Everyone Talks About Modern Airline Retailing. Very Few Explain It to Sales Teams.

Modern Airline Retailing Is Coming... But We Are Still Selling Like It’s 2005!

If you ever smiled politely in a meeting while secretly thinking “I have no idea what modern airline retailing really means” then you are exactly the person I had in mind when I wrote this article.

If you work in airline sales, if you manage agency relationships, if you are a GSA (General Sales Agent), or if you work in a travel agency (whether TMC - Travel Management Company, OTA - Online Travel Agency, or traditional agency), you have probably heard about NDC (New Distribution Capability) and -lately- Modern Airline Retailing.

But here is the reality: most people are confused. The explanations come from technology teams, from IT vendors, from consultants who talk in technical language. And you, the person who actually has to explain this to your partners and clients, are left without clear answers.

This article is for you. I will explain what is happening now, what is coming, and what it actually means for your daily work. No technical language. No complicated diagrams. Just practical understanding.

Part 1: Where We Are Today (The "Old World" That Still Dominates)

Before we talk about what is changing, let us be clear about how airlines sell tickets today. This is the foundation that most of us know and work with every single day.

The Current System: EDIFACT, PNR, E-Ticket, EMD

Right now, almost all airline distribution works like this:

-          Airlines file their fares with ATPCO (Airline Tariff Publishing Company). These are the base prices, the rules, the conditions. Everything starts from these filed fares.

-          GDS platforms (Global Distribution Systems) like Amadeus, Sabre, and Travelport take these fares and make them available to travel agencies worldwide. They use a data format called EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport). This format was created decades ago and is still the backbone of airline distribution.

-          When a booking is made, three separate records are created: A PNR (Passenger Name Record) which is the booking record, an E-Ticket which is the actual ticket with its ticket number, and EMDs (Electronic Miscellaneous Documents) for any extras like baggage, seat selection, or meals.

-          All these records are separate. They live in different systems. When something needs to change (passenger wants to modify the flight, add a bag, or get a refund), someone has to touch multiple systems. It is complicated and slow.

This system has worked for decades. It is predictable. Everyone knows how it works. But it has serious limitations that airlines want to overcome.

Why Airlines Want to Change This

Simplified: Airlines look at how Amazon, Booking.com, or any modern online retailer sells products and dream of direct sales revenue growth the today’s world!

In the current system, airlines cannot easily:

-            Show different prices to different customers based on who they are

-            Create personalized bundles (flight plus specific seat plus specific meal)

-            Show rich content like pictures of seats, cabin photos, or detailed descriptions

-            Change prices in real-time based on demand

-            Make servicing (changes, refunds) simple and fast

Also, airlines pay significant fees to GDS platforms for every booking. They want more control and lower costs.

This is why the industry started moving towards something new.

Part 2: NDC - The Bridge Between Old and New

What Is NDC, Really?

NDC stands for New Distribution Capability. It was introduced by IATA (International Air Transport Association) in 2012.

In simple words: NDC is a new way for airlines to communicate their products directly to travel sellers (agencies, OTAs, corporate booking tools) using modern technology (APIs - Application Programming Interfaces, which are basically standard ways for computer systems to talk to each other).

Instead of going through the old EDIFACT format and relying completely on GDS to build the offer, airlines can now send rich, detailed offers directly.

Think of it like this: In the old world, the airline sends basic ingredients (fare, rules) to a GDS, and the GDS builds the meal and serves it to the agency. With NDC, the airline can cook the complete meal themselves and serve it directly to whoever they want, with the presentation they choose.

Where Is NDC Today? The Current Reality

Let me give you the honest picture of where NDC stands right now (end of 2025):

Adoption is growing fast but still not dominant: Around 60-70% of airlines have adopted NDC to some degree. By the end of 2024, NDC represented about 20% of all airline tickets processed through BSP/ARC (the main IATA settlement systems). This is growing rapidly,  it was only 7% in 2022 and 12% in 2023.

