Hadrien Musitelli
January 8, 2025
Trends: What to Expect in Airline and Travel Tech in 2025
Airline tech in 2025: seamless travel, AI disruption, and NDC innovation.
A new year signals new beginnings and thoughts about the future. At CitizenPlane and TTI, we have brought our collective heads to imagine what the following 12 months might bring regarding air travel and travel tech. Ready for our take? Let’s go!
Distribution: NDC Adoption
When you think of NDC, you might think of airlines selling through travel agents. But this cohort is quite small. In fact, in February 2024, Airlines Reporting Corp. (ARC) reported that only 17.9% of the air transactions it settled were made via NDC-channels. Of those, OTAs accounted for 91%, other leisure agencies comprised 8%, and corporate travel agencies only accounted for 1%.1
To make the most of their investment, airlines will do more to encourage travel seller adoption of their NDC channels - and the GDS will play a big part of the adoption story.
Over the past 12 months GDS distribution of NDC content has gathered pace. In December 2024 alone, Amadeus announced it will offer NDC content from LATAM Airlines alongside traditional EDIFACT content2 and a similar deal with Saudia3. Sabre highlighted NDC distribution agreements with Qantas and Emirates, while Travelport signed Cathay Pacific.
We believe the GDS is poised for a resurgence of relevance - albeit with a revised business model.
Mid-Tier Airlines Finding Their Voice
Recently, we have raised the topic of including mid-tier airlines in the retailing transformation story4. Why? Air travel connects us to places beyond major hubs, linking towns, villages, and cities worldwide. Mid-tier and regional airlines play a crucial role in connecting remote destinations, supporting economies, and fostering sustainable tourism.
As the industry shifts toward a retail-driven future, these airlines must adapt, not just through partnerships with larger carriers but by maximizing revenue and building sustainable businesses.
Retailing transformation requires investment in budget, people, and time to manage not only the technology but also retailing strategy. These are resources most mid-tier airlines don’t have.
It’s time to start talking about how the broader airline ecosystem will embrace retailing transformation. Given our role of serving the IT needs of mid-tier and tomorrow’s challengers, it is a conversation that CitizenPlane will be championing.
‘Delivering’ Seamless Experiences
Digital evolution is reshaping how passengers interact with travel services. The Offer-Order-Settle-Deliver (OOSD) framework is one blueprint for this transformation. In 2025, expect to hear more about the “Deliver” phase of the model. Deliver covers the processes, tech, and integrations needed to ensure travelers seamlessly get the services they’ve paid for. In times of change or disruption the focus is on tracking baggage, fulfillment of purchases like premium seat selection, and real-time communications.
Expect to see industry discussion turn to the role of the Departure Control System (DCS), which manages associated airport operations such as check-in, boarding, baggage handling, and flight load control.
The DCS must evolve to align with airport innovations, such as the contactless experience advocated by IATA’s One ID program. This initiative replaces physical documents with biometric technologies like facial recognition and fingerprint scans. Increasingly, airports are adopting contactless solutions. For instance, Abu Dhabi’s Zayed International Airport, through its Smart Travel initiative, is integrating biometrics at every checkpoint to achieve a fully automated passenger experience by 2025.
Such developments highlight a broader trend of airports and airlines working in tandem to create connected, data-driven operations that prioritize convenience without compromising security.
Disruption Management with AI
A trends story would be woefully incomplete if it did not mention AI - which is set to disrupt *everything*. In our view, one of the most important use cases centers around disruption management or iROPS (Irregular Operations).
AI agents like OpenAI’s Operator, Anthropic’s "Computer Use," and Google’s upcoming consumer-focused AI have the potential to revolutionize iROPS management. These tools can potentially automate real-time passenger communication during delays or cancellations, proactively rebook flights, and handle claims for compensation or lost baggage. Their ability to customize responses based on passenger preferences and travel history would enhance customer satisfaction while reducing the operational workload for airlines.
The possibilities for AI are almost endless.
Bridging the Gap: The Legacy Translator
As offer-order-first airlines like Riyadh Air begin operations, the industry will face the challenge of bridging the gap between the "old" and "new" worlds in real-world scenarios. To ensure interoperability and collaboration, the "legacy translator" module within the modern airline retailing reference architecture will play a pivotal role.
The legacy translator in the OOSD framework enables traditional airline systems like PSS, DCS, and GDS to communicate with modern retailing systems. Converting dynamic offers and orders into formats compatible with older systems, is a critical bridge that will ensure operational continuity during the transition to modern retailing.
How will we see that evolve? Expect to see the role of agile, modular PSS stepping up to the plate and some interesting industry partnerships playing out over the next 12 months.
Looking Ahead to 2025
Airline and travel tech are ever evolving and 2025 will be no exception. From distribution and delivery to disruption handling, the coming year offers opportunities to further enhance connectivity, efficiency, and passenger satisfaction. As we embrace these trends, the journey ahead looks as interesting as ever.
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1 https://www.travelweekly.com/Travel-News/Travel-Technology/ARC-working-group-tackles-NDC-issues
