For decades, airlines outsourced their most valuable asset: the customer relationship. Through Global Distribution Systems (GDS) and Online Travel Agencies (OTAs), they handed over data, experience, and loyalty—all in the name of reach. But in 2025, the tides are turning. Airlines are waking up to a fundamental truth: whoever owns the relationship, owns the future.

The GDS Problem: Expensive and Outdated

Let’s talk numbers. GDS fees can account for up to 25% of ticket prices. These legacy systems charge for every interaction—bookings, cancellations, even refunds. That’s not just costly—it’s inefficient. And worst of all? Airlines get minimal access to customer insights.

Why it matters: In the age of personalization, flying blind is not a strategy. Airlines are realizing they can’t grow—or innovate—without owning the customer journey end-to-end.

Direct Booking Is Exploding

In 2023, 61% of global passengers booked directly with airlines. In the U.S., 74% of domestic flyers booked via airline websites or apps. That’s not a trend. That’s a shift.

Why now

• Travelers crave transparency and trust.

• Loyalty programs are getting smarter.

• UX expectations are being set by brands like Apple, Uber, and Airbnb.

Airlines are finally embracing this by building better apps, optimizing websites, and cutting deals with meta-search engines that prioritize direct channels.

Owning the Data = Owning the Experience

OTAs keep the gold—traveler preferences, payment info, loyalty behaviors. Airlines? They get a booking number.

But with direct channels, airlines gain:

• Behavioral data across devices

• Funnel drop-off insights

• Purchase history and preferences

That data drives:

• Personalization

• Loyalty upgrades

• Cross-selling and upselling

• Reduced support costs via automation

In short, it's the engine for a truly modern airline business.

The Rise of Modern Retailing Platforms

The future is Offer & Order. Airlines are moving away from trip-based systems to modular, customer-centric retailing platforms—think Amazon, not Expedia.

With tools like:

• NDC APIs

• Dynamic pricing engines

• Direct payment rails

Airlines are skipping the middlemen, reducing costs, and offering products tailored to each traveler’s needs and willingness to pay.

Loyalty Reinvented

Frequent flyer programs were once the crown jewel—but Gen Z doesn’t want miles they’ll never use. They want value. And they want it now.

Airlines that own the relationship can:

• Gamify loyalty (e.g. upgrade challenges, rewards streaks)

• Personalize perks (based on anxiety, frequency, spending)

• Deliver real-time redemption options

Loyalty isn’t just points—it’s personalization, trust, and convenience.

Conclusion: It's About Control—and Connection

Airlines are in a strategic renaissance. By reclaiming the booking flow, owning traveler data, and delivering personalized digital experiences, they’re not just selling tickets—they’re building lifetime value.

The winners? Airlines that stop outsourcing their customer relationships and start owning them, end-to-end.

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