A Smarter Way to Navigate the Airline Retailing Shift

Skift

09-07-2025

As airlines embrace the promise of next-generation retailing, they're discovering that strategy alone won't get them there. The real challenge lies in execution, integrating fragmented systems, aligning internal teams, and scaling customer-centric experiences.
This sponsored content was created in collaboration with a Skift partner.
According to Skift Research, the airline industry may need to invest between $3 billion and $15 billion over the next decade to achieve a full digital transformation. Most carriers are still years away from realizing the promise of new "offer and order" platforms, which aim to replace fragmented, ticket-based systems with seamless, customer-centric retailing.
Despite broad agreement on the need for change, many airlines remain in limbo, held back by aging legacy systems, organizational silos, and unclear priorities. IBS Software cuts through this complexity with its dynamic iRetail Experience, an interactive site designed to guide airline leaders through the retailing shift, from understanding what's possible to taking confident steps forward.
'Modern airline retailing isn't a software sale,' said Ben Simmons, VP and regional head of Europe and Africa at IBS Software. 'It's a business transformation journey. And it requires engaging across the entire airline organization.'
The High-Stakes Pivot to Offer and Order
Airlines are under increasing pressure to modernize their retail strategies and keep pace with evolving passenger expectations. The industry is pivoting toward dynamic offer creation, personalized service bundles, and retail-style digital experiences that mirror those of leading e-commerce brands.
While the vision of moving to an offer-and-order framework is compelling, the path is complex and the stakes are high. A single misstep could disrupt operations, confuse customers, or derail financial forecasts. And with multiple stakeholders — from CIOs and CFOs to frontline agents and commercial teams — there's no single story that resonates across the board.
'You're talking to everyone from board members to subject matter experts,' Simmons said. 'CFOs ask about ROI. CIOs ask about disruption to their IT landscape. Customer service teams ask about usability. You have to tailor the message to every audience.'
Pain Points and Roadblocks
Even when airlines recognize the need for transformation, execution often falters due to the complexity of modern retailing ecosystems. Unlike traditional sales models, dynamic offer and order systems require tightly integrated processes across pricing, servicing, inventory management, and loyalty, and one weak link can destabilize the entire operation.
For many carriers, existing infrastructure wasn't designed to support this level of orchestration. When systems fail to communicate in real time, a seemingly simple action — like rebooking a delayed flight that includes a hotel and car rental — can unravel the entire experience. Recovery often relies on manual interventions, which are costly, time-consuming, and frustrating for customers.
'It becomes a house of cards,' said Marco Contento, VP of aviation business services at IBS Software. 'Any change, like a delayed flight, can collapse the entire itinerary and require manual fixes.'
Another hidden barrier is leadership fatigue. After years of pilot programs and vendor pitches, many executives hesitate to commit to yet another transformation roadmap without clear, measurable outcomes. More than technical specifications, they need reassurance that a path exists between current-state complexity and future-state ambition.
'You can't retrofit modern retail into legacy systems and expect it to work,' Simmons said. 'The technology, the teams, and the processes all have to evolve together.'
What Airline Leaders Need to See
According to Simmons, the iRetail Experience illustrates how IBS Software's modern retailing platform meets decision-makers where they are. It's a showcase of technical capabilities and serves as a strategic storytelling tool that helps leaders visualize outcomes.
'When we showed a major U.S. airline how a partner's seat map could display in an interline scenario, where two or more airlines coordinate on a single itinerary, it changed the conversation,' Contento said. 'Suddenly, they saw what was possible, not just in terms of fixing pain points but also creating entirely new experiences.'
This kind of demonstration builds trust by shifting the conversation from abstract concepts to real-world results.
How the iRetail Platform Powers Modernization
To bridge the gap between aspiration and action, airlines need systems that are modular, interoperable, and scalable. IBS Software's iRetail platform meets those needs by offering capabilities like AI-driven personalization and end-to-end merchandising, all from a single interface. Built on legacy-free architecture, it empowers airlines to:
Create, manage, and sell both air and non-air products from a single interface
Gain a 360-degree customer view and build smart profiles
Use AI and machine learning to personalize offers
Implement modernization in stages, reducing risk
'Modularity is key,' Simmons said. 'Airlines can start with order while keeping their existing offer engine, for example. Then they can layer in retailing capabilities at their own pace.'
That flexibility matters, especially in a time of constrained budgets and unpredictable operating environments. By moving step by step, airlines can chart a course that fits their business needs without blowing up current operations.
And for those seeking vendor diversity, the platform opens the door. 'There's a strong desire in the market to move away from single-vendor lock-in,' Contento said. 'When we show what we've already built, it gives airline executives proof that there's a credible alternative.'
Envisioning a Frictionless Future
Looking ahead, Simmons envisions a future where airlines evolve into fully integrated travel platforms, managing every aspect of the journey beyond the flight itself.
'Imagine a couple in Paris booking a Caribbean cruise. They need flights, transfers, accommodations — and they want all of it in one place,' he said. 'That's where this is going. Airlines will offer end-to-end experiences, not just transport.'
It's a vision of connected, intuitive journeys powered by AI, loyalty data, and intelligent service design, where a traveler's late flight triggers an automatic rental car adjustment and a personalized greeting on arrival.
Of course, there are industry-wide challenges to overcome: regulatory changes, interline dependencies, and legacy habits. But as early adopters embrace iRetail, momentum is building.
'You can't transform in isolation,' said Simmons. 'But once the innovators move, others will follow. That's when the logjam breaks.'
For more information about IBS Software's iRetail platform for airlines, click here.
This content was created collaboratively by IBS Software and Skift's branded content studio, SkiftX.