new distribution presentation

New Distribution Presentation Alexandre Debregeas Distribution Technology Sales Executive

Geneva, May 19th, 2016

New Distribution Presentation Agenda

1. New Distribution: why is there a need?

a) Current landscape

b) Limitations

c) Customers needs

2. New Distribution: how the future distribution will look like?

a) IATA NDC

b) Offer Management

c) Future Distribution Landscape

d) Benefits for customers & travel agencies

New Distribution Presentation, 19. May 2016 2

3

a) Current landscape: Architecture

New Distribution Presentation, 19. May 2016

Corporate

Agencies

GDS

PSS

RTDP

SWIS

S.co

m

Traveler

Customer

Shopper

Travel Agencies

Call Center

ATO / CTO

Tour Operator

Website/

Inhouse System

OAL

Distribution

System SWISS

Support

Systems

Client Facing

Technology Agents Corporates Customer

OTA

a) Current landscape: flight booking processes rely heavily on the GDS systems (as well as travel agencies!)

OTA IBE

Back office

Low cost carrier

website

Customer

profiles Ticketing Pricing Availability

Mid office

Manuel

ghost PNR

GDS

Reporting Financial

accounting Controlling

GDS front-end

GDS

API GDS

API

GDS interfaces

(PNR & mid office data)

Consolidator IBE

Corporate OBE

b) Limitations Worldwide network of SWISS and the LHG facilitates the development of Corporations in Switzerland

5 New Distribution Presentation, 19. May 2016

b) Limitations SWISS made and continues to make substantial investments with a strong focus on business travel

Delhi

New Business Class Seat

Arrival Lounge

Business Bus ZRH

Shanghai

2008 2007 2009 2010 2011 2012 2013

Singapore San Francisco Peking

& EWR A330

New SWISS First

Corporate Relationship


http://www.google.ch/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCLir24y6xMcCFco4FAodtWsE_w&url=http://www.satellitetoday.com/publications/2013/10/15/united-airlines-launches-100th-aircraft-with-satellite-wi-fi/&ei=83zcVfjlD8rxULXXkfgP&psig=AFQjCNGQKvqXhEgRNeg3htP73ytlQuDtcA&ust=1440599651627053

http://www.google.ch/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCOThraa6xMcCFcdZGgodewIA-g&url=http://www.dakotafinancialnews.com/air-canada-ac-a-research-analysts-weekly-ratings-changes/379032/&ei=KX3cVaSpAsezafuEgNAP&psig=AFQjCNHgoW_Li0AbaHzjHpc9joSxi8FDYQ&ust=1440599717074865

http://www.google.ch/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCJ7prdG6xMcCFQS0GgodL3kICA&url=http://www.youtube.com/watch?v%3DkB4fm_kO1us&ei=g33cVd6bDYToaq_yoUA&psig=AFQjCNF6N9DOTdqED6CfRs8XAylff3izow&ust=1440599795151060

b) Limitations SWISS has recently significantely changed it’s European product

LHG European

Fares Concept Business Bus @

European Destinations

2014 2015

New GVA Fare

Concept

(Light/Flex)

34 new EU

destinations

New EU P2P

Fares & OW’s


b) Limitations 2016: SWISS invests >CHF5bn

New-generation Bombardier Cseries

The latest generation of the Bombardier CSeries will

offer a new standard in terms of greater passenger

comfort, significantly quieter engines and lower CO2

emissions.

