Amid rising customer demand for personalized and seamless booking experiences, airlines are still entrenched in antiquated distribution systems. This situation presents a significant risk, potentially leading to massive revenue losses. According to a report by Accenture titled “In the Retail-Led Future of Airlines, the Sky’s the Limit”, leveraging Offer, Order, Settle, and Deliver (OOSD) systems could enhance airline revenues by 3-6%, unlocking vast potential for the industry.

The report is based on insights from over 300 airline executives and 3,000 travelers, indicating a clear trend: today’s travelers demand an experience tailored to their needs. Emily Weiss from Accenture notes, > “Air travel should feel as effortless as shopping from your favorite brand … the best airlines will think and act more like retailers using data to anticipate what customers want.”

However, many airlines are missing critical opportunities due to sluggish adaptation to new retailing models, leading to a widening gap between traveler expectations and airline services.

Key Findings:

• 71% of travelers prefer booking through Online Travel Agencies (OTAs) due to better deals and convenience.
• Airlines risk losing control of customer relationships, which hinders upselling and personalized engagement.

Untapped Revenue Potential:

• There exists an $14 billion untapped revenue opportunity for airlines optimizing their payment processes and enhancing integration.

Industry Challenges:

• Outdated technology, skill gaps in the workforce, and data quality issues are major barriers to adopting modern retailing strategies.
• Interestingly, only 1% of executives view leadership mindset as a barrier, indicating a potential underestimation of the cultural shift needed for transformation.

By embracing a retail-led approach, airlines could not only mitigate financial losses but also create loyal customers and discover new avenues for growth.