Guest Post: Want loyal flyers? Airlines need to rethink retail...

By Emily Weiss, senior managing director and global travel industry lead, Accenture

The airline industry is facing a perfect storm of disruption. Trade policy shifts, rising operating costs, and even factors such as unforeseen weather events, are putting companies’ resilience to the rest.

At the same time, the pressure to modernize has reached a critical point. Years of underinvestment in technology have left many airlines burdened with technical debt, limiting their ability to innovate or respond with agility. Then there’s the relationship with travellers who have grown to expect the right experience at the right price on the right channels, in a way that works for each individual person.

All this puts tremendous pressure on airlines to meet these expectations. That’s not all. The playing field is also changing, and travellers have many more options in how, where and when they search and book experiences. In fact, according to Accenture’s report, In the Retail-Led Future of Airlines, the Sky’s the Limit, more than seven in 10 travellers prefer booking through Online Travel Agencies (OTAs) rather than directly with airlines directly. This preference is driven by the ease of use, seamless bundling of services, and the convenience of one-stop shopping.

Modern systems, seamless journeys

One way travel companies can meet these demands is by modernising their order management systems.

While airlines may have access to detailed customer data like seat/meal preferences, travel history and loyalty membership schemes, they face a challenge to integrate and draw from this data in a way that is useful in creating a cohesive and personalized experience across the customer journey. This leaves airlines at a disadvantage, as they fail to leverage their data to the full extent needed to stay ahead of the competition.

Order management in the airline industry is often misunderstood as a cost-focused function. In reality, it holds greater strategic value. For example, integrated payment systems and seamless checkout processes boost conversion rates and foster long-term customer relationships. Unlike personalized offers that create one-time engagement, robust order management can ensure long-term operational efficiency and customer loyalty by enabling consistent, real-time personalisation and seamless service across the entire travel journey.

Convenience is indeed king

In the travel industry, convenience remains a table stakes requirement and travellers’ experience across other retail channels also plays a role in shaping expectations. For instance, an airline website should not just be a destination to book flights, but a place to cross-sell services such as increasing baggage allowance, upgrading seats or priority boarding – all this, with ease and speed.  Now consider how recommendations based on preferences and past behavior can enhance that experience – for example, a frequent flyer who regularly selects extra legroom and vegetarian meals could be shown these options automatically during booking. This is the level of personalisation and service travellers are growing to expect, and airlines can deliver if they develop an integrated, real-time order management system, one where changes such as flight time adjustments or seat upgrades can be made easily.

Loyalty is the new currency

Unlike stand-alone personalised offers that create one-time engagement, robust order management ensures long-term operational efficiency and customer loyalty. The ability to offer a fully personalized and seamless experience from booking through post-flight service can significantly improve customer satisfaction and loyalty. Travellers who feel that an airline understands their preferences and provides an easy, flexible service are far more likely to become repeat customers.

By investing in this transformation, airlines can reduce operational inefficiencies and improve revenue streams. From offering personalized upsell opportunities to simplifying the process for customers to adjust their bookings, the potential for increased revenue is substantial. Airlines that modernize their order management systems stand to gain both operational efficiencies and higher customer retention rates, giving them a competitive edge to drive growth. The data backs this up. Accenture's Consumer Pulse Research shows that 44% of travellers would switch to an airline that proactively improves their journey in real time, reinforcing that loyalty today isn’t just about rewards programs, it’s about relevance, responsiveness, and the ability to anticipate traveler needs and deliver seamless, personalized experiences in the moment, when they matter most.

Think long-term. Act now

The time to act is now and to capture the full business opportunity, airlines must embrace transformation as a continuous journey rather than a one-time overhaul. This means balancing rapid innovation with a phased approach, so that airlines can deliver immediate value while maintaining momentum for long-term success. To turn transformation into competitive advantage and operational efficiency, airlines need to actively design each phase around the traveler integrating real-time data, streamlining digital touchpoints, and embedding personalisation into booking, servicing, and post-travel experiences.