IATA’s new standard: One Order
Have you heard about IATA’s ONE Order? This initiative is completely transforming the way airlines manage bookings, deliveries, and accounting. Imagine a world where you no longer need to juggle multiple reference numbers: PNRs, e-tickets, and EMDs are consolidated into a single digital record.
ONE Order is redefining the airline industry by simplifying legacy paper-era processes and creating a truly retail-friendly experience. Lufthansa, Singapore Airlines, and China Southern Airlines are already certified pioneers, as the industry moves toward IATA’s goal of achieving “100% Bids and Orders” by 2030.
Concept and Strategic Objectives
One Order represents an industry-led initiative developed by IATA to modernize order management processes in the airline industry. The initiative seeks to create a single, integrated customer record that streamlines fulfillment, delivery, and accounting processes throughout the entire order lifecycle. This transformation involves the gradual elimination of current reservation records (PNRs) and ticketing (e-tickets and electronic miscellaneous documents, or EMDs).
The One Order standard uses XML technology and combines these multiple records into a single, customer-focused, retail-oriented order. Its primary purpose is to eliminate the inefficiencies of legacy paper-based processes and facilitate communication between airline order management, revenue accounting, and delivery providers.
Fundamental Principles about the One Order System
One Order is based on three fundamental principles that define its operational architecture. A single reference establishes that One Order will result in the gradual elimination of multiple booking records, as well as the e-ticket/EMD concepts, to be replaced by a single travel reference document. This new standardized and scalable reference becomes the single point of access for customer orders by third parties, including interline partners, distribution channels, handling agents, and airport personnel.
A unified process facilitates product delivery and settlement between airlines and their partners through a simplified and standardized order management process. All parties will follow a single process to serve customers throughout their entire purchasing and delivery experience.
An integrated industry allows both network and low-cost airlines to interact and provide combined services to customers. Through a new, streamlined process, both airline communities will be able to manage customers seamlessly and consistently despite their different business models and operational environments.
Operational Benefits of One Order
The implementation of One Order generates tangible benefits for multiple stakeholders in the airline value chain. For airlines, the system eliminates the need for costly and time-consuming reconciliation exercises between different references. This simplification significantly reduces operational costs and improves the efficiency of back-office processes.
Travel sellers benefit from being able to follow an identical process to book flights and products across all airlines, regardless of the airline’s business model or technological capabilities. This standardization increases productivity and reduces operational complexity for travel agencies.
Customers experience significant simplification, as they no longer need to manage multiple reference numbers and documents when checking in or making changes to their itinerary. The experience becomes more similar to modern e-commerce transactions, where a single order contains all the elements of the purchase.
Implementation Challenges
The transition to One Order presents considerable challenges that require strategic planning and significant resources. The required investment is substantial, as airlines must implement new systems such as Order Management Systems (OMS) and replace or modernize their existing PSS infrastructure. This transformation represents a multi-year project that requires senior management support and a solid business case.
Reliance on NDC is another challenge, as One Order works best when a solid foundation of NDC is in place. Airlines must ensure their distribution channels are NDC-enabled before they can fully realize the benefits of One Order.
Industry coordination represents an additional hurdle, as the full benefits of One Order only materialize when a critical mass of airlines, ground handlers, and third-party service providers have made the transition. This interdependence creates a “chicken and egg” dilemma, where each participant hopes others will adopt the system first.
What will happen to distribution systems and NDC?
The shift from PNR to One Order will profoundly transform airline distribution systems, impacting the technological architecture, operational processes, and the experience of all stakeholders, from airlines and travel agencies to end passengers. These changes will affect:
- All reservation, ticket, and document information is unified into a single, centralized record, eliminating current fragmentation.
- Modern XML messaging is adopted with support for rich content and personalized offers.
- It integrates directly with the NDC standard, allowing for more direct distribution and greater airline control over their products.
- Operational processes are simplified, reducing costs and eliminating the need for reconciliations between multiple records.
- The passenger experience is improved with a single reference number for the entire reservation, streamlining processes such as check-in and changes.
- Innovation and the sale of new personalized services are facilitated in real time thanks to the more flexible architecture.
The shift from PNR to One Order will mark a crucial technological and operational evolution for airline distribution systems, moving from a fragmented and complex model to a unified, more efficient, and modern retail-oriented model. This will allow the industry to better respond to the demand for personalization, reduce operating costs, and offer a superior experience to travelers and suppliers, positioning airlines to compete in an increasingly demanding digital environment.
One Order expected implementation dates
One Order adoption is in its early stages, with gradual but steady progress. According to IATA’s official record, only three airlines are currently certified: Lufthansa (the first to achieve certification in 2019), China Southern Airlines, and Singapore Airlines Ltd. Lufthansa was a pioneer after completing a one-year pilot project, and Lufthansa Systems also gained capacity as an accounting provider for One Order.
The supplier ecosystem has shown further development, with a substantial number of OMS and accounting providers having obtained certification. This includes GDSs, PSSs, and IT providers working in the airline industry, creating the necessary infrastructure to support One Order’s expansion.
