In today’s rapidly evolving aviation landscape, airlines face a critical challenge: how to maximize revenue while delivering exceptional customer experiences in an increasingly digital world. The momentum for transformation is clear.
According to the 2024 IATA-BCG survey “Transforming Airline Retailing: A New Era of Opportunity,” an overwhelming 83% of airline representatives across IT, distribution, and commercial functions are advocating for the transition to modern retailing. Even more telling, 80% of respondents view this shift as both strategic and value-creating for their airlines, marking a significant increase in industry maturity from previous years.
This industry-wide readiness for change is yielding tangible results. Airlines that have successfully implemented intelligent offer and order management solutions have achieved positive outcomes—with up to 3-5% improvement in revenue annually, demonstrating the tremendous potential of modern retailing solutions. 81% of respondents stated that their airline currently has live NDC channels,
The 2024 IATA- BCG Survey reveals that in some cases airlines have already achieved NDC penetration of more than 50% of indirect channel bookings. Those results offer clear evidence of the airline industry’s progress and commitment to modernizing distribution.
The Future of Airline Retailing is Here
“Airline retailing is about offering the right products at the right time to the right customers – and this starts with having a robust offer and order management solution at the core.” – IATA Global Airline Retailing Program. This insight from IATA’s Global Airline Retailing Program captures the essence of the industry’s transformation. Today’s airlines are embracing sophisticated offer-focused models that integrate seamlessly with order fulfilment and settlement processes. Static offer generation enables airlines to provide consistent pricing and predefined options, ensuring transparency and simplicity.
According to IATA’s Annual Review 2024, airlines are experiencing substantial growth from Modern Airline Retailing, with some airlines achieving a 1.5–2.0% revenue increase from continuous pricing and a five-to-tenfold increase in ancillary sales.
Our vision for an airline-centric Offer, Order, Settlement, and Delivery (OOSD) solution enables this Modern Airline Retailing shift. By leveraging IATA’s NDC Orders (Enhanced Distribution) and the single order record (Simplified Distribution). Astra OOSD enables airlines to move beyond traditional fare-centric approaches to a sophisticated offer-focused model where every customer interaction becomes a personalized opportunity. This involves seamlessly integrating offer management with robust order fulfillment and settlement processes, including direct connectivity with revenue accounting systems. This ensures accurate and real-time financial reconciliation, providing airlines with a cohesive and transparent transaction experience. Ultimately, this enhances operational efficiency, improves customer satisfaction through real-time order references, and grants airlines greater control and flexibility over their inventory, revenue management strategies, and financial performance.
The OOSD Advantage
1. Compartmentalized Product Catalogue Solution
This comprehensive approach begins with intelligent product catalogue management, where airlines gain direct control over their offerings and real-time availability. Modern catalogue solutions have revolutionized how airlines present and manage their products, creating transparency for customers while optimizing resource utilization.
Astra OOSD’s advanced catalogue solution empowers airlines with:
- Direct control over product attributes and pricing
- The presentation of products with rich media and detailed product attributes enhances the customer experience by allowing them to compare the value between multiple product offerings
- Reduced dependency on third-party systems, leading to lower distribution costs
- Greater strategic autonomy in product management
2. AI-Powered Stock Keeper
The second pillar introduces AI-powered inventory management, bringing increased intelligence to airline operations. These systems don’t just track availability, they predict demand, adjust pricing dynamically, and coordinate with partners across the supply chain. This level of sophistication ensures airlines can respond rapidly to market changes while maintaining efficient operations.
Astra OOSD’s inventory management system leverages artificial intelligence and machine learning to help transform airline operations:
- Real-time availability updates for seamless booking experiences
- Optimized resource utilization through real-time availability management
- Dynamic pricing capabilities based on demand, booking patterns, and competitive analysis
- Comprehensive inventory visibility across all products and services
- Enhanced supply chain coordination with airports and service providers
- Rapid market responsiveness for competitive advantage
- Scalable architecture supporting future growth
- Future-proof design ready for emerging technologies
- Shift from backdated legacy inventory management system
3. Rich Content Management
Content management represents the third crucial element, focusing on how airlines present their products to the world. Modern systems enable airlines to tell their story effectively across all channels, ensuring customers receive consistent, engaging information about products and services. This visual and informational consistency builds trust and helps customers make informed decisions.
