IT IN TRAVEL

Roadmap

Travel Industry

Collaboration

SITA IATA SABRE

Technologies

Enhancing Customer

ValueTickets Check-

InSecurit

y

Industry stakeholders

Stakeholders

Airlines

Regulatory Bodies

Travel Agencies

Technology Providers

Passengers

Airports

Key ChallengesTerrorismFearIncreased securityIncreased oil pricesEnvironmental issuesEconomy (financial crisis)Online Collaboration

(webinars, online meetings)

Role of IT / Drivers of change

Coordination

Security

Customer Value

Cost Reductio

n

Integration & collaboration

2 Main organisations:

www.iata.org www.sita.com

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

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

Simplifying the Business: How?

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

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

Membership represents over 90% of total worldwide airline business, includes:All major computer reservation systemsInternational freight forwardersAerospace companies Ground handlersGovernmentsUN agenciesAirlinesAirports

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

Global Distribution Systems

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

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

Sabre Travel Network

Sabre Airline Solutions

Sabre Hospitality Technology & Internet Services

Connect Buyers & Suppliers

MarketingPromotions

Rate Negotiatio

n (RFP)

Customer Service

Network

Ticket Sales

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

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

2010 Online Travel Sites Review Comparisons

1. Smarter Travel2. Expedia3. Orbitz4. Travelocity5. Kayak6. AirGorilla7. OneTravel8. CheapAir9. Priceline10. Hotwirehttp://online-travel-sites-review.toptenreviews.com/

Brick & mortar travel agencies extinction?...

1995: 37,000 brick-and-mortar travel agencies in US 2009: Only 18,000 left

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

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

2009 Passenger demand for the full year was down 3.5% with an average load factor of 75.6%.

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

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

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

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

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

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

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

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

Baggage today

AUTOMATION & INTEGRATION

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

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

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

Security

CAPPS I

CAPPS II

No Fly List

Passenger Protect (Can)

Secure Flight

CAPPS II

Comparison of Programs

CAPPS II Secure Flight

SECURE FLIGHT

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

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

Thank you!