 |
|
|
 |
|
Welcome to the October-November edition!
|
World Financial and World Passenger Symposium 2023 takeaways
1100+ delegates, 100+ IATA member airlines, hundreds of industry executives from Distribution, Revenue Management, Finance, Passenger Experience, IT, Digital, and more… This is what the 2023 edition of the IATA WPS and WFS looked like.
The four days of intensive industry meetings and presentations provided a unique opportunity to take stock of the current status of the Modern Airline Retailing journey, as well as to pave the way forward.
Here is a quick summary of the key messages that came out of the event:
1. NDC is at the point of no return. Leading airlines are already realizing benefits: $100m+ in distribution cost reduction; 1.5 – 2% revenue increase from continuous pricing, massive growth in ancillary sales – and even value creation in payment for some.
- There is more work required to smoothen adoption across business travel.
- Servicing with NDC (& tickets) works for some TMCs; and so do interline and codeshare. However, there can be implementation challenges depending on the level of integration by intermediaries.
2. Buyers urge legacy TMCs and OBTs to move faster
3. The train to true customer centricity (a world of Offers and Orders) has left the station! Several airlines have RFPs out and technology providers are investing:
- Flyr suggested a legacy carrier will be 100% Offers and Orders by 2025.
- Amadeus announced it now has two airlines contracted for its new Retailing platform, Nevio.
4. The work of the Airline Retailing Consortium is recognized as an accelerator for the transition to 100% Offers & Orders. Over 15 technology providers shared their commitment to this journey via the Retailing Consortium's latest paper "IT Provider readiness and airline transition pathways".
5. Collaboration across the value chain is critical, including operations (DCS) and regulators; and there are many learnings to be taken from other sectors, which have been through similar transformations (e.g., banking, telecom).
6. A first POC around digital identity & verified credentials across the end-to-end journey demonstrated how important this technology is to deliver a seamless customer experience: from shopping for travel, to airport delivery and biometrics.
7. IATA and its airline members continue the implementation of the Modern Airline Retailing program which provides a framework to work with the industry towards a world of 100% Offers and Orders.
Find our 2023 WPS and WFS coverage in IATA’s Airlines magazine >>
|
Airline Transition pathways to 100% Offers and Orders
Since its creation, in parallel with the establishment of the Modern Airline Retailing program, the Airline Retailing Consortium member airlines have been working across critical workstreams with the objective to support the acceleration of the industry transition to a world of 100% Offers and Orders.
Earlier this quarter, the Consortium released a third output addressing IT Provider readiness and the possible transition pathways for airlines to realize their modern retailing vision.
 |
Released after the Business Case for Modern Airline Retailing and the Business Reference Architecture module, the IT Provider readiness and airline transition pathways paper was endorsed by 15 IT vendors, committed to building the solutions enabling the industry transition away from legacy artifacts (eTKT, PNR, EMD). |
The white paper was also introduced and explored through the vantage point of several Consortium and IATA subject matter experts in Episode 3 of our Modern Airline Retailing - the Tangibles webinar series.
Access the webinar recording here >>
|
Join us for a new webinar - 5 DEC, 14:00 CET
Organized in collaboration with BCG, the upcoming webinar will introduce you to the latest industry study "Successful Airline Retailing Requires Industry Partnerships", released by BCG, in collaboration with IATA and the members of the Airline Retailing Consortium.
The session will explore some of the key insights on the opportunities and challenges for successful partnerships, as well as the critical actions that both airlines and their travel industry partners need to take in order to complete this ambitious transformation and deliver the seamless and value-adding experience that customers expect.
Speakers:
• Marcelo Cirelli, Principal, BCG Milan
• Pierre Galvin, Global Knowledge Business Senior Director - TCI, BCG
• Olivier Hours, Head Distribution Strategy, IATA
Moderator:
• Anca Dolocan, Senior Manager Dynamic Offer, IATA
Join them and pre-submit your questions during registration >>
|
Collaboration is key to realizing the 100% Offers and Orders vision
Held in conjunction with the IATA World Passenger Symposium, the 2023 Executive Summit brought together airline senior executives, TMC leaders and corporate travel buyers. Throughout the discussions, there was a consensus among all partners that the industry is embarking on the next leg of the journey to Modern Airline Retailing - the transition to a world of 100% Offers and Orders and true customer centricity.
