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In our ongoing series on defining Delivery, we now focus on transforming both operational and commercial aspects. As airlines transition to Offer-Order-Settle-Deliver (OOSD), the topic we touched on earlier, one critical area remains underdeveloped: Delivery.
In this blog, we explore how Retailing Delivery Systems (RDS) help airlines improve day-to-day operations and the commercial side of the business. While the industry shifts towards more dynamic, customer-focused strategies, legacy systems for service delivery lag behind. This is where RDS comes into play.
Overcoming the complexity of legacy in passenger handling operations
Departure Control Systems (DCS) traditionally handle basic processes such as check-in and boarding. As today's airlines adopt dynamic offers, wishing to benefit from more ancillaries beyond charging for extra baggage, operational issues arise.
RDS integrates real-time data from multiple sources—passenger orders, third-party services, and internal systems—enabling airlines to manage operations with greater accuracy. This reduces the need for manual updates and minimises errors.
And could the RDS incorporate disruption management? Are there use cases where RDS can modify an order without using the Offer Management System (OfMS), allowing airlines to rebook passengers automatically, send updates, and offer compensation like hotel accommodations or meal vouchers?
Within Delivery, many scenarios still need to be defined, where we invite airlines and those interested in the research parties to collaborate. Thanks to integration capabilities, flexible solutions might exist.
Driving revenue: RDS as a commercial engine
Operational efficiency is crucial, but RDS's real commercial value lies in its ability to tap into new revenue streams. Traditionally, airlines generate most revenue at the time of booking, with limited upsell opportunities later in the customer journey. RDS changes this by enabling continuous engagement with passengers throughout the journey.
Through RDS, airlines easily retail more services, allowing passengers to book later in their journeys. The system handles payments and settlements while reducing administrative complexity and costs.
Carriers can personalise services and upsell options at key moments, boosting ancillary revenue. By bundling third-party services like hotel bookings, car rentals, and airport transfers, RDS transforms Delivery from a cost-heavy phase into a valuable revenue generator.
Transforming delivery from a cost centre to a profit generator
Historically, Delivery has been viewed as a cost centre—necessary but not profitable. RDS turns Delivery into a revenue-generating stage through real-time offers and personalised services without the traditional friction.
Dive deeper into exploring the future of an airline delivery system. Our whitepaper, released in partnership with T2RL, explains the RDS concept and how it can complement traditional operations. And there are still more questions to answer. Join us in defining Delivery.
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