is india leading or following in airline...
TRANSCRIPT
Is India Leading or Following in Airline Distribution ?
Damian HickeyVice President Asia Pacific and Global Strategy
CAPA India Summit 2018
Mumbai, 30-31 January
2Confidential
Airline environment evolving faster now than at any point in last 20 years
Speed is crucialDigital content continues to explode. Increased penetration of cloud to handle speed and scale
PersonalisationUsing data and analytics to improve the travel experience will become essential
Seamless experienceMobile fuels consumers use of multiple channels for search and shopping -OMNI channel will be key
AutomationArtificial intelligence and robotics help drive automation and returnon trip
Managing and tailoring contentAirline websites are evolving how they sell and package their products online
3Confidential
Disruption has finally arrived … and long overdue
Industrywide impact
• Airlines
• Intermediaries
• Agents and consumers
Driven by
• Customer demand
• Technology enablement
• Expectations set by other industries
Confused?
NDC
One Order
APIs
Level 3Certified
XML Schema
17.2
Confidential
What is NDC ?
What it is ….
• Open to any third party, intermediary, IT provider or non-IATA member.
• Provides more capability than is available through standards today
What it is not….
• A product or service
• A GDS by-pass
• An app, a website or a portal
What it allows….
• An improved capability for airlines to retail
• Ability to distribute new products and services to the indirect channel
NDC (New Distribution Capability) is a travel industry-supported program (NDC Program) launched by IATA for the development and market adoption
of a new, XML-based data transmission standard (NDC Standard)
Confidential
NDC certification
There are two types of IATA NDC certification – Aggregator and IT Supplier
Aggregator (NDC Certified) – Airlines that deploy an NDC API and Travel Agents and Aggregators that consume an airline NDC API can apply for the designation, for a particular or several available versions of the NDC schemas, at either Level 1, 2 or 3
Travelport is Level Three certified
IT provider (NDC Capable) – any IT providers that offer products based on the NDC standard for Airlines and Agents/Aggregators can apply for the designation, at either Level 1, 2 or 3
Travelport is Level Two certified
API distribution provides capabilities that cannot be achieved through current standards
• Control
• Improved sales capability
• Reduced reliance on PSS
• Commercial model flexibility
• Innovation
Confidential
Why is API distributionimportant to airlines?
Still Confused?
DCC
Private Channel
GDS Surcharge
NDC Incentive Program
DCF
• Airlines are experimenting based on different drivers– Economics e.g. LHG, Aegean
– Economics and technology e.g. BA/IAG
– Technology and reverse economics e.g. AA
– Yet to be announced e.g. AF/KL
• Agencies are experimenting too– Some actively involved in pilots
– Often push rather than pull
• An industry in waiting? – The new model is yet to be proven
Confidential
Early stage experimentation
• India’s traditional travel distribution infrastructure already challenged
– Rapid rise of world class low cost carriers
– Increasing dominance of Online Travel Agents (OTAs)
– Hyper-competition within strained infrastructure
– Industry record levels of growth and forecasts
– A young demanding tech savvy generation of travelers
Confidential
Already here in India ?
• Follower or Leader?
– Embrace and lead change or risk being a victim
• Requires collaboration
– Across the industry
– At a level not seen to date
• Prediction
– Fast Follower?
Travelport Confidential
What is the appetite for change?
Confidential
The Travelport Journey
Enables airlines to sell how they want to sell
Enables agents to book how they want to book
In 2014 Travelport launched
Confidential
Travelport Merchandising Suite has evolved
• The opportunity
– Provide better service and recognition for your customers
– Gain more flexibility to compete in a dynamic market
– Value add for all industry stakeholders
– Gain efficiencies - a (more) profitable industry
• The threat
– To ignore it!
Confidential
The Way Forward … Embrace the opportunity
Confidential
Change takes time
Changing current distribution infrastructure will take some years
Best Practice will see testing and experimentation before full deployment
Aggregators• Need to build API link to
multiple airlines (Content In).• Need to develop or enhance
points of sale (Content Out).• Prove the technology ROI
Airlines• Need to build API and
merchandising capability• Test speed and scale.• Re-engineering human
processes• Ensure they gain improved
results
Agents• Deploy aggregator point of
sales solution• Integrate workflow and other
systems.• Build connection to own POS
All parties need time to adjust to any commercial model changes
• Be prepared
– Engage with your partners
– Embrace the change
– Be open to experimentation
– Never lose sight of the customer
– Allow time for change and adjustment
• And… enjoy the ride!!
Confidential
Industry collaboration is key