Together, Let's Build Airline Industry Retailing! 23 - 25 October 2018, Rome, Italy - WorldTEK ...
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Together, Let's Build Airline Industry Retailing!
23 – 25 October 2018, Rome, Italy
Ordering, Delivering and Servicing
Sponsored by:
AIR Symposium I 23 – 25 October 2018 I Rome Italy
Ordering, Delivering and Servicing
Great Offers Come with Great Delivery Expectations
Sebastien Touraine
Head ONE Order Program, IATA
AIR Symposium I 23 – 25 October 2018 I Rome Italy
The Airline Ecosystem Landscape
Airline
own channels
Direct sales
Travel Agents
Airline E-commerce platforms
(IBE, NDC Offer/Order Management Platforms, API)
Direct connect agency
PSS integration layer
PNL/PFS 3rd party
GDS Airline PSS Inventory Reservation Ticketing DCS DCS / Ground
ETKT / EMD Handlers
control
Travel agency
connected to Sales/lift report ETKT/EMD Revenue
a GDS Accounting
Revenue recognition
Systems
AIR Symposium I 23 – 25 October 2018 I Rome Italy
DUPLICATION AIR Symposium I 23 – 25 October 2018 I Rome Italy
COMPLEXITY AIR Symposium I 23 – 25 October 2018 I Rome Italy
The Airline Ecosystem Landscape
Airline
own channels
Direct sales
Travel Agents
Airline E-commerce platforms
(IBE, NDC Offer/Order Management Platforms, API)
Direct connect agency
PSS integration layer
PNL/PFS 3rd party
GDS Airline PSS Inventory Reservation Ticketing DCS DCS / Ground
ETKT / EMD Handlers
control
Travel agency
connected to Sales/lift report ETKT/EMD Revenue
a GDS Accounting
Revenue recognition
Systems
AIR Symposium I 23 – 25 October 2018 I Rome Italy
ONE Order complements NDC
Airline
own channels
Direct sales
Travel Agents
Airline E-commerce platforms
(IBE, NDC Offer/Order Management Platforms, API)
Direct connect agency
PSS integration layer
PNL/PFS 3rd party
GDS Airline PSS Inventory Reservation Ticketing DCS DCS / Ground
ETKT / EMD Handlers
control
Travel agency
connected to Sales/lift report ETKT/EMD Revenue
a GDS Accounting
Revenue recognition
Systems
AIR Symposium I 23 – 25 October 2018 I Rome Italy
ONE Order – what is it?
A single Order Record
combining information already existing on PNR and E-Ticket/EMD
An Order-based messaging Standard simplifying fulfillment and accounting
The foundation of Airline Order Management Systems
ONE Order Delivery Providers
messages
Entitlement
and delivery status
Order
Management Accounting
ONE Order
System messages Systems
Order sales information
(OMS) and status
Airline
OMS
ONE Order Airline (POA)
messages
Airline Entitlement
(ORA) and delivery status
ORA: Offer Responsible Airline POA: Participating Offer Airline
(i.e.interline partners)
AIR Symposium I 23 – 25 October 2018 I Rome Italy
ONE Order - Program roadmap
Supported by the IATA Board of Governors
2015 2016 2017 2018 2019 2020 and beyond
Industry
case for
change
Release 18.2
Phase 1: Industry Standard
IATA Resolution 797
Data exchange standard messages
Phase 2 : Industry Capability
Pilots
Certification
Implementation
AIR Symposium I 23 – 25 October 2018 I Rome ItalyONE Order Pilots participants
H2- 2017 H1- 2018 H2- 2018
2017 2017
Other Airlines and
System providers
Pilots under
development
AIR Symposium I 23 – 25 October 2018 I Rome ItalyIntroducing ONE Order Certification
Drive innovation and competition
Provide visibility to the airlines of vendors’ ONE Order capability
Extend NDC certification to monitor Order Management Systems interactions with Accounting & Delivery
Other sales
channels
Offer
Management
NDC
Sellers Messages ONE Order
or messages Delivery Providers Starting
Aggregators Order
Management January
ONE Order
messages
Accounting System 2019
Airline
NDC Certification ONE Order Certification
AIR Symposium I 23 – 25 October 2018 I Rome Italy13
Thank you!Ordering, Delivering and Servicing
Great Offers Come with Great Delivery Expectations
Mike Moore
Managing Partner, T2RL
AIR Symposium I 23 – 25 October 2018 I Rome ItalyPSS State of the Nation
IATA AIR Symposium 2018
Mike Moore- Managing Partner, T2RL
24 Oct 2018
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
15What’s happened in the PSS Market ?
