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DRIVING REVENUE THROUGH IMPROVED CUSTOMER EXPERIENCE
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by Brett Ansley
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Strong Brand
Differentiation
Relevance
Commodity
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Personalise
23% more loyalty
10% more satisfaction
Tong et al. International Journal of Economics and Finance, March 2012
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Offer meaningful choice
10% more revenue
van Ryzin et al. Manufacturing and Service Operations Management, Summer 2008
Román et al. Journal of Marketing Management, Volume 19 2003
Provide an experience
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Be consistent
Park et al. Journal of Consumer Research, Sept. 1991
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Personalise a range of meaningful choices,
let me experience them and be consistent
across all touch points.
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New Distribution Capability
Claude Muller
Head, NDC Program
To represent, lead and serve the airline industry
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Why is there a need for change?
Agent channel closed for airline product merchandising
F J M
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Why is there a need for change?
Agent channel closed for airline product merchandising
F J M
F J M
Lounge Access Meal Special Services
Baggage Frequent Flyer Miles
Fast-Track Inflight Entertainment Etc
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What “it” is & why
A 5 year travel industry-wide program (NDC Program)
Development, testing and deployment of a new, XML-based data transmission
standard (NDC Standard)
Communication between airlines and travel agents
The NDC Standard will enable travel agents to better retail air products to
corporations, leisure and business travellers, by addressing the industry’s
current distribution limitations:
1. Product differentiation
2. Access to full and rich content
3. A greater shopping experience
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New Distribution Capability (NDC)
Standards to enable shopping via all channels
Airlines file fares and schedules with
3rd parties
GDSs package and push offers
based on 3rd party databases
Agents submit travellers’ requests
using GDS
Airlines last to know who has
purchased airline ticket
Distribution capability constrained by
current level of innovation
Consumers
TMC / OTA
Airline Reservation
Systems Availability
GDS
Fares Schedule
Airline
website /
e-commerce
engine
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New Distribution Capability (NDC)
Standards to enable shopping via all channels
Airline provides “offer”
Just as for direct channel
NDC Standard
Lower costs, speed of innovation
Facilitates comparison
Connections exist, not
interoperable
Airline rich products:
Available via travel agents
Direct, or via Aggregator
Enable comparison shopping
Consumers
TMC / OTA
Airline Reservation Systems
Aggregators
Airline
website /
e-commerce
engine
GDS New
Entrant
NDC
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What benefits does NDC bring
Product Differentiation
Merchandize airlines’ “uniqueness”
Distribute personalised products (if requested)
Access to Full and Rich Air Content
Compare flight products based on schedule, price and equality
Work with real-time fare and product information
A Greater Shopping Experience
Deliver the right products at the right prices to corporate buyers
Offer each traveller the opportunity to shop based on what they value
– be it anonymous or personalised.
TECHNOLOGY ENABLEMENT FOR NEW DISTRIBUTION
Why Technology Enablement?
● Personalized, dynamic and
contextually relevant offers
require airline-controlled
distribution, merchandising,
and retailing across channels
● Travelers demand superior
user experiences as they are
accustomed to in other areas
of their lives
● Legacy systems were not
designed to deliver on these
requirements
● Technology enablement for
NDC and merchandising =
airline competitive advantage
Copyright Farelogix 2013
Enabling New Distribution Technology
XML Direct Connect from Host
(PSS)
Merchandising Engine
Distribution Rules Engine
Pricing Engine
Ticketing, EMDs, & Settlement
Gateway API
THE GATEWAY IS POWERED
BY SIX ESSENTIAL
COMPONENTS
THANK YOU
Brett Ansley
Claude Muller
Jim Davidson
