How airlines can unleash the transformative power of ONE Order

By Florian Dehne, Didier Bréchemier, Dustin Herr and Alexandre Charpentier

IATA’s ONE Order initiative could bring wide-reaching benefits to the aviation industry. Its aim is a significant one: to simplify airline reservation, delivery, and accounting systems by combining multiple records into a single order. This could lower costs for airlines as well as creating simpler and more efficient processes for travel sellers and customers. But its introduction will pose challenges for carriers.

Prior to IATA's introduction of the New Distribution Capability (NDC) initiative in the early 2010s, and its subsequent incorporation into the broader Modern Airline Retail program in late 2022, the aviation sector focused mainly on digitizing paper-based processes. However, this digitization alone failed to significantly enhance efficiency, leading to customer dissatisfaction due to outdated standards, processes, and legacy systems with associated intermediary costs.

IATA's Modern Airline Retail program comprises three key pillars. Firstly, the concept of single customer identification, One ID, akin to the single-login experience found in contemporary retail webstores. Secondly, retailing with Offers, which enables airlines to enhance customer-centricity through personalized offerings including dynamic pricing, bundled options, and digital payment flexibility across all purchasing channels.

The third pillar, ONE Order, promises seamless transactions for travelers by combining today’s multiple records into a single retail- and customer-focused order. It will remove inefficiencies inherited from legacy processes and procedures and lead to an up-to-date data flow between the airlines’ order management, revenue accounting, and delivery providers. Ultimately, this should mean better service for customers.

ONE Order adoption requires comprehensive change management

In the mid-2010s, airlines began recognizing the potential of NDC and adopting modern retailing practices. While NDC marked a significant shift in the aviation IT distribution landscape, ONE Order holds even greater potential to revolutionize the industry. However, the comprehensive nature of ONE Order necessitates a significant transformation of IT infrastructure and underlying processes across sales, revenue management, pricing, finance, and IT functions. This mandates a structured change management approach, high-level alignment, and comprehensive transformation programs impacting the entire airline ecosystem.

The benefits of ONE Order extend beyond customer satisfaction to operational efficiency and cost reduction. By enabling better control of data and reducing distribution costs, airlines can fully retail their products without constraints. However, despite its transformative potential, the adoption of ONE Order among airlines is still in its infancy, mainly due to its complexity.

Collaboration among larger airlines and system providers, facilitated by IATA, is crucial to test and validate ONE Order compatibility. However, airlines might think big and review comprehensive collaboration in order not only to finance the new challanges, but gain enough momentum to start implementation. One of several options is to create an independent or neutral body, as some airlines did almost 40 years ago with Amadeus. The magnitude of ONE Order means it will be challenging to steer, particularly for large airlines: development and implementation require considerable resources throughout the company.

As a result, large airlines may look to test ONE Order with smaller subsidaries first. This represents an opportunity for smaller carriers to find tailored solutions that integrate seamlessly with their systems.

How Roland Berger can help

Roland Berger can play a pivotal role in guiding an airline through the process of finding the right vendors, systems, and strategies to implement IATA's ONE Order initiative. Here are five ways we can help:

1. Strategy development: A comprehensive strategy is essential for the successful implementation of ONE Order. We will work closely with the airline's stakeholders to define clear objectives, timelines, and milestones for the project. This includes outlining a roadmap for phased implementation, identifying key performance indicator , and establishing governance structures to oversee the project.
2. Vendor assessment and selection: Roland Berger will conduct a thorough assessment of potential vendors offering solutions for ONE Order implementation. This includes evaluating their capabilities, track record, technical expertise, and compatibility with the airline's existing systems and infrastructure. We can also assist in creating a shortlist of vendors that best meet the airline's requirements.
3. System integration analysis: One of the key challenges in implementing ONE Order is ensuring seamless integration with existing systems and processes. By analyzing the airline's current IT landscape and identifying potential integration points, dependencies, and areas of optimization, we can do just this. This involves assessing the compatibility of proposed systems with the airline's IT infrastructure and recommending strategies to minimize disruption during implementation.
4. Risk management: Implementing a complex initiative like ONE Order comes with inherent risks. We will advise our clients in risk assessments to identify potential challenges, dependencies, and mitigation strategies. This involves evaluating factors such as regulatory compliance, data security, vendor dependencies, and business continuity planning to minimize the impact of potential disruptions.
5. Change-management support: The most important aspect in implementing ONE Order, which involves significant changes to processes, systems, and organizational culture. Roland Berger's extensive expertise in change management can help airlines to navigate these transitions effectively. This includes developing communication plans, training programs, and stakeholder engagement strategies to ensure buy-in and adoption across the organization.

Expertise, guidance, and support throughout the processes of selecting vendors, implementing systems, and developing strategies are vital for successfully implementing ONE Order. Find out how Roland Berger can support you in this journey.