NewGen ISS, TIP and NDC Overview - BARSA · [email protected]. Agenda 2 Introduction ... •A travel...
Transcript of NewGen ISS, TIP and NDC Overview - BARSA · [email protected]. Agenda 2 Introduction ... •A travel...
NewGen ISS, TIPand NDC Overview
15th Feb 2019
Janaurieu D’SARegional Head,FDS – Africa & Middle [email protected]
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Outdated Rules for a bricks and mortar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
45
For more information subscribe to the NDC Hubwww.iata.org/publications
Questions
Thank-you!