can see just as Chris talked about, we broke free of one system holding all of this information into dedicated systems that really understand what&#8217;s needed in those. And now those systems can feed revenue management and the continuous pricing side. And then also we&#8217;ve introduced now instead of a shopping engine, we&#8217;ve introduced the offer construction piece. So, you can see how these three pieces in the middle right here are evolving into offer optimization and offer construction as we start introducing the other components like stock keeper and catalog that feed those. So the transition we see is really going from today&#8217;s world where you interact with the PSS to provide you all of that information. So, starting to think about how do you peel out the components that are necessary from that and then modernizing the pieces of revenue management, the continuous pricing side, and the offer construction piece into a full offer management system that then takes us into the picture that we saw before where now all of those components that were inside of shopping and merchandising get brought all in together here. And what I showed you before was just the flow for right to fly. There&#8217;s a similar flow that&#8217;s separate in today&#8217;s world for ancillaries. Now, we&#8217;re bringing that all together into one offer management box.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Product Catalog clip 1\u00a0<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So I just want to focus for a little bit of time on the product management domain and also why the product management domain is so important as part of the commercial architecture. So obviously we all know ATP core and the combination of price and product in their fare records as a construct that underpins industry architecture and has done successfully for a long time. But if we are to move to be true retailers and be able to dynamically create and ultimately price every offer in all channels, we need to separate out the product aspect and the product definition from the price determination. And that&#8217;s why, well, the offer management system and offer optimization that does that, Justin will walk through in a moment in more detail, but I want to focus on the product management piece and product catalog being where the product definition takes place.&nbsp;<br>So if we can move the slide.&nbsp;<br>So yeah, in terms of the pros product management domain, we have three core components, the product catalog, stockkeeper and supplier automation. The product outlog being that central repository of all product data, their attributes, eligibility and combinability, bundling rules, basically everything that other systems may need to know about the products. And the stock keeper is that independent system of record tracking stock counts and tracking the allocations of stock units for any product at a skew level. And both of these modules we&#8217;ve developed using our expertise clearly in the airline industry, but also in the industries that we supported prior to the focus on the travel technology. We had many customers using our catalog as a foundation and powering their commerce solutions and for highly transactional products, highly configurable products. And of course, we have both in our industry. So it was a great experience and expertise to grow upon. And yeah, we&#8217;ve applied obviously airline knowledge on top and that&#8217;s what&#8217;s driving the development of our catalog and stock keeper solutions. We also have the supplier automation module and this is the module designed to help scale your relationships with third parties, be they airlines under the standard retailer supplier. Interline agreement framework of the future or any other third parties to help manage and grow that ecosystem.&nbsp;<br>If we move on. And this is what the ecosystem looks like where we deploy at a very high level and we&#8217;ll grow this out as we go through the webinar today. The product catalog and stockkeeper are deployed alongside the offer management system and product updates and stock updates are used by offer optimization to help come up with the price. And the offer construction module obviously brings together products, stock and price creates the offers ready to be distributed. And obviously those offers are distributed as classless offers into the modern airline retailing supported channels, the direct channel and NDCs. Support for the hybrid model and legacy partners. We&#8217;ll talk to you later on in the transition section.&nbsp;<br>Moving on. I just want to touch on the product catalog and actually how it has to support a lot of data coming from the outside and obviously expose data to various components and stakeholders in the modern hour and retailing world. So we&#8217;re getting obviously scheduling events happening across the airline new flight scheduled updates. And that&#8217;s obviously feeding into the catalog. And those events trigger the creation and update of products in the catalog based on various rules that are configured.&nbsp;<br>Third party supplier data, third party products, obviously product deeds that needs to get into the catalog as well. We also get a fee from the ATP called catalog solution of your own product and other airline products, especially in the hybrid case where the existing fare records.