Airline reservation system & passenger service system explained

On Christmas Eve 2024, American Airlines faced huge disruption due to a tech issue that grounded all flights. Over 1,400 delays and 28 cancellations were reported, and Dallas-Fort Worth received the hardest hit. Bad weather made things worse – think snow in New York and rain in Dallas. What if this could’ve been prevented?

You might think that IT outages can be avoided, but we can’t really change the weather. But here's the thing: modern aviation has two secret weapons — airline reservation systems (ARS) and passenger service systems (PSS). 

Behind these abbreviations stands a real tech power – when used right, an airline reservation system or passenger service predicts problems before they happen and helps airlines adapt on the fly. In this article, we'll discuss how these systems work and resolve many headaches for everyone involved.

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What is airline reservation system?

Remember the last time you booked a flight? Just a few clicks, and boom — you had your ticket. But behind that smooth experience lies something rather complicated: the airline reservation system. 

An airline reservation system is software that manages all aspects of flight bookings and related services. Looking simple on the surface, it processes millions and billions of transactions across airlines and travel platforms.

When you search for a flight, the airline ticketing system instantly processes your request through multiple layers. The system first checks seat availability across thousands of routes, while the centralized fare management component analyzes pricing, factoring in everything from seasonal demand to competitor rates. 

Once you book, your information flows through payment verification and security checks. As your travel date nears, the departure control system takes over, orchestrating crucial elements like seat assignments, baggage handling, and aircraft weight distribution. This seamless integration ensures that your digital reservation smoothly transitions into a physical seat on your flight.

An online flight ticket reservation system is a central hub for all flight-related info, from schedules to pricing. It works behind the scenes to store passenger data, track loyalty programs, handle special requests, and sync with airport check-in systems. At its core, it:

• Tracks every seat in real-time.
• Adjusts prices constantly based on demand.
• Stores booking details securely.
• Connects with global systems.
• Manages loyalty points and special requests.

Modern airline reservation software does far more than just process bookings — it keeps everything running smoothly behind the scenes. This connectivity is explained by the fact that airline reservation solutions are part of a wider phenomenon — airline distribution systems.

What is airline distribution system?

An airline distribution system is a network airlines use to sell tickets and manage bookings. It connects airlines with passengers, travel agencies, and online travel platforms (OTAs) to enable booking, pricing, and ticketing. They help airlines distribute their flights through various channels, from their websites to third-party platforms. How does it all work step by step?

At the heart is the airline passenger service system (PSS), which includes an inventory control system (ICS), central reservation system (CRS), and departure control system (DCS) modules. The PSS tracks seats and manages bookings and check-ins. When you search for a flight, you book through the airline’s website or via global distribution systems (GDS), which connect travel agencies, OTAs, and metasearch engines. Airlines adjust prices based on demand. 

The cool part is that these systems keep getting smarter. They can predict when flights might be delayed based on weather patterns, suggest alternative routes when things go wrong, and remember your preferences for next time. And this goes along perfectly with the technology trends in airline industry — in 2024, global airlines boosted their technology investments by 25%.

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Passenger service systems

Passenger service systems are the backbone of modern airline operations. Far more than just a booking tool, PSS airline systems orchestrate every touchpoint between carriers and their customers.

A typical PSS system comprises 4 modules:

1. Reservation management handles the complex dance of bookings and scheduling. It processes every ticket purchase, manages schedule changes, and maintains passenger records. Think of it as your flight's digital paperwork manager — from the moment you book until you reach your destination, it tracks every detail of your journey, including special meal requests and seat preferences.
2. The inventory module works like a dynamic warehouse manager for airline seats. It doesn't just count available seats — it strategically manages them across different booking classes. This module constantly updates availability in real time, balancing factors like overbooking allowances and fare restrictions to maximize both revenue and passenger satisfaction.
3. Check-in systems transform your reservation into actual travel. This module handles everything from seat assignments to baggage tracking, and even aircraft weight distribution calculations. It's responsible for generating boarding passes, tracking checked luggage, and ensuring all passenger documentation meets flight requirements.
4. The customer service component ties everything together by maintaining communication between the airline and its passengers. It handles disruption management during delays or cancellations, processes refund requests, and manages passenger notifications. When weather forces a flight change or a connection is missed, this module springs into action to help airlines manage the situation.

