NewGen ISS, TIPand NDC Overview

15th Feb 2019

Janaurieu D’SARegional Head,FDS – Africa & Middle Eastdsaj@iata.org

Agenda

2

Introduction

New Generation IATA Settlement Systems (NewGen ISS)

Transparency In Payment (TIP)

New Distribution Capabilities (NDC)

Q&A

IATA Africa and Middle East

3

TUNISIA

MOROCCO

ALGERIA

MAURITANIAMALI

NIGER

LIBYA

CHAD

Sea

EGYPT

SUDAN

ETHIOPIA

DJIBOUTI

ERITREA

KENYA

TANZANIA

DEMOCRATIC

CENTRAL

RWANDA

GABON

EQUATORIAL

ANGOLA

CONGO

NIGERIABENIN

DTVOIRESIERRA

SENEGAL

GHANA

THE

GUINEA

LIBERIA CAMEROON

MALAWI

ZAMBIA

MOZAMBIQUE MADAGASCARZIMBABWE

BOTSWANA

SWAZILANDLESOTHO

NAMIBIA

ANGOLA

Red

UGANDA

OF THE CONGO

REPUBLIC

BURUNDI

GUINEAREP. OF

TOGOCOTE

BURKINAGUINEA

LEONE

GAMBIA

BISSAU

SOUTH

REPUBLIC

AFRICAN

THE

AFRICA

AFGHANISTAN

IRANIRAQ

SAUDIARABIA

YEMEN

OMAN

SYRIA

JORDAN

LEBANON

UAEQATAR

KUWAIT

SOUTHSUDAN

Seychelles

Mauritius

Rèunion

Bahrain

ComorosGulf & Near East Cluster

North Africa & Levant Cluster

South & East Africa Cluster

Central West Africa Cluster

Cluster Office

Relationship Office

IATA AME Regional office

JNB

AUH

LOS

CAI

JED

NBO

DKR

CAS

AMM

GVAYMQ

SIN

BJS

2017

2018

MAD

MIA

IATA Settlement SystemsGlobal Delivery Center (GDC)

4

The Global Delivery Centre

NewGen ISS

Case for Change

Outdated Rules for a bricks and mortar

world

“Credit cards” as black box

Structural Unlimited

Agency Default Risk

credit cards

Industry business problem – Safety of Airline Funds

Industry business problem – Payment Cost Transparency

Increased use of new payment

products

NewGen ISS is just around the corner- What to expect?

Agency Accreditation Models: introduction of three accreditation models reflecting a wider array of Travel Agents

Enhanced Risk Management: notably the introduction of a Remittance Holding Capacity (RHC) which mitigates airlines’ risk exposure and promotes safer selling

IATA EasyPay: new voluntary & secure payment method, based on pay-as-you go e-wallet

Global Default Insurance: a new financial security alternative for Travel Agents

Agency Accreditation Models

New Distribution Opportunities for Airlines

Agent choice of most relevant model

Accreditation models reflecting a wider array of

travel agents

Moving from one to three accreditation models

NewGen ISS – Accreditation Models

Three accreditation models are being introduced

Agents choose the accreditation most fit for their business

Enhanced Risk Management FrameworkGoing from unlimited to mitigated Risk

Reduction of default losses resulting from limitation of cash risk

exposure (RHC)

Safer environment & sales continuity through new

payment options

Real time around the clock sales

monitoring

NewGen ISS – Remittance Holding CapacityAll Agents with access to Cash will be assigned a Remittance Holding Capacity

Agent’s Remittance HoldingCapacity

Agent’s accumulated cash sales

Day 1 Day 2 Day 3 Day 4 Day 5 . . .

