Identifying Russian Market Challenges

Jean Noel LAU KENG LUN

Head of Product Marketing, Corporate and Distribution ChannelsAMADEUS

Russian Market Challenges…

GDSGDS

SIRENAsSIRENAsGabriel (incl.

ATOs)

Gabriel (incl. ATOs)

TCHTCHother ALs…

Utair KrasAir

Rossiya

S7

Ural

Domodedovo

BSPBSPGDSGDS

Aeroflot

• Hotel situation• Local deals versus central deals• Cash flow & clearing• Cultural variances• Various GDS Systems• e-Ticket systematically not implemented• Manual processes

• Hotel situation• Local deals versus central deals• Cash flow & clearing• Cultural variances• Various GDS Systems• e-Ticket systematically not implemented• Manual processes

A magic solution ?

Challenges are the same everywhere…

a lot of too serious people to talk to and to manage…

a lot of “complicated things” to connect together…

Where can IT really help :Data, content, responsibility and process

Industrialization & productivity gains

Data & Content is a start…

• The GDSs are as near to a "one-stop shop" available in our industry

• Anyone who wants– seamless central booking and administrative system– composite global and local solutionhas to use a GDS as an integral part of their programme

• Improvement in telecom networks make the entry of Self Booking Tools possible

• … but an “integral part” is not the whole

Erik van Winkel

Edgar, Dunn & Company

Brussels, 2 March 2009

Responsibility and process …

Responsibility and processwill connect the dots …

• Travel payment solutions can contribute in different ways to cost reductions

– MIS platform to enable more and better corporate deals

– Process efficiencies and avoidance of negative costs (fraud, unused tickets etc)

Stimulate payment using corporate card & avoid cash advances Reduce admin related to expense claims Reduce employee “creativity” in expense claims Improve travel MIS Reduce internal admin related to cash advances Reduce foreign exchange fees Improve foreign VAT recovery (e.g. use company name/address in hotel) Less time spent on gathering (cash) receipts

Servicing Management

Demand Management

Customer Management

Business Management

Supply Management

Content Integration

Management

TRAVEL CARETASK &

SCHEDULESHOPPING FULFILLMENT

EXPENSE MANAGEMENT

PAYMENTITINERARYBUILDING

SOCIAL COMPUTING

CONTACTPOLICYFEEDBACK &

HISTORYPROFILE CAMPAIGN

REVENUE MANAGEMENT

ACCOUNTINGDATA MINING & ANALYTICS

USER MANAGEMENT

MERCHANDISIONG

CONTRACT MANAGEMENT

INVENTORYMANAGEMENT

SUPPLY SETTLEMENT

GDS NON-GDS

CONTENT INTEGRATION

The Global Supply Chain

IT can weld all together to serve the traveller at every step

How do I serve travellers?

What do travellers want?

But who are the travellers?

How do I manage revenues and margins?

What do I have to sell?

How do I access the right content?

Corporation

Call Centre

Mobile

online

TechnologyRetailer / Supplier needs Traveller

‘Old world’

1995

Focus on air

Travel bookers

EasyJetInternet ‘boom’

Web 2.0

‘New, ever-evolving model’

Now

11/09 EU CRS code

of conduct signed

1st airline e-commerce website

powered by Amadeus

1997 1999 2001 2003 2005

Commission cuts

‘Reinvent’

Airline bankruptcies

Consolidation and alliances

On-line travel shift impacting all business aspects

Focus on non-air products

Models of leisure and business are blurring

Facing entry of new players: meta-search, wholesalers, comparison search, social networks…

From bookers to retailers

consumers = THE driving force

3G mobile phones