Leaders pushing hard: Lufthansa Group was an early pioneer, adding GDS surcharges since 2015 to push agencies towards NDC. British Airways, Air France-KLM, Emirates, Finnair, and many others are active. American Airlines has been the most aggressive (by late 2024), about 47% of their indirect bookings -through agencies- went through NDC.

But the old world still dominates: The majority of bookings worldwide still happen through traditional EDIFACT/GDS channels. No major legacy airline has completely stopped using EDIFACT. Even Finnair, who announced plans to exit EDIFACT by 2025, had to slow down because the industry was not ready.

TMCs (Travel Management Companies) are behind: While OTAs (Online Travel Agencies) have about 20% of their bookings through NDC, TMCs are at only around 6%. Why? Because TMCs have more complex systems, they need better servicing capabilities, and their corporate clients demand reliability.

The Big Problems with NDC Right Now

Here is what you need to know about the challenges. These are real issues that affect daily work:

1. Servicing is still a nightmare

Booking a flight through NDC works. But what happens after? Changes, cancellations, refunds, handling disruptions (when flights are delayed or cancelled) - this is where problems start. Many airlines have not fully developed these capabilities in their NDC systems. Agencies often have to call airline helplines manually, which takes time and costs money.

2. Each airline does it differently

There is no perfect standardization. Every airline's NDC implementation is slightly different. What works with Lufthansa might not work with Emirates. Agencies have to learn multiple systems.

3. GDS incentives disappear

Travel agencies receive incentive payments from GDS platforms based on how many bookings they process. When bookings go through NDC instead of GDS, these incentives are lost. This changes the economics for agencies.

4. Technology investments needed

Travel agencies need to update their systems to handle NDC content. Online booking tools that corporates use often cannot properly display NDC content or allow self-service changes. According to one survey, only 13% of corporate travel managers say their booking tools allow them to self-service NDC changes.

5. Content differences create confusion

Sometimes NDC fares are cheaper than GDS fares. Sometimes different content is available. Corporate travelers see better prices on airline websites than in their company's booking tool. This creates complaints and "leakage" (bookings outside the managed program).

What NDC Means for Travel Agencies and TMCs

If you are a travel agency or TMC, here is the practical reality:

The good news:

-       Access to richer content - you can show customers better information

-       Sometimes better prices - NDC fares can be cheaper

-       Access to exclusive content that airlines only offer through NDC

-       Potential for better personalization

The challenges:

-       You need to invest in technology and training

-       Servicing can be more complicated

-       You might lose GDS incentive payments

-       You need to manage multiple systems (GDS for some airlines, NDC for others)

The bottom line: NDC is not optional anymore. Major airlines are pushing it. Some are removing content from traditional channels. If you do not adapt, you will lose access to important content and competitive prices. But the transition is messy and will take time.

What About GDS? Are They Dying?

This is a question I hear constantly. The answer is: no, they are not dying, but they are changing.

GDS platforms (Amadeus, Sabre, Travelport) are adapting. They are becoming "content aggregators" - they are integrating NDC content alongside traditional EDIFACT content. So agencies can still use their familiar GDS interface but access NDC offers through it.

Amadeus currently has around 24 airlines available through their NDC platform (Amadeus NDC X), with more coming. Sabre has about 19 airlines integrated with aggressive plans to add more. Travelport is also building their NDC capabilities.

For the next several years, we will live in a hybrid world where both systems exist. GDS will remain important, especially for complex itineraries, corporate travel, and markets where NDC adoption is slower.

Part 3: Modern Airline Retailing - The Real Destination

Here is what many people do not understand: NDC is not the end goal. NDC is just a step on the journey. The real destination is what IATA calls "Modern Airline Retailing" - and at its heart is something called "Offer and Order" (or "Offers and Orders").

What Is Modern Airline Retailing?

Modern Airline Retailing is about making airlines sell like any other modern retailer. Think about how you buy on Amazon:

-       You see personalized offers based on who you are

-       Prices can change dynamically

-       You can bundle different products easily

-       When you buy, you get ONE order that contains everything

-       Changes and returns are simple

Airlines want to work the same way. This requires two big changes:

1. Dynamic Offers

Instead of filing fixed fares in advance (like today), airlines create offers in real-time based on:

-       Who is searching (loyal customer? new customer? corporate traveler?)