&nbsp;<br>And product catalog data and product data is used clearly by the offer management system, but also a subset of that data is exposed to sellers and aggregators in the form of the LM profile to help with their shopping decisions. Supply catalog shared to other airline partners in particular to help them shop in a smart way. And also we could feed product data back to the ASP code catalog for distribution to other airlines as suppliers. And again in the hybrid case, which I&#8217;ll describe later. So yeah, if we move on.&nbsp;<br>And with all of this complexity, the bigger range of products and the more complex way that you can describe your product and the rich information that&#8217;s there, obviously that brings complexity in terms of the user experience. So one thing that the focus is for us is not just on building out the best product database we can, but also the best tools for use built to manage those products as well. So obviously it&#8217;s all based on self service and automation. So like, yeah, you can empower your users to handle your products in the most effective way. And also with AI agents deployed both for catalog navigation as things get more complex and also to recommend, for example, bundles, static bundles to be used by offer management, not replacing the dynamic bundles that may be created in the offer construction and optimization phase, but using various data points from around the airline to serve a product combinability and button length recommendations in the catalog prior to the offer phase.&nbsp;<br>And now I just want to change tack to the stock keeper real quick and we recognize the need for it to be as the heart of the airline always on. So clearly the stock keeper is going to be central to both offer management. And obviously when it comes to order creation and delivery, we need to make sure that that stock keeper is always available.&nbsp;<br>It also, we see the need for it to be independent from the PSS and the order management system. The stock qubit isn&#8217;t just lumped inside of an operational system because that&#8217;s where it has lived before. It&#8217;s a clear that it&#8217;s a commercial system that should be used to support the growth of the business and not tied to an operational system. It really needs to be have that commercial focus. We also understand the need for very granular stock counters. So it&#8217;s not just the case of counting the number of seats on an aircraft. I&#8217;ll describe more detail some of the counters that we support. And finally, obviously clearly the stock data was needed across the ecosystem internally for you as an airline. It also needs to support the hybrid world as other airlines and the rest of the ecosystem catches up. And again, we&#8217;ll describe that in more detail in the transition phase.&nbsp;<br>Now in terms of the counters, this is a view of a stock record, very basic. It&#8217;s configurable so there are more counters that can be used. But I just want to walk you through some of the typical ones. So you can click once. Then we have basically the SKU, which is that you can identify for the stock record, the stock keeping unit linked to one or more product IDs. So if you have, for example, two economy products linked to the same stock counter, of course that&#8217;s supported. And now moving on.&nbsp;<br>We obviously can define the original capacity of a given product, maybe the number of seats on an aircraft, for instance. And then you can define how many of those you want to be considered for sale. Obviously that can be less the same or more than the initial capacity. For example, if more it supports over booking scenarios, but rather than the capacity, the allowed for sale counter is what will be used by all the computations for what can be sold.&nbsp;<br>You can also define which stock has been removed. So we&#8217;re not removing account from capacity or allowed for sale. We&#8217;re actually counting separately which stock has been specifically removed and why it&#8217;s not no longer allowed for sale given the initial capacity. So it can be of course a broken seat on an aircraft. It could be for whatever weight and balance rate, whatever reason you want to remove a unit of stock, it&#8217;s recorded and tracked. And then the usable stock buy offer management, which is obviously key metric is then computed from, and well, it could be defined as to how it&#8217;s computed based on these counters. But yeah, ultimately it&#8217;s computed by what you&#8217;re allowing for sale. Obviously remove any removed stock and then any that have been allocated against any orders. And clicking once more.&nbsp;<br>In terms of what we&#8217;re counting against orders, basically any stock that has been allocated to a committed order essentially that&#8217;s being paid or committed payment has been committed. Obviously clearly that&#8217;s tracked. And also anything that&#8217;s been allocated to an order. So unit of inventory or unit stock has been counted, but it&#8217;s not yet be paid. And that&#8217;s also counted. And then we also have moving on depending on where this count is. The pending is kind of akin to a temporary halt, maybe not to be confused with the typical kind of whole frequent hold scenarios today. But that could be someone for example who is in the checkout flow in your IBE. We count how many we can count and you can use that in certain computations if you wish. How many orders may end up being allocated or how many units of stock may be allocated to orders in the future. Clearly that hasn&#8217;t been kind of decremented from the remaining county yet. But it&#8217;s obviously good data point to use in offer management decisions in the future.