With modern airline retailing, airlines can sell a lot more than a flight ticket, become integrated travel platforms: IBS Software head
In today’s fast-paced digital world, airlines are doing much more than just selling flight tickets. They’re becoming full-fledged travel platforms. These platforms now offer hotel bookings, car rentals, insurance, and even local experiences. According to the head of IBS Software, this shift is part of a larger transformation in the aviation sector. Modern airline retailing is reshaping how travelers plan and purchase their journeys.
Airlines Embrace Retail Thinking
Airlines no longer focus solely on transporting passengers from one location to another. They now aim to deliver complete travel solutions. Inspired by successful e-commerce platforms, airlines are adopting retail strategies to enhance the travel experience.
“This is no longer about just moving passengers from point A to B,” said the head of IBS Software. “Airlines are becoming travel brands, offering complete solutions tailored to modern consumers.”
Using Data for Personalization
Airlines collect a lot of customer data. They know travel patterns, preferences, loyalty levels, and spending behavior. With modern tools like AI and machine learning, airlines can use this data to make personalized recommendations.
For instance, someone booking a flight to Paris may also see options for hotels, museum passes, or a local wine tour—all during the same booking process. These offers improve the travel experience and also increase revenue.
Personalization helps airlines build customer loyalty. “If a traveler feels understood and gets relevant suggestions, they are more likely to book again,” the IBS executive explained.
NDC: The Engine of Modern Retailing
The New Distribution Capability (NDC), developed by the International Air Transport Association (IATA), plays a major role in this shift. NDC allows airlines to present rich content and dynamic offers to customers and travel agents in real time.
This means travelers no longer see only basic ticket listings. They now get seat maps, images, bundled packages, and personalized pricing—all in a modern and engaging interface.
With NDC, airline websites and mobile apps become powerful digital storefronts. “Airlines are taking control of their product presentation, just like any modern online retailer,” the IBS Software head stated.
Beyond Flights: Building Travel Ecosystems
Travelers want more than just a flight. They want smooth, end-to-end experiences. Airlines are responding by partnering with hotels, tour operators, insurance companies, and local transport providers.
A customer flying to Bali, for example, might receive options for a beach resort, snorkeling trips, and airport pickup—all through the airline’s platform. The airline becomes a one-stop shop for the entire trip.
Some carriers have taken this even further. Lufthansa’s “AnyWay Travel Pass” allows customers to set a budget and date, and the airline then surprises them with a destination. Emirates offers curated Dubai experiences along with flights.
Benefits for Travelers and Airlines
This retail model benefits both customers and airlines.
For travelers, it means convenience. Instead of making multiple bookings on different websites, they can plan the entire journey in one place. Airlines also offer support and rewards through loyalty programs.
For airlines, this approach boosts revenue. Ancillary services like hotels, car rentals, and insurance add significant income. McKinsey reports that for some budget airlines, these extras can account for up to 50% of profits.
Retailing also helps airlines stay connected with customers throughout their travel journey. More interaction means stronger brand loyalty and repeat bookings.
Challenges Along the Way
Despite the benefits, the transition is not simple. Many airlines still rely on outdated systems. Changing those systems takes time and investment.
“Airlines must stop thinking their job ends once the ticket is sold,” said the IBS executive. “It takes a shift in mindset, modern technology, and strong partnerships.”
Privacy is another concern. Airlines must handle customer data carefully to build trust.
Yet, most in the industry agree the challenges are temporary. Online travel agencies (OTAs) and tech super apps already offer similar services. Airlines must adapt quickly or risk falling behind.
What’s Next: Super Apps and Travel Subscriptions
Airlines are also exploring super apps—platforms that combine travel, shopping, and even digital payments. In Asia, several airlines already offer food delivery, ticket booking, and lifestyle content through one app.
Subscription models are growing as well. Airlines like Alaska and Volaris have launched monthly plans that give flight credits and added perks. These subscriptions position airlines as lifestyle brands, not just transport providers.
Conclusion
Modern airline retailing is redefining how we think about air travel. As IBS Software’s leadership points out, airlines are moving from being ticket sellers to becoming travel experience providers.
This evolution not only improves the customer journey but also secures new revenue sources. Airlines that embrace this change and offer value beyond the seat will stand out in a competitive travel landscape.
In the near future, booking a trip may look more like shopping on Amazon than browsing for flights. And the most successful airlines will be those that offer more than just a journey—they’ll offer the entire experience.
