Welcome to the Q1 2025 edition!
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NDC 24.1 & Beyond: Paving the Way for Modern Airline Retailing with 100% Offers and Orders
Several years ago, NDC paved the way for one of the largest transformations in our industry—Modern Airline Retailing (MAR) with 100% Offers and Orders. In 2024, key enhancements were made to the NDC 21.3 schemas, facilitating a smoother transition for airlines and value chain partners.
Leveraging past learnings and addressing future needs, the new generation of schemas introduced with NDC 24.1 and beyond is more advanced and better fitted for realizing the concept of Offers and Orders. These schemas serve as the gateway for airlines to fully embrace this model.
The recent webinar NDC 24.1 and Beyond: A New Generation of Schemas for the Offers and Orders Transition introduced and discussed the advancements in NDC schemas, with a special focus on the way forward that 24.1 paves for bolder improvements in functionality and adoption strategies for airlines and IT providers. Key features include improved customer trust, financial transparency, and efficient distribution systems.
Key takeaways from the session include:
- The evolution of NDC schemas is well underway with improvements such as enhanced data exchange, improved order integrity, and transparent financial implications for transactions.
- NDC 24.1 emphasizes stability and improved capabilities over older versions, facilitating easier implementation for airlines. Enhanced data exchange and order integrity in 24.1 improves transparency and reliability in financial transactions.
- The development roadmap includes features like credit card payment installments and improved handling of changes to unpaid orders.
- Airlines are encouraged to adopt newer versions quickly to benefit from cumulative improvements and avoid customizations that complicate integrations.
- Some airlines, like Lufthansa, are preparing for NDC 24.1 by enhancing data exchange, streamlining servicing, and ensuring order integrity.
- Future roadmap items include credit management systems, improved handling of payments, and improved servicing, more aligned with retailing capabilities.
- Industry collaboration is vital for evolving standards, addressing gaps, and ensuring broader adoption of newer versions. Feedback from adopters is crucial for the ongoing development and refinement of the NDC schemas.
To learn more about these advancements and how they can benefit your operations, watch our webinar on demand: NDC 24.1 and Beyond: A New Generation of Schemas for the Offers and Orders Transition.
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Modern Airline Retailing – An Opportunity for Revenue Accounting to Establish Compliant and Accurate Offers
With Modern Airline Retailing, the airline industry is undergoing a significant transformation with the shift to an ecosystem of 100% Offers and Orders. This transition to 100% Offers and Orders extends beyond commercial and deeply impacts other critical functions across the business, and Revenue Accounting is one of them.
It is being reshaped to integrate controls upstream, ensuring accuracy from the start, and reducing end-process corrections. This proactive approach enhances the reliability of financial statements. The focus is now on embedding financial controls early in the process, ensuring accurate offers and customer satisfaction while streamlining data flow for better financial reporting.
Consequently, this means that classic, ticket-based Passenger Revenue Accounting will be transformed into retail driven Order Accounting.
Recently, we interviewed the Chair of the Passenger Services Conference's (PSC) Settlement and Accounting Standards Board, Myriam Burget - Head of Revenue Accounting at Swiss International Air Lines - who shared valuable and timely insights into how revenue accounting is evolving to meet the demands of Modern Airline Retailing.
Here are some highlights:
- Airline revenue accounting is moving from a traditional end-of-process review to integrating financial controls in the Offer and Order stages.
- Accurate financial statements will rely on real-time data from offer management systems, rather than retrospective audits.
- Airline revenue accounting departments should engage early in the development processes to align financial requirements with evolving systems.
Watch the video to get the full story >>
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From Offers to Orders: Transforming Traditional Passenger Revenue Accounting into Retail-Driven Order Accounting
In the context of airline retailing with 100% Offers and Orders, revenue accounting and financial processes play a crucial role in optimizing cash flow, enhancing profitability, and building financial resilience by connecting front-end offers with back-end financial operations.
The focus is now on integrating financial controls early in the process, ensuring accurate offers and customer satisfaction while streamlining data flow for better financial reporting. This transition offers vast opportunities for finance professionals to engage from the outset, enhancing compliance and efficiency in the new order-centric landscape.
Recently, IATA and industry experts, members of the Airline Retailing for Finance Working Group (ARFWG) and the PSC Settlement and Accounting Standards Board, hosted a webinar to present the 2024-25 update of the paper Financial Management in Offers and Orders Environment.
The webinar covered critical topics encompassing:
- The future state of Reference Business Architecture and process transformation
- The methodology and vision for financial management in the Offers and Orders context
- Practical applications and benefits of the ARFWG's work for the industry
- Opportunities, challenges, and future trends in the transformation of revenue accounting into order accounting
- The shift towards customer-centric processes in airline finance, and the importance of aligning finance and commercial departments for better operational efficiency
The webinar also provided valuable insights and practical guidance for industry professionals navigating the evolving landscape of airline revenue accounting. Key takeaways include the importance of financial order integrity, the need for improved integration of finance with commercial processes, and the emphasis on proactive controls to enhance efficiency in revenue accounting within the airline industry.
Explore the recording here for timely updates on key controls and insights for enhancing airline financial management in the evolving Offers and Orders transition context.
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Financial Management in Offers and Orders Environment - V. 2.0
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MAR InFocus: Bite-Sized Insights on Offers and Orders
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Airline Retailing Maturity Recognitions - Q1 2025
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ARM index Registry 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:
Beijing Sunwin Technology Company Limited
On 27 March 2025 Beijing Sunwin Technology Company Limited was granted “Airline Retailing Maturity” status as a System Provider for its airline retailing-based solution E-ticket API Service platform, under ARM index Program. This designation recognizes that E-ticket API Service platform supports deployments using Shop, Order and Pay capabilities which are compliant with the standard Enhanced and Simplified Distribution message schema, version 21.3 and the ARM index Capabilities Verification Guidance.
InteliSys Aviation Systems
On 24 March 2025 InteliSys Aviation Systems was granted “Airline Retailing Maturity” status as a System Provider for its airline retailing-based solution ameliaRES, under ARM index Program. This designation recognizes that ameliaRES supports deployments using Shop capabilities which are compliant with the standard Enhanced and Simplified Distribution message schema, version 24.3 and the ARM index Capabilities Verification Guidance.
Explore the full registry >>
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Modern Airline Retailing on IATA TV
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