Innovation Aviation Data Symposium Berlin 20th June 2018 - IATA
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Innovation
Aviation Data Symposium
Berlin 20 th June 2018
Juan Iván Martín Andrei Grintchenko
Head of Innovation, FDS, IATA Head FDS BI Projects, IATA
martinj@iata.org grintchena@iata.org
linkedin.com/in/jimartin linkedin.com/in/grintchenko
Aviation Data Symposium 2018
Things to look at
Uberization
Blockchain (Sharing
Economy) Big Data
Predictive
Fraud Patents analytics
Prevention Self
Biometrics booking
D igital tools P latfo rm B u sin ess Cloud
T ru st Eco n o m y In telligen ce Computing
Meta
-searching
Crypto Dev Open
-currencies Tokens Portal APIs
iOt A.I.
Inter
Millennial -modality Electric
consumer Social Speed Vehicles
Mobile Media of sound Low cost Drones
models Robotics
flights
D igital Gaming N ew In telligen t
BB C u sto m ers T ravel V eh icles
onboard
Space Sensors
3D glasses travelling 3D printing Autonomous
Wearables +augmented Vehicles
& internet reality Parabolic Renewable
of things Apps flights Energies
OPEN INNOVATION ECOSYSTEM
Aviation Data Symposium 2018
Ongoing projects
NDC IDM 1ID EP
IATA Open TIP
IFG APIs
Coin
NDC Etc…
1 Order NGISS Link
Aviation Data Symposium 2018
Things we do around data
Aviation Promoting Open Governance
Data acceptance APIs & Control
Model
Aviation Data Symposium 2018
Innovation Jam
S7 example (2/2)
THANK YOU!
Juan Iván Martín
Andrei Grintchenko
Head of Innovation, FDS, IATA Head FDS BI Projects, IATA
martinj@iata.org grintchena@iata.org
linkedin.com/in/jimartin linkedin.com/in/grintchenko
Aviation Data Symposium 2018
LUfthansa Innovation
Hub
June 19th 2018
Overview GmbH since January 2015 Team: End of 2014: 8 employees Today: 21 employees Mix of externals and internals: Combination of entrepreneurial know-how with years of Lufthansa experience and airline expertise
WhAt’s hAppening in trAveL & MobILITY tech And why is it reLevAnt TO LuFthAnsa?
Technological progress is changing daily life 2005 | $99 Conclave Pope Benedict XVI. 2013 | $99 Conclave Pope Francis
Today’s economy is tech-dominated!
2011-2017: Largest Companies by Market Cap Top-10 largest companies by market cap
grouped by industry affiliation
1 1 1
3 2
4
6 4 3
2 4 6 5
2
2 4 3 3 3 5 6
2011 2012 2013 2014 2015 2016 2017
Oil Companies
Other Industries
Tech CompaniesThe speed of innovation within Travel & Mobility Tech is skyrocketing Note: 8-Year graph based on available data on disclosed funding rounds Source: LIH analysis in cooperation with Pitchbook (as of Feb 15, 2018)
Forming a few of today‘s most valuable private companies in the world Source: LIH analysis in cooperation with Pitchbook (as of Feb 15, 2018)
WHAT’S THE ROLE OF THE LIH IN
THIS CONTEXT?Our Mission
Our mission is to quickly
explore new digital
opportunities for Lufthansa
Group and convert them into
businesses.Strategic fields of action
Build
Develop and build our own digital products & services.
Partner
Foster selected partnerships between digital players and
Lufthansa Group.
Invest
Educate and support Lufthansa Group at strategic venture
capital investments in startups.Partner: LIH initiates collaborations with
Travel & Mobility Tech startups
Strong focus in 2014/2015
300+ 40 5
Co-creation
Projekte
implementiert
Co-creation
Co-creation
Startups
Startups
Opportunitäten
Opportunitäten
evaluiert
identifiziert
identifiziertBuild: LIH validates business model innovations
Strong focus since 2015
We entirely focus on customer needs.
