AIRLINE DIGITAL TRANSFORMATIONHEADING NDC

AVIATION MENA

Dubai, October 2015

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1.Introduction2.Definition of the Digital Strategy3.What’s next?

Inde

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1.Introduction2.Definition of the Digital Strategy3.What’s next?

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• Madrid-based airline operating short and medium-haul flights

• Started operations in March 2012, and now flies over 6 million passengers and 50,000 flights

• Most punctual European airline and recognized as one of the best in the world

• Wholly-owned subsidiary of Iberia

• Operates 31 routes in Spain and Europe, flying 17 Airbus A320 aircraft

• Indra is one of the leading IT companies in the world both in consulting and technology.

• 43.000 employees and projects in 138 countries.

• First-class customers worldwide from all sectors

• Focus on Travel and Transportation with specific solutions for Airlines, Air Traffic Management, Railway Systems or Hotels

01 INTRODUCTIONIBERIA EXPRESS and INDRA OVERVIEW

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1.Introduction2.Definition of the Digital Strategy3.What’s next?

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02 DEFINITION OF DIGITAL STRATEGYIBERIA EXPRESS STARTING SITUATION

First Iberia Express

website is set out as a spin off of Iberia’s.For it’s go live day the portal is just a clone.

MAJOR INCONVENIENCES:

- Not oriented to its own customer

- Heavy content website- Offer based on legacy

carrier- Architecture based on

central systems.

GOAL:

Create a website focused on the customer and

ready to compete with other LCC and

legacy carriers.

2012

September 2015: 1st Anniversary of

the new web!

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WEB STRATEG

Y

02 DEFINITION OF DIGITAL STRATEGYDEFINING STRATEGY

1.CLOUD COMPUTING

2. ENHANCING DISTRIBUTION SYSTEM

3. TIME TO MARKET

5. QUICK ADOPTION AFFILIATION

avios

4.CUSTOMER ORIENTED INTERFACE

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ALIGNMENT BUSINTESS &

IT

SERVICE FLEXIBILITY STANDARDIZATION

ELASTICITY

02 DEFINITION OF DIGITAL STRATEGY1. CLOUD COMPUTING WEB

STRATEGY

PNRs generated in a week

TRAFFIC PATTERNS ARE UNPREDICTABLE: Marketing campaigns, special sales, daily behavior impact on infrastructure sizing.

Unfeasible dimension infrastructure attending only

to traffic peaks

CLOUD COMPUTING:

Cost =+

AUTOMATION

+

VIRTUALIZATION+

=+

INDUSTRY STANDARDS

+

AGILITY

+

Business

“leverages virtualization, standardization and automation to free up operational budget for new investment”

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WEB STRATEGY

02 DEFINITION OF DIGITAL STRATEGYWEB STRATEGY: ENHANCED DISTRIBUTION SYSTEM

ENHANCED BOOKING

EXPERIENCE

BOOKING FLOW

MANAGER (BFM)

ENHANCED SHOPPING

NEW REVENUE

& CUSTOMER ATTRACTIO

N

PAYMENT ALTERNATIV

ES

ONLINE CHANNELS

CONVERGENCE

• Simple configuration setting from PSS & GDS, Ancillaries and payment gateways

• Easy product, price and offer definition

• Web services integration with agnostic Technology

• NDC Compliant

BFM

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WEB STRATEGY

02 DEFINITION OF DIGITAL STRATEGYWEB STRATEGY: ENPOWER DISTRIBUTION SYSTEM

IndraBFM, the Platform to integrate and customize airline offer into your Ecommerce platform

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WEB STRATEGY

02 DEFINITION OF DIGITAL STRATEGYWEB STRATEGY: FAST TIME TO MARKET

Using Scrum (an Agile methodology) allows us to:

SMALL DELIVERIES makes things simple, with continuous feedback and «real- time» tailoring.

QUALITY ON DELIVERIES establishing checkpoints in the delivery process, including automated tests, users validation, good design…

MANAGE CHANGES, CONTROLLING COSTS giving the clients flexibility and agility to avoid big reworks

TEAM MOTIVATION: involving client and provider in the scrum to improve collaboration by continuous customer involvement

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• DEVELOP FEATURE.• TEST YOUR HYPOTESYS• INCLUDE BEST

PRACTICES

02 DEFINITION OF DIGITAL STRATEGYWEB STRATEGY: CUSTOMER ORIENTED INTERFACE

WEB STRATEGY

BUILD

LEARN MEASURE

• HOW USERS REACT?• GET FEEDBACK

• IS A PIVOT NEEDED, SHOULD I PRESERVE?

