Offer and Order Explained: The Future of Airline Distribution

Published: August 8, 2023

Airline distribution is undergoing a dramatic shift - one that is long overdue. For decades, the ecosystem has relied on a complex web of PNRs, filed fares, legacy availability messages, and interline agreements that were built for a different era. Enter the Offer and Order model - a cleaner, more flexible, and far more retail-friendly approach to airline commerce.

What is Offer and Order?

In the most basic sense, Offer and Order decouples product creation from legacy distribution rules. Instead of relying on ATPCO-filed fares, RBDs, and fare rules, airlines can now generate tailored offers in real-time. These offers are constructed using the airline’s own logic - not what's been filed or cached by intermediaries.

Once an offer is accepted, it’s converted into an Order. The Order becomes the airline’s single source of truth - no PNR, no e-ticket, no EMDs. Just one object, one order number, and a modern way to manage the transaction from start to finish.

Why Is This Needed?

Legacy distribution is constrained. Offers are often limited by fare filings, married segment logic, and inflexible merchandising platforms. As a result, it’s tough to personalize or innovate. Customers see commoditized options. Airlines struggle to differentiate. Everyone loses.

Offer and Order unlocks the ability to sell like Amazon. Personalized bundles. Real-time inventory checks. Dynamic pricing. Airline-controlled storefronts. That’s the goal - and it’s what makes this shift so transformative.

How It Works: Simplified

  1. Request: A traveler searches for flights - directly or through a partner.
  2. Offer Creation: The airline constructs a personalized offer. It might include flights, seats, bags, meals, and even insurance or hotels.
  3. Offer Acceptance: The traveler picks one. This accepted offer is now locked.
  4. Order Creation: The airline issues an Order - a live object that tracks all details and handles fulfillment.

Key Components

  • Offer Manager: Builds and prices offers in real-time. Can include dynamic pricing, bundling, and context-based logic.
  • Order Manager: Handles the lifecycle of the order. Manages changes, cancellations, status updates, and fulfillment signals.
  • Stock Keeper: The system that checks and manages availability for products.

What Changes for Airlines?

A lot. Commercial teams gain more control. Revenue management evolves to work at offer level instead of RBDs. Fulfillment teams handle a unified order record instead of juggling tickets and PNRs. IT teams move toward APIs, microservices, and event-based messaging.

Airlines will need to rethink their org structure, partnerships, and tech stack. But the payoff is a simpler, faster, and more customer-friendly airline.

What About NDC?

NDC is an enabler - not the end goal. It allows airlines to distribute their offers directly to partners and consumers, bypassing legacy GDS limitations. But the real value of Offer and Order is on the airline's side - in how products are created, managed, and fulfilled.

Where Are We Today?

Many major carriers are already on this journey. Some have live Offer & Order platforms in production. Others are testing with select markets or partners. Industry bodies like IATA are refining standards and documentation. It’s happening - but unevenly.

Final Thoughts

Offer and Order isn’t just a buzzword - it’s a redesign of how airline retailing works. If you’re working in this space - tech, commercial, operations, or distribution - now’s the time to engage. Understand the architecture. Look at your airline’s roadmap. Get involved.

The airlines that lead this transition won’t just sell differently - they’ll operate differently. Faster. Smarter. More customer-centric.