In July 2024, a global IT outage linked to a faulty software update by CrowdStrike led to the cancellation of thousands of flights across major carriers, affecting millions of travelers. This event was more than just an IT failure—it set off an industry-wide alarm bell that underscored how legacy systems crumble under pressure. If equipped with modern Offer and Order management technology, airlines could have intelligent rebooking, enabled cross-channel order servicing, and minimized disruption through proactive resolution. For airlines, it was a stark reminder that outdated technology is more than inconvenient—it’s a risk to operations and reputation. Some airlines stabilized operations in days; others took weeks, highlighting the deep vulnerabilities in legacy infrastructure.
The Legacy Trap
This was not an isolated event. Airlines remain tethered to legacy passenger service systems (PSS) designed for another era. What was once mission-critical is now mission-limiting, throttling revenue growth, personalization, and innovation. Industries like retail, banking, and hospitality have evolved to consistently offer seamless, personalized experiences yet airlines remain locked in outdated paradigms. While consumers enjoy fluid, personalized journeys with Booking.com or Uber, most airlines are stuck requiring travelers to navigate disjointed booking flows or wait on hold for a call-center agent just to make changes.
The True Cost of Standing Still
As pressure mounts from digitally savvy competitors and rising customer expectations, airlines must confront a fundamental truth: legacy systems are no longer sustainable. Recognizing its constraints is the first step toward building a more agile, future-ready foundation. The following sections unpack the most visible and urgent costs of maintaining the status quo.
Financial Drains and Workarounds
Industry estimates suggest airlines collectively spend over $500 million annually on workarounds just to keep legacy systems operational. Every patch adds to “technical debt,” draining budgets that could otherwise drive innovation and growth.
To put it in perspective, $500 million annually could fund the complete digital overhaul of multiple airlines—integrating real-time pricing, dynamic bundling, and seamless traveler experiences that enable one-stop shopping and boost loyalty. Instead, this capital is spent on life support for systems that will never meet the demands of modern retailing.
Revenue Left on the Table
The cost isn’t just in maintenance—it’s in missed opportunities. Legacy systems silently erode revenue potential by blocking airlines from engaging and converting customers due to rigid fare structures and outdated merchandising approaches that fail to capture customer demand.
As McKinsey points out, travelers assign significant value to specific features like flexibility, seat choice, and baggage—yet airlines struggle to capture that value with tailored bundles. While this highlights just a portion of a broader opportunity—one that could expand the selling of third-party products—it underscores how legacy systems limit the ability to tailor and price offers in ways that align with customer preferences, limiting the ability of airlines to maximize wallet share.
McKinsey also predicts that modern retailing capabilities could unlock up to $7 of additional value per passenger by 2030, totaling as much as $45 billion across the airline industry. Third-party product retailing adds even more opportunity beyond that. Airlines that modernize now stand to capture some of this upside.
Operational Bottlenecks
Legacy systems don’t just undercut commercial performance, they cripple frontline operations, hindering rapid response when disruptions occur—such as weather, technical glitches, or scheduling errors—making rebooking fragmented. In contrast, modern Offer and Order systems enable intelligent rebooking and proactive resolution, including for non-air third-party products so a traveler’s entire order and preferences remain intact. Customer loyalty is preserved, and so is operational continuity.
Delayed Time-to-Market
Legacy systems also constrain how airlines bring new products to market. Modern retailing thrives on agility—launching new offerings, adjusting pricing, incorporating third-party content, and customizing bundles based on real-time market signals. In contrast, legacy systems require months of reconfiguration for even minor changes, eroding competitiveness. For example, launching a new ancillary product may require many reconfigurations, compared to modern platforms that enable near-instant rollout and A/B testing.
Breaking Free: The Path Forward
Airlines now have the opportunity to break free from outdated processes and disconnected systems—and embrace a future defined by greater flexibility, access, and personalization for travelers, while also enabling faster innovation and adaptability for the industry. Investing in modern airline retailing isn’t just a technological upgrade—it’s a redefinition of traveler engagement. By unifying flights, ancillaries, and third-party products under a single order, airlines remove long-standing system barriers. Capabilities that were impossible before, like dynamic bundling, become the norm—not the exception.
Closing the Retail Experiences Gap
Modern retailing enables airlines to close the gap between traveler expectations and what their systems can actually deliver, meeting customers where they are with smarter, more responsive digital retail experiences. But meeting those expectations isn’t just about satisfying demand—it’s about staying competitive. If airlines fail to evolve, they risk losing share to more agile, digitally native players who are already capturing traveler attention and loyalty. To compete, airlines must become true retailers—offering products that extend beyond the flight and crafting journeys that reflect the personalization and fluidity today’s travelers expect. Instead of fragmented bookings, travelers experience a single, connected journey.
Take the Lead or Fall Behind
Maintaining legacy systems is a choice to remain stagnant. Modern Offer and Order technology unlocks new revenue streams, builds loyalty, and redefines airline retailing. The path forward is clear, but it demands decisive action.
Legacy systems have become a competitive liability. Modernizing unlocks the ability to drive more revenue, meet evolving traveler expectations, and strengthen long-term positioning. Shifting to modern retailing isn’t just a tech upgrade—it’s the foundation for the future of travel. The time to act is now: those who lead will set the standard; those who delay risk being left behind.
