The airline industry is undergoing a transformative shift, moving away from traditional distribution systems to embrace modern retailing strategies that prioritize customer-centric solutions and revenue growth. On February 27, 2025, in partnership with the African Airlines Association (AFRAA), TPConnects hosted a webinar titled “Unlocking Airline Revenue Growth: Modern Retailing Strategies from NDC to OOSD.” The session provided African airlines with valuable insights into the evolution of airline retailing, the transition to New Distribution Capability (NDC), and the future of Offer, Order, Settle, Deliver (OOSD).

Webinar Overview
The webinar, moderated by Maureen Kahonge from AFRAA, featured two industry experts from TPConnects:

> Giuseppe Candela, VP Global Sales
> Kristiaan VanDijken, VP Product Management (Airline) 

The session aimed to educate African airlines on how to leverage modern retailing solutions to enhance revenue, improve customer experience, and unlock new market opportunities. With over 160 registrations from 40 airlines, including CEOs, heads of distribution, and revenue managers, the webinar highlighted the importance of adopting NDC and OOSD in a competitive and dynamic market. 

Key Takeaways from the Webinar
1. The Evolution of Airline Retailing:
The airline industry has come a long way from traditional distribution systems. Historically, airlines relied on Global Distribution Systems (GDS) to distribute their content. However, with the advent of the internet and digital commerce, airlines began selling directly through their websites and mobile apps. The introduction of NDC by the International Air Transport Association (IATA) marked a significant shift. NDC enables airlines to distribute dynamic, personalized offers across multiple channels, giving them greater control over their content and pricing. The next frontier is OOSD, which extends beyond distribution to offer end-to-end control over product definition, offer generation, order management, and delivery.

2. Why Modern Retailing Matters: Modern retailing empowers airlines to:

  • Enhance Revenue: By offering personalized products and ancillaries, airlines can unlock new revenue streams
  • Improve Customer Experience: Dynamic offers tailored to individual preferences create a seamless and engaging experience.
  • Reduce Distribution Costs: NDC reduces reliance on intermediaries, lowering distribution costs.
  • Increase Market Agility: Airlines can quickly adapt to market changes and customer demands. 

“Ancillary revenue is a critical component of modern retailing. In 2024, ancillaries accounted for 15% of airline revenue, with projections to reach 30% in the coming years. Products like baggage, seat selection, travel insurance, and lounge access are key drivers of this growth.”

– Giuseppe Candela , VP Global Sales, TPConnects Technologies

3. Role of Technology in Modern Retailing
Kristiaan VanDijken highlighted the importance of technology in enabling modern retailing. TPConnects’ Astra platform is designed to help airlines transition to NDC and OOSD. Key features include:

Astra is also hosted in AWS Marketplace, ensuring scalability, security, and reliability. The platform also supports PCI DSS compliance, safeguarding sensitive customer data.

4. Real-World Success Stories
TPConnects has successfully partnered with several airlines, including EgyptAir and Air Cairo Airways, to implement NDC solutions. These partnerships have resulted in: 

  • Increased NDC Adoption: Over 20 API connections and 3,000 agencies onboarded. 
  • Enhanced Revenue: Airlines have seen significant growth in ancillary sales and reduced distribution costs. 
  • Improved Customer Experience: Travel agents and passengers benefit from personalized offers and seamless booking experiences.

5. The Future of Airline Retailing: OOSD
The future of airline retailing lies in OOSD, which provides airlines with complete control over their offers and orders. This paradigm shift enables airlines to: 

  • Personalize Offers: Deliver the right product to the right customer at the right price. 
  • Optimize Revenue: Leverage dynamic pricing and bundling strategies. 
  • Streamline Operations: Simplify technology ecosystems and reduce reliance on legacy systems. 

Kristiaan demonstrated a prototype of TPConnects’ OOSD solution, showcasing how airlines can manage offers, orders, and ancillaries in a single platform. The solution also integrates with third-party providers for non-air products like travel insurance and ground transportation. 

Challenges and Opportunities for African Airlines
Despite the clear benefits of NDC and OOSD, adoption in Africa remains relatively low. Key challenges include: 

  • High Distribution Costs: Many airlines struggle with the cost of implementing NDC solutions. 
  • Limited Control Over Offers: Legacy systems often restrict airlines’ ability to personalize offers. 
  • Resource Constraints: Limited IT resources and expertise can hinder adoption. 

However, the webinar highlighted several opportunities for African airlines: 

  • Partnerships with Technology Providers: Collaborating with companies like TPConnects can accelerate NDC adoption. 
  • Focus on Ancillary Revenue: Airlines can tap into the growing demand for ancillaries like baggage, seats, and travel insurance. 
  • Leveraging NDC for Competitive Advantage: Early adopters can differentiate themselves in a competitive market. 

Engagement and Next Steps: Join Us at AFRAA Convention Rwanda and Share Your Insights
The journey to modern airline retailing doesn’t end here! TPConnects is excited to continue this conversation at the AFRAA Convention in Kigali, Rwanda, from 11th to 14th May 2025. Here’s what’s coming up: 

  • 11th May 2025: Workshop with the Distribution Committee 
  • 13th May 2025: Masterclass in the main conference program 

We invite you to join us at these sessions to dive deeper into modern airline retailing strategies and explore how TPConnects’ Astra solutions can help your airline thrive in this new era. 

Interested in a personalized discussion? Schedule a meeting with us to connect during the AFRAA Convention.
Share Your Insights: Help us tailor our solutions to your needs by participating in our TPC Airline Distribution Strategy Survey. 

Missed the Webinar? Watch the Recap!
If you couldn’t attend the webinar or want to revisit the insights, you can watch the full recap here:  

We look forward to seeing you in Kigali and supporting your airline’s journey toward modern retailing success! 

Conclusion
The transition to modern airline retailing is no longer a choice but a necessity for airlines looking to thrive in a competitive and dynamic market. By embracing NDC and OOSD, African airlines can unlock new revenue streams, enhance customer experience, and reduce distribution costs. 

TPConnects, in partnership with AFRAA, is committed to supporting African airlines on this journey. As Giuseppe Candela aptly put it, “The future of airline retailing is here, and it’s time to take control of your offers and orders.” 

For more information on how TPConnects can help your airline transition to modern retailing, visit www.tpconnects.com or reach out to the AFRAA Secretariat at afra@afra.org. 

Stay tuned for more insights and updates from TPConnects and AFRAA as we continue to revolutionize airline retailing in Africa and beyond!