3541: How IBS Software Sees AI Redefining Airline Retail and Loyalty

About this episode

What if airlines stopped thinking in terms of seats and schedules and started designing for the entire journey instead?

In this episode of Tech Talks Daily, I'm joined by Somit Goyal, CEO of IBS Software, to talk about how travel technology is being rebuilt at its foundations. Since we last spoke, AI has moved from experimentation into everyday operations, and that shift is forcing airlines to rethink everything from retailing and loyalty to disruption management and customer trust. Somit shares why AI can no longer sit on the edge of systems as a feature, and why it now has to be embedded directly into how decisions are made across the business.

We discuss the growing gap between legacy airline technology and rapidly rising traveler expectations, and why this tension has become a defining moment for the industry. For Somit, travel tech is no longer back office infrastructure. It is becoming the operating system for customer experience and revenue. That shift changes how airlines think about retailing, moving away from selling flights toward curating outcomes across a multi day journey that includes partners, servicing, and real time operational awareness. The conversation also explores why agility now matters more than scale, and how airlines are approaching this transformation without breaking what already works.

A major part of this episode focuses on IBS Software's deep co-innovation partnership with Amazon Web Services. Somit explains why this is far more than a cloud hosting arrangement, covering joint R&D, shared roadmaps, and AI labs designed to help airlines build modern retailing capabilities faster. We also unpack what "AI first" really means in practice, how intelligence is reshaping offer creation, pricing, order management, and disruption handling, and why responsible AI must be treated as a product rather than a legal safeguard.

We also spend time on loyalty, one of the industry's most stubborn challenges. Somit outlines why converging reservations and loyalty systems is such a powerful unlock, how it enables real time personalization instead of generic segmentation, and why loyalty should evolve from a points ledger into an experience engine that delivers value before, during, and after a trip.

As airlines race toward 2026, the big question is no longer whether transformation will happen, but who will move with enough clarity and trust to earn long-term loyalty. In a world where AI knows more about travelers than ever before, how do airlines use that intelligence to create better outcomes without crossing the line, and are they ready to rethink the journey from end to end?

Useful Links

• Connect with Somit Goyal
• Learn more about IBS Software

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