The Future of Airline Booking: A Shift Toward Flexibility
The airline industry is undergoing a significant transformation, with major players like Flyr, Amadeus, Sabre, and Travelport working to move airlines beyond outdated technology. These companies are focusing on implementing more flexible "offer and order management" systems that could revolutionize how passengers book and manage their travel.
A key element of this change is the introduction of shopping carts into the booking process. This concept, familiar to most consumers in retail settings, allows users to select multiple items at once. In the context of air travel, it means passengers can book different flights simultaneously, making it easier to manage complex trips involving multiple people or destinations.
Alex Mans, CEO of Flyr, highlighted the benefits of this approach. He explained that traditional reservation systems often force travelers to make separate bookings for different segments of their journey. For instance, if one person is flying in business class while another is in premium economy, they would need two separate reservations. With a shopping cart system, these options can be managed within a single booking, offering greater convenience and flexibility.
Mans shared a personal experience that illustrated the challenges of current booking systems. During a recent summer trip, his family required seven separate bookings to coordinate their travel. This included one-way tickets and return trips, sometimes among people on the same flight. He emphasized that such a situation is not only time-consuming but also unnecessary in today's digital age.
Flyr aims to transform airlines from mere reservation system operators into modern digital retailers. The company envisions airlines functioning more like Amazon or Spotify, where customers can easily access and customize their travel experiences. This shift includes not just flights but also other services such as hotels, car rentals, activities, insurance, and even e-sims for international travel.
Beyond Flight Bookings
Next-generation booking systems are being developed by Flyr and other industry leaders, aiming to move airlines away from legacy "passenger service system" (PSS) technology. These new systems focus on "offer and order management," which promises a more personalized and flexible booking process. Passengers will have the ability to change or refund their bookings independently, and they can purchase additional services alongside their flights.
This evolution is not just about convenience; it's about competition. By integrating these features, airlines can better compete with online travel agents and other digital platforms. Flyr is helping airlines sell a wide range of travel-related products directly through their websites, creating a more seamless and comprehensive customer experience.
A Major Test Case
One of the most significant tests of this new system will take place later this year with the launch of Riyadh Air, a Saudi Arabia-based carrier. Through a partnership with Flyr, Riyadh Air will operate without PSS technology, making it the first "digitally native" airline in the world. This move represents a direct challenge to the long-held belief that legacy technology is essential for supporting travel agent distribution and connectivity with other airlines.
Offer and order management systems are central to the airline industry's push for new distribution capabilities. These systems allow airlines to personalize booking offers, enhance customer experiences, and increase revenue. According to an Amadeus Insights report, around 30% of sales are expected to come from these new capabilities by next year.
The report also highlights the growing importance of transitioning to a retail model. More than one in five airlines identified this transition as one of their top three priorities in airline technology today. As the industry continues to evolve, the integration of flexible, customer-centric systems is set to redefine the way people travel.
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