Since the arrival of Internet, airlines started selling their flights directly to customers via web sites in addition to the existing intermediaries. It allowed airlines to distribute at a lower cost and to create direct relationships with their customers. Airlines typically have four options:

• a) Implement the eCommerce solution as provided by the PSS provider
• a) Implement the eCommerce solution as provided by the PSS provider
• b) Contract a third-party provider or build an in-house eCommerce solution
• c) Implement a full stack Offer and Order Management solution (OMS)
• d) Implement a combination of b and c

So why is it important to understand the differences between the options? Anders Lofgren (Co-founder & CEO Retailaer) explains that understanding history and future customer expectations is vital to making the right decisions for your airline. Not all airlines require to follow the latest trends and technologies, but all airlines need to understand their options and reasons of choosing a specific technology.

92% of buyers say they will abandon a brand if they have a negative customer experience

The right implementation for an airline depends on many factors, says Anders Lofgren. First and foremost, it depends on what the goals are for the airline web site. Then, of course, the budget is important. In addition, you need to estimate your technical and commercial ability as the process can be complicated with many moving parts, especially if you haven’t focused on this area before. Seeking professional advice might be advisable.

Having a good web site is vital to successful selling and servicing online. Creating a good customer experience is critical for travel retailers as 92% of buyers say they will abandon a brand if they have a negative customer experience. Customers expects accuracy and an excellent customer experience, every time, said Anders Lofgren.

When deciding on your online selling solution, it is important to clearly understand the pros and cons of each of these systems, said Anders Lofgren. This article explains the general differences between Offer and Order Management systems and eCommerce solutions.

What is an OMS?

Anders Lofgren describes that the OMS provides airline retailers with a centralised hub for managing offers and orders across channels. It provides offers and captures orders from multiple sales channels, connects with airline partners and then connects to other internal platforms to ensure that the customers can purchase their products efficiently and accurately.

The OMS is the part of the Order life cycle management that focuses on customer order execution. This includes shopping services, platform integration, and managing multiple payment gateways. It allows you to integrate your agency direct connect, customer direct channel, call centre application and much more.

The OMS breaks free commercial aspects and documents from an airline Passenger Service System (PSS) and enables a more efficient handling of commercially related tasks while it reduces PSS dependency for the airline.

Benefits of an OMS

An OMS helps airline retailers to meet demanding customer expectations by ensuring accurate offer and order tracking. The primary function of an OMS is to help airline retailers keep precise records of Offers and Orders throughout the Customer life cycle. The software solution provides a scalable approach to tracking of omnichannel orders, resulting in correct delivery and greater customer satisfaction.

Separating business commercials from the operationally focused PSS opens doors for airlines to capitalise on revenue otherwise not accessible, says Anders Lofgren. The OMS enables airlines to integrate any content, be it partner connected content or any other item that you create on your own.

The OMS offers the flexibility of dynamically creating offers by bundling a wide range of products and services that otherwise wouldn’t be possible, generating added value to the airline customers and giving the airline the opportunity to keep a history of customer orders virtually forever which fuels personalisation for better targeting and retargeting.

The main benefits of an OMS are:

• Dynamic offers including airline and partner content
• Order management outside of the PSS
• Orchestration of suppliers that enrich the customer life cycle

What is an eCommerce Solution?

An eCommerce solution is a system that facilitates the shopping and booking of airlines flights and often also their air ancillaries. Its main purpose is to make the content available in an airlines Passenger Service System (PSS) in a more comprehensible way to customers. Typically, an eCommerce solution provides an interactive web interface and sometimes also a mobile app.

The eCommerce solution is integrated with the airlines’ PSS and PSP via API to orchestrate the web services in order to complete a booking. Dependent on how advanced the eCommerce solution provider is, there may be some added capability such as retrieving PNR from PSS to make amendments.

The eCommerce solution provided by the PSS typically doesn’t hold any booking details in the eCommerce solution, but merely function as a display of the PSS. Third-party eCommerce providers may include extended functions such as offering a Super PNR, one which has a structure of a PNR with some added information that is not available in the PNR. Both concepts carry significant limitations to airline travel retailing, says Anders Lofgren.

Benefits of an eCommerce Solution

The primary benefit of an eCommerce solution is that it is reasonably cheap to get up and running. PSS providers usually offer the solution as part of the PSS agreement, but typically charge development fees for any customisations. Third-party providers do a better job at customisations and usually focus on a better customer experience. Third-party eCommerce solutions can also be put on top of an OMS provider if airlines wish to mix the technology stack.

The eCommerce solution gives the airline the following main benefits:

• Relatively quick to implement at a typically low cost
• Accesses the PSS functionality
• Enhances customer experience

How to decide what is the right solution for your airline?

Deciding on the right solution depends on several factors and is often unique for your airline business as it is determined by your ambitions. First of all, you need a clear strategy describing your goals for your direct and in-direct sales channels, and one which includes your entire sales organisation, bear in mind that your entire airline is a sales organisation. As a minimum, it must define your current state, your goals and your targets.

Once your overall strategy is defined, you need to identify what you need to sell and service and the applicable touch points. That can be as simple as needing a basic way to offer your customers a way to browse and purchase your flights at al purchase points. It can also be as advanced as that you need to have a way to create dynamic offers including own and partner products and services. These obviously require very different technology capabilities.

A simple way to look at it, is to assess the following statements and compare the result to your airlines’ strategy goals:

• I need a web site that enables me to sell my own flights, I don’t have the skills or need to experiment
• I need a web site that enables me to sell my own flights and air ancillaries, I don’t have the skills or need to experiment
• I need a web site and mobile app that allows me to easily add and remove functionalities at a low cost to sell my own flights and air ancillaries
• I’m satisfied with my partners white label web site that sells their products and services
• I need to integrate partner products and services alongside my own content

Answering these questions will give you an indication on the technology choice. Either you strive to become the “Apple of travel” and need a flexible OMS or it will suffice to implement your PSS provider’s eCommerce solution, says Anders Lofgren.

At Retailaer we describe our technology as being one that supports airlines becoming “Apple of travel”. Just like Apple, airlines have a core product and often a strong brand recognition, says Anders Lofgren. Airlines can leverage their brand and allow for selling and servicing of chosen partner products and services to provide a better customer experience, delivering to expectation at every touch point, every time.