innovating better together
TRANSCRIPT
Innovating better together
• Paymentisbothacustomerexperienceandaback-officetopicdiscussedinfinancialgroups.Fromacustomerper-spective,thechallengeistoprovidechoice,transparencyandconvenience.Withtheproliferationofnewmethodsofpaymentandrisingsecurityorfraudissues,thispaperproposesanindustryapproachtostreamlinepayments.
• Baggageisanotherareathathasbenefitedfromvariousinnovation,fromtrackingtohometaggingordelivery.However,thereisstillroomforimprovementtowardsthevisionofahasslefreeexperience.Attheageofself-drivingcars,dronesandartificialintelligence,customersexpectaseamlessend-to-endbaggageprocess,asdescribedinthispaper.
• OpenAPIsisatechnologyconceptsupportingdatasharingwithtravelpartnersinordertostreamlinethecus-tomerexperience.ThisconceptleveragespreviousStBprojectstomovefromdataownershiptodataexchange,enablingbetterinformationsharing.
Overall,StBhasnotonlycoveredthebroaderend-to-endcustomerexperience(fromshoppingforaflighttobagcol-lection),ithasalsoaddeddepthintothedigitalinfrastructuresupportingtheservicestargetedtocustomers.
Asweapproachtheendofasecondcycleofprojectdeliv-ery(thefirstonefrom2004-2010andthesecondonefrom2010-2016),nowhalf-waytoourvisionofa2020perfecttrip,weneedtofocusontheopportunitiesforimprovement,innovationandsimplificationattheindustrylevel.
Ourambitionremainstosimplifythepassenger'sjourney.
SincerethankstoallthecontributorstothisneweditionoftheStBWhitePaper.Ilookforwardtohearingyourfeed-backduringtheWorldPassengerSymposium.
TheStBThinkTankstartedin2011torethinktheStBpro-gramfollowingthecompletionin2010ofthefirstseriesofprojects:e-ticket,bar-codedboardingpasses,common-useself-servicekiosks,andthebaggageimprovementprogram.
ThefirsteditionoftheWhitePapercontainednewStBgoals:airlineproducts,customerinformation,hassle-freeexperience-andnewStBprojects,includingNewDistribu-tionCapability.The2012editionproposedavisionoftheperfecttripin2020.Thisvisionincludedelementswhichareontrack,liketransparencyofproductattributes.However,thereareotherelements,suchaselectronicvisas,whichhaveprogressedwiththeintroductionofelectronicwaivers,butareunlikelytomaterializefullyinthenearfuture.
Throughouttheyears,theStBprogramhasfocusedondeliveringprojects.Forexample,theFastTravelprojectisclosingandmovingtooperations,theNDCprogramisindeploymentphaseandistargetingcriticalmassby2018andtheONEOrderprojectissubmittingitsstandardforapproval.Inparallel,eachyear,theThinkTankexploresnewopportunities,suchasthefour2016themes:oneidentity,payment,baggageandopenAPIs.
• OneIdentityaddressesthechallengeofidentifyingpassengersinbothanonlineworldandanofflineworldaimingtoreconcilethoseidentities.Thevariousprojectsaroundthesingletokenandbiometricsshowthattheidentitychallengeisnotnew.However,oneidentitypro-posesanewapproachwiththepotentialtoreachbeyondidentitychecks.
Sincerelyyours,
EricLéopoldDirectorTransformation,FDSIATA
Foreword
Simplifying the Business (StB) Transformation in progress and explorations underway
Making the industry easier to do business with for both customers and partners.
A road map to prepare for tomorrow’s passengerFive goals towards sustainable profits and better service
IATA presents the New Simplifying the Business (StB) Program
Tomorrow’s passenger journey will be simple, from travel shopping to airport security
Simplifying the Business Leading transformation for customer-centric air travel
2011
2013
2015
2012
2014
Simplifying the Business Innovating better together to benefit the future passenger
Eachyear,theStBThinkTankwritesaWhitePaperthatencapsulatestheideasandworkcompletedthroughouttheyear.
TheStBThinkTankgrowseachyear,fosteringasharedinterestforinnovationinourindustry.ItconsistsofasubsetofStBSteeringGroupairlines,airports,variousaviationpartners/bodiesandtechnologyproviders.Together,theteambrainstormsideasandthoughtsthatwillbenefitallstakeholdersacrosstheindustry.ItisimportanttohaveasmanystakeholdersintheThinkTankaspossiblefromacrosstheindustry,sinceeveryperspectivematters.Moreover,theideasdiscussedarecomplexandusuallytouchvariouspointsacrosstheindustry,thereforeneedingthecollabora-tiveworkfromallstakeholdersacrossthevaluechain.
Duringtheyear,theideasareworkedon,andwherepos-sible,aproofofconceptisdevelopedformoremeaningfulconversationattheannualWorldPassengerSymposium.
WhiletheinitialThinkTankmeetingcollectshundredsofpotentialideasfromthisdiversegroup,onlyafewcompletelydisruptiveideasorinnovationstoimproveexistingprocessesareselected.Also,toensureabroaderoutlook,“themes”wereselectedinsteadofsingleideas.
Thisyear,fourthemeswereselected:baggage,openAPI,paymentsandoneidentity(thatwaselaboratedfromthe2015idea).
Thefocusremainsoncollaborationandthiswillbeevidentthroughoutthedocument,especiallyintheintroductionoftheideas.
Executive Summary
Overview of the content
Section 1 Executive SummaryIntroducestheoverallStBprogram,visionandmethodology
Section 2 StB OverviewDescribestheStBgoalsandroadmap
Section 3 Current ProjectsProvidesthecurrentstatusofStBprojects
Section 4 Update on 2015 ThemeProvidesanupdateonthe2015theme
Section 5 2016 New IdeasIntroducesthefournewideas
Section 6 ConclusionOutlinesthenextstepsandconclusion
TheWhitePaperwillbewidelydiscussedattheOctober2016IATAWorldPassengerSymposium(WPS)wheretheideaswillbearticulatedanddebated.
AnnualStBWhitePaperscanbefoundatwww.iata.org/stb
The Program
TheSimplifyingtheBusiness(StB)programhasbeenimprovingthepassengerexperienceforoveradecade.Itistheonlyprogramthatlooksattheentireend-to-endpassengerexperience.Togetherwithstakeholdersfromacrossthevaluechain,StBbuildsinnovativesolutionstotransformthecustomerjourney.
Benefits
TheStBprogrambenefitsareforallinvolvedstakeholdersincludingpassengers,airlines,airports,travelagents,groundhandlersandsystemproviders.
Goals
StBiscomprisedofthree comprehensive goals.
TheAirlineProductstransformationalprojectsincludetheNewDistributionCapability(NDC)andONEOrder.
TheReal-TimeInteractiontransformationalprojectsincludeTravelCommunicationsandCustomerContactInformation.
TheSeamless&HassleFreetransformationalprojectsinclude2015ideasOneIdentityandPassengerProcessOptimizationatAirportsaswellasSmartSecurity,BaggageXMLandFastTravel.SecurityAccessandEgresswassuc-cessfullyclosedandmovedtooperationsin2015.
