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Q&A: Why Travel Needs a New Platform Built for an Open Ecosystem

Q&A: Why Travel Needs a New Platform Built for an Open Ecosystem
The travel industry stands at a pivotal moment, confronted with increasing pressure to modernize its foundational technology. Despite growing digital adoption, many travel systems continue to rely on outdated processes that impede innovation and slow progress across the sector. For instance, the adoption of New Distribution Capability (NDC) in the United States remains at a mere 20%, highlighting the sluggish transition of airlines and sellers toward contemporary standards. Meanwhile, Global Distribution Systems (GDS) still dominate inventory access and pricing. Entrenched practices, such as strict look-to-book ratios that limit the number of searches relative to bookings, further restrict experimentation and the emergence of new ideas.
In contrast to travel, other industries like financial technology have embraced modular, cloud-based platforms designed for scalability and openness. Travel, however, remains constrained by legacy frameworks that hinder new entrants from gaining traction. The sector’s resistance to change, the complexity of integrating new technologies, and the necessity for extensive data standardization present significant obstacles to adopting an open platform. Established players, who benefit from the current systems, often respond with skepticism and may seek to maintain their competitive advantage by enhancing proprietary platforms or developing closed solutions.
Addressing Barriers with a Platform-First Approach
OnArrival, a company founded with a platform-first philosophy, seeks to overcome these barriers by creating an infrastructure layer that the travel industry has long lacked. Its mission is to open the travel ecosystem, enable innovative use cases, and accelerate the transition away from legacy systems. In a conversation with SkiftX, Ankit Sawant, co-founder and CEO of OnArrival, elaborated on how the company is helping businesses access a unified, modern technology stack that reduces traditional barriers to entry.
When asked about the biggest technology challenges facing the travel industry today, Sawant identified the lack of accessible infrastructure for new entrants as paramount. Unlike sectors such as AI, fintech, and logistics—which provide open access to core systems through standardized APIs and developer-friendly platforms—travel remains fragmented and difficult to build upon. Legacy GDSs were originally designed for travel agents, leaving new companies without the necessary scaffolding to launch quickly or innovate. Although the underlying supply is largely consistent across the industry, integrating that supply is highly complex, making it difficult for newcomers to offer the breadth of products available through established online travel agencies.
Sawant pointed to other industries that have addressed similar challenges by building shared infrastructure: Shopify for e-commerce, Stripe for payments, Plaid for bank account access, and AWS for cloud computing. Travel, he noted, has yet to experience such a platform shift, which has reinforced an oligopoly sustained more by technical barriers than by genuine technological leadership.
The Impact of Legacy Systems on Competition and Innovation
Legacy systems significantly affect how travel businesses operate and compete. Sawant explained that these systems make it exceedingly difficult for new travel companies to enter the market. Prospective entrants must identify the right contacts, negotiate terms, complete extensive paperwork, and endure integration processes that often take months—despite the fact that such procedures should require less than a month. This dynamic protects incumbents from competition, as opening their systems would expose them to margin pressures and compel them to function more like low-margin infrastructure providers rather than high-margin consumer brands. Consequently, many established players maintain closed technology environments, which further hampers innovation across the industry.
As the travel sector contemplates a shift toward open platforms, it faces not only technical and cultural resistance but also the challenge of standardizing data and integrating new technologies. Market responses are expected to be mixed: some competitors may adopt open ecosystem strategies, while others may reinforce proprietary solutions to safeguard their market positions. Moving forward will demand collaboration, openness, and a willingness to reconsider long-standing industry practices.

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