The introduction of IATA’s NDC and subsequent ONE Order initiatives has transformed airline retailing by giving airlines greater control over creating, distributing, and delivering offers. After a slow start, adoption of this “NDC-powered” retailing approach is rapidly gaining traction. Accelya’s FLX platform shows a 73% increase in the tickets sold through NDC channels in 2021 as against the pre-pandemic period.
But the airline retailing journey does not end with a customer buying an innovative offer and the generation of a confirmed order. Airlines must reconcile the new world of offers and orders to backend financial operations. They need to ensure downstream processes, adapt and integrate tightly with front-end systems. In this way, airlines can track all product and service line items and account all sales receivables to the bank until the offer is completely fulfilled and revenue recognized.
To meet these imperatives, we are seeing airline finance teams go above and beyond current operations to meet the traditional demands of revenue accounting while building out order accounting capabilities. As such, they are very much at the center of retailing transformation.
What is order accounting?
Order accounting is a technology solution that robustly meets current revenue accounting demands while supporting the airlines to move to a more retail-centric world of new offers and ONE Order – all within the airline’s retailing transformation journey.
It enables the processing of traditional documents (eTickets, PNRs, EMDs), NDC Orders (Enhanced Distribution), and the single order record (Simplified Distribution) envisioned in ONE Order. It integrates with various systems like Order Management System (OMS), Enterprise Resource Planning (ERP), payment, refund management, etc.
To find out what your journey to order accounting could look like, please visit Accelya.com or click here.
Source: Accelya