(starting point = painpoints ot the traveler)
We quickly act using prototypes
(Fail fast)
We use validated data to improve products
(Data beats opinion)
Value hypothesis
Growth hypothesisEvery product starts as a
“Minimum Viable Product“
Customer
1 2 3 3b 4
CustomerPRODUCT EXAMPLES
AirlineCheckins.com Automatic check-in assistant for more than 200 airlines worldwide
The current state of airline online check-in
Lufthansa Open API – developer.Lufthansa.com Programming interface opening up the Lufthansa data world to external and internal developers LATEST NEWS BY TODAY BOOKING CAPABILITY VIA THE OPEN API AVAILABLE!
Investment Fleet Logistics First ever startup investment by Lufthansa Cargo The LIH supported throughout the whole process – from screening the Cargo Tech market to the closing of the investment
We design the happy journey of tomorrow
For more insight follow our Travel &
Mobility Tech Radar
lh-innovationhub.de/radar/THANK YOU!
Innovation Jam:
IATA Hackathons - Innovation in Action
Ö Ursula Silling,
CEO, XXL Solutions & India Hackathon Jury Member
Ö Juan Oliver
Manager, FDS Business Intelligence Projects
Aviation Data Symposium 2018Aviation Data Symposium 2018
2 3 -2 5 FEB R U A R Y, 2 0 1 8
Ö Challenge: Personalization Ö Challenge: Ancillaries Cross-Sell
Ö Winner Team: RMS Ö Incuation Phase
Aviation Data Symposium 2018Aviation Data Symposium 2018
Aviation Data Symposium 2018
IATA Hackathons Innovation in Action
After 28 hours on non-stop coding…
Winners of the IATA NDC Hackathon “DATA Corporate
Prize” held in Kochi, India on February 2018:
Revenue Management Systems
Travis Lewis
Fabian Widyadri
Michael PetersOur inspiration… Age of customer
• 100% customer centric
• Dynamic pricing
• Data Intelligence; AI and ML
Age of information
• Focus on predictive analysis
• Transformation from product
centric to customer centric x
-20x
• Introduction of CRM systems 2015
Age of distribution
• Focus on wider distribution
• Introduction of GDS
• First data structures created -2015
• Introduction of different fares 2000
Start of Commerce
• Tickets sold via sales agents. 2000
• No price differentiation 1975-
• Product priced as airfare Stage IV
Stage III
Inspired
-1975 Stage II By Customers
1950 Engaged
Stage I With Customers
Responsive
To Customers
Targeted
On CustomersOur inspiration…
Base Product Offer
Upsell Offer
Cross-sell Offer
PaymentThe idea pitch Airlines using NDC can improve their sales conversion by having a better process around customer profile recognition. Our challenge is to identify the customer profile, their willingness-to-pay and offer interests by help of micro-segmentation. By help of AI we can identify the customer profile, optimize the product shelf by bundling the base offer, upsell offer and cross-sell offer in the most effective manner with the ultimate goal to improve the conversion of the customer throughout the sales funnel. Our process will establish a active feedback port with the revenue management system which can recommend flight re-optimization by help of actual demand insights versus demand forecast (using only historical bookings).
Optimizing the airline commercial paradigm
ORIENTATION BOOKING UPSELL CROSS SELL NPS
>> >> >> >> >>
Can we identify the When a booking is Can we focus on Can we provide What can we
customer in the made, can we offer better offer and added value or a improve to ensure
stage where it is the right price at the order management favorable position that the customer
orienting for a right moment in so the product shelf by offering services fly us again, or
ticket, and ‘help’ time without is not a distraction? for convenience? better, recommend
him to look at you? dilution? us to others?Why join an IATA Hackathon?
