Modern airline retailing has been positioned as a transformational shift for the airline industry. From NDC to offers and orders, the vision has been clear for years: more flexible pricing, personalized offers, and stronger engagement with travelers.
Yet despite sustained investment and industry alignment, the practical impact remains limited. For many travelers and buyers, the experience still feels largely unchanged.
This challenge was explored in depth during the Travel Again Podcast episode “The Future of Airline Retailing With Henry Harteveldt.”
The Vision Behind Modern Airline Retailing
Modern airline retailing is designed to move airlines away from rigid fare structures and toward dynamic, customer-centric offers. In theory, airlines can tailor pricing and bundles based on traveler behavior, loyalty status, and trip context.
This approach promises better alignment between value and price, while giving airlines greater control over yield and merchandising.
Why Progress Has Been Slower Than Expected
One of the biggest obstacles to modern airline retailing is organizational complexity. Retailing touches nearly every system within an airline, from revenue management and accounting to distribution and loyalty.
Legacy technology, long-standing contracts, and internal silos make coordinated change difficult. Even airlines committed to modernization often implement retailing in phases rather than executing a full transformation.
Infrastructure Is Advancing Faster Than Experience
Much of the progress in modern retailing has focused on foundational infrastructure. NDC connectivity, order management, and offer creation platforms are being built largely behind the scenes.
While this work is essential, it does not immediately translate into visible improvements for travelers. As a result, skepticism remains high across corporate travel and distribution communities.
Personalization Remains Elusive
Personalization is frequently cited as the biggest benefit of modern airline retailing, yet it remains one of the least realized outcomes.
Many airlines still struggle to associate purchases, preferences, and ancillary behavior with individual travelers. Without unified customer data, true personalization remains limited, reducing retailing to a pricing exercise rather than a customer experience strategy.
Distribution Complexity Continues to Slow Adoption
Airline retailing must function across direct channels, corporate booking tools, and third-party distribution platforms. Each channel evolves at a different pace, creating inconsistent experiences.
As a result, the industry is likely to operate in a hybrid model for years, balancing modern retailing with legacy distribution frameworks.
What This Means for the Industry
Modern airline retailing is not failing, but it is evolving incrementally rather than dramatically. The transformation is real, yet the benefits will materialize over time, not overnight.
Airlines that succeed will focus on execution, data integration, and customer trust rather than technology alone.
Modern airline retailing will reach its full potential only when travelers clearly experience its value. Until then, progress will continue quietly, driven more by infrastructure than perception.