New Boeing B777-300ERs

SWISS will begin replacing its present long-haul

aircraft fleet from 2016 onwards. The aircraft will

accommodate over 330 passengers in a new State-of

the Art First, Business and Economy Class

New Lounges in Terminal E

New Lounges with a broader culinary range and a

terrace which offers stunning view of the Swiss Alps.


b) Limitations how can we differentiate ourselves at the point of purchase?



b) Limitations

b) Limitations SWISS invests in the newest GDS-technology but is limited to the capabilities of the systems


b) Limitations


• No personalized offer

• Time to market is slow

• Monopolistic market:

• 3 main GDS

• High distribution cost for airlines

• Barrier for new entrants

• Airlines don’t control their product and offer

c) Customers needs Customers have individual needs and purchase through multiple channels

Flexible

schedule

s &

choice

Self-

service &

on-time

arrival

Hassle-

free travel

& relevant

offers

Convenient

shopping

& booking

Positive

customer

experience


http://www.google.ch/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCK6GgOa63ccCFchtFAodnVYOnA&url=http://clients.sibzone.net/alshamel2/our-services/corporate-travel/&psig=AFQjCNFEsQTgPEToLLbxgeN5Tm5A21aT-Q&ust=1441458840955180

http://www.kuoni.ch/

http://www.google.ch/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCOuti4vI3ccCFYS9GgodLfENpw&url=http://www.westside.ch/store_profile.aspx?retailername%3DHotelplan&psig=AFQjCNFew3sY2yD_U57qMwROTpazetPg7Q&ust=1441462341864388

c) Customers needs The move from classical to interactive distribution requires both technological push and market pull

… to interactive distribution From classical distribution…

Push principle Push & pull principle

LHG

Market/ customer

LHG

Market/ customer

Market request (pull)

Relevant offers (push)

Limited, standardized and non-dynamic offer

creation (push) due to limited availability of

customer data and technological restrictions of

GDS.

Dynamic offer creation (push) exactly in line

with customer needs based on technological

capabilities and availability of customer data

(pull) in real-time.

Standardized offers (push)


2. New Distribution: how the future distribution will look like?


a. IATA NDC


a) IATA NDC


a) IATA NDC NDC will allow :


a) IATA NDC


b) Offer management The offer will be created by the airline instead of GDS

Travel Agent OBE

Online Booking

Engine

airline.com OAL

Interline

Request

Distribution-

Channel

Aggregation

Content

Inventory

LHG Offer Management System

Travel Tech Provider

(e.g. GDS, Farelogix)

LHG PSS Reservation & Inventory System

Fare Quote Bundling &

Ancillary Availability Connections


Dynamic

Packaging

OBE

OTA

Meta-

search

Aggregator

GDS

ADC

Distribution

System

c) Future Distribution Landscape


PSS

RTDP

PPE

LX /

RTDP

Clone

SWISS.com

Traveler

Customer

Shopper

SWISS Support

Systems

Client Facing

Technology Agents Corporates Customer

Travel Agencies

Corporate

Agencies

Call Center

ATO / CTO

Tour Operator

Website/ Inhouse

System

OAL

c) Future Distribution Landscape New distribution capabilites offer many advantages for the customer and allow TA to be less dependent on 1 provider


Front end

GDSs

Ticketing

Pricing

Availability

Multi-channel front office (GUI)

Mid office

Customer

profiles

Middleware

Direct connect

carrier

Ticketing

Pricing

Availability

Low cost carrier

Pricing

Availability

Multi source integration layer

Business logic

Back office

Controlling

Reporting

Financial

accounting

Order mgmt.

Customer

payment

d) Benefits for customers & travel agencies New distribution capabilites offer many advantages for the customer

Access to extended flight offers including

ancillary services in one process.

Improved transparency and comparability of

products in regard to product quality, service,

ancillary products, price etc. (Transparent Shopping

Experience)

Possibility to create personalised offers based on

the individual needs and requirements of a

corporate or traveller

Mobile access to the offers and information for

Customer at any time along the travel chain


d) Benefits for customers & travel agencies


• Personalized offer

• Agency desktop will have the same functionalities as airline website

• Better access to airline catalogue

• More efficient way to book and inform customers (faster transaction

time)

• Help agencies to be competitive and customer focused

Next


• Questions?

• For more information about NDC, please visit: www.iata.org/ndc

• Video Agent Desktop

http://www.iata.org/ndc

https://www.youtube.com/watch?v=O3RLUEWTthY&list=PLM2XOQXtRLMe5fdLDk9WMn4A3ZpWqQzCG

new distribution presentation

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