gaining advantage from the data chuck thackston general manager, data & analytics

Gaining Advantage from the Data Gaining Advantage from the Data

Chuck ThackstonGeneral Manager, Data & Analytics

ARC PROPRIETARY AND CONFIDENTIAL. This document includes confidential information that is proprietary to Airlines Reporting Corporation (ARC). Disclosure of this document or any information contained herein to third parties is prohibited without the prior written consent of an authorized ARC officer.

Obsolete versions of this document should be destroyed in a manner to prevent compromise of the information, e.g., shredding.

© 2007 Airlines Reporting Corporation (Unpublished Work)

Presentation Goals

• Short introduction to Business Intelligence

• What data is there … and will be soon

• Gaining advantage … either you or your competition

• The future and where we can go together

Questions??? … anytime

Goal: Give you some ideas about how you can compete more strongly.




1ARC PROPRIETARY AND CONFIDENTIAL. This presentation includes information that is confidential and proprietary to Airlines Report ing Corporation (ARC). Disclosure of the information provided in this presentation is s trictly prohibited without the prior written consent of an ARC Officer.

Technology Progress

Mobile Phone Electronic Games

Portable Music




Common Approach …




What is Business Intelligence?

Definitions:

• technologies, applications and practices for the collection, integration, analysis, and presentation of business information or the information itself

• a set of concepts and methods to improve business decision making by using fact-based support systems

• The knowledge derived from analyzing an organization's information

• Extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions.

1. Collect data

2. Organize & analyze

3. Make decisions

4. Take action

MostImportant




Timing is critical …

In 2002 45% of companies reported having minimal or no analytical capabilities ……In 2006 only 8% lacked basic analytical capabilities.




Type of data

• Ticketed Fare• Fees & taxes• ARC Number• Carrier Information• O & D and Connections• Ticketing and travel dates• Cancellations / changes• Passenger information• … and more




Answers available

• How is my business growing relative to the market as a whole?

• Is there better (relative) growth in one market, region, or type of destination?

• Are connecting flights growing faster than direct flights … in a particular O&D?

• Is one group of passengers booking a lot more (or less) than they have done in the past?

• Are the most frequent customers generating the most revenue (or profit)?

• … lots of others




Be careful!




Tactical uses of data

• What was the credit card number usedfor that eTicket issued several months ago?

• Debit memo processing: ARC Memo Manager

• Ticket Resolution Services

• Fraud Elimination




A word about privacy and security

• PCI and European Safe Harbor compliant• Physical protection of data assets• Formal data privacy policies• Conservative approach to competitive data




ODSS for Travel Professionals




ARC DataXpert




Monthly Public Information




Dashboard




What else can we do together?

• Important Principle: More visibility to the market let’s you compete on your own terms … levels the playing field for all.

• Next???– Demographic analysis?– Debit Memo information?– Precision Market Analysis (name your competition)– Corporate performance reporting– Ancillary Revenue reporting

– Other …




I m a g i n e t h e p o s s i b i l i t i e s w i t h d a t a …

2008 Reporting and Settlement

Leslie Gilpatrick

General Manager, Reporting and Settlement




Agenda

•Mission and Strategy

•2008 Business Plan

•Agent Business Development

•Carrier Business Development

•New Customer Markets Business Development




Mission and Strategy

Mission: Grow ARC revenue by delivering Reporting and Settlement products and services preferred by the travel industry.

Strategic Objectives:• Maximize the ROI on ARC’s core Reporting and Settlement business

• Invest in new product research and development that compliments the Reporting and Settlement core competencies

• Respond strategically to industry mandates and current customer needs

• Strengthen and broaden ARC’s customer base




2008 Business Plan

Maximize the ROI on ARC’s core Reporting and Settlement business

– Court Lower Cost Carriers– Improve Accreditation Processes– Grow Direct Connects– Increase Transactions




2008 Business Plan

Respond strategically to industry mandates and current customer needs.

– ASP/IAR• Electronic Miscellaneous Documents (EMD)• Same day void/next day modify (dependent upon system provider

development)• TASF form code changes• Credit Card Processor required changes

– AIA First and Final Billing• Ensure carriers understand the benefits of rejection free interline

billing

• Promote the use of a Neutral Fares Prorate Engine

• Convey future simplified interline billing proposal




2008 Business Plan

Invest in new product research and development that complements the Reporting and Settlement core competencies

– Complete business case and go/no go decisions for• Hotel Invoice Presentment - transform a paper based billing process into

an electronic solution. Create an online invoicing system for the Hotel Industry that is also generic enough to be expanded to other target markets

• Up-Front Audits - provide services to small carriers that do not have the internal ability to efficiently monitor contract pricing as it relates to commissions, taxes, etc.

– Initiate viability research for• “Virtual Ticket” settlement• Hotel commission payment processing




2008 Business Plan

Strengthen And Broaden ARC’s Customer Base

– Continue operational support• ISS and IAR integration with My ARC• New XML messaging formats for IAR input• EDIFACT messaging for exchanges and refunds• Cross entity exchanges• TASF program enhancements

– Continue support for Direct Connects– Explore growing multiple currency processing to CTDs– Customer (agency) focused enhancements for IAR




2008 Business Plan

Strengthen And Broaden ARC’s Customer Base (cont.)

