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Airline Distribution Changes Present Opportunities and Challenges for the Industry

This article outlines why OpenJaw believes full ownership and a transition to Integrated Airline Retailing can truly transform revenues for an airline.

Whitepaper by Travel in Motion and Oystin Partners. Sponsored by OpenJaw Technologies.

This white paper explores the benefits of modern airline retailing and how it can address these challenges, while also taking advantage of current market dynamics.

The world of Big Data in travel is evolving. In fact, it is really no longer correct to label anything ‘Big Data’. Today it is so commonplace that we have finally moved away from the label of ‘Big Data’ to call it what it really is – just ‘Data’.

NDC enables airlines to transform the way they distribute to these third-party sites by addressing the industry’s current distribution limitations.

Retailing is fuelling a revolution in how travel is purchased. In the wider world, retailers have developed sophisticated merchandising techniques to better serve their customers. Airlines are exploring new types of travel services to add value to their customers and improve profitability, but they are selling these services with a traditional airline mind-set.

What your CEO needs to understand about innovation today.

It is up to 50% easier to sell to existing customers than to win new customers. A 5% increase in customer retention can increase a company’s profitability by 25%, or more – sometimes up to 95%.

We are witnessing a shift that will completely transform travel.

No matter what part of travel you are involved with and no matter what job you work in, Big Data will transform it.

When making a decision, it would be nice to think that people consider all the available information in order to guide their thinking. But reality is very different. Humans need shortcuts or rules of thumb to guide our decision-making.

The nature of airline distribution has been fundamentally transformed by two massively disruptive forces:

What Airlines Need To Know To Set Themselves Up For The Next 10 years

A one-stop shop for all your Direct Channels (Web, Mobile & NDC Sales)

Today, against the backdrop of a global pandemic, we are seeing evidence of a recovery in aviation primarily in countries with large domestic travel markets such as the United States and China.

Airlines have to be dramatically more effective in how they sell, so that their customers find the value they seek. To deliver this value, airlines have to see themselves as retailers of products and services rather than just ‘seat sellers’.