Current Period Sales

Previous Period Sales

Remittance Date

Day 6

$Continued selling using CC and IATA EasyPay

Open to advanced remittances at any time

Option to amend financial security amount and increase/ decrease the capacity

Open to IATA EasyPay at anytime

Remittance Holding Capacity calculation

C

B

A

Risk Status

Equal to financial security amount provided

Total Days x Daily Average BSP Cash Turnover3 Reporting periods + 100%

Remittance Holding Capacity

Number of days in Reporting period plus number of days in

Remittance period

Average daily BSP Cash turnover from 3 highest reporting periods

Risk ManagementRisk Management is defined by an Agent’s Accreditation Model and the level of associated risk (not for GoLite)

*Applicable for BSPs with multiple remittance frequencies** Risk Status provided via e-Bulletin

Risk StatusFin. Review Risk History

PASS PASS

PASS FAIL

FAIL PASS

FAILFAIL

Assessment

C

B

A

Cash Conditions RHC = Calculation

Financial Security only if required in LFC for Standard Agents

Financial Security

Standard remittance frequency of BSP

Standard remittance frequency of BSP

* RHC = Calculation

Financial Security Most frequent remittance frequency in

the BSP*

RHC = Financial Security

Global Data – Risk Status Distribution

58%34%

8%

Risk Status A

Risk Status B

Risk Status C

Region

• Based on 40 markets live with NGI

IATA EasyPayA new industry payment solution

Secure alternative which will be globally available

Virtual Wallet for payment of tickets through the BSP

Increased flexibility for Agents to keep selling

under RHC

Global Default InsuranceA new financial security option for Agents

Cover can quickly and easily be adjusted as

needed

Released assets can potentially be re-

invested in Agency business

Insurance provided by top credit insurance provider

No collateral required

Not Changing

This is an in-line title Choice of Accreditation Model.

All Agents will be by default GoStandard.

3 notifications of RHC balance consumption at 50%, 75% and 100%Real-time tracking in Customer Portal and Agent App (iOS + Android)

Sales continuity through EasyPay and use of Agent’s Own Card with Airline’s consent

New Financial Security option based on an insurance product

The entire BSP process

Local payment calendars

All Travel Agents remain Accredited

Financial Assessment under the Local Financial Criteria (GoStandard)

Calculation of the Financial Securities (GoStandard)

Changing

Transparency In Payment

Transparency in PaymentsA framework for transparency & consent

Enrolment process to ensure transparency for both Agents and Airlines

Airlines define their individual commercial policy

Mechanism to verify Airline consent

Transparency in Payments

Define consent for enrolled products Alert on new Provider/product available Post-Transaction monitoring reports

Consult for an Airline which product(s) it has given consent to

Enrolment of Agent’s own Card Setup email alert to be notified of new/change to

Airlines’ consent

Transparency in PaymentsCurrent Functionalities available

NewGen ISS & TIP RolloutA phased roll-out across all BSPs by 2020

March 2018: NewGen ISS Resolution 812 became effective

201920182017 2020

Market Live NewGen ISS & TIP

NewGen ISS & TIP StatusNewGen & TIP Live 

Countries

As of February 11th, 2019

• Albania• Australia• Belize (TIP Only)• Benin• Bosnia &

Herzegovina• Burkina Faso• Bulgaria• Cambodia• Canada• Cote d’Ivoire• Cyprus• Denmark• Egypt• El Salvador• Estonia• Finland• Germany• Greece• Guatemala (TIP

Only)• Honduras• Hong Kong (TIP

Only)• Hungary

• Iceland• India• Ireland• Korea • Latvia• Lithuania• Macau (TIP Only)• Macedonia• Mali• Malta• Mexico• Niger• Nigeria• Norway• Panama • Qatar• Senegal• Singapore• Sweden• The Philippines• Togo• UAE• Ukraine

Over 40 BSPs already live• Represents over 26% of BSP Cash Sales

NewGen ISS Rollout

Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19NigeriaGuatemalaAustriaAzerbaijanUnited Kingdom