Unique Methodology
ThekeyelementsofStBarebasedonitsmethodology.Thisincludesarigorousprojectselection,basedonspecificcriteria.Therearealsoprojectphases,drivenbystagegatereviews.Themethodologyisnecessarytoensureasuccess-fulStBprogram.
Project criteria
InorderforaprojecttobeundertheStBumbrella,itmustmeetoneormoreofcertaincriteriaincluding:generateindustrysavings,delivertransformationalindustrychangeandbringbenefitstoairlinesandpassengersaswellasotherstakeholders.Inaddition,eachprojectmusthaveclearobjectives/targetsandtangibledeliverable(s)/endgoal(s)todeliverconsistencyandsuccess.
Project phases
Usingprogramcycles,theprojectswithinthethreegoalsarelistedunderfivedifferentphases:conceptualization,explora-tion,development,implementationandclosure.
• Conceptualization:Illustrateandsketchtheconcept.IdentifyKPIsandreasonsfortheconcepttobeexplored.
• Exploration: AssessfeasibilityanddevelopanindustrybusinesscasebasedontheidentifiedKPIs.
• Development: Developthe“product”(e.g.,standard,recommendedpractice,implementationroadmap,etc.)
• Implementation: Implementtheproject,includingindus-trymobilizationandmarketadoption–accordingtothetargetroadmap.
• Closure:Ensurethevision/targetwasachievedandclosetheprojectasaStBproject.Theinitiativesarenowtrans-ferredtonormaloperations.
Goal 1Airline Products
Empowerairlineretailingandmerchandising
Goal 2Real Time Interaction
Providecustomerswithtrusted,accurateandreal-timeinformationfromalloperators
throughouttheirjourney
Goal 3Seamless & Hassle Free
Eliminateoroptimizeprocessesandrelatedwaittimesthroughoutthe
passengerjourney
StB Overview
BaggageOne Identity
Passenger Process Optimization at Airports
Baggage XML
Airline Products
Conceptualization
Exploration
Development
Implementation
Closure
Travel Communication
New DistributionCapability (NDC)
Customer ContactInformation
Real TimeInteraction
ONE Order
Payments
Open API
Seamless andHassle Free
Fast Travel
Smart Security
Industry mobilization and engagement
AnotheruniqueattributeishowStBmobilizestheindustrytodeliverthetargetwhenprojectsareinimplementationphase.Therearedesignatedairlinechampionsthatowntheprocesswithintheirownairline.ThemobilizationeffortalsoreliesonstrongsupportfromIATA’sBoardofGovernors(BoG)andStrategyandPolicyCommittee(SPC)–asubsetoftheBoG.Inaddition,thereareworkshops,andcampaignsthatareregularlydeliveredtotheindustryaswellascom-municationsincludingdedicatedIATAwebpagesandsocialmedia.
Governance
StB Steering Group
TheStBprogramisgovernedbytheStBSteeringGroup(SG).TheStBSGincludesupto15airlinemembersdirect-lyappointedbytheirCEOwhoadviseIATAmanagementontheStBprogramstrategyandexecution.ThegroupprovidesIATAwithguidanceandensurestheStBprojectsarerel-evantandmeettheneedsofIATAmembers.EachmemberparticipatesintheSGwithanindustrymindset,ratherthananindividualairlinemindset.Inaddition,eachmemberisre-sponsibletobrieftheirCEOontheactivitiesofStB.Finally,theStBactivitiesarereportedtwiceayeartotheIATABoGandSPC,whoreviewandguidetheStBprogram.
StB Think Tank
TheThinkTankconsistsofanannualrotatingmembershipofseveralStBSGmembersandotherpartnersfromspe-cificindustries–dependingonthetopicsdiscussed.TheThinkTankfocusesonideationandnewinitiativesthatcanpotentiallybepursuedasaStBproject.TheStBThinkTankpublishesthisannualWhitePapertostimulateconversationandshareinnovativeideasthatwillleadtoindustrytransfor-mation.
IATA World Passenger Symposium (WPS)
TheWPSgathersstakeholdersfromacrosstheindustrytofocusonthepassenger.TheWPSisimportantfortheStBprogram,sinceitisanopportunitytohighlightanddiscusstheStBprojectsaswellastheworkthathasbeendonebytheThinkTank–morespecifically,theWhitePaper.ItistheforumwhereIATAprovidestheindustryagendaandstrategyfortheyearstocomeoneverythingrelatingtopassenger.It’salsotheplacewherestandardsareadoptedanddeci-sionsaremadethroughthevariousindustrymeetingstakingplacesimultaneously.
Inaddition,aStBExecutiveSummithasbeenintroducedtothe2016WPSagendatofurtheralignStBwithinaseniormanagement,industry-wideaudience.
ProgramSnapshot
StB Overview
ThereareseveralactiveStBprojectsthatarelistedbelowinmoredetail.Eachprojectsummaryincludesastatusupdateonthedefined2016targets.Inaddition,theprojectphase(conceptualization,exploration,development,implementationandclosure)islistedundereachprojectname.Moreinformationcanbefoundonwww.iata.org/stb
Current Projects
Goal 1: Airline Products
New Distribution Capability (NDC)
Implementation
NDCisatravelindustry-supportedprogramlaunchedbyIATAforthedevelopmentandmarketadoptionofanew,XML-baseddatatransmissionstandard(NDCstandard).TheNDCstandardenhancesthecapabilityofcommunica-tionsbetweenairlinesandtravelagentsandisopentoanythirdparty,intermediary,ITproviderornon-IATAmember,toimplementanduse.
IATAcontinuestoengagetravelpartnersacrosstheindustrytoensurealignmentandcooperationwithallstakeholders.
Thetargetfor2016wastoachieveacumulativeof20NDCliveairlinedeployments–airlinesmustbecapableofexpos-inganNDCAPI,andrespondingtoanagentrequestusingthelatestNDCschemas(i.e.,:NDC15.2orNDC1.1asaminimum).ThistargetwasachievedbyJune2016.ItwasalsoagreedthatdeploymentswouldbevalidatedviathenewIATAcertificationprocess.Adedicatedcertificationsiteisnowavailableatwww.iata.org/ndcwhereallcertifiedplayersarelistedontheNDCregistry.
ONE Order
Development
ONEOrderaimstomovetheindustrytowardasingleairlinecustomerorderasopposedtoabooking(PNR)andanaccountabledocument(ticket/EMD).WhileNDCisincreasingcontrolandflexibilityontheairlinesside,ONEOrderwilldrivesubstantialsimplificationinheritedfrompaperbasedindustryprocesses.Thevisionisarticulatedaroundthreecoreprinciples:
• Customerorientedarchitecture
• Efficientbillingandreal-timesynchronizationofrelevantinfobetweenallparties
• Simplifiedairlinemerchandisingdelivery
In2016,atransitionstudywascompletedtodefinepossibleordermanagementsystemimplementationarchitecturesandanalyzeimpactacrosstheindustry.Inaddition,theONEOrderresolutionhasbeendrafted,andreadyforadoptionbyairlinemembersinOctoberattheJointPassengerServicesConference(JPSC).
Goal 2: Real time interaction
Travel Communication
Exploration
Thetravelcommunicationvisionistoprovideconsistentandaccuratetravelcommunicationtopassengers,andup-to-dateinformationthroughoutthejourney.
