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We’ve already explored the path to modernization of legacy systems in the travel and hospitality industry. Now it’s time to dig deeper, because if you’re still relying on legacy systems, chances are the cracks are already showing.
When your systems are aging, the warning signs aren’t subtle anymore - they may work, but fail today’s demands: real-time data, seamless customer experiences, or personalized journeys. They’re inflexible, expensive to maintain, and often patched together just to stay operational. No surprise then that 79% of organizations (VB) now believe their legacy systems are actively blocking their digital transformation goals, leading to major drop in bookings, system outages, security vulnerabilities, and frustrated customers.
In the sections below I outline the key warning signs that your legacy systems are due for upgrade, backed by real-world examples from airlines, hotels, OTAs, and logistics providers that have faced serious consequences from delaying necessary upgrades. If you feel like your tech stack is the burden, you’ll want to read on.
Modern travel relies on speed, personalization, and integration yet much of the infrastructure powering it is stuck in the past, unable to meet even the baseline demands of today’s users. How do you know when it’s time to modernize? Here are the most common red flags:
The symptom: During peak periods - a flash sale, public holiday, or fare class change - your system crawls or outright crashes. Customers abandon carts, agents can't issue tickets, and you lose revenue while paying for the traffic you couldn't convert.
The cause (resilience & scalability):
Legacy systems are typically stateful, tightly coupled, and designed for fixed loads. They often contain giant “God classes” like BookingManager, where pricing, rules, availability, and booking logic are entangled in a single module. These systems run on single-threaded processes or even mainframes, with vertical scaling as the only option - expensive, slow, and limited.
How to fix it: Modularize logic using domain-driven design, externalize session state, and deploy services in containers orchestrated by platforms like Kubernetes.
The symptom: Even small changes (like updating baggage pricing or changing fare logic) require redeploying entire services - risking unrelated functionality and slowing delivery.
The cause (architecture & technology):
Legacy systems are often built as monoliths, where the UI, business logic, and backend services are tightly coupled. A change in one area often affects everything else. Communication between services is typically synchronous (e.g., HTTP or RPC), which means if one part fails, it can cascade through the system. Worse, these systems often run on outdated technologies like Java 6 or VB.NET - hard to maintain, harder to hire for.
How to fix it: Break the monolith into smaller modules, switch to asynchronous communication (e.g., message queues), and modernize your stack using cloud-native tools.
The symptom: Partner onboarding takes months. Every integration requires custom development, and existing ones are fragile - with SOAP, CSV, FTP, or even direct DB access still in use.
The cause (integration & APIs):
Legacy travel systems often expose internal databases directly or use undocumented socket protocols. Each new partner may require a one-off connector. The result? A big mess of CSV files, SOAP envelopes, and ad hoc logic that’s hard to scale or secure.
How to fix it: Move toward event-driven, schema-based APIs. Use Kafka or RabbitMQ to decouple producers and consumers, and adopt standards like NDC or REST/GraphQL APIs.
The symptom: Critical business logic (like fare combinability or interline settlement) lives in a shell script or COBOL module only one person understands. If they leave, you're stuck.
The cause (knowledge & documentation):
Documentation is either missing or scattered across Slack threads, wikis, or 15-year-old PDFs. The real knowledge lives in the heads of a few engineers. This makes onboarding painful, slows down changes, and increases risk.
How to fix it: Use tools that generate documentation from code (e.g., OpenAPI), centralize documentation, and adopt a “docs-as-code” culture.
The symptom: To investigate a bug, engineers log into a mainframe terminal or grep through scattered log files via SSH. QA still runs on spreadsheets.
The cause (observability & automation):
Legacy environments lack centralized logging and automated testing. Monitoring is fragmented and inconsistent, making it hard to troubleshoot issues or ensure quality. Every release becomes a stressful, manual coordination effort across multiple teams.
How to fix it: Set up centralized log aggregation (e.g., ELK, Datadog), build automated tests for critical flows (like booking and ticketing), and deploy with modern CI/CD pipelines.
The symptom: You struggle to find developers who know TPF, COBOL, VB6, or other technologies you use. Maintenance costs keep rising.
The cause: As time passes, fewer engineers are trained in legacy stacks. That means higher salaries, longer hiring cycles, and a growing risk of knowledge loss.
How to fix it: Plan a phased migration off legacy tech. Modernize gradually, starting with the most brittle areas.
The signs of aging technology aren’t just IT concerns, they represent real, escalating business risk. From delayed innovation and operational failures to lost revenue and diminished customer loyalty, legacy systems quietly drain resources and block your growth.
Maintaining legacy systems generates high costs. For many organizations, up to 80% of the IT budget goes toward keeping old systems alive (DCD). From licensing fees and hardware costs to hiring rare (and increasingly expensive) legacy developers, the financial drag is constant and compounding.
Some enterprises report annual maintenance costs exceeding $300 million (NextGov), with that figure growing year over year. Setting up physical servers alone can cost up to $10,000 each (Forbes), not including energy, cooling, and backup infrastructure (Forbes). And when critical knowledge is locked in the heads of just a few long-tenured engineers, the risk multiplies if even one of them leaves.
Modern platforms - especially those cloud-native and containerized - offer a 30-40% reduction in operational costs (McKinsey), freeing up budgets for forward-looking initiatives.
Legacy systems were built for a different era. They struggle to support today's fast-changing customer touchpoints, like mobile-first experiences, personalized offers, or NDC-enabled distribution.
