Welcome to the Q3&4 2024 edition!

Did you miss the previous edition? Catch up here >>

2024 WFS-WPS: Key Takeaways through the MAR Transition Lens 

The IATA World Financial Symposium and World Passenger Symposium (WFS-WPS) 2024 edition in Bangkok brought together over 1200 industry leaders and experts to discuss the industry transformation in the context of Modern Airline Retailing (MAR).

Gathering a wide range of functions - from Commercial, Payment, Finance, and IT to Airport delivery -, this year’s event highlighted significant advancements and trends that are shaping the industry. From the growing adoption of NDC (New Distribution Capability) to the emergence of Orders, the symposium provided valuable insights into the ongoing transformation of airline operations.  

Let us delve into the key takeaways from the event and explore how these developments are paving the way for a more modern and efficient airline industry: 
 

• The adoption of NDC continues to grow. 
• While the implementation of Orders is still in its early stages, progress is evident. 
• Interlining within the context of MAR is also gaining traction.​​​
• Payment strategies are becoming increasingly important as part of value creation in MAR.​​​​​
• Addressing functional silos across organizations is seen as a priority.
• Finance and financial management are increasingly recognized as key partners in this transformation.​​​​​​
• The increasing realization of the need for cross-functional project teams is reflected in the collaborative standards development approach.  
• A fully digital end-to-end travel experience is no longer a mere fiction.
• The Business Reference Architecture (RP 1786a) helps airlines to strategically plan and engineer their MAR transformation, while ensuring cohesion across all key functions and departments.  ​​​​
• The transition to MAR now has its first high-level industry roadmap, which covers all players across the entire value chain, with key dates and milestones.​​​​
• Standards remain the backbone of the transition and the Passenger Services Conference (PSC) has laid out a robust and ambitious project plan to be completed by 2026.

Key Q3-4 releases

Leveraging Orders and Digital Identity to Enhance the Customer Travel Experience

Modern Airline Retailing aims to break down the silos between operational and commercial processes, creating a technological environment centered on enabling a frictionless interaction between customers and airlines, at any stage of the air travel journey. 
 
Two standards are central to the realization of this ambition: 

• ONE Order (Resolution 797): by eliminating the need for separate passenger name records, e-tickets, and electronic miscellaneous documents.  
• One ID (supported by Digital Identity and biometrics): by enabling digitalization of admissibility, prior to check-in, and contactless process throughout the actual journey.  

Transforming Airline Retailing: A New Era of Opportunity

According to the 2024 IATA-Boston Consulting Group (BCG) survey of over 150 airline representatives from carriers with hands-on Offers and Orders implementation, there is a clear and growing momentum for change. 

Key Findings: 

• Widespread Support: An impressive 83% of airline representatives are advocating for the transition to modern retailing across IT, distribution, and commercial functions. This widespread support underscores the industry’s readiness for change. 
• Strategic Value: 80% of respondents view this shift as both strategic and value-creating for their airlines. This marks a notable increase in industry maturity compared to the previous year's observations. 

Other Q3-4 highlights

2024 Update on IT Provider Readiness and Transition Roadmap 

The transition to Modern Airline Retailing (MAR) with 100% Offers and Orders is a monumental shift in the way our industry retails travel products and services.  

IT Providers are a critical link in the modern retailing value chain, playing a crucial role in developing the new systems and tools required to align with the MAR business reference architecture framework – RP 1786a.
 
Since 2023, the IATA Airline Retailing Consortium has been rigorously assessing the readiness of IT providers to support this transition. The latest, 2024 update, captured in the newly released “IT Provider Readiness and Roadmap to 100% Offers & Orders” report, highlights significant advancements: 
​​​​

• ​​​All respondents are heavily investing in and supporting a modular architecture. 
• Nearly 40 proof-of-concepts (POCs) and pilots are currently in progress. 

TMC Business Capabilities for the era of Modern Airline Retailing  

In 2018, IATA collaborated with several Travel Management Companies (TMCs) to develop a TMC Reference Architecture for New Distribution Capability (NDC).