In2016,thetargetsaretodevelopaproofofconcept,adatacharterandanindustrybusinesscase.Sofar,over50usecaseswereestablished,andapilotwasconductedtodemonstratethetechnicalfeasibility.Furthermore,thepilotdemonstratedthatasingletrustedsourcecanbedefinedandthatthepassengercontactdetailswillremainwiththedeliverychannelsolutionthepassengersignedupfor.
Customer Contact Information
Implementation
Thecustomercontactinformationprojectaimstoenableair-linestointeractwiththecustomeratanytimeandanywhere.ThescopeoftheprojectwasalsotoprovideairlineswiththeabilitytoobtainthepassengercontactdetailsinthePNRbydevelopingstandardsandrecommendedpracticesforcon-tactinformationtobeabletoreachthecustomerwithanyrelevantinformationpertainingtotheirjourney(i.e.,specificinformationintheeventofdisruption).In2016,thefocuswastoensure25AirlinePassengerServiceSystems(PSS)usedbymultipleairlinesareabletoaccepttheSSRCTC.
Current Projects
Goal 3: Seamless & Hassle FreeSmart Security
Closure
SmartSecurity,ajointIATA-ACIinitiative,envisionsacontinuousjourneyfromcurbtoairside,wherepassengersproceedthroughsecuritycheckpointswithminimalincon-venience,wheresecurityresourcesareallocatedbasedonrisk,andwhereairportfacilitiescanbeoptimized.
In2016,theaimwastodeliverSmartSecurityOpportunityAssessments(SSOAs)at20airportsconfirmedin2015.ThiswasachievedinbyJuly.Inaddition,anothertargetwastogetthe20airportstoaccept45%ofrecommendationsforimplementation.
TheSmartSecurityprojectwillcloseandmovetooperationsin2017.TheteamwillcontinuejointeffortswithACItokeeppushingforimprovementsandstandards.
Baggage XML
Implementation
TheaimoftheBaggageXMLprojectistofocusonstan-dardizingthedataandtheinterfaces,byleveragingXMLtechnologyaswellasredefiningtheoverallinformationexchangearchitecture.
TheprojecthasadoptedadatamodeldrivenmethodologyleveragingtheIATAIndustryDataModeltoensurecross-domainsemanticalignmentandinteroperability.BaggageXMLwillmodernizecurrentlegacystandards.Thiswillleadtobetterbaggageperformanceandlowerairlinecosts.
In2016,theBaggageXMLWorkingGroupwillcompletetheSchemaforPADISapprovalandconductasecondpilot,asanintegrateddeployment,fedbyproductionenvironmentdataandexchangingmessagesinXML.
Fast Travel
Closure
TheFastTravel2020visionistooffer80%ofpassengerswithacompleteself-servicesuitethroughouttheirjourney,toprovidebetterconvenienceandreducequeues.Itconsistsofsixprojectsdesignedtoofferarangeofself-serviceop-tionsthatgivepassengersmorecontrolovertheirjourney:check-in,bagsready-to-go,documentscanning,flightre-booking,andself-boardingandbagrecovery.
TheIATABoardtargetfor2016istoattain40%globalFastTravelpenetration.TheFastTravelprojectwillcloseandmoveintooperationsattheendof2016.TheteamhasmadegreatprogressunderStB.Theprogramwasdevel-opedandpromotedthroughouttheindustrytosuccessfullyachievecriticalmass.AlthoughFastTravelwillnolongerbeaStBproject,theIATAteamwillcontinuetosupporttheinitiativesinoperations.
Update on 2015 theme
Theme: the Big Picture
In2015,theWhitePaperintroducedthe“BigPicture”ofStB.Theaimwastostepbackandmapourend-to-endvision,includingcurrentprojectsandnewideas.Thebigpicturewassimplifiedintofivemajorconcepts:shop,order,pay,engageandexperience.
Shop Shop:includeseverythingfromdistributiontoairlineretailingandisrepresentedbytheNDCproject.
Order Order:includeseverythingfromcomplexprocessestostandardordermanagementandiscoveredbytheONEOrderproject.
PayPay:isashiftinfocusfroma“onesizefitsall”toamorecustomer-cen-tricpaymentmethodology.IATAcontinuestolookintothisarea,andoneofthe2016ideasisonpayments.
Engage:includestheengagementwithpassengersandisrepresentedbytheTravelCommunicationsproject.
Experience:includedtheentirecustomerjourney.Itwasdescribedasthe“futureend-to-endexperience”whichinitiallybeganasapotentialproject,butthenmademoresensetobeincorporatedintotheStBoverallvision.
2015
In2016,theThinkTankhadadifferentapproach.Thefocusremainedoninnovationandcollaboration,andthe“BigPicture”from2015.Inaddition,therewasabrainstormexerciseattheverybeginningoftheyear,basedonrethinkingpainpointsintheindustry.Morespecifically,whatwouldwechangeordodifferentlyifwewerestartingtheairlinebusinesswithablankpage?Asaresultofthisbrainstormexercise,fourthemeswereselected:
IATAthenpartneredwithPlugandPlay,aStartupInnovationPlatform,basedintheSanFranciscoValley,California.PlugandPlayresearchedstartupsintheValleybasedonthefourthemes.ThesestartupspresentedtheirideastotheThinkTankduringanexhilaratingmeetingintheValley.ItwasthefirsttimetheThinkTankparticipatedinasessionfocusedonstart-upsanditprovedtobeaveryvaluableexperience.
Meetingwiththestart-upsignitednewwaysofthinkingandlookingatthethemes.ItalsoinspiredtheThinkTanktodevelopProofofConcepts(PoCs)tofurtherenhancetheWhitePaperandtheideastherein.ThePoCswillbepresent-edatthe2016WPSinDubai.Thegoalisnottodevelopasolutionatthisstage,simplytopresentthevalidityofthetheme/ideaandtoinstigatemoremeaningfuldiscussion.
2016 New Ideas
One identity
Payments
Open API
Baggage
2016
Vision
TheStB’sgoal3“SeamlessandHassleFree”travelvisionistoofferpassengersafrictionlessairportprocessallowingthepossibilitytowalkthroughtheairportwithoutbreakingstride.
Safetyandsecurityremainsthenumberonepriorityandresponsibilityforallstakeholderswithinaviation.However,theapproachtakentoachievethisisdivided,witheachstakeholdertakingstepstoensuretheirobligationsaremetwithlittleornocoordinationbetweenparties.Thisresultsinafrustratingandrepetitiveprocessforthecustomer.
ThevisionoftheOneIdentityinitiativeistocreateastreamlined,friction-freeprocessthatallowsanindividualtoasserttheiridentity,onlineorinperson,totherequiredlevel,whilemaintainingtheprivacyofpersonaldataandenablingsignificantimprovementstooperationalefficiencyandsecurity.Thisvisionwillbedeliveredthroughtruecollaborationbetweenairlines,airportsandgovernments.
Current situation
Thecombinationofincreasingpassengernumbers,limitedphysicalinfrastructure,enhancedsecurityrequirementsandlegacyprocesses,resultinmorefrictionandacomplicated,unpleasantexperienceforpassengers.
