Today, we live in an era where technology is rapidly transforming industries – and travel is no exception. There is a substantial shift happening in the travel retailing landscape, propelled on by two main forces: changing consumer expectations and the introduction of new standards that enhance retail, servicing and payment opportunities.
This transformation is currently predominantly driven from within the airline industry – spurred on by IATA’s Modern Airline Retailing initiative. But what does this mean for travel sellers? What are the opportunities and challenges ahead? And what effects does it have on the wider ecosystem?
Today we unveil a report where we explore this complex, industry-wide and generational change.
With A Mind-Shift: From Modern Airline Retailing to Modern Travel Retailingwe unravel the accelerating transformation, explore some of the likely impacts and opportunities for travel sellers and look at ways in which they can improve and grow their business as the landscape evolves. Although much remains to be decided, this is the time for travel sellers to own their own transition.
Why the mind-shift?
Change is nothing new to the travel industry, but this ongoing transformation in the travel retailing landscape can be seen as its most substantial in a generation.
Basically, it means replacing or evolving much of the technology which underpins the industry. While robust and effective, many current standards were designed last century and were thus not conceived to support digital retailing.
This is the goal with the Modern Airline Retailing initiative, which aims to upgrade both standards and technology for how selling and buying of flights take place - spanning distribution, payments and settlements and data ownership. At Amadeus, we are supporting this retailing transformation, and in 2023 introduced Amadeus Nevio, a next generation retailing technology that provides airlines with end-to-end solutions.
But - the need for better retailing is not limited to the sale of air tickets. And while the ongoing transformation is currently aviation-led, the interconnected nature of travel means we will see ripple effects across the whole ecosystem – with extended benefits. That’s why we are really talking about ‘modern travel retailing’.
The first steps
So what exactly will change, and how do we own the transition? Not all questions have answers yet, but we do see some trends. Some changes are more imminent than others, some will have bigger or smaller impacts, but as processes and standards change, certain business adaptations are required. And now is the time to begin or accelerate preparations.
More details are in the report, but here are some key highlights:
NDC
One of the most concrete – and well known – first steps towards a modern retailing experience is the implementation of NDC (New Distribution Capability), which enables air products to be retailed very differently. There are still some hurdles for full scale adoption, but momentum is picking up and the growth is expected to continue. And although NDC is not the end game, it is a critical enabler for better retailing, and it’s important to understand how NDC will take travel experiences to the next level and adopt and embrace it, in order not to be left behind. Although we will continue to live in a hybrid world with EDIFACT and NDC technology working in parallel for some time, traditional workflows are gradually disappearing.
A “new” PNR
We also foresee a gradual retirement of the Passenger Name Record (PNR) as we know it today – and with that a need for an evolution of what passenger information is stored and how. The ONE Order is a stepping stone to create a single, integrated record to streamline the sales processes for air – but we believe that this is the moment for travel sellers to transition into a traveler-centric trip storage repository that covers any type of booking that a traveler could possibly require.
Simplified processes and more flexibility
In modern retailing, flexibility is pivotal. One size clearly does not fit all anymore, and new standards and technology will enable us to provide travel sellers with tools to book personalized and varied services – including different flights, baggage options, or seats – for multiple travelers within the same Order, compared to the more or less identical itineraries required today.
We also see current industry-specific, and sometimes quite complex, actions and processes to sell a ticket are also being replaced with simpler retail-oriented flows. We see this as a great opportunity for freeing up time for travel sellers to focus on their value as trusted travel advisors.
Amadeus will support the transition - whatever form it takes
The path to Modern Travel Retailing is a journey, it won’t happen overnight – and there is still a lot we don’t know, such as what shape or form it will take. But – just because we don’t have all of the answers yet, there is no reason not to embrace and drive the change!
What we do know is that technology is the key transformational driver, and it will require travel sellers to choose the right partners that will drive their technologies forward and provide positive business outcomes. Amadeus is already playing its part.
For starters, we are accommodating our current systems, business practices and workflows into future systems and processes to ensure that all stakeholders can maximize the potential of modern travel retailing.Our unique position as one of the world’s largest travel distribution platforms and leading provider of IT solutions for travel providers and travel sellers allows us to work alongside airlines, hotels, and other industry players. Together, we will overcome existing challenges and pave the way for a more seamless, efficient, and customer-centric travel experience.
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