UgandaCroatiaParaguayPolandNew Zealand

LebanonSlovenia

SpainHong KongPortugalRomaniaTurkeyKuwaitGhana

Czech RepublicPeruSlovakiaMongoliaJapan

EthiopiaSwitzerlandUruguayFranceMalaysiaDominican Rep.BelgiumKosovoNetherlandsSerbia

ItalyMozambiqueSouth AfricaEcuadorBahrainBangladeshChinese TaipeiKazakhstanPakistanTanzania

Costa RicaJordanArgentinaBotswanaBrazilChileColombiaNicaraguaOmanSaudi ArabiaVenezuela

IndonesiaMacauRussian Fed.ThailandVietnam

BoliviaChinaKenyaNepalRwandaSudanSri Lanka

CameroonChadCongoGabonMorocco

2020BermudaBelizeBahamasCayman IslandsFijiFrench PolynesiaGeorgiaGuamHaitiJamaicaMalawi

MauritaniaMauritiusMicronesiaMyanmarNew CaledoniaPapua New GuineaSamoaTongaTrinidad and TobagoTunisiaTurks and Caicos IslandsZambiaZimbabwe

Dates subject to change if approved by PSG*

As endorsed by PSG*

TIP Rollout

Country in Blue = Accelerated from NewGen ISS schedule

As endorsed by PSGQ1 2019 Q2 2019 Q3 2019 Q4 2019

2020Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19

AustriaAzerbaijanUnited KingdomHong KongMacau

UgandaCroatiaParaguayPoland

New ZealandLebanonSloveniaJapan

SpainPortugalRomaniaTurkeyKuwaitGhanaRwandaSudanMauritius

Czech RepublicPeruSlovakiaMongoliaCameroonChadCongoGabonMoroccoMauritania

EthiopiaSwitzerlandUruguayFranceMalaysiaDominican Rep.BelgiumKosovoNetherlandsSerbia

ItalyMozambiqueSouth AfricaEcuadorBahrainBangladeshChinese TaipeiKazakhstanPakistanTanzaniaMalawiZambiaZimbabwe

Costa RicaJordanArgentinaBotswanaBrazilChileColombiaNicaraguaOmanSaudi ArabiaVenezuela

IndonesiaRussian Fed.ThailandVietnamBermudaBelizeBahamasCayman IslandsHaitiJamaicaTrinidad and TobagoTurks and Caicos IslandsGeorgia

BoliviaChinaKenyaNepalFijiFrench PolynesiaGuamMicronesiaNew CaledoniaPapua New GuineaSamoaSri LankaTonga

Tunisia

Airline NewGen ISS Readiness• Airlines’ IEP readiness exceeding 80% of BSP Global Net Cash Sales (Green

and Yellow Status’)• Airlines’ IEP Technical Readiness is a condition for NewGen ISS Go-Live• Airline Strategic Readiness indicates the Airline has defined and communicated

its overall policy to agents

Additional Resources• https://newgeniss.iata.org

Together, Let’s Build Airline RetailingNDC Program Update.

NDC Basics

What’s the market problem?

Airlines

• Don’t have the freedom to distribute their products across channels without being commoditized

Travel Agents Customer Experience

• Can’t easily access many airline products that are available on the airline direct websites

• Is not consistent depending on where they search for travel and not rich when shopping through travel agents

What do airlines want?

Revenue opportunities:• Differentiation (product description)• Merchandizing (ancillaries, fare

families)• Personalization (based on loyalty,

preferences)• Dynamic Offers (based on

personalization and other features)

Cost savings: • Innovation & Competition

• To modernize the way air products are being retailed to travel agents, corporations and travelers

• A travel industry supported program for the development and adoption of a new data transmission standard

• Full-service and low-cost airlines

• Content aggregators and travel agents

• Corporate Buyers and travelers

Together, Let’s Build Airline Retailing

Why NDC? What is NDC? Who will benefit from NDC?

