Travel Industry Collaboration SITAIATASABRE Technologies Enhancing Customer Value Tickets Check- In...
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Transcript of Travel Industry Collaboration SITAIATASABRE Technologies Enhancing Customer Value Tickets Check- In...
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IT IN TRAVEL
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Roadmap
Travel Industry
Collaboration
SITA IATA SABRE
Technologies
Enhancing Customer
ValueTickets Check-
InSecurit
y
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Industry stakeholders
Stakeholders
Airlines
Regulatory Bodies
Travel Agencies
Technology Providers
Passengers
Airports
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Key ChallengesTerrorismFearIncreased securityIncreased oil pricesEnvironmental issuesEconomy (financial crisis)Online Collaboration
(webinars, online meetings)
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Role of IT / Drivers of change
Coordination
Security
Customer Value
Cost Reductio
n
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Integration & collaboration
2 Main organisations:
www.iata.org www.sita.com
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International Air Transport Association (IATA)Founded in Cuba, in April 1945 by a group of airlines
Mission: Represent, lead and serve the airline industry
Represents 230 airlines comprising 93% of international air traffic
Defines all Airline rules and regulations
Ex. IATA defined self-service standard
Video
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Simplifying the Business: History
Industry-wide change program that began in 2004Objective: to lower costs and improve customer serviceUp to US$16.8 billion in savings every year
Focus on business problemTechnology based solutionsImprovement of business processes
Creation of industry-wide standards Global network of approximately 4,000 IATA staff, airlines
and airports, industry experts and suppliers
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Simplifying the Business: How?
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Simplifying the Business: Initiatives
E-ticketing, the first project, concluded on June 1, 2008
(from 19% to 100% in 4 years, saving US$3 billion annually)
5 initiatives (3-5 year timeframes)
1. Bar Coded Boarding Passes (BCBP)
2. Common Use Self-Service (CUSS) kiosks
3. IATA e-freight
4. Baggage Improvement Program (BIP)
5. Fast Travel
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Only global provider of IT business solutions and communication services for air transport industry
Founded as Société Intenationale de Télécommunications Aéronautiques in February 1949 by 11 airlines
Owned entirely by its MembersAround 4,500 staff worldwide
representing 140 nationalitiesspeaking over 70 languages operating in more than 200 countries and territories
Provides services to over 550 Members and 3,200 customers
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Membership represents over 90% of total worldwide airline business, includes:All major computer reservation systemsInternational freight forwardersAerospace companies Ground handlersGovernmentsUN agenciesAirlinesAirports
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Manages global communications, infrastructure and outsourcing services
Provides services for - Airline commercial management- Passenger operations- Flight operations- Aircraft operations- Air-to-ground communications- Airport management and operations- Baggage operations- Transportation security and border management- Cargo operations
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Global Distribution Systems
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Sabre HoldingsTo connect people with the world’s greatest travel
possibilitiesRetail travel products & IT industry solutionsJoint project between American Airlines & IBMSemi-Automatic Business Research EnvironmentEnabled American Airlines to transition to automated
reservation systemsPioneer in:
revenue managementPricing flight operations and schedulingcargo logisticscrew scheduling
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Travel solutions for the individualBusiness or leisure travelIntegrate the aspect of travel to
facilitate the processFlightsHotelsCar rentalsCruisesVacation packages
Supported by a network of brands2005 revenues = $840 million
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Sabre Travel Network
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Sabre Airline Solutions
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Sabre Hospitality Technology & Internet Services
Connect Buyers & Suppliers
MarketingPromotions
Rate Negotiatio
n (RFP)
Customer Service
Network
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Ticket Sales
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E-TicketsPressure to eliminate paper tickets:
“Paper ticket fee of CA$30 may apply to some E-ticket eligible itineraries when issued as paper.” AirCanada
E-tickets allow airlines and travel agencies to use the strengths of today's e-culture: cheaper, faster, real-time!
Need to pay for tickets online with credit card, security issues, computer crash, increased unemployment
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Booking a flight10-30% of e-ticket sales online
by airlines
3rd party intermediaries:Global distribution systems like
SABRE Brick and mortar & online travel
agencies like Travelocity and Expedia
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2010 Online Travel Sites Review Comparisons
1. Smarter Travel2. Expedia3. Orbitz4. Travelocity5. Kayak6. AirGorilla7. OneTravel8. CheapAir9. Priceline10. Hotwirehttp://online-travel-sites-review.toptenreviews.com/
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Brick & mortar travel agencies extinction?...
