Less than a third of airlines have started Offer & Order development, despite recognizing revenue potential, finds Accelya and Atmosphere Report Group Research

London – April 02, 2025

• Accelya in partnership with Atmosphere Research Group today publishes its Future of Airline Retailing Report revealing despite 66% of airlines using NDC, less than a third (27%) have taken substantive steps to develop Offers and Orders. 
• The lack of progress comes despite 72% of airlines considering the transition to offers and orders as important, offering new revenue opportunities. 
• Created based on survey insights from 78 airline executives and phone interviews with 28 airlines and industry experts – including the likes of American Airlines and British Airways – the report reveals the status of Offer and Order adoption.   

Accelya, the leading retailing software provider for the global airline industry, released its Future of Airline Retailing report created by Atmosphere Research Group. The report reveals despite 66% of airlines having implemented New Distribution Capabilities (NDC), less than a third (27%) have taken substantive steps to begin the Offer and Order transformation. 

The lack of progress comes despite 72% of airlines considering the transition to retailing important. Insights indicate that airline executives are held back by legacy technology, as they seek to replace it with agile, open platforms to advance execution. 

The independent report combines survey insights from 78 airline retailing executives and industry experts with the views of 28 airline professionals in telephone interviews, including American Airlines, British Airways and Emirates, to reveal the state of airline retailing adoption.

Retailing transformation business case clear, but execution lags 

The report reveals retailing strategies including dynamic offers, personalized content, order-based servicing and modular technology are widely recognized as engines of revenue growth and competitive differentiation. Airlines cite the key advantages as the ability to generate additional revenue (91%), quantify customer value (81%) and attract new customers (79%). Looking ahead to 2028, 83% believe continuous pricing will be important to how they retail. 

George Bryan, Head of Revenue Strategy, Hawaiian Airlines, said, “We want to personalize more. We want to offer bespoke offers to our guests. And to do all of that, we need to move to an Offers and Orders world.” 

Despite the opportunities, and increasing passenger expectations on the shopping experience, execution of retailing strategies lags as over half (53%) of airlines haven’t developed or started an Offer and Order strategy. A fifth (19%) haven’t established any retailing-related objectives, yet don’t think it will be long until they move from legacy Passenger Servicing Systems (PSSs) to Full Retailing Platforms. 44% believe they’ll be able to transition by 2028, while 38% anticipate they’ll need to remain on their PSSs until at least 2029. 

“The gap between retailing appetite and execution is closing, with 2028 to 2029 realistic for transitions,” commented Henry Harteveldt, Travel Analyst and CEO at Atmosphere research Group. “Hesitancy to move to Offers and Orders stems from internal resource constraints, the complexity of existing agreements – such as PSS or GDS contracts – and uncertainty about return on investment. Airlines today want to break free from restrictive tech, replacing it with agile, open platforms. Cloud-ready, modular infrastructures will enable faster experimentation, faster product launches, and easier integration with partner ecosystems seeing significant changes to carriers’ distribution channel shares by 2028.” 

Strategic priorities uncovered looking to 2028

As the airline industry moves toward a more retail-driven future, distribution dynamics are shifting significantly. According to the report, NDC distribution is expected to triple over the next three years, growing from 7% to 21% of total airline bookings. Meanwhile, direct channels—such as airline websites and mobile apps—are forecasted to increase from 45% to 51%, while traditional EDIFACT GDS distribution is projected to decline by more than 57%. 

These trends indicate a clear industry-wide push toward modernized retailing and distribution strategies. To remain competitive, airlines must proactively adapt by focusing on key strategic priorities: 

1. Invest in modular and open retailing solutions to enable flexibility and scalability.
2. Leverage data-driven personalization to enhance customer experience and drive revenue growth. 
3. Optimize indirect distribution channels by balancing NDC, direct, and agency partnerships. 
4. Transition revenue accounting to order-based models in alignment with Offer and Order adoption. 
5. Enhance post-purchase servicing to improve customer engagement and retention. 
6. Secure executive buy-in and foster cross-functional collaboration to drive execution at scale. 

By adopting a structured approach to retailing and distribution, airlines can position themselves for long-term success in this evolving landscape. 

Tye Radcliffe, Chief Customer Success Officer at Accelya added, “Today’s findings give us even more insight into the challenges airline leaders face during the transition to Offers and Orders. The key to success is remembering that while retailing transformation is complex, it does not require a full system overhaul. At Accelya, we help airlines move functionality from legacy platforms to new retailing-friendly systems through an open and modular approach – we don’t lock airlines into expensive all or nothing packages. Instead, we empower them to innovate at their own pace, ensuring interoperability and alignment with financial and operational goals. 

“What’s undeniable is that the transformation to Offers and Orders is already underway, with the report urging airlines to act decisively. Early adopters are gaining a competitive advantage, and as more airlines reach critical mass, industry-wide acceleration will follow. I’m proud to be playing such an active role in supporting airlines to embrace intelligent retailing, streamlining operations and unlocking new revenue streams. The industry is going to transform, and we’ll be at the heart.”

The full report is available for download here!

About Accelya

Accelya is a global leader in airline software, powering over 200 airlines with an open, modular platform that enables them to drive growth, enhance customer experiences, and take control of their retailing. Our FLX ONE platform empowers airlines to transform across Offer, Order, Settlement, and Delivery (OOSD), in line with IATA’s standards for modern retailing.  

With a cloud-native infrastructure powered by AWS, Accelya processes more than 30 billion unique offers daily, settles over $100 billion annually, and delivers more than 50% of global NDC volumes. Our solutions span the entire retail lifecycle, both above and below the wing, giving airlines the flexibility, performance, scalability, and reliability they need.  

Backed by 40 years of industry expertise, long-term support from Vista Equity Partners, and 2,500 employees across 10 global offices, Accelya has the scale and proven track record to meet the evolving needs of the airline industry. 

For more information, visit the Accelya Website.

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