Sinceitsinduction,theStBprogramhaslaunchedanumberofinitiativestoimprovethepassengerprocess,likeFastTravel,SmartSecurityandAutomatedBorderControl.Whiletheseinitiativeshavecertainlydeliveredgreatvalueforthepassengersandtheindustry,theirbenefitsremain
limitedwithintheirownscope.Theindustryhasnotyetmanagedtofullybreakthesesilosandneedstocollaboratetowardsasolutionthatwouldapplyhorizontallyacrossthewholeprocess.
Forinternationaltravel,theairlineindustryreliesonpass-portstoverifyanindividual’sidentity.Althoughcreatedasatraveldocumenttofacilitatebordercrossing,thepassportisusedasaproxyforidentity.Theadditionofmachinereadablezones(MRZ)1andtheintroductionofbiometricpassports2haveimproveddataaccuracyandthesecurityofpassports,however,theyhavedonenothingtoimprovethespeedandeasewithwhichpassportscanbeauthenti-catedandverified.
Toverifyanindividual’sidentity,thecurrentprocessiscomplex,asdescribedinthediagrambelow.
Thisprocessiscumbersomeforthetraveler.Theaviationindustryadapteditsprocessesandprocedurestoworkwiththepassportasanidentitydocument,eventhoughthiswasnotthemostconvenientandefficientoption.
Furthermore,insomecases,thepassenger’sidentityisleftunknownandtheyaretreatedanonymously(e.g.secu-rityscreening).Ifapassenger’sidentitycanbeconfirmedatanycustomertouchpoint,itwouldallowamoreperson-alizedcustomerexperiencetobedelivered,efficienciestobemadeandtheopportunitytogenerateenhancedancil-laryrevenue.
However,todothis,theprocesstoidentifythepassengermustbequickandeasyforthecustomer.Withthegrowingpassengernumbers,ourindustrymustfindawaytoremovethisinherentcostandcomplexitytothebusiness.
http://www.revolvy.com/main/index.php?s=Biometric%20passport
1http://www.icao.int/Security/FAL/Documents/2.API%20Guidelines%202013%20Appendix%20I%20MRZ%20Details_E.pdf2http://www.icao.int/publications/Documents/9303_p9_cons_es.pdf
New Idea #1
One Identity
Optional data recognition (OCR)
Scanning data pageScanning data page
Reading contactless chip
Checking security features
Biometric verification
Scanner Contactless ReaderCitizen Face Recognition System Border Control System
Checking data authenticity
Checking blacklists
Document valid
Case for Change
Therearevariousaspectsofthisproblemthattheproposedsolutionmustaddress:
• Usability:howdowecreateasolutionthatenhancesspeedandissimpleandintuitiveforthepassenger?
• Security:howdowecreateasolutionthatdirectlyandindirectlyimprovessecurity?
• Trust:inamultistakeholderenvironmenthowdowecreateanidentityframeworkthatistrustedbyallinvolved?
Resolvingtheaboveproblemstogetherwillgiveauniqueopportunitytodevelopasinglesecuredintegratedpas-sengerprocess,eliminatingorsimplifyingdrasticallythemultiplestepspassengershavetogothroughcurrently.Theoutcomewillbeatrueseamlessandsecureairportprocessforbothdepartureandarrival,removingconges-tionandthereforethepotentialmotivationforterroristattacksliketheindustryhasbeenfacingrecentlyatairportlandsideareas.
Theproposedsolutionissupportedbyfourconcepts:
a. Creationofanotarizeddigitalidentitytofacilitateimprovedcustomerexperience,speedandsecurity
Ratherthanrequirethetravelertopresentaphysicalpassportateachandeverytouchpoint,weproposetheuseofadigitalorvirtualtokenizedpassportonamobiledevice.Thisdigitalidentitywillbenotarizedbytheissu-ingauthority.
b. Useofbiometricstoconfirmanindividual’sidentity Inrecentyears,thecapabilityofbiometricsensorshas
improveddramaticallyandwillcontinue.Theiravailabilityoncustomermobiledevicescouldpresentanoppor-tunitytomakeuseofthesesmartdevicesinsteadofexpensive,staticairportinfrastructure.
c. Federatedprocessthatdeliversenhancedsecurity Toenhancetheidentityassertionprocessfurther,it
issuggestedtouseafederatedapproachtoprovideinformationfrompartnerstohelpassessthecustomer’sidentity.
d. Creationofatrustframeworkacrossthemultiplestakeholderstoimprovefacilitationandsecurity
Thestakeholderswithintheaviationindustrycurrentlyworkinasilo’edfashionwithlittleornocoordinationamongstinterestedparties.Alltoooftentheprocesstoidentifythecustomerisrepeatedateverytouchpoint.Thiscanbesolvedbythetrustframeworkacrossthestakeholders.
How the solution could work
Enrollment
Step1Self-serviceonlineenrollmentsuchasGOV.UKVerify(i.e.,anUKgovernmentsolutiontoprovewhoyouareon-line).Onceanindividualassertshis/heridentityonline,anaccount/profileiscreated.Theusermaygrantpermissionforcertainstakeholders(e.g.mobile/emailproviders,socialmedia,etc.)tohelpraisethelevelofidentityassertionbysharing‘signals’(i.e.,lost&stolen’statusofamobilephoneorcompromisedemailaccounts).
Step2In-personinterviewwhereidentityisprovenbeyondreasonabledoubt,thephysicalpassportischecked.
Step3Inconjunctionwithstep2,theidentityisconfirmedthentheindividual’sbiometricsarecaptured.
Step4Throughone-wayhashing–storeatoken(aswithPCIcompliance)oftheidentitytothedistributedledger(e.g.blockchain)signedbytheissuingauthority.
Step5Securelystoreacopyofthebiometricsonthecustomer’sdevice,alongwithareferencetothetokenonthedistrib-utedledger.
New Idea #1
One Identity
Verification
Step1Asapassengerapproachesanairporttouchpoint,theycanusetheirmobilephonetoasserttheiridentity.Throughwirelesstechnology(Wi-Fi,Bluetooth,NFC,etc.)theirin-formationissentfromthedevicetothetouchpointastheyarrive.UsingFIDO2technologyitcanbeassuredthatitisthesamepersonthatenrolledonthedevice.
Step2Thereferencetothedistributedledgerisretrievedandtheissuingauthority(theentitythatperformedtheinitialenroll-ment)andanyadditionalcertificates(e.g.,morethanoneauthoritymaycertify/endorsetheidentity)isconfirmedbyuseofdigitalsignatures.
Step3Sharedsignalsfromany3rdpartiesareverified–mobilephonelostandstolenstatusetc.
Step4Ifneedbetheverifyingauthoritymayverifyagainsttheirownstoreofbiometrics.FIDO2couldofferthecapabilitytoskipstep4asthiscreatesa‘hard’linkbetweenthedatastoredonthephoneandthebiometricauthenticationtoaccess.However,thisstandardisrelativelynewandasyetisnotadoptedbyallmobilephonemanufacturers.
Next steps / Proof of concept
IATA,USandCanadianauthoritiesareworkingonde-signingpotentialpilotstoprovetheoneidentityconceptsarticulatedabove.Furthermore,thepilotswouldbescopedonflightsfromUKto/fromUS,UKto/fromCanadaandCanadato/fromUS.