-       Current demand

-       Competitive situation

-       Customer preferences and history

The offer includes everything: the flight, the selected seat, the baggage, the meal, the lounge access, maybe even hotel and car rental - all bundled and priced together.

2. ONE Order

This is the really big change. Remember how today we have separate PNR, E-Ticket, and EMDs? ONE Order replaces all of these with a single, unified record.

ONE Order is a single customer record that contains everything the passenger bought - the flight, the seat, the bags, the meals, maybe even the hotel or taxi they added. One reference number. One place where everything is stored.

Why does this matter? Because servicing becomes dramatically simpler. If a passenger needs to change something, you modify the Order. The system recalculates everything automatically. No more hunting across multiple systems, no more complex reissues, no more EMD nightmares.

Where Is Modern Airline Retailing Today?

Here is the honest truth: Modern Airline Retailing with full Offer and Order capability is still in early stages. No legacy airline has fully implemented it yet as their main system.

But things are moving:

Riyadh Air - The Pioneer: The new Saudi Arabian airline Riyadh Air will be the first full-service carrier to launch with native Offer and Order technology. They partnered with FLYR and Sabre to build their systems from scratch without any legacy technology. They are expected to start commercial operations in 2025. This is significant because it proves the technology works.

Lufthansa Group: As a founding member of IATA's Airline Retailing Consortium, they are actively testing ONE Order capabilities. They have invested heavily in NDC and are working on the transition to full Offer and Order.

British Airways, Air France-KLM, Finnair: All have signed agreements with technology providers like Amadeus's Nevio platform for Offer and Order capabilities.

ANA (All Nippon Airways): Recently started a proof of concept with Lufthansa Systems for ONE Order-based accounting.

Many others: Nearly 40 pilots and proofs of concept are currently running across the industry.

When Will This Actually Happen?

IATA's goal is to have all capabilities, standards, and business processes ready for Offer and Order by 2030. But full industry adoption will take longer.

According to industry research:

- Most airlines are expected to transition to Offers and Orders in the 2028-2029 timeframe

- Widespread adoption is unlikely before 2030

- The transition from legacy systems takes 3-7 years per airline

- Investment required is estimated at $50-100 million per carrier

For the next 5-7 years, we will live in a fragmented world where some airlines are on the old system, some are partially on NDC, and a few pioneers are on full Offer and Order. This creates complexity, but there is no way around it.

Part 4: Comparison Table - How Things Work in Each World

To make this clearer, here is a comparison of how key airline activities work in each scenario:

Part 5: What This Means for You - Practical Implications

If You Are in an Airline Sales Team

Your job will be transformed. Here is how:

•       You will become a "value package designer" instead of just a "discount negotiator". Corporate deals will shift from "15% off Y class" to "here is a complete package with fare, included ancillaries, flexibility, and special services."

•       You will need to explain content differences. Different channels may show different content. You need to confidently explain why, without making partners feel cheated.

•       Servicing will become a sales weapon. Airlines that make changes and refunds easy will win business. This becomes part of your value proposition.

•       Data will become your friend. You will have more data about partner performance (search-to-book ratios, ancillary attachment rates). Use it in negotiations.

If You Are a GSA (General Sales Agent)

• Training your agency network becomes critical. Agencies need to understand NDC, why prices differ, and how to handle different booking channels.

•  You bridge old and new. Your value is helping agencies navigate the transition - explaining what is happening, providing support, solving problems.

•  Your technology choices matter. Which aggregators do you work with? Which GDS? Can you help agencies access NDC content efficiently?

If You Are a Travel Agency or TMC

• Adapt or lose content. Major airlines are moving content to NDC. If you cannot access it, you cannot offer it to your clients.

• Invest in training. Your staff needs to understand how to work with multiple systems, how to handle NDC bookings, and what the differences are.

• Review your economics. GDS incentives may decline. NDC bookings may have different economics. Understand your numbers.