Airlines flew • Passenger volumes
continue to grow, CAGR
some 4.2bn since 2012 now 6.4%
passengers in • Asia Pacific exceeded
2017 1.5Bn passengers
boarded
In 12 months since 30 September 2017, 46 airlines carrying
117M PBs moved from one system to another
Source: T2RL, migrations as of 23 Sep 2018
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
16Market Share
4.18 bn PB’s
in 2017
Source: T2RL research data
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
17Channels
56% Direct 44% Indirect
Source: T2RL estimates
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
18Channels
56% Direct 44% Indirect
Delivered by the following channels
Call O
Centre
ATO API A
CTO L
Source: T2RL estimates
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
19Channels
56% Direct 44% Indirect
Delivered by the following channels
Call O
Centre
ATO API A
CTO L
Channels supported by the following
technology vendors
Others including Vedaleon, EZY (Radixx), Hitit, ISA,
Vendors
Farelogix
In-House 2eSystems, IBS, Intellisys, Sirena, OTS, SITA, Anixe, PSS Datalex
PSS
Openjaw
+ Google Newshore, TAIS, KIU, Videcom, Indra, Zapways, TTI, Vendors DXC
In-House
SAP, Worldticket, Bravo, Travelaer
Source: T2RL estimates
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
20Today the key Airline IT suppliers are…
In-House, Delta Airlines,
PSS
Easyjet, Turkish Airlines,
Emirates, Air Canada, Air New Sirena-Travel, IBS,
Zealand, Aer Lingus, Spring Radixx, Intellisys,
ISA, Videcom, KIU,
Airlines… Worldticket, TTI
Distribution
Others including Vedaleon, EZY (Radixx), Hitit, ISA,
Vendors
Farelogix
In-House 2eSystems, IBS, Intellisys, Sirena, OTS, SITA, Anixe, PSS Datalex
PSS
Openjaw
+ Google Newshore, TAIS, KIU, Videcom, Indra, Zapways, TTI, Vendors DXC
In-House
SAP, Worldticket, Bravo, Travelaer
Significant overlap of dominant vendors in both arenas
Source: T2RL estimates
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
21Integration cost and capability enhancements
appear to be very significant…
Software
$6.1bn $7bn
Source: SITA Source: T2RL estimates
IT Trends 2017
Operations
IT In-House
Services and Others
$7.4bn
Travelsky
Amadeus
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
22T2RL Reference Architecture for Retailing
Direct Channels Indirect Channels
Retailing
APIs
‘Taxation’ – expect
Booking Engine established vendors to
charge for value across
Product Offer Shopping Order boundaries and
Management Management Management Management account for this in your
TCO
Customer Management
Offer Order
Airline Management (PSS, Commercial, Operations, Cargo) Management Management
Business Support
Business Intelligence The Retailing layer represents the
components required by airlines who wish to
Integration Data Infrastructure act as travel retailers.
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.T2RL believe we are at a crossroads in PSS…
Richer PSS Poorer PSS
Order and Offer Offer and Order
remain within move outside PSS
PSS boundary boundary
But Commercial or Contractual Barriers can exceed Technical Challenges
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
24Grazie Mille
Better Data for Better Decisions
Travel Technology Research Ltd, trading as T2RL is an independent research and consulting company that specialises in the market place for
airline IT systems. Based on data gathered and analysed since the year 2000 it has defined and tracked classifications of airlines and their IT
providers. Its research is used by airlines to enable them to make informed choices of systems and vendors and by the vendors to help them
develop products that best meet the current and future needs of the airline industry. For further information, visit our website at www.t2rl.com.
© 2015 T2RL. Contains confidential information proprietary to T2RL. All rights reserved. Reproduction or redistribution in any form without the
prior permission of T2RL is prohibited.
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
25Spare or Replaced
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
26PBs by Business Model
4.2 Bn Passengers Boarded in 2017
were sold (distributed) by carriers operating
the following business models….
2.80 Bn 0.93 Bn 0.25
Other
Bn
Network Airlines Hybrid Airlines LCC
Source: T2RL Proprietary Research
© 2018 T2RL. Contains confidential information proprietary to T2RL.
All rights reserved. Reproduction or redistribution in any form without the prior permission of T2RL is prohibited.