1995: 37,000 brick-and-mortar travel agencies in US 2009: Only 18,000 left
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Or survival?Fewer travelers are enjoying Web to plan and buy trips:In 2007, 53% of U.S. travelers liked using online bookingIn 2009, only 46 %!
New strategy: niche markets specialization for travel agents
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New trend: DisintermediationAirlines usually pay $22-$32 per ticket in
commission and distribution fees to travell agencies.Discount airlines book travel through their own
websites: Airlines such as JetBlue Airways cut out the middle
man and sell tickets through their own websites.
Airline
Travel agenc
y
Travellers
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2009 Passenger demand for the full year was down 3.5% with an average load factor of 75.6%.
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Airlines loyalty program:FFP Frequent Flyer Program
Airlines annually earn 10 billion by selling AOMPS
( Add on Mileage Points) FFP memberships growing 13% a year Transition from frequent flyers to frequent buyers
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Benefits and costs of FFP Acts as a counter-cyclical factor to encourage
clients to fly.Foster off-peak travel by requiring fewer points for
flights in the middle of the day.
Now, as FBP, encourages consumerismLimited places on flights reserved for award travel
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Check-in
15-20 years ago:
Purchase ticket by phone/in
person via travel
agency or airline
Reconfirm flight 1-3 days before
Check in at
counter
Register luggage
Long wait before
boarding
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Check-in & Baggage: history1996 IBM began developing Journey management
Pilot project: IBM & Air Canada – "what-if" studies based on "as-is" model of domestic passenger processes at Toronto airport
1997: Scope of the baseline model:- Ticketing- Premium & Coach passenger check-in- Special assistance- Special services - Gate control processes
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1996 Alaska Air & Horizon - interactive airport check-in kiosks
1998 Air Canada - IBM self-service kiosk system
IATA Common User Self Service (CUSS) standard
Check-in & Baggage: history
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1999 Alaska Air & Horizon Air first allow passengers to check in and print boarding passes online
2001 Terrorist attack on 11 September = - New check-in service requirements for security - People were moving through the check-in lines much slower
2002 Air Canada using new wireless, mobile self-service kiosks - Agents using a wearable computer and a mobile printer attached to their belt
Q3 / 2006 Of 2,869 airline passengers travelling for leisure, 86% used a self-service check-in kiosk (Forrester survey )
Check-in & Baggage: history
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Check-in todayKiosk Check-in
Web Check-in- Ideal for Internet users- Can reduce airport
congestion - Increases availability of
agents for other services- Passenger adoption is high- Uses airline’s existing Web
site and infrastructure- Minimal cost of operation
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Mobile Check-in and Boarding Pass- Minimizes user input requirements- Check-in can occur practically anywhere - Electronic boarding pass sent directly to traveler’s mobile phone
via short message service (SMS) or wireless application protocol (WAP)
- 2D bar code- Valid at baggage drop locations,
document checkpoints tax free
shops and aircraft boarding
Check-in today
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Baggage today
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AUTOMATION & INTEGRATION
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Uses industry standard messaging Links with SITA’s WorldTracer
automated service for lost and mishandled baggage
WorldTracer Web application used by 440+ airlines and ground handling agents worldwideImmediate, worldwide access to files
created by airlines or handling companiesReplaces paper filing systems
Baggage today
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Check-in & Baggage: benefits
Business•Improved passenger satisfaction•Improve terminal operations efficiency•Improved productivity •Reduce airline and airport operational costs •Improved passenger satisfaction and loyalty •Strengthens Airline’s Brand •Quicker roll-out and faster ROI
Traveler•Check in online any time between 23 hours and 1 hour before your departure. •Choose your own seat•Avoid queues at the airport •Drop off your baggage quickly at bag drop desk
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Network unreliability Low cost airlines don’t have any agents at airports Still have to be 1 – 3 hours early and line up for …
Check-in & Baggage: negatives
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Security
CAPPS I
CAPPS II
No Fly List
Passenger Protect (Can)
Secure Flight
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CAPPS II
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Comparison of Programs
CAPPS II Secure Flight
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SECURE FLIGHT
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Screening Programs
Issues• Controversies
• People with the same name –
authentication
• Integrity of information
• Rules used to define risks
• Definition of risk
• Accuracy/Reliability/Human Error
• Privacy
Advantages
• Enabled through IT
• Timely information
• Granularity
• Accuracy
• Cross reference baggage with
passengers
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Key LearningChallenges
• Terrorism• Security• Oil prices• Environment• Telecommuni
cation• Economy
IT Enabled Changes
• Coordination• Cost
Reduction• Customer
Value• Security• Disintermedia
tion• Availability of
Information• Increased
connectivity
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Thank you!