Worse, integrating modern tools, such as Generative AI, predictive analytics, or dynamic merchandising engines, is often blocked entirely by outdated architectures and incompatible data structures. This makes it harder to offer relevant, omnichannel experiences and slows down efforts to adapt to changing traveler expectations.
Today’s travelers expect fast, seamless, and personalized service. Legacy systems make that nearly impossible. Guests encounter slow check-in experiences, limited self-service tools, and interfaces that feel a decade old. Back-office inefficiencies only add to the friction, as staff are often forced to work around outdated software and disconnected tools.
The result? Dissatisfied customers who turn to more tech-forward competitors. Meanwhile, modernized systems unlock real-time personalization, responsive design, and faster transactions, leading to stronger loyalty and lifetime value.
Modern travel runs on collaboration - and legacy systems aren’t good team players. They struggle with partner integrations, often relying on brittle, custom-built adapters and outdated protocols. This makes every new partnership a manual effort that’s time-consuming, expensive, and hard to maintain.
For travel brands trying to build dynamic packaging offers, integrate new mobility options, or expand into new markets, this rigidity becomes a major blocker. Missed integrations mean missed revenue, while more agile competitors form the partnerships that shape the next generation of travel.
Old systems weren’t designed for today’s cyber threats - and it shows. Many are no longer patched, lack encryption by default, or use outdated authentication methods. For example, some global distribution systems still rely on six-digit PNRs, making them vulnerable to brute-force attacks.
The travel industry handles enormous amounts of sensitive customer data, making it a prime target for hackers. A breach doesn’t just come with millions in recovery costs - it can trigger lawsuits, loss of customer trust, regulatory penalties, and higher cybersecurity insurance premiums.
Even the physical infrastructure creates risk: legacy systems often run on on-premises servers vulnerable to outages, natural disasters, and physical security breaches.
Symptom
Underlying technical deficiency
Business implication
Laggy performance during high demand
Lack of resilience and scalability; tightly coupled, stateful legacy applications that cannot scale horizontally
Frequent service outages, lost transactions, diminished customer trust, reputational damage, inability to handle peak demand
Small updates requires big deployments
Rigid, highly integrated monolithic architecture; absence of agile development, DevOps, and CI/CD practices
Slow time to market for new features, inability to respond quickly to competitive threats or market changes, missed revenue opportunities
Risky manual releases
Absence of CI/CD pipelines, automated tests, and observability; manual deployments and debugging; fragile build and release process
High operational risk, increased errors in production, engineer burnout, reduced productivity, fear of deployment hindering innovation
Key logic is locked in tribal knowledge
Undocumented business-critical logic; prevalence of knowledge silos; a high "bus factor”
Critical operational vulnerability, severe project delays or failures if key personnel depart, difficulty in scaling teams or onboarding new talent
Slow and fragile integrations
Absence of modern API-first architecture; reliance on outdated protocols (e.g., FTP, SOAP); limited interoperability
Inability to form new partnerships, integrate with modern services (NDC, AI), or leverage new distribution channels, leading to competitive disadvantage and missed revenue
Rising costs and shrinking talent pool
Outdated technologies (e.g., COBOL, VB6, TPF) with diminishing expertise; unattractive to modern developers; hard to recruit for and increasingly expensive to maintain
Higher labor costs for scarce specialists, reduced IT flexibility, inability to attract top-tier talent, perpetuating technological stagnation
The risks and costs of relying on legacy systems in the travel industry are not just hypothetical - they have led to massive real-world failures, causing billions in losses, severely damaging customer trust and revealing how vulnerable the industry remains when outdated technology meets spikes in demand. These cases serve as urgent warnings about the high price of delaying modernization.
One of the most notable incidents was Expedia’s Spring Break Meltdown. The company’s aging booking infrastructure simply couldn’t handle the surge in traffic during a peak travel season. This wasn’t an isolated failure - it cascaded through multiple Expedia-owned brands, including Vrbo, Hotels.com, Orbitz, Wotif, and eBookers. Customers faced widespread booking chaos, cancellations, and delays, resulting in an estimated $12 billion loss for Expedia alone. Post-incident analyses revealed that insufficient load testing and legacy architecture were at the heart of this breakdown.
Late 2023 brought another stark example with Booking.com’s network security breach. Hackers exploited outdated security protocols to steal login credentials, forcing a full system shutdown that lasted nearly 48 hours. The impact was devastating: roughly two million reservations vanished during the outage, creating widespread disruption for travelers and hotels alike. The incident prompted a comprehensive IT audit, uncovering that much of Booking.com’s core infrastructure urgently required modernization to meet today’s security standards.
Priceline also faced a critical failure in mid-2024 when years of accumulated technical debt led to a collapse of their legacy codebase. This event disrupted countless transactions and severely eroded user trust. It highlighted the growing dangers of maintaining outdated frameworks without proper audits or modernization plans, contributing to the broader industry losses that year.
Even smaller glitches can snowball into major issues. Early in 2024, a flawed software update caused the flight booking systems at Hotels.com to malfunction, injecting bugs into the underlying Microsoft environment. Although quickly patched, the incident left many travelers frustrated and unable to book flights during a busy period, further adding to the industry’s financial toll.
Legacy systems don’t just quietly age - they send clear, unmistakable signals that they’re no longer fit for purpose. From slowdowns and outages to stalled innovation and rising costs, these symptoms are the red flags that no travel business can afford to ignore. Recognizing them early is crucial; they mark the tipping point where maintaining the status quo becomes more expensive and riskier than embracing change and unlock new potential - and the window for it won’t stay open forever.