– Universal Settlement System• The current architecture and system components of the Area Settlement Plan limit the

ability for ARC to serve new markets and to respond quickly with product changes. The Universal Settlement System will support financial payment and/or settlement of any type of transaction from any type of customer:

• Allow ARC to grow transaction volume:– non-USD currencies– new transaction types– new customer groups

• Increase Profits and Wow Customers:– improve processing efficiency– provide functionality driven by our customer’s strategic and tactical needs– reduce costs where possible

• Address strategic business needs:– new product ideas for the ARC business lines– provide improved time-to-market for product feature enhancements and industry

mandates




2008 Business Plan

Strengthen And Broaden ARC’s Customer Base (cont.)

– Customer Integrated Management System (CIMS)• A re-designed Settlement Management System that will encapsulate and

improve all settlement (e.g. agent, carrier, default, financial recovery etc.) components that are currently in the TAMIS system.

• Controls aspects of ASP processing (e.g. masterfile, carrier/agent output list)• Stores summary management statistics (e.g. financial amounts, coupon

counts etc.)• Provides a web based interface that will be accessible via the portal.• Supports global settlement processing• Supports non-traditional customers• Aligns with our evolving enterprise architecture




Agent Business Development

Encourage My ARC registration (Stage 1 of IAR/ISS Integration)

– Stage 1: Agent My ARC registration and access to IAR and ISS through My ARC without Single Sign On (in progress)

– Stage 2: ISS integration (target March 2008)– Stage 3: IAR integration (target May 2008)

Collect feedback on how the Accreditation experience can be improved

– Decrease processing times– Improve customer satisfaction– Adapt to marketplace needs

Educate Agents on our value proposition




Carrier Business Development

New Direct Connects– Promote Carrier Web Portal business models

– Be ready and willing to work with any new proposed business model that does not fit the mold of a defined Direct Connect

Ticket Resolution Services– Promote credit card chargeback collections

– Sign-up Carriers for the ARC TRS product




New Customer Business Development

Promote ARC as a solution provider

– Share hotel and tour operator contact information collected at conferences and industry events

– Collect and funnel new settlement opportunities through the R&S Product Development Manager

EMD and Carrier Fees Project

Thomas Jerosch

Sr. Business Analyst, Reporting and Settlement





EMD - Electronic Miscellaneous Document

• The EMD is a new document type for the industry

• It is an electronic replacement of remaining miscellaneous and paper documents (MCOs, Tour Orders, PTAs)

• Consists of 4 coupons and can be conjunctive (up to 16 segments like an E-ticket)





• EMD is unusual in that this is the first new document type to be introduced in the industry for sometime– This equals a major programming and implementation effort for:

• GDS , Carriers, Travel Agencies, BOS Vendors, ARC– For ARC, this affects all of our systems and outputs

• IAR, ISS, Compass/DRS, ECCB, ASP

• Goal: to accept and process EMDs by the end of 2009– One large carrier has EMDs in production internally and has asked ARC

to implement– Other carriers are expected to follow





Carrier Fees • Charges for services purchased through a travel agency or GDS that do not

appear on airline tickets/documents

• Will be processed similar to a tax code - so far there are three proposed

codes: 1. OA (for booking fees, like through a GDS)

2. OB (ticketing fees)

3. OC (any variety of carrier fees)





• Carriers plan to use the EMDs and Carrier Fees as a way to merchandise current and new services

– For example, a passenger who wants an exit row on a plane could pre-purchase that service via an EMD

– It’s also envisioned that carriers would use these to collect for baggage, food purchases, etc.

• Why Both? – There is no industry-mandated uniform method of charging

miscellaneous fees • Some carriers plan to only use Carrier Fees, while others will use Carrier

Fees as a short term solution until they can develop EMDs• Still others plan to develop both to get the most flexibility• ARC must handle both so we’ve combined them into the same project





• What this means to you

– We’ve just started gathering requirements, but as we have in the past, feedback will be sought

– Questions contact Keith Venzke at [email protected].

mailto:[email protected]

VISA Product ID Project – Phase II

Thomas Jerosch






• Overall Goal– VISA mandated that all transactions using a VISA form of payment

include a 2 character Product ID to identify the type of card (e.g. signature, rewards, etc.), effective October, 2007.

– Requires the GDS/System Provider to report the Product ID to ARC on the daily SPRF files.

– Requires ARC to output the Product ID on all credit card billing files to VISA processors.

• Phase 2– ARC outputs the Product ID for those transactions processed through

the non-ECCB processing centers.– Functionality was implemented March, 2008.





• Phase 1 – previously implemented October 2007– ARC outputs the Product ID for those transactions processed through

ECCB.

• The following GDS/System Providers currently provide the Product ID on their SPRF files:– Sabre

– Worldspan

Travel Agency Service Fee (TASF) Project

Thomas Jerosch





TASF Project

• Background

– ATA Passenger Council mandated ARC to discontinue use of Automated MCO form codes for TASF transactions effective June, 2009. (IATA has also been tasked with eliminating use of industry form codes to support their travel agency service fees.)

– ARC formed a working group comprised of GDSs, carriers and IATA to brainstorm solutions.

– After considering many alternatives, an agreed upon solution was identified.




TASF Project

• Solution

– ARC and IATA will split the carrier form code range and each use half to support their service fee program.

– Both ARC and IATA have carrier accounting codes, 890 and 954 respectively, so are eligible to use the carrier form code range for their own purposes.

– ARC will assign a range of carrier form codes to each GDS to use for supporting their agency subscribers issuing service fees.




TASF Project

• Stakeholders– GDS, Travel Agencies and ARC

• Next Steps– Determine implementation timeframe

– Communicate with all stakeholders to ensure all enhancements will be ready to meet the implementation timeframe.

ARC Advisory Council




Other Business

• Open Topic• Next Meeting Dates• Closing Remarks

THANK YOU