&nbsp;<br>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Product Catalog Clip 2\u00a0<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And if we click on obviously legacy channels be there, your legacy interline partners who haven&#8217;t moved towards modern airline retailing yet or the existing legacy distribution channels clearly need to continue to receive and use fares from ATP corps. But if you&#8217;re using the product catalog stockkeeper and creating offers in the way justin just described, we&#8217;re going to need to start getting product data from the catalog into ATP co. And this is one feed that we&#8217;ve already been looking at as part of a recent POCs with ATPO and part of the IATA modularity PLC activity. And we also need a mechanism for getting price information from the price determination decisions in offer management system. Also to HP cost so that obviously those fair records can be updated accordingly without losing the synchronization. Now clearly the offers that are being created are going to be far richer in the modern airline retailing environment and supported by your NDC indirect and your direct channels. But at least you can continue to support for as long as you need to. The GDS and the latest inline partner channels. Obviously what&#8217;s missing from this is the availability calculation and feed. So if you can click through one more. So we as part of this architecture deploy and offer translator which handles the cabin to class mapping basically taking the stock data and taking other data from the Office Management System such as bid price using rules that are configured around how you want those classes to be mapped and how the availability should be computed and then distributed. And then ultimately exposing a class based availability fees to those legacy channels. Now the key thing is all of the decisions and rules and content everything&#8217;s contained inside your modern airline retailing architecture. So your rich offers using all of the data and all of the processes and solutions that Justin described. Obviously that can be that&#8217;s something that you can benefit from as the airline moving in this direction, but you don&#8217;t have to switch off those important legacy channels in the interim.&nbsp;<br>Now I just want to quickly segue into kind of the modularity topic because that&#8217;s so important when it comes to moving transitioning. Right. So Justin mentioned being able to take value at every step. And the fact that we&#8217;ve actually to be able to do that, you have to deploy these components not as a big bang. And we&#8217;ve been showing how modularity can actually come to life not just by having some APIs and saying yes, you can use them, but actually in production ready POCs that we demonstrated last year and we&#8217;re continuing to innovate on for this year and this round of POCs. Now this was the IAT and what now and retailing consortium who asked us to come together as vendors and show demonstrate use cases. And actually maybe we can just build the whole slide. There&#8217;s three in total. We demonstrated two use cases showing an end-to-end offer order and delivery flow where PROWS was providing in both cases offer management system with shopping and dynamic pricing and the product management system with the product catalog stockkeeper. It was completely legacy free from the from the ground up on the office side and then through to the order and delivery side. And now in case one actually another vendor provided the channels and the orchestration. And in the second use case Pro&#8217;s actually provided the channel and the orchestration showing that from modularity perspective we were essentially agnostic to that model. And we could slot a component in whatever we needed. And that was actually end to end using real data, but not underpinned by legacy at any point. And in the third use case that was where we demonstrated out what I mentioned in terms of that bilateral data exchange with ATP call where we could exchange extracts of fair records, but only the product specific information. So nothing about price and pricing rules and also pass the data back to ATP called the product specific data to then be exposed to the airlines that need it on the other side. And that could support either mod now and retailing product fees for like I said, the legacy fare data, sorry, the legacy product data from the fares.&nbsp;<br>And with that, I think I have one more slide, which yeah, I just want to kind of swing back around to some of the key points that just made earlier because this is really what why we think basically our solutions are going to help with that transition to modern island retailing. Ultimately obviously maintaining that leadership position and offer obviously we want to make sure that we&#8217;re able to give you those best commercial outcomes. But also with that product management as a foundation.