the future of airline distribution

Future Innovations in Airline

Distribution

Scott Gillespie

Analytical Innovator

Scott Gillespie

o Analytical Innovator

• Scenario modeling of corporate airline contracts

(U.S. Patent)

• Algorithm for clustering hotel data (patent pending)

• Top-ranked airline CO2 emissions calculator

o Founder and CEO, Travel Analytics (‘99-06)

o VP Strategic Initiatives, TRX

o Principal, A.T. Kearney

o MBA, University of Chicago

11/1/2009 2

11/1/2009 3

distribution is

essential speed

contentcapacity

Image © iStockPhoto.com

11/1/2009 4Image © iStockPhoto.com

11/1/2009 5Image © iStockPhoto.com

11/1/2009 6Image © iStockPhoto.com

11/1/2009 7Image © iStockPhoto.com

11/1/2009 8

searches

bookingsand

Image © iStockPhoto.com

11/1/2009 9

Innovations

in Airline

Distribution

Image © iStockPhoto.com

11/1/2009 10

Sears Catalog

circa 1900

A: CRS, then GDS (1953-1976)

Q: How to sell more tickets faster?

11/1/2009 11

Railroad Revitalization

and Reform Act of

1976

A: U.S. Airline deregulation (1978)

Q: How to revitalize the airline

industry?

11/1/2009 12

A: Frequent flyer miles(1980)

Q: How to keep our customers?

11/1/2009 13

A: Revenue Management (1985)

Q: How to increase revenues?

20% Off

All Entrees Served Before 5 PM

11/1/2009 14

Q: How to extend our network?

A: Code-sharing (1989)

Image © iStockPhoto.com

o E-Ticketing (1994)

o GetThere, e-Travel (1994-95)

o ITA’s Search and Faring Engine

(1996)

o Expedia, Travelocity, Cheapflights

(1995-96)

o Google (1998)

o OpenTravel Alliance, TRX (1999)

o Trip Advisor (2000)

11/1/2009 15

1990’s – The Golden Age

2000’s

o Ancillary Revenue, Ryanair (2000?)

o Fare Families, Qantas, Air Canada

(2005-06)

o TripIt (2006)

11/1/2009 16Image © iStockPhoto.com

11/1/2009 17

Future

Factors

11/1/2009 18

11/1/2009 19Image © iStockPhoto.com

Image © iStockPhoto.com

Cisco Telepresence ©

11/1/2009 22Image © iStockPhoto.com

VirtualTourism

Image © iStockPhoto.com

11/1/2009 24Image © iStockPhoto.com

11/1/2009 25

Great Innovation

Solves

Worthy Problems

Image © iStockPhoto.com

11/1/2009 26

Source: ATA

Image © iStockPhoto.com

11/1/2009 28Image © iStockPhoto.com

11/1/2009 29Image © iStockPhoto.com

Image © iStockPhoto.com

Image © iStockPhoto.com

11/1/2009 32Image © iStockPhoto.com

11/1/2009 33

11/1/2009 34

11/1/2009 35Image © iStockPhoto.com

11/1/2009 36

Future

Innovations

11/1/2009 37Image © iStockPhoto.com

11/1/2009 38

New Shopping Cart

Non-SeatMerchandise

Seatsand

Fares

and New AisleImage © iStockPhoto.com

11/1/2009 39

Hotels

Airlines

Rental Cars

Cruises

Search

Social

Predictive

Easy

Trust

11/1/2009 40

passengers

or customers?

Image © iStockPhoto.com

Rich Customer Profile

•Loyalty Programs

•Travel Patterns

•Corporate Policies

•Networks•Business (LinkedIn)

•Social (Facebook)

•Attitudes (Twitter)

•Cell Phone

•Location

Image © iStockPhoto.com

what

really

does your

vvcustomer

want?

A guy walks into

a hardware

store …

Image © iStockPhoto.com

Social PNRs

•Integrated itinerary (TripIt)

•Easy push to social networks

•Single source for status updates

•One-touch trip cancellation

•One phone number for en-route support

•Easy supplier feedback

•Consolidated expenses

Image © iStockPhoto.com

11/1/2009 44

In Summary

11/1/2009 45

Source: ATA

11/1/2009 46Image © iStockPhoto.com

11/1/2009 47

11/1/2009 48Image © iStockPhoto.com

11/1/2009 49

New Shopping Cart

and New AisleImage © iStockPhoto.com

Rich Customer Profile

Image © iStockPhoto.com

Social PNRs

Image © iStockPhoto.com

that

hole?

so why do

vvvyou want

Image © iStockPhoto.com

Thank you!

Scott Gillespie

Scott.gillespie2008@gmail.com

Gillespie’s Guide to Travel Procurement

www.gillespie411.wordpress.com

11/1/2009 53