Knowledge Mining Time Management Be innovative
The ‘Next-Gen’ of RM evolves A sense of urgency created by A hackathon is all about
around commerce. NDC will time and competition creates innovation. Validate our ideas,
likely play an important role in an environment which steers compiling data to put decisions
that. We need to tiptoe the for creativity impossible to in the right context, determine
knowledge pool and get recreate in a true business scalability, and so on
exposure in the field environment
Networking Breaking routines Having fun
Understand the ‘state of the Sometimes, we can be a little Get a positive vibe from an
technology’ and meet with the full of ourselves that we forget environment where people are
industry innovators which are to share with and learn from passionate to innovate, disrupt
involved with the marketing, others. Hackathons is a place the status quo, pass
practices and concepts where we can realize our boundaries and are highly
development of NDC strengths and weaknesses ambitiousSome impressions
Finding the right accuracy…
35% 45% 56% 81% 66% 90%
End of Relevant Data Change in ML Highest Not always Our determined
Hackathon Sources methods Accuracy Score improvement sweat spot
After the NDC Hackathon, the first challenge was to test the data on real airline data. In iterations of 2 weeks, we test over a
dozen
of airlines and measure our classification accuracy. The regression accuracy is related to the success of our
ability to match the correct classification profile on a Shopping Request. We are still in a experience of big data shifts.Thank You!
OliverJ@iata.org
Aviation Data Symposium 2018The Twelve Labors of
mastering Big Data
an Amadeus experience
Pascal Clément
Head of Airlines Data Unit
AmadeusJanuary, 2013
Where do we start?
© Amadeus IT Group and its affiliates and subsidiariesData Silos WHAT IT LOOKS LIKE
_ Where the problems start
WHAT YOU WISH IT LOOKED LIKE
© Amadeus IT Group and its affiliates and subsidiariesGDPR?
_ Who? Where? How? Legal?
Data Access
Governance
© Amadeus IT Group and its affiliates and subsidiariesAnalytical vs.
Transactional
_ Bringing analytics in a world
© Amadeus IT Group and its affiliates and subsidiaries
mastering transactionsCost &
Investment
_ You quickly realize that
© Amadeus IT Group and its affiliates and subsidiaries
storage and computation goes
far beyond what you thinkSpeed &
Agility
_ Analytics and Big Data
© Amadeus IT Group and its affiliates and subsidiaries
needs much more speed
and agility than legacyThe Budget
Problem
_ How do you manage financing
© Amadeus IT Group and its affiliates and subsidiaries
experimentation vs. plan?Build Data Science
Capabilities
THE BEGINNER
_ A Data Science capability THE MASTER
© Amadeus IT Group and its affiliates and subsidiaries
needs much more than
data scientistsData preparation &
Quality
_ Data is NOT ready for analytics
© Amadeus IT Group and its affiliates and subsidiaries
PREPARATION IS KEYIndustrialization
Operation. Security
REALITY
_ Needs to be built for thousands
© Amadeus IT Group and its affiliates and subsidiaries
of users all over the world
EXPECTATIONSKeeping Data
Scientists Happy
_ They receive a job offer
© Amadeus IT Group and its affiliates and subsidiaries
every day_ It’s becoming critical
Real time
© Amadeus IT Group and its affiliates and subsidiaries_ The ultimate Big Data Goal
Automation
© Amadeus IT Group and its affiliates and subsidiariesConclusion
5 years of real life experience
You can benefit from our
experience through a 2 weeks
© Amadeus IT Group and its affiliates and subsidiaries
assessment on Big Data MaturityBig Data Maturity Model Here, you appear
level 1. Timing > 1
Data Platform and Architecture Lead Time for Resources
month. Let’s see the
next steps to reach
level 2 then 3.