• DID I OBTAINED THE EXPECTED RESULTS?

LEAN + UX: Learn Fast & Cheap

Indra BFMKPIs

NON-NATIVE DIGITALMOBILE

PROFESSIONAL

YOUNG EXPLORERMATURE

HEDONIST

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02 DEFINITION OF DIGITAL STRATEGYWEB STRATEGY: QUICK ADOPTION AFFILIATION PROGRAM

WEB STRATEGY

AIRLINES LOYALTY PROGRAM STRATEGIES HAVE EVOLVED OVER THE YEARS, FROM DISCOUNT COUPONS IN PRESS TO ADVANCED LOYALTY SCHEMAS

Attract and retain customer base with a quick adoption product with minimum complexity

Discount coupons in

newspapers and magazines

Loyalty card by points

• Exchange points for flights with other carriers

• Diversification and synergies with hotels, car rental ...

Loyalty model by

Apps

Personal Loyalty Model

Customer Identification 

Card

Affiliation program: Quick access to discount

with only email required.

- No EMD- No Special Fares- Quick promotion

definition

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4Month

sProject duration

02 DEFINITION OF DIGITAL STRATEGYWEB STRATEGY: MEASURING FIRST RESULTS

Availability on cloud premises

x4Bookings through Iberiaexpress.com

+100k Club Express users on first 4 months

99,99%

Functionalities focused on customer needs

NEW

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1.Introduction2.Definition of the Digital Strategy3.What’s next?

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03 WHAT’s NEXT?APPLYING NDC IN ALL CHANNELS

Enables airlines to construct their full product offerings

Enables airlines and

travel agencies to

manage orders from

clients

Process the payments

and triggers ticket

issuance

Defines markets where

airlines are willing to

respond to requests

Enables traceability for airlines and travel agencies

Enables R&R protocols between interline partners

Supports existing BSP,

ARC processes and proper

revenue accounting

SHOPPING BOOKINGPAYMENT & TICKETING

AIRLINE PROFILE

SERVICING INTERLINING

REPORTING & ACCOUNTING

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NDC NDCNDC

03 WHAT’s NEXT?APPLYING NDC FOR INDIRECT CHANNELS >> LOGITRAVEL PARTNERSHIP

IBERIAEXPRESS.COM

TA.COM

AirlineOffer Mgmt System

Airline

Content Aggregators

GDS/ New Entrants

Travel Agents

TMC / OTA / Independent

Travellers

Business / Leisure

NDC

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03 WHAT’s NEXT?APPLYING NDC FOR INDIRECT CHANNELS >> SERVICES AVAILABLE

Avail & Price Services Discriminator

Flex Pricer Amadeus

I2 (Cache+Avai

l)

NDC Services & REST Services

I2.com OTA

Shopping Amadeus

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03 WHAT’s NEXT?APPLYING NDC FOR INDIRECT CHANNELS >> PROJECT OVERVIEW1 Availability & price using I2 cache

• Will allow a new shopping flow using existing BFM availability services• Fallback: if cache results are not available it will trigger flexpricer price &

availability request

2 Discriminators• Cache vs flexpricer discriminator: discriminator should allow to tailor flows

according to: Route, Client type, OW vs RT, Direct flights vs Connecting flights, days in advance…and many more.

• Discriminator should have a simple web application for maintenance (crud operations)

3 NDC Functionalities• Service orchestration based on booking flow and pax data tailoring• Connect different channel services for booking management using NDC standards• Phase 2: ancillaries (2016)

Indra, We Speak Airlines! Pablo Sanz SalcedoTravel & Transportation ManagerIndustry & Consumer Business SectorJumeirah Business Centre 3, Unit. No. 1404. Jumeirah Lakes Towers, Cluster Y, P.O. Box 9338, Dubai

T +971 4 434 39 19 – ext. 110F +971 4 434 39 18M + 971 50 229 8337psanzs@indra.esindracompany.com