Each component in the airline PSS communicates constantly with others, creating a seamless flow of information that powers air travel.

Three generations of airline PSS 

The evolution of airline technology spans three distinct generations, each marking significant changes in how carriers manage passenger services.

• 1st generation: Legacy solutions

The oldest solutions in the industry were central reservation systems (CRS) — software that helps store and organize data on available flights, hotel rooms, car rentals, and other travel services. The pioneers, including the SABRE reservation system and Amadeus CRS, built their foundations on robust mainframe computers. These systems excel at processing massive transaction volumes with remarkable speed. However, like a well-maintained vintage car, they're reliable but expensive to keep running and lack modern features travelers now expect.

• 2nd generation: Hybrid systems

Many airlines use what we call a "digital patchwork." This second generation of PSS airlines combines old and new technologies through middleware connections. Think of it as building a bridge between your grandmother's reliable record player and Bluetooth speakers — it works, but isn't always seamless. Systems like Amadeus Altea emerged during this era, offering more flexibility than their predecessors.

• 3rd generation: Service-oriented 

The latest evolution in passenger services embraces a modular approach. The new distribution capability (NDC) systems break down complex operations into smaller, independent pieces that work together seamlessly. These platforms allow airlines to sell their services directly to travelers, bypassing traditional distribution channels.

New systems dominate today's airline passenger communications system market, offering unprecedented flexibility and scalability. This new architecture powers everything from the departure control system to customer service interfaces. What makes this generation truly revolutionary is how easily airlines update or replace individual components without disrupting their entire operation — something unthinkable in the legacy era.

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The relationship between ARS, PSS, and CRS

So, how are all three related? There is a clear algorithm-based connection between them.

A passenger service system, or PSS, represents the comprehensive ecosystem powering modern airline operations, orchestrating everything from bookings to baggage handling. An airline reservation system, or ARS, is more of a booking engine within this ecosystem, focusing solely on reservations and seat inventory. Meanwhile, the central reservation system, or CRS, serves as the broader framework that extends beyond airlines into other travel sectors, managing reservations across multiple industries.

These systems function like a well-choreographed dance. The PSS airlines rely on their ARS component to handle specific reservation tasks, while the CRS provides the underlying technology that makes these bookings possible. When you book a flight, the ARS processes your reservation, the departure control system prepares for your arrival at the airport, and the PSS oversees the entire journey. Each system communicates constantly with the others, sharing crucial data about flights, passengers, and operations.

Despite this connection, there are clear differences between these systems. Let’s break them down too.

Key differences between ARS, PSS, and CRS

The main distinction lies in their scope and specialization:

• A CRS is a broad tool used in many industries, such as travel, hotels, and car rentals, to manage reservations. It’s not limited to airlines but supports various businesses in handling bookings and availability.
• An ARS is specific to airlines. It helps manage flight bookings, seat availability, and payments. Passengers use it to search for flights, make reservations, and choose seats, while airlines use it to track inventory and optimize operations.
• A PSS is more comprehensive. It’s the backbone of an airline’s operations, combining systems like ARS, check-in processes, boarding management, baggage handling, and loyalty programs. It ensures all parts of the passenger experience work seamlessly together.

PSS system encompasses the entire passenger journey, offering a complete suite of tools for airlines to manage every aspect of their operations. ARS focuses exclusively on the reservation process, handling tasks like seat inventory and booking management. CRS provides the foundational reservation technology that can be applied across different industries, making it the most versatile but least specialized of the three. 

For airline systems, this hierarchy ensures that each component serves its specific purpose while contributing to the larger operational picture.

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Best reservation software for airlines

Let's check the best examples of airline reservation systems and passenger service solutions and determine what makes each unique.

