One Order by IATA: How It is Going to Impact Airlines

How airline distribution works in a nutshell

What is ONE Order in a nutshell

NDC and ONE Order capabilities from the perspective of airline distribution. Source: www.iata.org

Order handling in legacy systems: PNR, ETKT, and EMD

PNR example on a American Airlines ticket. Source: www.pinterest.com
EMD example. Source: www.thaiamadeus.com

Order management with ONE Order

  • PNR number;
  • passenger personal data;
  • passenger contact information: emails, phone number, passport series;
  • itinerary with flight details: dates, airlines, city pairs, time;
  • payment statuses;
  • ticketing information: ticket issuer, issuing date, expiration date; and
  • ancillary information: ordered services.

What ONE Order integration brings to the industry

NDC basis of ONE Order initiative

  • As NDC XML is a modern standard, it offers much wider data transmission capabilities than EDIFACT. That means airlines can enrich their offers with any type of content sourced out of their inventories.
  • With XML messaging, airlines should be able to distribute their products directly with OTAs and TMCs. So, this could eliminate the need for GDS and break its oligopoly on the travel market. For carriers this can also reduce distribution costs, as GDSs charge fees for transactions.
  • Establishing direct channels would help airlines access the information about their customers that was earlier lost in the distribution pipeline. This data would make custom offers possible.
  • Direct channels of distribution also will help market airline products better and be distinguishable for the customers.
The distribution scheme using NDC channel

The benefits of ONE Order

The current state of ONE Order adoption

3 year roadmap of ONE Order adoption. Source: www.iata.org
A list of the biggest ONE Order certified OMS, accounting and delivery providers

Reasons to embark on One Order transformation

Benefits and challenges of going through ONE Order transformation

How to get started with ONE Order?

  1. Become NDC capable. NDC certification assumes that your organization has established a working NDC solution capable of sending offers and orders. According to IATA’s ONE Order Transition Study, getting started with the NDC-enabled channel is the fastest way to establish a single order management.
  2. Invest in OMS or find an OMS provider. The migration to ONE Order processing requires using OMS. It can be a module in your PSS, a stand-alone system, or an OMS service provider. You can check a list of ONE Order certified providers at IATA’s registry.
  3. Establish an accounting system or find an accounting provider. As well as solving the OMS question, you will also need an accounting system. You can find one in the provider’s list in the registry mentioned above.
  4. Check real world cases. As we mentioned before, the program is pretty raw at the moment. However, industry giants have already adopted new technology, so you can read the Lufthansa case study about ONE Order to extract some value.
  5. Become ONE Order certified. With a blueprint of a future solution, you can apply for ONE Order certification to approve your capabilities. You can apply for certification on this page. Notice that airlines and OMS/accounting/delivery providers should apply in different forms.

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