The ensuing document provided essential guidance for TMCs to review and enhance their IT architecture during NDC implementation. It aimed to help TMCs build a modular IT infrastructure, assist IT providers in understanding TMCs’ technology needs, and enable airlines to better comprehend travel agency environments and their specific requirements. 

Fast-forward six years, with the industry transitioning to a legacy-free model with the Modern Airline Retailing and 100% Offers and Orders, IATA and leading TMCs worked on a revisit of the original TMC Reference Architecture to ensure it aligns with the new paradigm. 

The updated TMC Reference Architecture has been crafted with input from various TMCs, reflecting their current practices and future needs. These TMCs highlighted the importance of synchronizing “Retailer” Orders with “Supplier” Orders, including those from airlines.

This synchronization is crucial for maintaining seamless operations and enhancing customer experiences.  

Access the paper >> to review the updated TMC architecture and learn how it supports the evolving airline retailing landscape. 

For a deeper dive into the MAR Business Reference Architecture framework visit the dedicated IATA webpage >>.
 

ARM index recognitions update

The Airline Retailing Maturity (ARM) index registry is your single source to find industry players recognized for capabilities enabled by the IATA Enhanced and Simplified Distribution (EASD) standards.

Organizations having joined the ARM registry since our last update include:

Alaska Airlines
On 30 September 2024, Alaska Airlines was granted “Airline Retailing Maturity” status as an Airline, under the ARM index Program. This status recognizes that Alaska Airlines uses Shop capabilities which are compliant with the standard Enhanced and Simplified Distribution message schema, version 21.3 and the ARM index Capabilities Verification Guidance.

Azerbaijan Airlines (AZAL)
On 9 July 2024, Azerbaijan Airlines was granted “Airline Retailing Maturity” status as an Airline, under the ARM index Program. This status recognizes that Azerbaijan Airlines uses Shop capabilities which are compliant with the standard Enhanced and Simplified Distribution message schema, version 21.3 and the ARM index Capabilities Verification Guidance.

Juneyao Airlines Co., Ltd.
On 30 August 2024, Juneyao Airlines Co., Ltd. was granted “Airline Retailing Maturity” status as an Airline, under the ARM index Program. This status recognizes that Juneyao Airlines Co., Ltd. uses Shop/Order/Pay capabilities which are compliant with the standard Enhanced and Simplified Distribution message schema, version 17.2 and the ARM index Capabilities Verification Guidance.

P.M.I. (Pacific Mediterranean International) S.A.L.
On 18 July 2024, P.M.I. (Pacific Mediterranean International) S.A.L. was granted “Airline Retailing Maturity” status as a System Provider for its airline retailing-based solution PMIFLIGHT System, under ARM index Program. This designation recognizes that the PMIFLIGHT System supports deployments using Shop capabilities which are compliant with the standard Enhanced and Simplified Distribution message schema, version 21.3 and the ARM index Capabilities Verification Guidance.

Resliv LLC
On 14 October 2024, Resliv LLC was granted “Airline Retailing Maturity” status as a System Provider for its airline retailing-based solution, under ARM index Program. This designation recognizes that the airline retailing-based solution supports deployments using Shop capabilities which are compliant with the standard Enhanced and Simplified Distribution message schema, version 21.3 and the ARM index Capabilities Verification Guidance.

Royal Jordanian Airline
On 12 September 2024, Royal Jordanian Airline was granted “Airline Retailing Maturity” status as an Airline, under the ARM index Program. This status recognizes that Royal Jordanian Airline uses Shop capabilities which are compliant with the standard Enhanced and Simplified Distribution message schema, version 21.3 and the ARM index Capabilities Verification Guidance.

TPF SOFTWARE INC
On 19 July 2024, TPF SOFTWARE INC was granted “Airline Retailing Maturity” status as a System Provider for its airline retailing-based solution TSI NDC shopping application, under ARM index Program. This designation recognizes that the TSI NDC shopping application supports deployments using Shop capabilities which are compliant with the standard Enhanced and Simplified Distribution message schema, version 21.3 and the ARM index Capabilities Verification Guidance.


Explore the full registry >>

Modern Airline Retailing on IATA TV