New Idea #1
One Identity
Vision
Thevisionistoenhancethepassengerexperiencebyen-ablingpaymentsanywhere(omni-payment)aswellasreduc-ingthecomplexityonthemerchantside.
Theobjectiveistomakepaymentprocessingsimple,con-sistentandsecurefortheentireairtransportindustry,whilstreducingthecostofpaymentprocessingandrelatedfraudacrosstheentireindustry.
Currently,IATAcoversanumberofinitiativeswiththeintentionofsolving“ThePaymentRiddle”:offerconvenient,cheapandsecurepayments.
Todaymanyfrictionpointsremainduringthepassengerjour-ney,particularlyonthedayoftravel,attheairportandin-flightwherepaymentsoptionsarelimited.Therefore,StBwantstoenable passenger omni-payments, with an industry fast time to market and cost effective solution.
Current situation
CurrentpaymentprocessesintheAirTransportIndustry(ATI)areextremelydiversefromapassengerperspectivebygeographicregionoftheworld.Thereisconsiderableglobalvariationinpreferredformsofpayment,bankingservices,paymentacceptanceandshoppingmethods.Thisismakingpaymentsprocessingincreasinglydifficultandairlinescannotcopewiththeexpectationsofalltravelersworldwide.
Correspondinglythepaymentandsettlementprocessandservicelevelforairlinesalsovariesconsiderablybyregionandchannel.Someregionsprefercashorinstallmentpayments,whileothersareoverwhelminglydrivenbycreditcard.Directdistributionmodelsappeartoprovidesomemoreinstantsettlementforairlines,howeverindirectandinterlinesettlementistooslowforthemodernworld,oftentakingbe-tween7and60daysforanairlinetoreceivepayment.
Overall,paymentreliesoncomplexlegacyprocessesthataremostlyasynchronousandbasedonrigidformatsacrossnumerousentities.Integratinganewmethodofpaymentischallengedbyexistingworkflow,infrastructureandintegrationacrossindependentplayersinthesupplychain,e.g.,issuingbanks,cardassociations,acquirersandprocessors.
Furthermore,toaddanotherlayerofcomplexity,thereisaheterogeneousandmultifacetedregulatoryframework.Mixedandcomplexlawsgoverningcompliance,bankcardregula-toryissues,regionalsurcharges,dataprotectionorprivacy,complicateevenmorethepaymentsenvironment.
Linkedtothesecomplexitiesisahighacceptancecost.Indeed,acceptingandprocessingpaymentshasbecomeincreasinglymoreexpensiveduetotherisingcostsofatransaction:AirlinespaymorethanUS$8Bannuallytoprocesspayments1.Thismakespaymentcoststhemostsignificantpartofanairline’sdistributioncost.Highmerchantfees,manualhandling,fraud-relatedcosts(preventingfraud,coveringfraudloses,falsepositives,etc.)andchargebacksadduptoahighbusinesscost.Infact,manypaymentrelatedcostsarestillpoorlyunderstoodsincetheytendtooccurindifferentpartsoftheairline.Moreover,delaysinpaymenttransfersrepresentasignificantcost(i.e.,travelerpaymentlatency,interlinesettlementprocesses).
New Idea #2
Payments
1Source:PhocusWright-Payment Unsettled: Cost, Opportunity and Disruption in Travel’s Complex Payment Landscape
Case for change
Asairlinesincreasinglybecomeretailers,andreceivingpay-mentgrowsincomplexity,solvingthepaymentprocessingcomponentwillbeakeysuccessfactor.
Theindustrywouldneedasolutionthat:
• Supportsmultiplepaymentmethodsthroughoutthepassengerjourney
• Standardizespaymentprocess
• Standardizesinterfacesforterminals/platforms
• Enablesfastintegrationofnewandalternativeformsofpayment
• Enablespaywithfrequent-flyermilesand/orotherloyaltypoints(exploratory)
ThisservicewilladdressdirectsalesandIATAwouldactasapaymentgatewayrouter,providingthefollowingtoairlines:
• Front-end integration:APIs/SDKsorredirecttoIATApaymentplatformwebsite;tointegratewithanyairlineplatform(e.g.,website,apps,etc.)duringtheentirepas-sengerjourney,fromshoppingtocheck-intoin-flight.
• Payment authorization and processing:IATAwouldmanageallthepaymentsauthorizationandconnectair-
lineswithanypaymentprovider.Theexactlistofproviderwillbedefinedandtheairlineswillbeenabledtoactivatedifferentoptionsindifferentmarketsandvirtuallyforeachorder.Additionally,wewouldalsoliketoexploretheinte-grationoffrequentflyermilespayments,butthiswouldcomeatalaterstage.
• Reporting:IATAwillprovidealltheneededelementstotheairlinesforinternalreconciliation.
• Settlement:IATAwillhelpprocessthepaymentsandmoneywillbereceiveddirectlybyairlines.InthecasesthatisnotpossibleorifitwouldmakesensetouseIATAasmerchantofrecords,oncethemoneyisreceivedbyIATA,moneywillberemittedbacktotheairlineswithexist-ingsettlementsolutionssuchasBillingandSettlementPlan(BSP),IATAClearingHouse(ICH)orIATACurrencyClearingServices(ICCS).
• Enhanced risk management:havingafulltimeteamman-agingtherelationshipwiththepaymentplatforms,IATAwillensurecompliancewithexistingrules(e.g.,PCIDSS)andimplementstateoftheartfraudpreventionmeasures,managingpotentialfraudsorchargebacksonbehalfoftheairlines.
• Additional services:IATAwillalsoprovideservicessuchasDynamicCurrencyConversion.
New Idea #2
Payments
CARD SCHEMES MOBILE PAYMENTS WALLETS CRYPTOCURRENCIES FREQUENT FLYER MILES (EXPLORATORY)
PASSENGER JOURNEY
Shop
Websites / AppsAirlines
IATA
Payment Providers
IATA
DCS IFE
Virtual check-in
Airport check-in In-flight
BSPICHICCS
Next steps
TodemonstratehowwecouldintegrateanalternativeformofpaymentandhowthepaymentprocesscouldbeexternalizedintoIATAinatransparentwayforthepassenger,weareput-tingtogetheramock-upin2016.
New Idea #2
Payments
Benefits for Passenger Benefits for Airlines
• Pay as you want, where you want(evenmoreifnon-airlinesareincluded:e.g.,airports)
• Reducefrictioninpaymentstoput passenger in controlto“payastheywant,whenandwheretheywant”
• Empowercertaintypesofcustomers(e.g.,CorporateTravelDepartments)
• Enable additionalsubscriptionservices(e.g.,annualfees,installments,etc.)
• More control:enableairlinestobeincontroloftheirpay-mentsstrategypermarket/country,perchannel,performofpayment,perconditions(e.g.,installments,surcharge,etc.)