Elevate your brand presence with our rich media offering:
- Comprehensive multimedia content to visualize Product offerings
- Engaging visual storytelling that drives conversion
- Dynamic content adaptation across all distribution channels
- Consistent brand messaging and product presentation
4. Seamless Non-Air Product Integration
Modern airline retail systems seamlessly integrate ancillary services, from ground transportation to travel insurance, creating comprehensive travel experiences. This integration allows airlines to serve as end-to-end travel providers, not just transportation companies.
With Astra OOSD, create comprehensive travel experiences by incorporating:
- In-flight amenities and services
- Ground transportation options
- Travel insurance and protection
- Accommodation and destination services
- Offsetting carbon emission
5. Enhanced Personalization Foundation
Astra OOSD enables airlines to define and manage unique offers through sophisticated product management capabilities, with real-time personalization aligned with IATA standards 21.3 and above. Airlines can craft unique offers that resonate with individual customer preferences and needs, driving higher conversion rates and customer satisfaction.
Expected Business Impact of OOSD
Revenue Growth and Optimization
- Enhanced revenue potential through sophisticated product bundling capabilities
- Maximized ancillary sales opportunities aligned with customer preferences
- Data-driven pricing strategies that respond to market dynamics
Customer Experience Enhancement
- Strengthened brand relationships through personalized services and seamless experiences
- Comprehensive product information enabling informed purchasing decisions
- Tailored offerings for specific customer segments based on preferences and behaviour
- Rich content delivery across all channels enhancing the shopping experience
Operational Excellence
- Streamlined distribution processes through standardized framework
- Reduced operational costs through automated offer and order management
- Increased organizational agility in responding to market changes
- Efficient integration with existing airline systems and processes
Competitive Advantage
- Distinguished retailing capabilities that set you apart in the marketplace
- Enhanced ability to create and manage unique product offerings
- Greater control over product presentation and distribution
- Improved speed-to-market for new products and services
What Airlines Are Getting: The Four Pillars of Value
Astra OOSD solution delivers four fundamental benefits that transform airline retailing capabilities:
A Future of Continuous Innovation
As airline retail technology continues to evolve, we’re seeing the emergence of even more sophisticated capabilities.
- Science based Personalization Offer: Advanced algorithms enable real-time adjustments based on customer behaviour and market trends.
- Automation in Order Fulfilment: Streamlined processes reduce manual intervention while improving accuracy.
- Enhanced Data Analytics: Airlines gain deeper insights into customer preferences, enabling smarter decision-making.
By staying ahead of these trends, TPConnects ensures that Astra OOSD remains a future-ready solution for airlines looking to thrive in a competitive marketplace.
The transformation of airline retail technology involves more than just implementing new systems; it requires completely reimagining the relationship between airlines and their customers. As industry standards evolve and technology progresses, airlines that adapt and embrace these changes will be better positioned to succeed in an increasingly digital future. Modern retail systems are essential for this transition, empowering airlines to offer personalized and seamless experiences that customers expect while enhancing their operations for success in a dynamic marketplace.
Experience Astra OOSD Today
At TPConnects, we believe in demonstrating the power of our solutions. That’s why we’ve developed a fully functional demo of Astra OOSD that airlines can test immediately. This hands-on experience allows airlines to:
- Explore the intuitive user interface
- Test dynamic pricing scenarios
- Experience real-time inventory management
- Simulate personalized offer creation
Moreover, we’re proud to announce that we are currently working with one of our airline customers to implement Astra OOSD in a real-world environment. This established demo platform serves as a living proof of concept, showcasing how Astra OOSD can transform airline retailing operations.
Ready to see Astra OOSD in action? Contact us today to schedule your personalized demo and take the first step towards revolutionizing your airline’s retailing capabilities.
