IT and the Customer Travel Experience
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Transcript of IT and the Customer Travel Experience
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IT and the Customer Travel Experience
IT and the Customer Travel Experience
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http://www.youtube.com/watch?v=SLjOv6YUo4c
• IMPACT OF THE INTERNET AND INFORMATION TECHNOLOGY ON THE TRAVEL INDUSTRY
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Industry Overview
• Travel industry has historically been an early adopter of IT
• Online travel bookings were $5B in the US in 1999 and grew to $20B by 2003 in the US
• Worldwide bookings were $54B in 2003 and are projected to reach $91B by 2010.
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Impact of IT on Travel Industry
• Improved accessibility of information
• Reduced operator cost
• Enhanced customer experience
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Deciding where to go…
Where to go?
Where to stay?
What to do?
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Deciding where to go…past
Travel agents
Travel brochures, magazines, newspaper travel columns
Talking to friends
Travel shows,expositions
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Deciding where to go…past
• Luxurious rooms
• First class service
• Family getaway
• Honeymoons
• Shopping & dining
• Beautiful location
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Deciding where to go… present
• Americans making travel plans online
– 2004: 64 million
– 2005: 78 million
• Of online bookers
– 82% purchased air tickets
– 67% secured lodging
– 40% reserved rental cars
http://www.imediaconnection.com/content/7663.asp
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Internet travel agencies
Virtual tours
Travel social networking
Deciding where to go…present
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Deciding where to go…future
• Broader adoption of travel social networking
• More personalized and relevant travel marketing
• Virtual tours become an alternative to travel
Snapshot from www.secondlife.com
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Deciding where to go……what’s been missed?
• How to provide the personal touch
• Online model that is both customer friendly and supports revenue
• No one in the market has managed to maintain differentiation based on their customer online experience
• Establishing legitimacy on cost and advice
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was the norm
Airline ticketing…past
SABRE- Semi Automated Business Research Environment
http://www.airlinenews.aero/magazine/article.html?articleID=1163 http://www.sabreairlinesolutions.com/about/history.htm
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Airline ticketing…past
• Ticketing based on the Airline-owned CRS system from 1964
• Each travel agent had access to up to the minute data and pricing to issue paper tickets
– Airline Tariff Publishing Company (ATPCO) serves as a clearing house/publisher of airline fares from > 500 airlines.
– ATPCO creates efficiencies, giving each CRS/GDS the opportunity for a single source of fare-related data.
http://www.airlinenews.aero/magazine/article.html?articleID=1163 http://www.sabreairlinesolutions.com/about/history.htm
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Airline ticketing…present
• Online sales and distribution of tickets by intermediaries with no inventory or product has cut into Airline profits
• By 2008, all ticketing will be electronic
• IATA estimates $3 Billion industry savings due to e-ticketing
• E-ticketing provides customer flexibility and convenience http://www.iata.org/workgroups/jptc.htm
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Airline ticketing…future
• Adopt mobile technology system based on a global cell standard to speed check-in service using bar codes
• IATA effort supporting shift to 2-D bar code
– Benefits
• $500M Industry savings
• Adds to customer choice and flexibility
– Risks
• Interference or system outages causing delays
• Counterfeit UPC codes
• Theft/loss of phone
SEA to SFO AS Flt. 2015 departs gate 1, 1345hrs
Passenger Kumar, S
FIRST CLASS SEAT A1
http://www.atwonline.com/channels/airlineprocurement/article.html?articleID=2189
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Airline ticketing…future
SABRE to NewSkies/aiRes?
• Replacement of an industry wide legacy CRS systems
• Navitaire’s “NewSkies”- used by LCC (JetBlue, WestJet, AirTran), based on Microsoft’s .NET framework
• Travelport’s “aiRES system”- (Virgin Blue, Flybe)- allows legacy activities like code sharing
• Navitaire/aiREs in modular formats, are an integrated combination of back office and CRS systems to reduce operational costs and improve efficiencies
http://www.iata.org/workgroups/jptc.htm
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Airline ticketing……what’s been missed?
• Global standard for accessible, simple, and counterfeit-proof ticket
• Easy and transparent pricing and reservation system
• Integration of cash (non-credit card) transactions
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From home to seat…past
• Call a reservation agent to make sure the flight is on time
• Wait in line at the ticket counter to be assigned a seat, check your luggage
• Cursory or no inspection of bags. Basic x-ray technology for bags, people went through a metal detector
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From home to seat…present
• Easy access to flight status information via the web and SMS text messaging
– Orbitz TLC program
– Alaska Online Flight Status
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From home to seat…present
• Significant adoption of web check in, streamlined airport experience
-Over 50% of passengers utilize web check-in
-Redesigned check-in processes can cut wait times in half
Alaska Airlines Airport of the Future (photo courtesy of Fast Company)
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From home to seat…present
• Significant wait in security lines calls into question efficiency of air travel for shorter distances
– Complaints were up 88.1% in August 2007
Wall Street Journal, November 20, 2007
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From home to seat…future
• Streamlined check-in via widely adopted “Airport of the Future”
• Place your fingers on a kiosk, drop your bag on the belt, walk through a universal scanner, and you are on your way
• Enablers
– Carry-on Baggage Real Time Assessment
– Sensor fusion
– Adoption of Registered Traveler program
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From home to seat…What’s been missed?
• Data fusion to simplify and guide entire home to seat experience.
• Drop your bags in the unmanned curbside receptacles, swipe your ID, and they will be automatically tagged, scanned and routed
– Potential application of RFID
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Takeaways
• IT adoption in travel is highly attuned to operator cost savings
• Customer-centric innovations are quickly commoditized and therefore not a sustainable point of differentiation
• The future is about global standardization, security and enhanced access to information
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References
• http://www.youtube.com/watch?v=SLjOv6YUo4c Financial Times, August 15, 2004 www.FT.com
• http://www.imediaconnection.com/content/7663.asp
• Scott McCartney. Wall Street Journal. (Eastern edition). New York, N.Y.: Nov 20, 2007. pg. D.1
• Dave Demerjian. Fast Company. Boston: Mar 2008. , Iss. 123; pg. 60, 3 pgs
• Bryon Okada. McClatchy - Tribune Business News. Washington: Dec 12, 2007.
• Clint Swett. McClatchy - Tribune Business News. Washington: Dec 6, 2007. http://www.airlinenews.aero/magazine/article.html?articleID=1163
• http://www.sabreairlinesolutions.com/about/history.htm
• From Back Office to Cyberspace, http://www.atwonline.com/channels/airlineprocurement/article.html?articleID=2189
• http://www.iata.org/workgroups/jptc.htm
• http://www.airlinenews.aero/magazine/article.html?articleID=1163
• http://www.secondlife.com
• Jerome Greer Chandler, Perry Flint. Air Transport World. Cleveland: Dec 2007. Vol. 44, Iss. 12; pg. 29
• PR Newswire. New York: May 7, 2007.
• John Croft. Air Transport World. Cleveland: Spring 2005. pg. 10