Some takeaways:
- As our industry modernizes, it should focus on opportunities for simplification.
- Standardization helps to achieve industry interoperability, and scale.
- The value chain is modernizing at different paces, which has an impact on the transition.
- 100% Offers and Orders is on the industry radar.
- Innovation could lead to a brand-new airline industry ecosystem.
Corporate buyers invited airlines to take part in pilot projects.
Corporate buyers should focus on building knowledge to make informed choices and engage in meaningful conversations with their suppliers. This knowledge can help them articulate an enhanced value program and make more informed choices when engaging with partners. In today's data-driven world, understanding the value of data and leveraging it can lead to valuable insights and improved decision-making.
The value chain is engaged and pivoting to a bigger transformation.
NDC is at the point of no return and more players are getting on board. Leading airlines are looking at orders – an even bigger transformation. Corporate buyers are changing and going through transformation as well.
Collaboration has always been essential at every stage of the transformation, but it will become even more important in the future.
|
Standards - the backbone of Modern Airline Retailing
Industry standards are a critical enabler on many levels; they support cost reductions, encourage innovation and help enhance customer centricity and experience for all passengers.
The IATA Passenger Standards Conference develops and maintain industry standards for passenger services, from industry coding, interline agreements, or scheduling through to distribution, service delivery and settlement. This is where airlines agree on the required industry standards for Modern Airline Retailing.
The Conference and four of its five Standards Management Boards, convened in Geneva, earlier this month, for the first in-person edition since the pandemic.
Over two days, the Conference reviewed activities and workplans of all working groups and acted* on 30 voting items including two brand new standards for Modern Airline Retailing: RP1730 Product Management Information Standards and RP 1786a Reference Business Architecture for Passenger Distribution with Offers and Orders.
Key topics on the agenda included:
- How to manage the development of the transformational standards behind 100% Offers and Orders, while ensuring the necessary maintenance of traditional standards during the transition period.
- The need to collaborate to develop new standards across all five Boards including Plan, Shop-Order-Pay, Travel, Settlement & Accounting and Architecture & Technology Strategy.
- How to manage transversal topics to enable the new interline paradigm with Offers and Orders, including disruption management.
Standards are developed by airlines and invited observers, such as technology providers, providing crucial subject matter expertise. Active participation is necessary for the success of the transformation.
Hear from the Chair of the Shop-Order-Pay Standards Board, Nathan Smeulders (Qantas), how standards will support the journey to airline retailing >>
*All standards agreed by the Conference are subject to filing and approval by the US Dept. of Transportation. Thus, currently, we can speak about Conference decisions, but cannot say that the new standards are effective yet.
|
| Explore our On-Demand Webinars |
|
|
|
|
|
|
|
|
|
We represent, lead and serve the airline industry
|
| About Us | Programs | Policy | Publications | Services | Training | Events | Pressroom |
|
The information contained in this newsletter is provided by IATA for general information purposes only and does not purport to be commercial, legal or other advice. Nothing contained in this newsletter constitutes a recommendation, endorsement or preference by IATA. No user of the information should act or rely on any information from this newsletter without seeking the advice of a competent legal counsel. This information is not intended to substitute or induce or persuade any business' individual decision
IMPORTANT PRIVACY INFORMATION. The International Air Transport Association (IATA) does not sell or rent your email address to any third party. You received this email message due to your membership, participation or interest in IATA. IATA sends various communications and special announcements regarding initiatives that we feel may be of interest to you.
© Copyright 2023. All rights reserved.
|
|
International Air Transport Association (IATA)
800 Square Victoria, Montreal, H4Z 1M1, Canada
|
|
|
|
|
|
|
|