27AIR Innovation Flash #3
Andy Kidd
Industry Principal - Travel
SAP
AIR Symposium I 23 – 25 October 2018 I Rome ItalySAP CUSTOMER EXPERIENCE ONE Order Pilot Andy Kidd October 2018 PUBLIC
Order Service
Sales Status
Information Change
Notification Notification
ORDER MANAGEMENT ORDER ACCOUNTING
ONE ORDER
Service
Status
Change
Notification
DCS & LOUNGE
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 30ORDER MANAGEMENT SAP COMMERCE CLOUD • Web Storefront • NDC Channel • Flight Schedules • Products & Prices • Inventory • Offer Management • Order Management • Merchandising © 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 31
ORDER ACCOUNTING SAP CUSTOMER FINANCIAL MANAGEMENT • Revenue Accounting • Delivery Status • Deferred Revenue • Sub Ledger Posting • Billing & Invoicing • S/4 HANA Digital Core © 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 32
7 USE CASES
LHR CDG
• Simple return order
• Payment with a credit card
• Payment part with loyalty miles KRK LHR JFK
• Additional flight ancillaries
• Lounge access CDG
• Web Storefront & NDC Orders
• Voluntary flight change
• Involuntary flight change
KRK LHR JFK
+ 1 Day
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 33FINDINGS
• Minimal change to accommodate ONE Order data model
• Order Management – aligned to retail model
• Order Accounting – aligned to standard financial accounting
• Adopting retail mindset to products & services in a catalogue
• Change as sellable product not an attribute or fare rule
• ONE Order provides rich data set for reporting & analytics
• Added ‘Sales Channel’ to ONE Order message
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 34ONE ORDER Let’s Start The Journey Andy Kidd IATA AIR Symposium - October 2018 PUBLIC
AIR Innovation Flash #4
Alexander von Bernstorff
Director Airline Solutions
InteRES
AIR Symposium I 23 – 25 October 2018 I Rome ItalyAir content distribution made in Germany since 1997
The industry’s first PNR-less, integrated and end-to-end NDC & ONE Order set-up. Alexander Graf v. Bernstorff Director Airline Solutions, InteRES
NDC & ONE Order are not separate things ➢ The concept of NDC is fundamentally built around the concept of an order, and not a PNR ➢ Other than often suggested, the order is not a piece of ONE Order, but an integral part of NDC ➢ ONE Order can well be implemented stepwise, with a decommissioning of tickets and EMDs first, to be followed by the PNR at a later point-in-time ➢ Our pilot approach was an end-game scenario
Fully Integrated NDC & ONE Order Pilot
NDC & ONE Order
(asas implemented 2017
implemented)
InteRES 17.2 NDC API
InteRES Retail Engine
Fares Airline Fare
Offer Management
Management
ONE Order Taxes, Fees NDC Payment
Sales: OrderSaleInformationNotification
Usage: ServiceStatusChangeNotification
Order Management Order
Store
ONE Order
Revenue Amadeus Altéa OrderSaleInformation
Accounting
RBD Avail. DCS WS
INV Airline RM
PRL + PFS Text File
DCS Airline other
Viewer OrderID Add PNL to Online Mode OrderListRQ
Airline otherairlines@interes.com www.interes.com
Ordering, Delivering and Servicing
The Future of the Passenger Service System (PSS) in an
Panelists: Airline Retailing Environment
Glenn Morgan, Member of IATA Industry Transformation Group
Andy Kidd, Industry Principal - Travel, SAP
Soumit Nandi, Managing Director, Customer Technology Platforms, United Airlines
Jesko Neuenburg, Managing Director, Seabury Consulting, Accenture
Moderator:
Sebastien Touraine, Head ONE Order Program, IATA
AIR Symposium I 23 – 25 October 2018 I Rome ItalyThe Airline As A Retailer Soumit Nandi Managing Director – Customer Technology Platforms @soumit
There’s more to an airline than the
digital storefront
44digital natives
45omnichannel travel journey partner
shopping retail management settlement
dynamic partnerships experience smart
offers orders insights contracts
46Industry organizations
expanded purpose
New partners
We invite you revenue & margin
to innovate
Distributors
with us travel marketplace
Technology partners
new opportunities
47Ordering, Delivering and Servicing
The Future of the Passenger Service System (PSS) in an
Panelists: Airline Retailing Environment
Glenn Morgan, Member of IATA Industry Transformation Group
Andy Kidd, Industry Principal - Travel, SAP
Soumit Nandi, Managing Director, Customer Technology Platforms, United Airlines
Jesko Neuenburg, Managing Director, Seabury Consulting, Accenture
Moderator:
Sebastien Touraine, Head ONE Order Program, IATA
AIR Symposium I 23 – 25 October 2018 I Rome ItalyCell Point Mobile & UATP Luncheon Workshop
Alternative Forms of Payment Throughout the Passenger
Journey: Turning Payment Preferences into Profits
Tivoli Room
AIR Symposium I 23 – 25 October 2018 I Rome ItalyPKFARE Luncheon Workshop
The Future of Distribution
Colonna-Doria Room
AIR Symposium I 23 – 25 October 2018 I Rome ItalyNetworking Lunch
Until 14:00
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