• Amadeus CRS offers ultra-high availability architecture, CRS-connected revenue management, an API-first modular design, and centralized corporate control with local flexibility, making it ideal for large hotel chains and enterprises. Its jewel, the Amadeus Altéa flight reservation system, excels in three areas: immediate response times, seamless scalability, and real-time data synchronization across all channels. Its intelligent booking management uses data to personalize services automatically.
• TravelPerk has changed corporate travel with its industry-leading inventory and flexible booking options. It features an intuitive dashboard, 24/7 support, FlexiPerk cancellation, and access to industry-leading inventory and negotiated rates. The FlexiPerk feature stands out by offering 80% refunds on cancellations made just two hours before departure — a game-changer for business travelers dealing with unpredictable schedules.
• Sabre CRS shines in handling airline operations. Its automated end-to-end workflow turns booking processes into smooth, efficient operations. Airlines particularly value Sabre's centralized pricing engine, which ensures accuracy across all distribution channels. One of Sabre's standout features? Its streamlined electronic fulfillment process for both tickets and miscellaneous documents saves countless hours in reservation processing time.

• AMEX GBT (American Express Global Business Travel) brings enterprise-level capabilities to air ticketing software. Their platform excels in risk management, providing real-time alerts and comprehensive travel tracking. The system's pre-negotiated rates and extensive inventory make it particularly attractive for large corporations.
• SAP Concur provides enterprises with centralized travel dashboards, online booking tools for various services, and employee safety features, helping optimize travel spending and streamline expense management.

• Spendesk is a scalable tool for businesses, featuring approval and spending policies, virtual cards for travel expenses, and integrations with vendors like Airbnb and Uber to simplify corporate travel and expense tracking.

• Flightslogic is an all-in-one travel CRM with a large inventory of airlines, car rentals, and hotels, offering easy travel scheduling and fast bookings for businesses managing workforce travel activities.
• SalesTrip integrates with Salesforce to offer automated trip searches, cost-effective booking options, ROI measurement, and real-time travel insights, making it perfect for Salesforce-dependent businesses.
• ITILITE's platform stands out for its cost-saving features for corporate travelers, including automatic flight re-shopping, car transfers, and unused ticket management. Their policy compliance tools ensure 100% adherence while maintaining flexibility in booking options.
• Operating in over 150 countries, myCWT platform combines reliability with modern innovation. Their messaging service and mobile app create a seamless experience for travelers, while booking capabilities extend beyond just flights to create full-range travel solutions.

• TravelBank's mobile-first strategy caters perfectly to today's on-the-go business travelers. Their rewards program incentivizes cost-efficient booking choices, while their flight credit management system helps organizations maximize travel budgets.
• Navan uses artificial intelligence to streamline travel management processes. Their integration capabilities with third-party software and sophisticated corporate card management make them particularly attractive for tech-forward companies.

As you see, the future of departure services, booking, and customer support in modern airline systems continues to evolve with AI and varied integrations. These advances help airlines optimize everything from pricing strategies to departure schedules, creating more efficient operations and better passenger experiences.

How to choose the best airline system

Selecting the right airline reservation system could transform your business travel from a headache into a strategic advantage. Here’s a 7-step guide to choosing the best-fit one.

• Step 1: Know your needs.

Before diving into features, examine your organization's (or client's) needs: What's your typical booking volume? Do you handle mostly domestic or international flights? How far in advance do you usually book? These answers will guide your choice of airline ticketing software.

• Step 2: Define integration and inventory capabilities.

API integration is your system's ability to interact with others. Modern flight reservation software should seamlessly connect with your existing tools, from expense management to HR systems.

Your ideal airline reservations system should also unlock doors to extensive flight options. Look for platforms offering NDC (New Distribution Capability) integration and direct airline connections. More choices typically translate to better deals.

• Step 3: Pay attention to user experience.

Skip the complex systems requiring extensive training. The best airline reservation system software feels intuitive from day one. Your team should navigate it as easily as their favorite social media app.

• Step 4: Explore automation possibilities.

Look for systems that automate repetitive tasks such as policy compliance checks, approval workflows, expense reporting, and travel policy enforcement. These features can save a significant amount of time by reducing manual work.

• Step 5: Consider your budget structure.

Different pricing models are suitable for different businesses. Per-booking fees are ideal for occasional travelers, subscription models are beneficial for frequent travelers, and transaction-based pricing works well for businesses with varied travel patterns.

• Step 6: Support when you need it.

Evaluate the support structure by considering factors such as response time guarantees, available support channels, time zone coverage, and language options.

• Step 7: Future-proof your choice.

Assess the platform's ability to innovate by looking at its track record for regular feature updates, mobile capabilities, sustainability features, and integration of AI tools in airline industry.

