Understanding modern airline retailing and why it matters
If you’ve been working in airline technology or commercial roles for any length of time, you’ve probably encountered countless acronyms and buzzwords: NDC, OOSD, PSS, ancillaries, code share, interline, modern retailing. For many of us coming from outside—or even within—the airline world, these phrases can feel like a separate language.
In this post, we unpack these terms, connect them to broader technology trends, and explain why they matter to airlines as they compete for revenue, improve customer experience, and survive in an increasingly connected digital marketplace.
What is modern airline retailing?
At its core, modern airline retailing is about applying proven principles from digital commerce—think Amazon, Netflix, or Uber—to the world of airline sales and distribution. It’s the industry’s attempt to move from legacy “ticket-centric” systems to dynamic, personalised, real-time product offers that match what customers want and expect in 2026.
Mark Lenahan
Modern retailing focuses on delivering the right product to the right customer at the right time, across every channel customers use—web, mobile, kiosks, and travel agents. This isn’t just about technology; it’s also about updating processes, workforce skills, and how airlines define and manage a passenger journey from search to post-flight feedback.
Older systems were designed around fixed rules and static pricing. Modern retailing is designed around data, flexibility, and customised offers that can change based on who’s buying, where they are, and how they like to travel. The transition to this new model is a multi-year industry journey still underway.
Breaking down the key terminology
Offer, Order, Service, Deliver (OOSD)
This is the backbone of modern airline retailing. Instead of thinking only in terms of tickets, airlines now think in terms of offers (what’s available), orders (what a customer commits to buying), service (managing that order), and delivery (fulfilling it at the airport and onboard).
This shift recognises that customer expectations—like adding ancillaries, choosing seats, or making changes via mobile app—aren’t just afterthoughts but integral parts of the booking lifecycle.
New Distribution Capability (NDC)
NDC is the standard that allows richer content from an airline’s retailing system to be distributed through travel sellers, corporate booking tools, and online agencies. Traditional distribution systems delivered basic pricing and schedules. NDC opens the door to dynamic pricing, bundled ancillaries, personalised offers, and more interactive shopping across channels.
In recent news, multiple global travel tech providers gained access to NDC content from over 40 airlines through SabreMosaic—a sign that larger ecosystem players are scaling modern retailing efforts and making airline content more accessible.
Separately, the Airlines Reporting Corporation (ARC) launched the first orders-based reporting and settlement system to support the broader shift from ticket-centric to orders-centric retailing.
These developments reflect an overarching industry move away from isolated airline systems toward integrated retailing and distribution frameworks.
How ancillaries and distribution fit into the picture
Ancillaries
Ancillaries are everything that isn’t just a seat on a plane—bags, priority boarding, insurance, seat upgrades, lounge access, and third-party services like car rentals or airport transfers. Airlines increasingly treat these as strategic revenue products, balancing customer experience with attach rates (how often passengers buy them) and profitability.
Understanding ancillaries is crucial because modern retailing demands that these options be visible, dynamic, and seamlessly bookable alongside flights—whether in a direct airline app or via a travel agent.
Distribution
Distribution is how airline products reach customers. Historically, travel agents and global distribution systems (GDSs) were the primary channels. With the rise of the internet and digital travel platforms, direct bookings grew—but distribution remains vital for corporate and complex bookings, and to help compare options across airlines.
In modern retailing, distribution is evolving through platforms that can handle both traditional content and NDC content, making it easier for agents and corporates to deliver unified offers to travellers.
Partnerships, interline, and code share
Airline partnerships are foundational to how global networks operate.
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Interline agreements allow passengers to use multiple airlines on one itinerary, expanding where travellers can go without needing every airline to serve every destination.
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Code share agreements let one airline sell another airline’s flight as if it were its own, increasing visibility but sometimes confusing passengers when flight numbers don’t match the operating carrier.
Understanding these concepts helps explain why retailing and distribution need to be flexible, transparent, and interoperable across partners and alliances.
Technology touch points with operations and safety
Retailing technology doesn’t exist in isolation. Systems like the departure control system (DCS) manage check-in, boarding, and weight & balance, and must work in real time with reservation and retailing platforms. When operations change—like delays, missed connections, or cancellations—modern retailing platforms aim to proactively communicate options to travellers (rebookings, refunds, alternatives) in near real time.
This connectivity is part of delivering a customer-centric experience that aligns technology with operations and safety systems rather than treating them as separate silos.
Trends shaping airline retailing in 2026
Industry analysts and technology firms are tracking a suite of trends influencing airline retailing:
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Wider integration of AI and data analytics to personalise offers across channels.
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Cloud-native and modular platforms that reduce legacy constraints and support rapid innovation.
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Unified technology stacks that link cargo and passenger systems, enhancing efficiency and customer outcomes.
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Developments like agentic AI to automate complex offer creation, pricing, and distribution workflows.
Despite progress, full execution of modern airline retailing and orders-based end-to-end systems remains a multi-year effort requiring collaboration across airlines, technology vendors, and distribution partners.