• Cheaper deployments:reducecapitalexpenditureaswellasdevelopmentcost(e.g.,integratinganalternativeformofpaymentcouldtakeupto1yearperairline)
• Reduced complexity:streamlinedifferentpaymentmeth-odsforagency/directsalesthroughusingasinglesystemconnectiontoaccessallpaymentprocessors
• Visibility:monitorallpaymentrelatedfeesinonesingleplace
• Centralization and reconciliation: onesingleplacetogetallinfo(includinginterlining)
• Enhanced fraud prevention:linkstoIndustryFraudpreventionproject
• Regulatory compliance:supportschemerulessuchasPaymentCardIndustryDataSecurityStandard(PCIDSS)3.1
• Faster time to market:fastertechnicalimplementationofadditionalformsofpayment
• Market reach:reducemissedopportunities
• Frequent-flyer miles:facilitateusageofFFMacrosstheindustryandmakethemmoreliquid(exploratory)
The benefits
New Idea #3
Baggage
Vision
Theexistingbaggageinfrastructureisatfullcapacityandnolongersufficientforfuturepassengervolumesandcustomerexpectations.
Thecurrentprocesstakesabagfrompoint“A”topoint“B”inaconsistentandstandardisedway.Forthepassenger,themostimportantelementisnotthattheirbagisinthehold,butthattheirbagarrivesatthepredeterminedplaceandtime,asagreed.
Ourvisionistore-inventthebaggageprocessbyprovidingreal-timetrackingandtracing,androbustidentification.Wecanthenchangethemodeltoaskourselves:whereshouldwecollectfrom,howdowemovethebaggageandwhenshouldthisbedone,relativetothepassenger'sjourney.
Current situation
Currently,thebaggageseparation(dropandpick-uppro-cessattheairport)isoneofthemoststressfulcomponentsofthepassenger’sjourney.Theindustryhasnotmateriallymodifiedtheprocessnortakenadvantageofnewtechnologytoofferabetterservicetothepassenger,(apartfromim-provingthebag“lost”rateovertime).Moreover,theindustryisnotnecessarilydoingabadjobdealingwiththedailycom-plexityofbaggagehandling,butitislackingintransparency.Thereisnoproductdifferentiation,andweofferfundamen-tallythesameservicetoeverypassenger,whethertheyare
No problem, I will take hand luggageBusiness Man, overnight trip
Couple, weekend away I need it with me, I will take it in the hold
Just make sure it's at the hotel by next ThursdayBusiness Man, 5 day trip
So much stuff, someone take it 2 weeks before meFamily, 2 week vacation
travellingindividuallyorasafamilyoriftheyaretravellingforashortbusinesstriporalongerleisureholiday.Belowisasampleofdifferentscenarioswherepassengershavediffer-entneeds.
Everycustomerneedstophysicallytaketheirbag(s)backfromtheirgroundtransport,tothecheck-indeskandsubmittheluggage,(i.e.,selfcheck-inorviaadesk).
Thereisnovisibilityoncethebaghasbeendroppedfromthatpointonuntilthearrival,whenthereisa“free-for-all”scrummageonthecollectionofbaggage,wherebyanybodycanwalkawaywithanybag,withlimitedornocontrol.Ifthebagdoesnotarrive,thenthereislittletransparencyintheprocess.Furthermore,passengers,andofteneventhestaffinthearrivalstation,havenoideawhereitis,whetheritisstillafewminutesawayorontheothersideoftheworldonamissedconnection.
Consumersnowaremuchmoredemandinginregardtoproducttransparencyandbeinginformedifthereisaprob-lem.IATAResolution753,tocomeintoeffectonJune2018,requiresthatairlinesareabletoreportthedeliveryandac-quisitionofbagswhenthecustomerforthebagchangesatthreespecificpoints,arrivals,transfersandloading.Thiswillenableidentificationatkeystagesofthejourney.However,thereisnorequirementtodirectlycommunicatedtothecustomer.
Asaresult,thereisverylittletrustintheprocess,leadingtravellerstogenerallydotheirbesttoavoidtheprocessandbringcarry-onbaggage,whichisthencreatinganewlogisti-calproblem.
The plan to transformation
1. Robust identification
Thereneedstobearobustmechanismtoidentifythefullbaggageidentification,whichismadeupofthreecompo-nents,bag,passenger,andjourney.TheXMLschema,asapprovedbytheIATAPassengerandAirportDataInterchangeStandards(PADIS)willenableairlinestostarttransitioningtothisXMLin2017.Thiswillensurethereissupportingdatabehindthetendigitbagtagnumber.How-ever,weshouldtakethisfurtherandensureallnewbaggageproducedastheabilitytoelectronicallyholdtheIDofthebag,passengerandjourney.IATAshouldincorporatethestandardsrequiredtoenableeachmanufacturertorecordID.
2. Streamline regulation
Regulationshouldbereviewedtoensurethatitkeepsupwithtechnologyandremainsrelevantandappropriate.Forexample,electronicbagtagsdonotgenerallytransmitwhilstabaggagetrackerdoestransmit.AspercurrentregulationofFAAAdvisoryCircular91.21-1c,thebaggagetrackersmusthavetwoseparatemechanismstoautomati-callyturnoffduringflight.Currentlythereisnowaytoverifythatthecommerciallyavailablebaggagetrackingdevicescomplywiththisrequirement.
3. Security
Processesandregulationneedtobereviewedifweweretochangetheprocesstoofferaluggageservicedindependenttothepassenger.
New Idea #3
Baggage
4. Mindset change – transparency
Asanindustry,weneedtoproactivelyshareinformationwithourcustomer.Therefore,weneedtobuildinreal-timeupdatestoourcustomerssothattheyknowthestatusofthebaggage.Thiswillcontinuallybuildtrustintothesystem.Airlinescannotcontinuetooperateonamodelwheretheydecideifandwhentheytellthepassengerthestatusoftheluggage.
5. Embrace independent solutions
ThereareaquitearangeofproductsnowintheluggagesectorwhichisusingvariationsoftheIOTtechnology,(eithervia3Gcards,Bluetooth,orLoRa).Currently,thesedevicesareoutsideoftheaviationecosystem.
Embracetheindependentsupplierswhoareprovidingtrackingproducts.Asanindustry,weneedamechanismforthemtobepartoftheecosystem,sothattheycansharetheirdatawiththeairlines,sothatairlinesareasinformedasthecustomer.
6. Robotics
Eventhoughtherecurrentlyisalargedegreeofautomationinthebaggageprocess,weneedtoidentifywhatrolestheroboticstechnologyplayinthefuture.
7. Drones/Autonomous Driving Vehicles
Itisquitepossiblethatdronesorautonomousdrivingvehi-clesmaybecomeakeytechnologyinthebaggageprocess.Thiswillbecomemoreimportantifwestarttochangethepickuppointtobesomewhereotherthantheairport,andifairlinesutiliseoffsitefacilities.Theindustrymuststartlookingattheusecasesfordronesinbaggage,andstarttodevelopanyspecificregulationrelatedtothis.
Case for Change
Thefuturestateismadeupofthreebusinessmodelcomponents,thatwhenre-designed,providetheopportunitytorevolutionizethebaggageindustry.Thisnewbusinessmodelcouldenablepassengerstotaketheirluggagedoor-to-dooraheadoftime,optimizingthebestpossibleroute,improvingcustomersatisfactionandminimizingcost.
Change WHAT the “A” and the “B” are
Airlinesarecurrentlymovingbaggagefrom“A”to“B”,where“A”and“B”arealwayscurrentlyairports.Airlinesneedtoevolvethismodeltochangewhatthe“A”and“B”canbe.Forexample,thesedropoffandpickuppointscouldbeanythingfromahouse,hotel,office,toanunmanned“smart”depotnexttothelocalnewspapershop.
