Modern airline
retailing is crucial to delivering exceptional experiences to today’s air
travelers.
It’s a term that encompasses a seamless, intuitive and intelligent approach to
shopping, booking and fulfillment, involving the concept of offering not only
traditional ancillaries but also a range of new products and non-air extras,
such as car hire, accommodation, excursions and events.
Personalized product bundles, tailored with contextual information and more
relevant search results based on traveler profiles or personas are now part and
parcel of this retailing revolution. Furthermore, enhanced self-service options
and automated order management have become essential components in providing a
frictionless experience.
According to
IATA, $40B of additional value creation is within reach
The key to
success lies in embracing modern retailing, a paradigm shift that transcends
technology and requires a holistic approach. Sabre, as a trusted strategic
partner, is here to guide airlines along a flexible four-phase transition
pathway, ensuring not only a seamless shift but also the opportunity to unlock this
substantial additional revenue.
Charting a clear
course
Transitioning
to modern retailing demands a structured approach, one that balances existing
technology systems with the future of offer- and order-based retailing. Sabre's
phased approach enables airlines to move away from traditional Passenger
Service Systems (PSS) and towards their modern retailing goals.
Phase 00: Transition
readiness
Phase 00 lays
the groundwork for transformation. Here, the emphasis is on creating a clear
vision and crafting a robust strategy. Early collaboration with technology
partners is key, ensuring a seamless transition in the phases that follow. This
phase is not only about preparation but also about unlocking strategic
potential.
Phase 01: Offer
and order foundations
Phase 01 is
where the magic begins. It's the phase where traditional constructs meet the
future, allowing Passenger Name Records (PNRs) and orders to coexist. This is
where airlines can refine their retailing
strategies.
As a critical piece of the modern retailing puzzle, NDC opens up the capability
for airlines to create and distribute enhanced travel offers and ensure
travelers can more easily find what they’re looking for, regardless of
distribution channel. Additionally, the use of AI/ML-powered experimentation will
help airlines better meet the needs of retail-savvy customers while developing
a competitive edge. With Sabre's Retail Intelligence product suite, powered by Sabre
Travel AI, airlines can
achieve pricing precision, present personalized ancillary products and even
generate revenue from premium cabin upgrades. It's the starting point for
incremental revenue gains.
Phase 02: Hybrid
world
Phase 02
represents a breakthrough. Orders become the focal point, coexisting with PNRs.
Sabre activates a translation layer to facilitate communication with partners
using traditional technologies, ensuring seamless collaboration as airlines
progress toward 100% offers and orders industry-wide. This phase ensures
independence while maintaining crucial partnerships.
Phase 03: New
heights
Phase 03 is the
end-game, where airlines fully transition to offer and order retailing and
fulfillment. Standalone orders become the norm across the travel ecosystem, the
airline’s IT stack is modularized, and its APIs are in line with industry
standards.
At this stage, the PSS and translation layer can be decommissioned, unlocking
cost savings and enhancing efficiency. It's the culmination of the journey
towards a modern retailing future.
Maximizing revenue:
A shared priority
Sabre
understands that revenue generation is the lifeblood of this transition. Early
revenue gains not only sustain the journey but also fuel subsequent phases. Our
long-term commitment as a strategic partner is to ensure that this
transformation process is economically viable for all stakeholders. Technology
serves as a critical enabler, ensuring that progress is financially durable.
The road to financial
gain
Sabre projects
that the transition value for a typical full-service carrier could reach up to
5% of airline revenue by 2030. This incremental value isn't a distant promise; airlines
can realize portions of this value through each phase of the transition
pathway.
In this
transformative era, Sabre stands shoulder to shoulder with airlines, offering a
flexible pathway to a financially and technologically advanced future.
Embracing modern retailing isn't just an upgrade - it's a strategic evolution.
With Sabre as your partner, your airline can navigate this dynamic journey
towards offers and orders with confidence.
The sky is not
the limit - it's just the beginning.
Learn more!
For a more
in-depth look, check out Sabre’s full airline retailing transition guide.