Transforming Airline Distribution with Offer and Order Management

Abstract

The airline industry is shifting from traditional Global Distribution Systems (GDSs) to IATA’s New Distribution Capability (NDC) and Offer and Order Management (OOM), enabling airlines to create, distribute, and fulfill travel offers directly. OOM uses APIs for real-time communication, allowing airlines to control inventory, personalize offers, and adopt dynamic pricing, maximizing revenue and enhancing customer choice with rich content. However, implementing OOM is complex, requiring IT and business process transformation. Airlines face challenges coordinating departments, sourcing talent, and integrating legacy GDSs with NDC. Resistance from travel agents invested in GDSs also complicates adoption, making seamless integration essential.