Accenture’s report, *In the Retail-Led Future of Airlines, the Sky’s the Limit*, reveals that airlines are losing revenue by sticking to outdated distribution models
Apr 10, 2025
The aviation industry is on the brink of a retail-led transformation, driven by advanced Offer, Order, Settle, and Deliver (OOSD) systems. These technologies promise to unlock significant revenue potential, offering airlines deeper insights into customer preferences and allowing for more differentiated offerings. While adopting these systems could boost annual revenues by 3–6%, the journey towards modern retailing platforms is fraught with challenges. Airlines must navigate legacy systems, evolving global distribution systems (GDS), and change their collaborative approaches, all while facing strategic barriers in terms of incremental versus full-scale transformation.
Key takeaways
- Revenue potential: Modern OOSD systems could increase annual airline revenues by 3–6%, offering a clear competitive advantage.
- Adoption challenges: Many airlines are still in the early phases of adopting New Distribution Capability (NDC) technologies, facing both tactical and strategic hurdles.
- Current state (reality): Despite initial successes in ancillary sales and revenue increases (1.5–2%), hidden infrastructure costs limit the full potential of these gains.
- Path to success (reaction): Airlines are adopting a dual approach of achieving short-term tactical wins while laying the groundwork for long-term transformation, with varying timelines for completing system upgrades.
Get the full report at Accenture