Request detailed demos tailored to your specific use cases, speak with existing customers in your industry for insights, and begin with a pilot program to test the platform before full deployment. Also, factor in integration costs beyond the base pricing and evaluate the vendor's financial stability to ensure long-term reliability.  And don't forget to check for red flags:

• Outdated interfaces.
• Limited payment options.
• Poor mobile support.
• Complex pricing structures.
• Long implementation times.

The perfect travel booking solution grows with your business. Think beyond current needs to where your organization will be in 2-3 years. If you need a flexible solution tailored to your needs, off-the-shelf software might not be the best option for you. 

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Tailored airline PSS solutions

At its core, a custom online flight booking system delivers seamless omnichannel experiences. Passengers glide effortlessly between mobile apps, web interfaces, and customer service touchpoints, all while enjoying consistent, personalized interactions. The magic lies in unified, centralized fare management that synchronizes pricing and availability across all channels.

Behind the scenes, advanced integrations weave everything together. From secure payment gateways to third-party services like hotels and insurance, every component works in perfect harmony. Real-time alerts keep passengers informed about everything from gate changes to baggage status.

Administration becomes remarkably straightforward, too. Multilingual support, comprehensive analytics, and automated processes reduce operational complexity while improving service quality. AI-driven booking systems handle routine tasks, freeing your team to focus on exceptional service moments.

What sets custom solutions apart is their adaptability. As travel protocols evolve — whether for health safety or security requirements — your system evolves, too. This flexibility ensures you're always ready for whatever changes the travel industry brings.

Airline PSS development cost

Let's talk numbers — what does it take to build your dream airline reservation system? Custom solutions typically start in the mid-five figures and can reach the millions for complex implementations. Here's why: you're not just paying for initial development, but creating a living, breathing system that includes:

• Development team expertise
• Design and UX crafting
• Security implementation
• Testing and quality assurance
• Ongoing maintenance
• Regular updates and improvements

Ready-made solutions offer a different financial model. Instead of large upfront costs, you'll encounter:

• Monthly or annual subscriptions
• Per-booking or per-user fees
• Integration costs
• Customization fees
• Support package costs

Remember to factor in hidden costs like staff training, system migration, and potential downtime during implementation.

So what is the best option?

Deciding which solution — off-the-shelf or custom — to opt for isn’t an easy task. But these flags will show you what to stick with.

Choose a ready-made solution when quick deployment is essential, budget constraints are a factor, and standard features meet your needs. It’s also the right option if you prefer predictable costs and need immediate scalability.

On the other side, opt for a custom solution when your business model is unique, you require complete control over features, and your scale demands specialized solutions. It is also the right choice when integration requirements are complex and long-term cost optimization is a priority.

When the latter is just for you, the next step is to find a reliable software development provider. In fact, we happen to be just the experts in this field.

COAX is a travel software development company with experience in channel managers and GDS integration. Our team brings deep industry knowledge, technical expertise across various platforms, and a strong understanding of the travel ecosystem. We are committed to long-term partnerships and have a thorough understanding of travel industry regulations.

What sets COAX apart is our focus not just on coding, but on creating sustainable competitive advantage. We guide you through complex decisions about architecture, scalability, and future-proofing your investment.

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FAQ

What is PSS in simple terms?

A Passenger Service System (PSS) is basically the brain of an airline's operations. It's the central system that manages everything from when you book your ticket to when you collect your luggage at your destination.

What happens to my booking data if an airline's system crashes?

Airlines use sophisticated backup systems and data redundancy measures. Your booking information is typically stored across multiple secure locations, so even if one system fails, your data remains safe and accessible through backup servers.

How secure are these airline systems against cyber attacks?

Modern airline systems employ multiple layers of cybersecurity, including encryption, real-time threat monitoring, and regular security audits. They must comply with international aviation security standards and data protection regulations like GDPR.

How do airlines handle overbooking through these systems?

Airlines use sophisticated yield management algorithms that calculate the optimal number of seats to oversell based on historical no-show data, seasonality, and route popularity. The system automatically manages compensation offers and rebooking when necessary.

How do these systems handle international flight requirements?

Airline systems include compliance modules that automatically check and enforce international requirements like visa rules, health documentation, and customs regulations. They update in real time as countries change their entry requirements.