Future of airline retailing: Only 27% of airlines have started Offer & Order transformation

LONDON, UK – Despite 66% of airlines having implemented New Distribution Capabilities (NDC), less than a third (27%) have taken substantive steps to begin the Offer and Order transformation, according to the Future of Airline Retailing Report released by Accelya in partnership with Atmosphere Research Group.

This lack of progress comes even though 72% of airlines consider the transition to Offers and Orders important, recognizing the opportunity to modernize retailing, improve the customer experience, and unlock new revenue.

Created based on survey insights from 78 airline executives and phone interviews with 28 professionals at carriers including United Airlines, British Airways, Kenya Airways and others, the report reveals the current status of Offer and Order adoption across the industry.

Retailing business case clear – execution lags behind

The report finds that retailing strategies – including dynamic offers, personalized content, order-based servicing, and modular technology – are widely recognized as engines of revenue growth and competitive differentiation.

Airlines cite the key advantages as the ability to generate additional revenue (91%), quantify customer value (81%), and attract new customers (79%). Looking ahead to 2028, 83% believe continuous pricing will be important to how they retail.

Despite the clear upside and increasing customer expectations, execution is lagging: over half (53%) of airlines haven’t developed or started an Offers and Orders strategy. A fifth (19%) haven’t established any retailing-related objectives at all—although many expect to transition from legacy Passenger Servicing Systems (PSSs) to full Retailing Platforms soon. While 44% believe they’ll transition by 2028, 38% expect to remain on PSSs until at least 2029.

“The gap between retailing appetite and execution is closing, with 2028 to 2029 realistic for transitions,” said Henry Harteveldt, Travel Industry Analyst and President, Atmosphere Research Group. “Hesitancy to move stems from internal constraints, legacy contracts, and uncertainty around ROI. Airlines want to break free from restrictive tech and replace it with agile, open platforms. Cloud-ready, modular infrastructures are the path forward – enabling faster experimentation, product launches, and integration, all while enhancing customer experiences and delivering more personalized, seamless travel.”

Strategic priorities revealed for 2028 success

As the industry moves toward a retail-driven future, distribution dynamics are shifting rapidly. According to the report:

• NDC distribution is expected to triple over the next three years, growing from 7% to 21% of total airline PBs by 2028. This projection is already taking shape: ARC data shows over 19% of U.S. transactions were settled via NDC in late 2024, and a recent Garner report estimates that 13% of indirect global bookings were already NDC-powered in 2024.
• Meanwhile, direct channels – such as airline websites and mobile apps—are forecasted to increase from 45% to 51%, while traditional EDIFACT GDS distribution is projected to decline by more than 57%.

To remain competitive, airlines must proactively adapt. Key strategic priorities include:

• Invest in modular, open retailing solutions to ensure flexibility and scalability
• Leverage data-driven personalization to enhance customer experience and drive revenue
• Optimize indirect channels by balancing NDC, direct, and agency partnerships
• Transition from revenue to order-based accounting models
• Ensure seamless post-purchase servicing to build loyalty
• Secure executive sponsorship and cross-functional collaboration to accelerate change

“The findings give us even more insight into the challenges airline leaders face during the transition to Offers and Orders,” said Tye Radcliffe, Chief Customer Success Officer at Accelya.

“The key is to remember that transformation doesn’t require a full system overhaul. At Accelya, we help airlines move at their own pace, shifting from legacy to retailing-friendly systems through an open and modular approach – not locking them into expensive, all-or-nothing packages.” 

“What’s undeniable is that the transformation is already underway,” Radcliffe added. “Early adopters are gaining a competitive edge—and as more airlines reach critical mass, the pace of change will accelerate. We’re proud to be at the heart of this shift, supporting airlines to unlock new revenue and deliver smarter, seamless retailing.” 

  The Future of Airline Retailing Report - Final (1)

The article Future of airline retailing: Only 27% of airlines have started Offer & Order transformation first appeared in TravelDailyNews International.