Over the past decade, a major tech trend in the airline industry has been the transition from traditional interlining and codeshare agreements to the now well-established concept of Virtual Interlining.
Quick reminder: Since the late 1940s, airlines have relied on interline and codeshare agreements to expand their network reach without directly operating additional routes. These agreements enabled airlines to offer a wider range of destinations by partnering with other carriers, significantly enhancing customer options and operational flexibility.
However, the landscape of airline partnerships has been transformed—or some might say disrupted—by the concept of Virtual Interlining. Unlike traditional airline models that rely on formal partnerships, Virtual Interlining leverages advanced technology and entrepreneurial instincts to combine flight segments from multiple airlines without codeshare agreements in place. Leading pioneers in this field, such as Dohop and Kiwi, first introduced these offerings more than a decade ago, each taking distinct approaches.
- Kiwi has primarily targeted the OTA space, focusing on B2C customers and often operating without direct airline partnerships.
- In contrast, Dohop has concentrated on building close collaborations with airlines, emphasizing B2B relationships to holistically integrate Virtual Interlining into airline operations.
Over time, both providers added additional services like insurance for missed connections and comprehensive customer support, thereby creating a new layer of value for travelers.
As we look to the future of Virtual Interlining, it’s evident that we are on the brink of unlocking its next evolutionary stage as a variety of market forces are rapidly accelerating its adoption among both travelers and airlines. This shift calls for a new term that better captures the strategic significance and technological advancement of Virtual Interlining in today’s airline industry, which OAG’s latest report explores thoroughly…
OAG’s new travel tech report redefines the concept of Virtual Interlining and introduces Alternative Interlining as the next evolutionary step. It explores how cutting-edge technology, evolving traveler behavior, and the expansion of airline connectivity are converging to reshape the future of interline agreements and travel options.
Key highlights:
- The report introduces Alternative Interlining as a transformative concept, showcasing how it goes beyond the original “virtual” approach to offer seamless, real-world travel solutions. This evolution is driven by advances in data integration, technology, and airline collaboration.
- The report identifies three critical structural trends driving the rise of Alternative Interlining: the decline in traveler loyalty, advancements in New Distribution Capability (NDC), and the rapid expansion of global airline connectivity.
With more alternatives than ever before, Alternative Interlining is not just about providing cheaper flights – it offers a broader, more flexible range of travel options that appeal to today’s discerning, experience-driven travelers. The report highlights examples of how airlines are already leveraging these new capabilities to offer more personalized and efficient travel experiences.
Article by OAG
