At the recent World Financial Symposium in Doha, the transformational impact of retailing on airline Finance was a trending topic. Airline leaders discussed the opportunities for accounting in a world of offers and orders. At the event, Accelya customer Konda Reddy, Head of Revenue Accounting at Qantas, took the stage to set the scene for his industry colleagues. If you’re in airline Finance and couldn’t attend the session, we have rounded up the key takeaways in this article on the Air Transformation Lab.
NDC adoption is about airlines taking control of their retailing, which means selling products to customers at the right price for the customer and the airline. It allows airlines to make personalized offers directly to customers to give them more value and increase uptake. NDC has transformed airline distribution by heralding the concepts of offers and orders.
ONE Order is a logical extension of NDC and an essential step in retailing transformation. Touching every part of the airline, ONE Order enables the transformation of the travel experience from servicing, fulfillment, delivery, accounting, settlement, and interline.
The change to a world of offers and orders will be more complex than moving from paper to electronic tickets. Three pillars underpin a successful journey:
- An organization-wide strategy to replace PNRs/tickets with orders.
- Collaboration across departments.
- A roadmap for the transition that breaks this down into small steps designed to realize value.
Finance is a critical stakeholder, as we bring focus to the integrity of end-to-end processes. This integrity is essential, as airlines depend on offer and order implementation to simplify operations and improve the accuracy and timeliness of accounting and reporting.
The retailing journey is a whole company effort, and finance needs to be involved from Day One. Prepare to collaborate with commercial counterparts by learning about the NDC and ONE Order standards to maximize the offers and orders opportunity. An excellent way to do this is to participate in the IATA working groups that are developing the standards.
Philip Fernandes, Senior Vice President – Product Strategy at Accelya interviewed Konda at the event. To watch the session, click below: