Channel-based, transparent, value-creating commerce is the way of the future. Image: E. Sotera

By 2017 airline ‘distribution’ could be replaced by a focus on channel-based, value-creating commerce that can support extensive fare and product transparency, according to the results of a new study.

The International Air Transport Association (IATA) released the results of an independent study identifying major travel trends transforming the travel distribution landscape, written by Henry H. Harteveldt, co-founder of Atmosphere Research Group.

‘The Future of Airline Distribution - A Look Ahead to 2017’ said that “airlines have morphed into retailers” and as such require distribution systems that merchandise their products and value across multiple channels at a reasonable cost.

“What airlines don’t want are distribution channels that present all airlines as equally substitutable commodities,” the study said.

“Airlines want, and expect, their distribution partners to offer passengers helpful contextual information to make well-informed purchase decisions, reducing the number of reservations made based primarily or exclusively on price.”

Customers expect airlines to eventually be able to offer comparable functionality to that of distributors.

The study said that “distribution is no longer an adequate way to think about how airlines must sell their products,” and by 2017, the distribution process would be less focused on price and more on disparity.