The Future of Airline Retailing: A Q&A with Travel Technology Strategist Ann Cederhall

     As airlines continue to push beyond legacy systems and conventional distribution models, the shift toward modern retailing is gaining both urgency and complexity. In this exclusive interview with AviaPro, aviation technology strategist Ann Cederhall offers clear, practical insight into what it takes to transition into a future defined by personalization, agility, and control.

With decades of experience advising global carriers on New Distribution Capability (NDC), ONE Order, and Order Management Systems (OMS), Cederhall’s views are both grounded and provocative—reminding us that airline retailing is as much a mindset shift as it is a technology journey.

The interview has been editorialized and edited down for clarity and length.

Q: What’s the most common misunderstanding about NDC and ONE Order?

“NDC is not a product—it’s a pipe,” says Cederhall. Too many airlines continue to treat the New Distribution Capability (NDC) as a plug-and-play solution. In reality, it’s a messaging standard, designed to enable direct API connections between airlines and sellers. It facilitates greater control and richer content, but it is not a retailing system in itself—and it’s not designed for airline-to-airline use.

Similarly, ONE Order is often confused as a retailing solution when it is in fact a back-end data standard, aimed at replacing outdated artifacts like PNRs, tickets, and EMDs. Its purpose is to simplify order processing and enable a seamless, customer-centric retailing infrastructure.

Q: Why has the transition from EDIFACT been so slow?

Legacy systems are entrenched. EDIFACT underpins shopping, availability, and fare quoting across most global PSS environments. Transitioning from it doesn’t simply mean replacing a language—it means rebuilding entire commercial and operational processes, often across multiple partners.

Q: What holds airlines back from adopting Offer and Order Management Systems (OMS)?

“Airlines still think in terms of PNRs,” explains Cederhall. This structural mindset—combined with a lack of retail-oriented talent and few mature OMS vendors—makes adoption difficult. Existing PSS environments are anything but agile. Retailing, by contrast, demands real-time responsiveness and iterative design.

Q: What does a successful ancillary product strategy look like today?

“Understand your market, and test relentlessly,” advises Cederhall. An ancillary product that fails in one region may thrive in another. Deep customer insight is essential. Airlines must become more comfortable acting like retailers—rapidly experimenting, analyzing, and adapting offers.

Q: Are airlines ready to abandon fare filing in favor of dynamic offers?

Not yet. Systems like ATPCO and interline distribution still rely on published fares. Until all actors in the ecosystem—airlines, partners, GDSs—can handle real-time pricing and offer authentication, dynamic pricing will remain limited in scope. “The infrastructure must evolve before the strategy can.”

Q: Why consider switching to an order-based PSS?

Order-based PSS architectures remove legacy constraints like RBDs and allow for true product-level retailing. If a plane has 200 seats, an airline can sell 200 distinct products. Still, not all airlines will migrate. The future is hybrid, requiring backward compatibility with GDS-dependent structures.

Q: Can OMS support modern retailing without replacing legacy systems?

Absolutely. OMS functions as a retailing and orchestration layer, enabling retail innovation on top of legacy infrastructure. “You can build a modern retail strategy now,” Cederhall notes, “and still postpone your core system migration.” This flexibility is vital for cost-conscious carriers.

Q: How should airlines manage the coexistence of legacy and modern systems?

“There’s no one-size-fits-all,” says Cederhall. A phased transition—beginning with OMS capabilities—is often the safest and most sustainable path. In contrast, “big bang” migrations carry enormous risk and require exceptional operational readiness.

Q: Does retailing improve IROPs handling?

The process for handling irregular operations (IROPs) may not fundamentally change. However, order-based systems provide more flexibility and richer data, improving the customer experience and operational responsiveness during disruptions.

Q: What’s the role of CRM in next-gen OMS strategies?

Cederhall is unequivocal: “No OMS strategy works without CRM/CDP integration.” An effective OMS must be fueled by customer data. If a traveler consistently purchases fast-track and priority boarding, a smart retail engine should offer those services proactively and at the right price.

Q: Can indirect channels provide a unified experience?

It’s difficult, but not impossible. Success depends on shared commitment between the airline and the intermediary to prioritize customer continuity. Airlines must also ensure their systems support seamless interactions across distribution touchpoints.

Q: How can airlines reduce distribution costs without losing reach?

By investing in direct distribution and alternative channels such as NDC-enabled partners and curated marketplaces. “You don’t need to rely solely on GDS,” says Cederhall. “Control comes from diversification.”

Q: What will replace the current GDS incentive model?

Cederhall is cautious. She sees little near-term disruption unless real incentives shift. However, she advocates for aggregated content platforms and alternative interlining models, which can offer long-term advantages in cost and control.

Q: Will blockchain and open data sharing reshape settlement and interline?

“Yes,” says Cederhall. She believes blockchain can enable more efficient settlement models, such as real-time pricing and service-based interlining. “Imagine airlines bidding on customer intent—‘I want to fly to Sydney on these dates with one bag, who will make me an offer?’ That’s the future.”

Q: What advice would you give to airlines in Africa or the Middle East beginning their retail journey?

Start small. Audit your distribution costs and contracts. Begin by enhancing direct sales channels, especially for SMEs and group bookings. Then explore OMS capabilities, particularly those that support controlled distribution via in-house marketplaces.

 

Final Takeaway

Airline retailing is not just about adopting technology—it’s about embracing a new way of thinking. As Ann Cederhall emphasizes, transformation is achievable for any airline willing to experiment, adapt, and leave behind legacy assumptions. In a world moving quickly toward real-time, personalized commerce, the airlines that think like retailers will lead.

 

About Ann Cederhall

Ann Cederhall is an internationally respected travel technology strategist. She has worked extensively with airlines, vendors, and aviation institutions to shape the evolution of distribution, OMS, and airline retailing. Her consultancy bridges business strategy with technical implementation, bringing clarity to complex transitions.

 

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