Readiness for new project
4
Here, you appear level 2
Let’s see the next steps 3 Data Retrieval
to reach level 2 then 3 Storage 4 (Input into platform)
4
3 2 3
2
2
1 1
1 Here, you appear level 1
Batch & Relatively small
1 1 data only. Let’s see the
next steps to reach level
Here, you appear level 1. 2 2 2 then 3
Too much in Silos with its own
technologies. No Share. Let’s 3 3
© Amadeus IT Group and its affiliates and subsidiaries
see the next steps to reach 4
level 2 then 3. 4
Cohesiveness
Programming
Framework
Here, you appear level 1
Batch and relatively small
data only. Let’s see the next
steps to reach level 2 then 3.Thank you! amadeus.com You can follow us on: amadeus.com/blog AmadeusITgroup
How Airlines can harness and leverage data Rodrigo Ramos Managing Director, Sabre Iceland Product Head of Intelligence Exchange 20 June 2018
Key challenges for airlines to leverage data
The PSS is not Complexity of bringing A customer-centric There is a huge need for
designed for custom together disparate, data business requires airlines to leverage
business process and sets to achieve digital non-core systems to more data and a DWH
sense and respond transformation have customer data is not enough
actions
12 of enterprise data is
typically utilized for
analysis
29 of the IT budget is now
generated by business unit
investment rather than IT
Source: Gartner ©2018 Sabre GLBL Inc. All rights reserved. 2“IT application development time is highly correlated
with IT’s impact on business performance…”
“The speed… to convert mass amounts of
customer data into insights, and insight into action
Forrester Research is now a critical differentiator.”
©2018 Sabre GLBL Inc. All rights reserved. 7Intelligence Exchange: the open airline enterprise agility platform
Apps and processes
Sense and respond
User experience
System of reference
System of record
©2018 Sabre GLBL Inc. All rights reserved. 10Intelligence Exchange MICRO-APPS
An ecosystem of
micro-apps built on
the Intelligence
Exchange Platform
https://vimeo.com/274572139/50f82f670eWhat is a Micro-App?
PLACE WEB APP
OR SITE
Micro-App
SCREENSHOT
HERE
Business process templates
75% standard / 25% configurable
Take action across enterprise systems
Deploy fast to save time and money
marketplace.sabre.com/IXSolve PERVASIVE BUSINESS CHALLENGES
across the customer journey
Personalized Trip Prom otions Top Tier Auto Upgrades
Earn incremental revenue Enable customer centricity
Fare Error Detector Real Tim e Flight Analysis
Prevent revenue leakage Streamline airline operationsLast Minute Upgrades checks for upgrades
and automatically notifies qualified
customers based on tier or other criteria.
On the day of departure, In order to fill that cabin, Based on rules in the
WorldWide Air identifies that WWA decides to offer Micro-App, promotions
they have unsold seats in a promotions to qualifying are sent to customers
particular cabin. customers to encourage and front-line agents.
upgrades.Imagine if… you could automatically manage seat swaps in real-time based on
customer data
Tailored Opt-In Message
• Customer can opt-in to receive a better seat on
their existing flight
Seat Swap Notification
• If two or more customers are matching
candidates, assign seat swap
Successful Seat Swap
• Customer is automatically notified of a
successful seat swap
T icket is s u ed C h eck-In D ep a rtu re A rriva l
Reduced Improved
Agent Customer
Handling Cost Experience
Booking
made
Use implicit and explicit customer
data to determine optimal re-seating.
©2018 Sabre GLBL Inc. All rights reserved. 12Imagine if… you could automatically manage ancillary integrity to increase
incremental revenue
Paid Seat is Reserved
• A paid seat is reserved, but payment is not complete
Check-in Notification Sent
• A Guest is unable to check-in until AirExtra fee is paid
Additional Abuse is Detected
• To avoid additional inventory abuse, app continuously
checks for the application of new waiver rules
T icket is s u ed C h eck-In D ep a rtu re A rriva l
Reduced
Increase Agent
Revenue Servicing
Booking Cost
made
Should AirExtra fee be waived be based
on customer data or airline rules?
