What Is OOSD?
OOSD, or Offer, Order, Settle, and Delivery, is a comprehensive framework that encompasses the entire airline retailing lifecycle. It addresses the interconnected processes of creating offers, managing orders, handling financial settlements, and delivering services effectively. OOSD is pivotal in transforming the airline industry’s retailing approach, offering a streamlined and modern way to cater to evolving customer expectations while enhancing operational efficiency.
This framework integrates critical stages of the airline retailing value chain, ensuring that offers are personalized and optimized, orders are seamlessly managed, settlements are accurate and timely, and services are delivered in a way that maximizes customer satisfaction. Airlines leveraging OOSD can respond dynamically to market demands, creating a retailing ecosystem that is more agile and customer-focused.
How Does OOSD Work?
OOSD operates by linking four core elements of airline retailing into a unified framework:
Offer:
The Offer phase focuses on creating tailored offers for passengers, including ticket prices, ancillary services (such as extra baggage, in-flight meals, or seat upgrades), and loyalty rewards. Leveraging technologies like FLX ONE NDC, airlines can create dynamic, personalized offers based on passenger preferences and booking history, while ensuring seamless distribution across multiple channels.
Order:
Once an offer is accepted, it transitions into an order. Orders consolidate all purchase details into a single record, replacing the traditional Passenger Name Record (PNR) system. This streamlined approach ensures accurate tracking and management of customer purchases, enabling airlines to provide better service. This is exemplified in real-world applications of NDC, where airlines utilize innovative solutions to create, manage, and distribute personalized offers seamlessly.
Settle:
Settlement ensures that all financial transactions associated with the order are accurately reconciled. This includes payments made by customers and commissions or fees associated with distribution channels.
By integrating modern payment systems, OOSD simplifies the settlement process, reducing errors and delays.
Delivery:
The final stage involves fulfilling the order by delivering the purchased services, such as flight tickets, onboard services, and baggage handling. Effective delivery ensures that customers receive a seamless travel experience, building loyalty and trust.
Why Is OOSD Important for Airlines?
The OOSD framework plays a vital role in the evolution of airline retailing, addressing the following challenges:
- Improved Retailing: By integrating dynamic offers and personalized order management, airlines can maximize revenue opportunities.
- Operational Efficiency: Streamlining settlement and delivery processes reduces administrative overheads and minimizes errors.
- Enhanced Customer Experience: A unified approach to offers and orders ensures consistency and satisfaction throughout the customer journey.
- Adaptability to Modern Standards: OOSD aligns with industry standards like IATA’s NDC and ONE Order, helping airlines transition to modern retailing practices.
OOSD in Practice
Leading airlines have already adopted OOSD to transform their retailing processes. By leveraging AI-driven analytics, real-time data, and modern distribution systems, they are able to create personalized offers, manage orders centrally, and deliver services efficiently. The OOSD framework was a focal point at the Driving Offers and Orders Transformation T2RL Engage 2024 event, where industry experts and leaders explored how airlines can modernize retailing processes to meet evolving customer expectations.
For example, an airline using OOSD can:
- Offer dynamic pricing based on demand and customer segmentation.
- Track orders across all distribution channels in real-time.
- Reconcile payments and settlements faster, ensuring better cash flow management.
- Deliver personalized services, such as pre-selected meals or specific seating preferences.
The Future of OOSD in Airline Retailing
As the airline industry continues to evolve, OOSD will remain a cornerstone of modern retailing. With the integration of advanced technologies like artificial intelligence, machine learning, and blockchain, the OOSD framework is poised to deliver even greater efficiencies and customer-centric innovations.
Airlines adopting OOSD can stay ahead of the competition by offering passengers a seamless, personalized, and efficient retailing experience.
Conclusion
OOSD (Offer, Order, Settle, and Delivery) represents a revolutionary approach to airline retailing, connecting the dots between creating offers, managing orders, ensuring settlements, and delivering services. By embracing this framework, airlines can redefine the way they serve customers, driving both profitability and loyalty in an increasingly competitive market.