The Modern Airline Retailing initiative represents a paradigm shift in how airlines approach and serve their passengers—not only by moving from static, reservation-class and fare-based quotes to dynamic, customer-centric retailing—but also with fundamental changes in how the products in an offer are delivered and accounted for.
The new model with Offers and Orders at the core aims to provide airlines with more agility, greater control over their product, data, and money, through cost savings as well as increased revenue opportunities. Many airlines have already indicated their ambition for this significant transformation, arguably the largest one ever for the industry. Success in this transformation, however, depends on more than ambition. It requires a realistic transition plan with well-defined milestones, resources to undertake the work ahead, and technology partners already positioned for what the future entails.
Order Management Replacing Legacy Processes
Once an Offer is accepted, the Order Management System (OMS) as the main orchestrator takes over. An Order effectively replaces the legacy PNR, EMD, and e-ticket structure with a single, persistent Order ID. This creates a seamless flow from booking through to fulfillment, servicing, and settlement. The OMS integrates with payment providers, other suppliers, delivery management systems and settlement solutions. The transition from multiple different records and documents into one Order acting as the single source of truth with real-time orchestration capabilities eliminates duplication, simplifies servicing, and most importantly, improves customer experience, especially for complex itineraries.
The Offer and Order Management System is also supported by legacy adapters to ensure backward compatibility with traditional distribution and delivery channels over EDIFACT, TTY and other legacy formats. Airlines can manage all channels from a single platform, while the orchestration layer ensures consistency across the entire distribution—modern or legacy.
While it may look like a bold statement today, our strategy and vision indicate that the Passenger Service System (PSS) as the main orchestrator of the product offer today will transform into a mere operational layer or be replaced altogether by the modular services of the future within the OMS.
Transition Roadmap
It is no secret that not all airlines are at the same starting point, nor are they progressing at the same pace. That is why we also focus on creating awareness about the Modern Airline Retailing initiative and providing an easy to digest roadmap to our partner airlines toward full retailing transformation with minimal disruption. Ultimately, each airline needs its own pathway reflecting its own strategy, size, and operational complexity.
Modern Airline Retailing is no longer an industry buzzword. It has already become the foundation for the digital and competitive airlines of the future. The transition, however, will not be an overnight change. It is rather a strategic evolution that requires planning, alignment, and collaboration. At Hitit, as a prominent player in the IATA ARM index, we are committed to supporting all our partner airlines navigate this transformation with confidence and clarity. Our solution already supports the needs of airlines, unlocking new revenue streams and operational efficiencies while safeguarding what works today with a modular platform of the highest capability.
*Find out more about Hitit Computer Services engagement in the IATA's Strategic Partnership Program on the partners directory.