Withtheevolutionofinternetpurchasesfromdominantplay-erssuchasAmazon,thereisadeliveryvehiclealreadypassingthroughmostneighbourhoodsonadailybasis.Canairlinesleverageoffthisorsimilarexistinginfrastructure?
Thismayrequirenewbusinessmodels,newpartnershipsornewservicesofferedbytheairlines.Particularcapacitiesneedtoevolvetosupportthisnewcapability.Forexample,hotelsshouldhavethecapacitytostoreluggageforseveraldayspriortoaguestarriving.Baggagedeliveryinandoutofairportscouldbedoneatatotallydifferentlocation.
Change HOW we move from “A” to “B”
Ifanairlinehastheopportunitytochangethestartingpointandtheendpointofthejourneyforbaggage,andcanchangewhentheymovethebaggage,thenthisenablesairlinestousethemostefficientmethodpossible.Thismaymeanthatwedonotneedtogoairports,whichcanfreeupvaluablespaceatairports.
Change WHEN we move from “A” to “B”
New Idea #3
Baggage
Traditionally,luggagehastravelledwiththepassenger,however,thisisquiteoftennotthedesireofthepassenger.Passengerswanttoknowthattheirluggagewillbeattheirdestinationwhenorbeforetheyarrive.Ifthismeansthatitiscollectedpriortothepassengerdeparting,thenthisbenefi-cialforboththepassengerandtheairline.Trialsatvariousairports,allowingthepassengertodropoftheirluggagethenightbeforeaflighthaveprovedverypopular.
Bychangingthe“when”,andcombinedwiththe“how”air-lineshavetheopportunitytooptimisetheroutetomovetheluggagefrom“A”to“B”.Theservicecouldbecustomiseddependinguponifitisanoutboundorreturnleg.
Next steps
Toachievethevision,weproposethenextstepstoincludethecreationofadetailedfeasibilitystudythatwilloutlinethefundamentalchangesnecessarytothecurrentbaggagepro-cesses.Thiswouldincludeadetailedassessmentofbaggagetrackingtechnologiesfortheconsumer,reviewofregulation,securityandmodellingofthenewprocesstochangepickupanddropoffpointstoimprovehowandwhenwedeliverbag-gage.
New Idea #4
Open API: Connect, Collaborate and Share
Vision
Airlinesandairportsknowthatweneedtotalktoourpas-sengersinamorepersonalizedandquickermanner.Inad-dition,passengerswanttohaveagreaterleveloftrustintheinformationwithwhichtheyconsume.However,itisnotaneasytasktopublishtrusted,accurateandtimelyinformationtopassengersonapersonalizedlevel.ApplicationProgram-mingInterfaces(API’s)maybethemechanismtosolvethisproblemacrosstheindustry.
OurvisionistoensurethatthedataexposedfromtheseindividualairlineAPIplatformsisconsistentintermsofdefi-nition,formatandwaythisdataisaccessed(orexposed).Thiswillenablemaximumbenefitfromallusersacrosstheindustry,frompassengers,airlines,airports,groundhandersandanyentitywithintheindustrywhichwantstoconsumetheinformation.
Note:Inthecontextofthispaper,“API”referstoApplicationProgrammingInterfaces,notAdvancedPassengerInforma-tion.
Current Situation
APIsarebecominganimportanttoolforbusinesstobusinessandbusinesstoconsumerbusinessestoproviderelevant,trustedandtimelyinformationandtoreachnewcustomers.APIsarecommonlyusedintoday’ssociety.Forexample,whetheritischeckingthesportsscores,traintime-tableorbuyingasportsticket,allofthisdataisprovidedbyAPIs.Theconceptofdatasharingfortheairlineindustryhasbeenanessentialcomponentoftheindustry'ssuccess.How-ever,theroleofdatasharingisnowchangingdramatically.
AirlinesandairportsareattheearlystagesofinvestingintheseAPIplatforms,andwecollectivelyneedtoencour-ageallairlinesandairportstoinvestimmediatelyintotheseplatformstoensurethattheycancontributetotheseAPIecosystemsandAPIeconomieswhichpromotesinnovation,resultinginnewbusinessmodelsandnewmethodstoincreasecustomersatisfaction.
What is an API economy?
APIsarefundamentaltomodernbusinessarchitec-ture.Moreover,theyareatechnicalmechanismtosharedatabetweensystemsinacontrolledway.Generally,theyprovidethelinkagebetweenonesystemstoanother.Thiscouldbefromoneinternalsystemtoanotherinternalsystem,orfromaninternalsystemtoanexternalsystem.
Increasingly,API’salsoprovideafoundationforanewtypeofbusiness,whichGartnercallsthe“APIeconomy”,whichisdefinedas“Asetofbusinessmodelsandchannels—basedonsecureaccessoffunctionalityandexchangeofdatatoanecosystemofdevelopersandtheusersoftheappconstructstheybuild—throughanAPI,eitherwithinacompanyorontheInternetwithbusinesspartnersandcustomers"3
SomekeyexamplesofAPIswhicharenowcommonplaceineverydaylifeinclude:
• Expediaopeneduptheirtravelbookingservicestopart-nersthroughanAPItolaunchtheExpediaAffiliateNet-work,buildinganewrevenuestreamthatnowcontributes$2Binannualrevenue1
• Salesforce(a$55Bcloudcomputingcompany)releasedAPIstoenablepartnerstoextendthecapabilitiesoftheirplatformandnowgenerateshalfoftheirannualrevenuethroughthoseAPIs2
1https://www.mulesoft.com/ty/wp/secrets-great-api
2https://www.mulesoft.com/ty/wp/secrets-great-api
3Gartner,The API Economy: Turning Your Business Into a Platform (or Your Platform Into a Business) Published:19February2016ID:G00280448
Case for Change
WithintheairlinesectorweseethefollowingbenefitswheninvestingintheseAPIplatforms:
1. Passenger communications
Consumerfacingappswillnowhaveatrustedsourceofinformation.Thiswillresultinthenumberofconsumerfac-ingappstogrowconsiderably.Thisisverygoodnewsforthepassengerssinceitwillenablethemtohaveaccurateinformation.Oncethedataistrusted,thenconsumerswillcontinuetoreturnandusetheapplications.
Airlinesholdawealthofinformationandcanprovidealargebenefittotheconsumersofthisdata.Belowistheresultsfromthe2016IATApassengersurvey.Wecanseethatthereisahighdemandforpassengerinformation,rangingfrom85%ofrespondentsrequestingflightstatus,60%forbaggagestatus,and58%forwaitingtimesatsecurity/bordercontrol.
2. Reduce usage of unauthorized data
Byexposingthisdata,wehopetoreducetheunauthorizedusageofoperationaldata.Typically,travelrelatedcompanies“steal”airlinesdatabyatechniquecalled“screenscraping”whereprogramssystematicallycopydatafromawebsite.
New Idea #4
Open API: Connect, Collaborate and Share
3. Used to build mobile solutions
APIsenablemobilesolutionstobedevelopedquicklyandplugintothecorporatedatasourcesinalowcostway.