&nbsp;<br>The modularity and interoperability, it&#8217;s obviously that it sounds like the buzzword of the moment, but it&#8217;s so vital that you are able to have the components that you want to drive your commercial strategy. You want to select the ones that are best for the strategy that you have in mind. And that, for example, includes being having an independent channel there to the PSS for instance, being able to then pick and choose your commercial components as needed, the offer construction of optimization, product catalog stocking, but all of the modules that go into building up your architecture. It&#8217;s super important that you&#8217;re able to select individually rather than be constrained to one ecosystem. Just to again mention that the AI driven revenue maximization and that is also underpinned by those product management solutions as well. And actually and the innovation partnership piece and what actually we&#8217;ve proven in the past and we want to continue to prove is that a key turning point in the industry. We&#8217;ve worked with the leading airlines and early adopters at each phase. And yeah, especially in this off optimization of a construction and product management phase. Obviously, we want to continue to do that and continue proving that we are the true coin innovation partner. And yeah, finally making sure that actually we can already start today and generate value, start that transition without having to take that big brand approach and whether it&#8217;s whether you need a business case, every step to move or just see value from every step of the transition. That&#8217;s something that we can deliver with hopefully everything we described to you so far today.&nbsp;&nbsp;<\/p>\n\n\n\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Explore how modern airline retailing, offer management, continuous pricing, and modular architecture can help airlines advance toward total offer optimization. <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[152],"tags":[802],"class_list":["post-9824","post","type-post","status-publish","format-standard","hentry","category-blog","tag-modern-airline-retailing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Modern Airline Retail: Roadmap to Offer Management<\/title>\n<meta name=\"description\" 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It enables airlines to evolve their retailing capabilities incrementally rather than relying on a single monolithic platform.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/pros.com\/learn\/blog\/modern-airline-retail-offer-management\/#faq-question-1786462584280","position":2,"url":"https:\/\/pros.com\/learn\/blog\/modern-airline-retail-offer-management\/#faq-question-1786462584280","name":"What is modern offer management?\u00a0","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Modern offer management connects capabilities such as product management, pricing, revenue management, offer optimization, and distribution to support dynamic offer creation. These capabilities can work together within a modular architecture while continuing to support existing airline technology and processes.\u00a0","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/pros.com\/learn\/blog\/modern-airline-retail-offer-management\/#faq-question-1786462614333","position":3,"url":"https:\/\/pros.com\/learn\/blog\/modern-airline-retail-offer-management\/#faq-question-1786462614333","name":"How does revenue management support offer optimization?\u00a0","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Revenue management remains central to offer optimization. Capabilities such as demand forecasting, inventory optimization, bid price optimization, and continuous pricing can provide a foundation for making pricing and offer decisions based on booking request attributes, inventory, and current demand conditions.\u00a0","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/pros.com\/learn\/blog\/modern-airline-retail-offer-management\/#faq-question-1786462634644","position":4,"url":"https:\/\/pros.com\/learn\/blog\/modern-airline-retail-offer-management\/#faq-question-1786462634644","name":"Do airlines need to replace their existing systems to modernize retailing?\u00a0","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"No. Airlines can take an incremental approach by introducing new retailing and offer management capabilities while maintaining compatibility with existing pricing, revenue management, and distribution infrastructure.\u00a0","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/pros.com\/learn\/blog\/modern-airline-retail-offer-management\/#faq-question-1786462656320","position":5,"url":"https:\/\/pros.com\/learn\/blog\/modern-airline-retail-offer-management\/#faq-question-1786462656320","name":"What is total offer optimization?\u00a0","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Total offer optimization represents the evolution toward bringing pricing, inventory, products, and offer creation together within a connected commercial decision framework. Airlines can progress toward this model through capabilities such as bid price optimization, continuous pricing, dynamic ancillary pricing, and AI-driven offer optimization.\u00a0","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/pros.com\/learn\/blog\/modern-airline-retail-offer-management\/#faq-question-1786462670480","position":6,"url":"https:\/\/pros.com\/learn\/blog\/modern-airline-retail-offer-management\/#faq-question-1786462670480","name":"Why is a modular architecture important for airline retailing?\u00a0","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"A modular architecture allows capabilities such as inventory, products, offers, and orders to evolve independently while remaining connected through open standards and interoperable interfaces. 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