Airline order and offer management

By Florian Dehne

The airline industry is undergoing a major retailing transformation under the banner of the International Air Transport Association’s (IATA) “100% Offers & Orders” vision. This initiative – part of the broader Modern Airline Retailing program – is the framework to supporting airlines to move from legacy booking and ticketing models to more flexible, retail-like systems built around dynamic offers and a single customer order record.

While the “Offer” side of the equation – known as New Distribution Capability (NDC) and advanced productization – shows strong progress, the “Order” side (full end-to-end order management, servicing, settlement, and interline capability) remains at an early stage. A 2025 report by global airline software provider Accelya confirms that while 72% of airlines recognize the importance of Offers & Orders, only 27% have begun transformation programs. This is despite the fact that the commercial case is clear and airlines are investing heavily in product differentiation, distribution modernization, and ancillary innovation.

The transformation has therefore not halted, but after the initial buzz it has entered a foundational “build-out” phase. While British Airways, Finnair, Lufthansa, Air France, TAP and other leading airlines are currently taking first steps, the next phase is likely to fall between 2026 and 2028, when mature standards, first production orders, and interline partnerships are expected.

A vision for modern airline retailing

When IATA launched NDC in 2015, the vision was clear: Create a smooth retail-like shopping experience for a seamless journey across the entire travel ecosystem.

Over recent years, airlines have increasingly embraced the ambition of “modernizing retail,” taking cues from e-commerce to deliver more personalized, flexible products. Under IATA’s Modern Airline Retail framework, the industry has created dynamic, personalized offers across all channels, capturing every purchase in a single order record that replaces or complements the traditional passenger name record, tickets or electronic miscellaneous document. This helps align servicing, settlement, and partner fulfilment around that order and ultimately achieve “one order” for interline and partner services. It represents a shift from fragmented legacy artefacts toward an integrated, customer-centric retailing architecture.

Where the industry stands today

On the “Offer” side, the transformation is firmly underway. The industry sees a strong adoption of NDC as the backbone for dynamic offers, estimating that advanced retailing techniques could unlock up to USD 45 billion in global value by 2030.

By contrast, the “Order” element remains in its infancy. Over half of airlines have not developed an Offer & Order strategy, and many lack a dedicated Order Management System (OMS). The concept is widely understood, but the practical, enterprise-wide implementation remains limited.

The slower adoption of ONE Order is not due to lack of belief but structural, operational, and ecosystem challenges, and leaves airline with a blurry outlook on a short-term implementation success.

The reasons why Order systems have yet to be widely implemented by most airlines are numerous: Complexity and breadth of impact, unclear ROI and business-case maturity, legacy contracts and vendor lock-ins, limited standards and ecosystem readiness, data migration and architecture modernization issues, and the challenges of cross-functional and organizational change. Add to that possible dual process operations and interline or partner readiness concerns, and the obstacles can seem bigger than the opportunity itself.

Today’s aviation systems and processes are burdened by decades of legacy, making simplification often harder than implementation. However, from a customer perspective, the desire is clear: We all want to enjoy simple, seamless and fast processes.

The role of AI in modern airline retailing

Although IATA’s technical documentation focuses mainly on standards and architecture, AI is rapidly emerging as a powerful enabler of Modern Airline Retailing.

AI and machine-learning models already play a role in pricing and offer personalization, though these applications are still in their early stages. Airlines are experimenting with reinforcement-learning-based continuous pricing and intelligent offer construction. Major system providers such as Sabre and Amadeus now embed AI-driven personalization engines and provide integration interfaces, yet airlines remain cautious on full-scale implementation.

The largest potential for AI will emerge once airlines implement the OMS. With every element of a journey consolidated in a single structured order, AI can interpret the complete customer lifecycle, enabling proactive servicing, fraud detection, and personalized post-travel engagement. Unified data allows AI to scale across the entire travel chain, from inspiration and booking to disruption managing irregularities and post-travel services. This will help the airline industry to become more customer-focused while reducing complexity in its processes.

The next horizon: 2026-2028

The next three years will determine whether airlines move from pilot to scale. Key developments to watch include:

• Completion and industry adoption of IATA’s final Offer & Order standards
• First full production implementations handling end-to-end order flows
• Launch of multi-carrier interline orders
• Integration of finance, settlement, and partner servicing into the order model
• Expansion of modular, cloud-native vendor platforms enabling gradual migration

The journey toward Modern Airline Retailing on the Offer side is well underway. However, the Order element continues to mature through foundational work. There is a noticeable slowdown in both decision-making and implementation, a phase of strategic consolidation focused on refining standards, modernizing architecture, and aligning the ecosystem for scale. In many ways, the industry appears to be in a holding pattern.

What do these changes mean for airlines and solution providers?

For both airlines and solution providers, the message is clear: Sustain momentum on offers, plan comprehensively for orders, and align systems and partners now to avoid being left behind.

Solution providers must acknowledge that solutions offered are complex to implement and flexible modules are needed. Smaller providers, in particular, should streamline and bundle their OMS or collaborate directly with airlines. Simplification will be the defining theme of aviation in the 2030s, and providers should begin building new customer-centric IT landscapes. AI solutions must become an integral part of the future travel experience and IT solutions must be built around the customer.

Given the aviation industry’s reliance on legacy systems, customized solutions, and middleware, solution providers must better understand airline needs and seize opportunities to offer a more flexible, less complex solution. Roland Berger can support solution providers in developing the right strategy to meet evolving requirements.

For airlines, accelerating decision-making and beginning OMS implementation is essential. With limited providers and even fewer proven solutions, many airlines are delaying their next steps. Professional decision-making and implementation support is critical to elevate the customer experience while reducing operational complexity.

This is a complex topic at the heart of commercial operation, with major implications on passenger service and the CFO’s organization. By combining our CFO Advisory and Aviation expertise, Roland Berger is well equipped to guide airlines through the journey of selecting and implementing their OMS.

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