Compare airlines mainly on price and schedule

Source: Expedia 27th November 2017

Today’s shop interface

Enabled by NDC

Full airline products seen by consumer via travel agents Tomorrow’s Shop Interface

Tomorrow’s shop interface

Information here is purely for illustration purposes.

Enabled by NDC

Comparison shopping capability

Information here is purely for illustration purposes.

Tomorrow’s shop interface

NDC Program Update

A new structural baseline

Industry feedback:

• A robust standard as a new baseline

• Provides functionalities to go for critical mass

• A solid base to invest in

17.2Schema

The industrybaseline

NDC LiveImplementations-

66NDC Certified Deployments

Level 3 Airlines as of 18/12/2018

Aegean AirlinesAer LingusPJSC AeroflotAir AustralAir CanadaAir ChinaAir FranceAmerican AirlinesAPG AirlinesAustrian AirlinesAvianca AirlinesBritish AirwaysBrussels AirlinesCathay Pacific AirwaysChina AirlinesChina EasternChina SouthernColorful GuizhouCondorCORSAIRDelta Air LinesEmiratesEtihadEthiopian Airlines

Saudi Arabian Airlines Shandong AirlinesShenzhen AirlinesSichuan AirlinesS7 Siberia AirlinesSilkAirSingapore AirlinesSunExpressGermanySunExpressTurkeySWISST’way AirTaca International AirlinesTAP Air PortugalThomas Cook Airlines ManchesterTurkish AirlinesUnited AirlinesVirgin AtlanticVueling AirlinesWestJetXiamen Airlines

EVA AirFinnairFlybeflydubaiFlyEgyptGOLJiangxi AirHainan AirlinesHong Kong AirlinesIberiaIberia ExpressInselAirKLM Royal Dutch AirlinesKorean AirLufthansaNorwegian Air ShuttleOlympic AirOman AirOnur AirQatar AirwaysQantas AirwaysRotana Jet

System Providers certified & capable to date-

66• 46 IT Providers - Capable• 20 Aggregators - Certified• Includes 6 Start ups

Aaron GroupAirlines TechnologyAirGatewayAirSky InformationAmadeusAPGATPCOAtriis TechnologiesBeijing Asia Technology CoBirdresTechnologiesConztanzCaraveloDatalexDXC TechnologyFarelogixHitchHikerHititIBS IndraInfiniti Software SolutionsInformation Systems Associates

SabreSAP Customer ExperienceShanghai Aqueduct Information TechnologyShree Partners"Sirena-Travel" JSCSITASkyscannerTOPASTPConnectsTravelfusionTravelNDCTechnologyTravel PlanetTravelaerTravelportTravelskyVerteilTechnologiesWTMCWinteliaTechnology CoTravelgateXYpsilon.NET AG

InteRESISO Software SystemeITA Software by GoogleIween Software SolutionsJR TechnologiesKAYAK Software CoMaurevaMarco Polo TechnologyNavitaireNemo TravelOn Travel SolutionsOpenjawPaxportPolarium CoPribasPROSPSNGR1QuadlabsTechnologiesReserve

Sellers certified to date-

AL Maghseel International LLCChina Air Service Ltd.Chongqing Yunshang International Travel Service Co.,LimitedClick TravelClub TravelCorporate Travel ManagementCtrip.com International Ltd.DnataExpediaFlyazmeel.com (Azmeel International Agency Tours & Travel)Hogg Robinson GroupJebsenTravel LimitedLogitravel GroupSerko LimitedSuperior Tracks Travel & Tourism –Zeeyarah.comTravelCCTravel PlanetTripadvisor, LLCViaflight.com (Talent Travel & Tourism)WTMC

20NDC Certified

Implementations

• Includes 6 TMCs

• Certified Level 3 in July 2018

• Certified Level 3 in September 2018

• Certified Level 3 in December 2017

GDSs have become Level 3 NDC aggregators 2018

The road to 2020

NDC Roadmap set with IATA Board

The journey to 2020 – IATA NDC Leaderboard

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Questions

Thank-you!