Is this the time when Travel Brands stop buying big logos?

Repeatedly over the years we see travel brands only looking at the size of their to-be technology provider. Why do we see this same pattern over and over again? When will travel brands stop buying the latest servers and the latest software from the biggest logos, a.k.a. the same providers?

Why do IT people in travel brands spend days on end designing out overcomplicated architecture for simple business processes. It is almost like if it isn’t complex, it isn't sexy? Or is it because travel brands have structured themselves in overly complex silos?

Why do IT people in travel brands spend days on end designing out overcomplicated architecture for simple business processes. It is almost like if it isn’t complex, it isn't sexy?

Regardless, we stand at an unprecedented point in time where alternative methods are needed. Perhaps it is time to start thinking, as if there were no box. Simplifying not only IT processes but also the business processes and add requirements to IT processes to support them, not vice versa.

Our suggestion is to keep IT guys out of it until you have a clear and detailed view of what you need and wish to achieve. Move away from the pressure of buying yet another expensive logo, one that may result in having to architect yet another complex layer on top of it to resolve the problem. Focus on your business processes, needs and the customer experience with a retail mind-set.

IATA NDC and ONE Order are both excellent initiatives, but they rely on execution and the design of the commercial models of the travel brand. As an airline, one needs to bear in mind that NDC is focused on airline content distribution while ONE Order aims to address fulfilment, servicing, delivery and accounting. So, while NDC serves to deliver airline product and service offers, ONE Order serves to facilitate delivery and settlement between the airline and its partners in a standardised order management process. This is all great, as long as your aim is to sell airline content only.

However, when you’re considering to become a travel retailer in a connected retail world, you must go beyond NDC and ONE Order. When the airline seat has been commoditised, travel brands must seek revenues elsewhere. In doing so, they will require flexible IT-architecture that supports a retailer. Travel brands must change too and switch from revenue protectionism to revenue opportunism.

Like so many times before, I say it again, airlines are great retailers, only if they weren’t airlines.

In far too many airlines the revenue management process often involves complex revenue management system, a set of cached competitive pricing data and the use of overcomplicated spreadsheets that may lead to a gut feeling decision in the end anyway.



Moving forward, travel brands must take a holistic perspective on both IT-architecture and organisation. A Connected Travel Retailer takes steps evolve their revenue management processes, ensures they have a well-designed Order Management System, re-structures their organisation in verticals, ensures that data from the entire organisation is captured and processed, creates win-win partnerships beyond alliances with other travel brands and non-travel brands and implements a flexible and uncomplicated IT-architecture perhaps comprised of smaller logos with innovative approaches.

Connected Travel Retailers clearly differentiate its operational and commercial businesses. The operational half which continues to focus on Safety, Punctuality and Reliability and measure itself on Load factor + Punctuality = Great Operations and the commercial half which measure itself on Revenue – Expenses = Great Customer Experience. Each half of the organisation must be allowed to use the best suited IT solutions to support their goals.

So, airlines can take advantage of NDC and ONE Order, but must also consider how they retail non-travel products and services to monetise and create a great customer experience from acquisition to customer care while leveraging its brand and loyalty customer base.



Like so many times before, I say it again, airlines are great retailers, only if they weren’t airlines.

Start unlocking your potentials today to become a Connected Travel Retailer tomorrow, before it’s too late.