• Choose your technology partners carefully. Your GDS, your aggregators, your booking tools - do they support NDC well? Are they investing in modern capabilities?

If You Work with Corporate Clients

• Expect complaints about price differences. Travelers will see cheaper prices on airline websites than in their booking tools. You need to explain why and manage expectations.

• Duty of care becomes more complex. If travelers book outside managed channels to get better prices, tracking them becomes harder. This is a real concern for corporate travel managers.

• Negotiate differently. Push for complete packages, not just discounts. Ask about ancillary inclusions, flexibility, and service levels.

Part 6: Predictions - Where Is This All Going?

So, now here’s my view on where this is heading:

B2B Business (Airlines - Travel Agencies - Corporate Accounts)

The B2B channel will remain important but will transform. Travel agencies, TMCs, and GSAs will continue to exist because corporate clients and complex travel still need expert support. However:

• Agency economics will change as GDS incentives decline and NDC becomes dominant

• The value proposition shifts from "access to fares" to "expert service, complex itineraries, and problem-solving"

• Corporate deals become more about value packages than simple discounts

B2C (Direct Online Sales)

Airlines will continue pushing direct sales. Modern Airline Retailing makes direct channels more powerful with personalization and complete travel packages. Expect:

• Airlines offering more services beyond just flights (hotels, activities, transport)

• Better personalization based on customer data

• Pressure on agencies to justify their value against better airline direct experiences

GDS Future

GDS platforms will not disappear but will transform into content aggregators. They will combine traditional content, NDC content, hotel and car, and other travel products. Their role changes from "the only way to book" to "one of several options that adds value through aggregation and comparison."

Timeline Expectations

• 2025-2026: NDC adoption accelerates. More airlines push content to NDC. Riyadh Air launches with full Offer & Order.

• 2026-2028: Legacy airlines begin serious migration towards Offer & Order. Hybrid world continues.

•  2028-2030: Most major airlines transition to Offer & Order capabilities.

•  2030+: Industry-wide adoption. Legacy EDIFACT systems begin to be retired.

Part 7: Questions to Ask Your Airline Partners & Technology Providers

Whether you are a sales leader, GSA, or agency, here are practical questions to ask:

For Airlines:

1.    What percentage of your content is currently available through NDC?

2.    What is your timeline for expanding NDC capabilities?

3.    Are there differences between content available in GDS vs NDC?

4.  What servicing capabilities do you support through NDC (changes, cancellations, refunds)?

5.    What is your strategy for Offer and Order? When do you expect to implement?

For Technology Providers (GDS, Aggregators, Booking Tools):

6.    Which airlines do you currently support through NDC?

7.    How do you display NDC content alongside traditional content?

8.    What servicing capabilities do you support for NDC bookings?

9.    What is your roadmap for supporting Offer and Order?

10.  How will your platform help us manage the transition period?

To Conclude:  This Is Not Just an IT Project

Let me end with the most important point:

Modern Airline Retailing is not an IT project. It is a commercial transformation.

Yes, there is complex technology behind it. Yes, there are APIs & standards & systems. But what matters for you is understanding the commercial implications. How does this change negotiations? How does this affect partner relationships? How does this impact your daily work?

The airlines that win will not be the ones with the best technology. They will be the ones where sales teams, distribution teams, revenue management, and digital teams speak the same language and understand what they are building together.

The travel agencies that survive and succeed will be the ones that adapt, invest in capabilities, and position themselves as valuable partners in a changing world.

And the GSAs that continue to provide value will be the ones who can bridge the old world and the new, helping their airline principals and agency networks navigate the transition.

The transition will be messy. It will take years. There will be frustrations and problems along the way. But the direction is clear, and those who prepare now will be in the best position when the dust settles.

Do not wait for IT to explain it to you. Learn it. Understand it. Own it.

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What do you think? Is your organization ready for this shift? Are you prepared for the transition?

Let's talk! Drop a comment or reach out directly.

At Turnkey•Ready we help airlines, cruise lines, and their partners navigate commercial complexity - including the transition to modern retailing. If you need help understanding what this means for your business or how to prepare your teams and partners, we are here to help.