4. Provide a new revenue stream
APIscanprovideanewrevenuestreambymonetizingthedata.However,itwouldbeprudentatthisstageoftheeco-system,soseethismonetarystreamasmoreofacostoffsetratherthananoutrightrevenuestream.
5. Promote innovation
Byprovidingthedevelopmentcommunitywithaccesstorelevantairlineinformation,airlinesarethenabletobroadentheirinnovationecosystemswhilstbecomingmoreagileandresponsive.Byopeninguptheinnovationprocess,airlineswillbeabletothenenrichtheinnovationgenepoolandalsogainvaluablescale–moreresourcesatafractionoftheprice.
FortheAPIeconomytohavemaximumbenefitsacrosstheindustry,wehavetoachievealevelofcriticalmass.Toachievethiscriticalmassquickerthereareseveralcomponentsneededasshowninthetablebelow.
DefineaCommonDataModel
BuildCommonAPIs
BuildanIndustryEcosystem
•IATA&ACIworkingondatamodeltocreatecommondefinitions
•StandardizedoutputAPI
•DesignAPIforagreatuserexperi-ence
•OptimizetheAPI
forauseCase•Provideeasy
accessviaadeveloperportal,onestepregistra-tion,sandbox,tutorials,samplecode,developercommunity
•Provideanecosystemwhichpromoteseaseofconnection
•Developcertifica-
tionprogram•Publishlists
ofrelevantAPIsviaanindustrydirectorylisting
•Moredatasources-promotemoreairlinesandairportstocreatepublicAPIs
Pillars for a successful API economy
Resultsfromthe2016IATAPassengersurvey
Industry level – Co-ordinated approach
Ourvision,fromanindustryperspective,itiscriticalthatthedataexposedfromtheseindividualairlineAPIplatformsisconsistentintermsofdefinition,formatandwaytoaccesstoensurethatusersacrosstheindustrycaneasilyconsumedatasetsfromdifferentairlines.
Next steps / Proof of concept
AirlinesaremissingopportunitiesiftheydonotleveragethepowerofopenAPIeconomy.Byleveragingthiscollab-orativebusinessmodel,airlinescanleverageoffthedevel-opmentcommunitytodriveinnovation,sharedataontheairline’stermsandexposetheirdatatoenablefastdeploy-mentofsolutionstocapitaliseonbusinessopportunities.
Asindustry,weshouldbeinvestingintheseAPIplatformsinaco-ordinatedapproachtoensurethattheconsumersoftheserichdatasetscaneasilyconsumethisinformationbyhavingaconsistentapproachtodatamodels,useraccessapproachandAPIformats.TodemonstratehowAPIscouldbeusedacrosstheindustry,threeairlinesandthreeairportswereconnectedontoacommonAPIplatform,whichexposedeparturetime,flightstatusanddeparturegateinformation.ThenextstepwastoconnecttheAmazonAlexa,ahandsfree,voiceactivatedartificialintelligencesystem.Now,apassengercanaskAlexawhattimetheyneedtoleavefortheairport,usingtrustedandreal-timedata.
New Idea #4
Open API: Connect, Collaborate and Share
Industry Example
Source:https://tfl.gov.uk/forms/12425.aspx
Withtheaboveexampleyoucanseethatbyinsertingthreelinesofcodeintoanapp,theusercanthenhaveaccesstothelevelofserviceforalltubelines.Nowimaginethatyouhadtoconnecttoeachtubelineindividually,thatwouldbebothcumbersomeandcostlyfortheconsumingentityTfLhasenabledthatyoucanhaveaccesstoalllinesviaoneconnection.
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Embed:
TheStBThinkTankwillcontinuetofocusonideationandbrainstormingnewinnovativeideastoexplorethroughouttheyearlysessions.In2016,theThinkTankaddedthedevelop-mentofProofsofConceptsinadditiontotheusualbrain-stormingandcreationoftheWhitePaper.
In2017,theThinkTankwouldlike,inadditiontoideation,tofocusonthedevelopmentofpastideasthathavenotgottractionsofar.Thiswillensurethatthegreatworkandmo-mentumarenotlost.Instead,wewillcontinuetobuildontheideasintroducedintheseWhitePapers.Wewillcontinuetoworktowardsour2012originalvisionoftheperfecttripby2020.
Sinceitsinception,theThinkTankcontinuestogroweachyear,attractingmoreinterestandwiderparticipation.Also,theformathasevolved,toamoreaggressiveandchalleng-ingscope,interactingwithdifferentindustriesandstart-upswhoofferawholenewwayoflookinganddoingthings.
TheStBThinkTankisoneofitskindandmaintainingitsrelevanceisfundamentaltothegrowthofourindustry.Wemustcontinuetoinnovateandtransformprocessesthatsimplydonotworkanymore.Indoingso,itisimportanttokeepasmanyparticipantsfromacrosstheaviationindustryaspossible.
InadditiontotheThinkTankmeetings,theteamwilllistencarefullytothethoughtsanddiscussionsatthe2016Execu-tiveSummitoftheWorldPassengerSymposium.ViewsexpressedtherewillguidetheThinkTankandprovideideasfor2017,tobesharedbyseniorexecutivesfromacrosstheindustry.
Conclusion
2016
Glenn Morgan(Co-ChairStBSteeringGroup)HeadofDigitalBusinessTransformation,InternationalAirlinesGroup
Rob Broere(Co-ChairStBSteeringGroup)VicePresidentITPSSTransition–Emirates
Airline Delegates Strategic Partners
Partnering for success
IATA wishes to thank all contributors to this paper.
Val ConneryManagerCustomerServicesInformationSystems–AirCanada
Udo JanurekDirectorProductManagementPassengerTechnology–Lufthansa
Hervé PrezetAssociateDirector,DistributionProductManagement–Amadeus
Mark HurshDirector,Transportation&Logistics–PwC
Jim PetersChiefTechnologyOfficer–SITA
Patrice AboutDirectorofGroundOperations–AirFrance,KLMMarketing
Roni SchuetzSolutionandTechnologyAdvisoryLeader,Travel&TransportationIndustry
Jean-Vincent TeulerHeadofInnovationandAccountManagementEurope
Grant GrayBusinessTransformationTeamLeader
Steve PetersonIBMGlobalTravel&TransportationLeader,InstituteforBusinessValue
Tim AtkinsonHead,AirportOperations–Inter-national
Patricia EdwardsManagingDirector,PassengerServicesAirlinesforAmerica
Antoine RostworowskiDirector,AirportCustomerExperienceandTechnology
Christoph SchneiderCo-ChairMobilityWorkingGroupandStrategyandIntegrationBoardACARE
(alsoSeniorAdvisorAirsideMasterplanningatMunichAirports)
Stuart BirrellCIO,HeathrowAirports
Airports and Supporting Organizations
Pierre CharbonneauDirector,PassengerandFacilitation
Eric LeopoldDirectorTransformation,FDS
StB Think Tank sponsors
Stephan CopartHead,Strategy,IndustryServicesTransformation
Tanya Gagliardi ProgramManager,SimplifyingtheBusiness
Tim GrosserHead,DigitalTransformation
Juan Ivan MartinHead,Innovation,FDSTransformation
StB Think Tank core team
Partnering for success
www.iata.org/StB