©2018 Sabre GLBL Inc. All rights reserved. 13Sabre Intelligence Exchange Customer Spotlight
Sabre Intelligence Exchange will continue to
support engagem ent with our custom ers and
drive perform ance for our business.
Shane Tackett
Vice President, Revenue and Ecommerce
Goal Solution
• A seam less experience for their • Im plem ented Sabre Intelligence Exchange in
elites, where they can either be 2016
autom atically upgraded to the • Partnered with Sabre to develop Elite seat
existing first class product, or to upgrade app
the new prem ium class product
• App was com pleted at a low cost and on-
• M anage all the logic of upgrading tim e by leveraging the IX platform
elite m em bers with flexible rules
around m ultiple flight, value, and
profile attributes Results
• The m ost flexible and user-friendly elite
• Continuously evaluate new upgrade process in North Am erica
bookings across the sam e criteria
• Added optionality upgrade options based on
tier status, date and tim e, and inventory
• Im proved retention of prem ium tier
custom ers
©2017 Sabre GLBL Inc. All rights reserved. 11Differentiating the customer experience through seamless upgrades
At 3 Days During
Booking before Check-in
Departure
Upgrade to Upgrade to Prioritize
Premium Premium Upgrade List
or Cabin or Cabin (re-check-in)
5 Days 1 Day
before before
Departure Departure Increased Improved customer
revenue experience
Upgrade to Upgrade to
Premium Premium
or Cabin or Cabin
©2018 Sabre GLBL Inc. All rights reserved. 14How Intelligence Exchange Solves The Problem?
Identify Prioritize Execute
Leverage IX Enrich and analyze Business Rule
Integrated Cross data to create Engine with actioning
Domain Data prioritization of Elite capabilities to
Members execute upgrades
Clear expectations to Elite members on upgrade availability
Incremental Revenue • Customer Experience • IT Cost SavingsPOC - Fast time to market
1 Programmer
3 Days
200 Lines of CodeIntelligence Exchange: A growing and thriving community
Americas EMEA
• Aerolineas Argentinas • Adria Airways • Croatia Airlines
Sabre Intelligence •
•
Aeromar
Aeromexico
•
•
Aegean Airlines
Aeroflot
•
•
Emirates
Ethiopian Airlines
APAC
Exchange community • Air Canada • Afriqiyah • Etihad • Air Niugini
Air Tahiti Nui
60+ airlines
• Alaska Airlines • Air Berlin • Etihad Regional •
• American Airlines • Air Serbia • Gulf Air • Angkor Air
• Aserca • Air Seychelles • Icelandair • Bangkok Airways
• Azul Linhas Aereas • Alitalia • Jet Airways • Cathay Pacific
Brasileiras • Atlantic Airways • JetKonnect • Dragon Air
• Bahamasair Faroe Islands • Kuwait Airways • PAL Express
• Canadian North • Austrian Airlines • Norwegian Air • Philippine Airlines
• Cayman Airways • Avior Shuttle • Vietnam Airlines
• COPA • Belavia • Oman Air • Virgin Australia
• Frontier • British Airways • Pakistan
• Hawaiian Airlines • Comair/Kulula International
• JetBlue • Royal Jordanian
• LATAM Chile • Saudi Gulf
• Ravn Alaska • Virgin Atlantic
• SBA Santa Barbara Airlines Airways
• Southwest Airlines
• Sun Country
• Virgin America
• Volaris
Regular interactions, • WestJet
conferences and user
workshops around the world
©2018 Sabre GLBL Inc. All rights reserved. 15The power of the industry-only Intelligence Exchange
platform
25 60 60
In production
at more than
Over
micro apps
in production
of global
% bookings airlines
5
Integration with
reservation systems Over 8
data domains
16
©2018 Sabre GLBL Inc. All rights reserved.Q&A
©2018 Sabre GLBL Inc. All rights reserved.
©2017 17©2018 Sabre GLBL Inc. All rights reserved. 18
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