DavidRutnam,Manager,NewDistribu5on

CapabilityRegionalImplementa5on,IATA

Together,Let’sBuildAirlineRetailingNDCProgramUpdate–ConferenzaGBTA2018Milano,9OBobre2018

NDC Basics

Airline.com v OTA From EK website, bundled fares, well presented with fare details.

Customer can choose what is important for them.

Airline.com v OTA More choices:

Seats

Meals

In future

- Paid Meal choice, Lounge, Fast Track, Wifi, limo service etc.

Airline.com v OTA A lot of Product information

Visual representations •  Conversion rates increase with rich content.

•  Westjet, Australia’s biggest online travel agency saw a 26.3% increase for customers exposed to rich content in a test.

Upgrade options

Airline.com v OTA

Visual seatmap

Prices,

Seat Product information

Photos – 3D coming soon

Meanwhile on a well known OTA, booking the same flights.

Limited info on fare families.

After selecting fare, you are taken to payment page -  No seat selection

-  No branding or rich content

-  No other options

Airline.com v OTA

Flight ‘Distribution’ since 1960’s Schedule & fares

publication

Travel Agents

Travelers

Sabre-1960Centralizedreserva5onManualagent5cke5ngS5llnoBSP

Airline

What’s the market problem?

Airlines

•  Don’thavethefreedomtodistributetheirproductsacrosschannelswithoutbeingcommodi5zed

TravelAgents CustomerExperience

•  Can’teasilyaccessmanyairlineproductsthatareavailableontheairlinedirectwebsites

•  Isnotconsistentdependingonwheretheysearchfortravelandnotrichwhenshoppingthroughtravelagents

What do airlines want?

Revenue opportunities: •  Differentiation (product description) •  Merchandizing (ancillaries, fare families) •  Personalization (based on loyalty,

preferences) •  Dynamic Pricing (based on supply,

demand)

Cost savings: •  New models (new entrants, new

contracts, new commercial relationships)

•  To modernize the way air products are being retailed to travel agents, corporations and travelers

•  A travel industry supported program for the development and adoption of a new data transmission standard

•  Full-service and low-cost airlines

•  Content aggregators and travel agents

•  Corporate Buyers and travelers

Together, Let’s Build Airline Retailing

Why NDC? What is NDC? Who will benefit from NDC?

Traditional Flight Distribution

Airline Retailing in an NDC World

Today’sShopWindowCompare airlines mainly on price and schedule

Source:Expedia27thNovember2017

Tomorrow’sShopWindowEnabled by NDC

Full airline products seen by consumer via travel agents

Information here is purely for

illustration purposes

Tomorrow’sShopWindowEnabled by NDC

Comparison shopping capability

Information here is purely for

illustration purposes

NDC live examples

Rich content

Seamless shopping experience

Seamless shopping experience (cont’d)

Augmenting key product information at the point of sale

Augmen>ng key product informa>on at the point of sale

NDC Program Update

500

What is IATA doing for NDC?

Engagement & Adoption •  Airlines •  IT providers •  Travel trade •  Corporates

Standard settings & evolution •  Standard versions •  Implementation support ( start up , developers..) •  Hackathons

A new structural baseline

Industry feedback: •  A robust standard as a new baseline

•  Provides functionalities to go for critical mass

•  A solid base to invest in

17.2 The new industry

baseline

NDC Live Implementations -

65 NDC Certified Deployments

Level 3 Airlines as of 5/9/2018

Aegean Airlines Aer Lingus PJSC Aeroflot Air Austral Air Canada Air China Air France American Airlines APG Airlines Austrian Airlines Avianca Airlines British Airways Brussels Airlines Cathay Pacific Airways China Airlines China Eastern China Southern Colorful Guizhou Condor CORSAIR Delta Emirates Etihad Ethiopian Airlines

Shandong Airlines Shenzhen Airlines Sichuan Airlines S7 Siberia Airlines SilkAir Singapore Airlines SunExpress Germany SunExpress Turkey SWISS T’way Air Taca International Airlines TAP Air Portugal Thomas Cook Airlines Manchester Turkish Airlines United Airlines Virgin Atlantic Vueling Airlines WestJet Xiamen Airlines

EVA Air Finnair Flybe flydubai FlyEgypt GOL Jiangxi Air Hainan Airlines Hong Kong Airlines Iberia Iberia Express InselAir KLM Royal Dutch Airlines Korean Air Lufthansa Norwegian Air Shuttle Olympic Air Onur Air Qatar Airways Qantas Airways Rotana Jet Saudi Arabian Airlines

System Providers certified & capable to date -

60 •  45 IT Providers - Capable •  15 Aggregators - Certified •  Includes 5 Start ups

Aaron Group Airlines Technology AirGateway AirSky Information Amadeus APG ATPCO Atriis Technologies Beijing Asia Technology Co Birdres Technologies Conztanz Caravelo Datalex DXC Technology Farelogix HitchHiker Hitit IBS Indra Infiniti Software Solutions

Sabre SAP Customer Experience Shanghai Aqueduct Information Technology Shree Partners "Sirena-Travel" JSC SITA Skyscanner TOPAS TPConnects Travelfusion Travel Planet Travelaer Travelport Travelsky Verteil Technologies WTMC Wintelia Technology Co TravelgateX

Information Systems Associates InteRES ISO Software Systeme ITA Software by Google Iween Software Solutions JR Technologies KAYAK Software Co Maureva Marco Polo Technology Navitaire On Travel Solutions Openjaw Polarium Co Pribas PROS Quadlabs Technologies Reserve

•  Cer5fiedLevel3inJuly2018

•  Cer5fiedLevel3inSeptember2018

•  Cer5fiedLevel3inDecember2017

GDSs have become Level 3 NDC aggregators 2018

Latest industry announcements

Business Travel engagement

Corporate Buyers also see opportuni>es with NDC

•  Customer experience - Segment traveller types and personalise their trip

•  Content - Improved, rich content, to match brand.com

•  Cost - Greater visibility of fare types & ancillary costs

•  Control – Could encourage the traveller back into the chosen channels

•  Total management: TMCs taking a more strategic role

•  Real-time: TMCs leveraging the combination of deeper supply chain relationships, more dynamic technology & better data to support the corporation & buyer along the journey, in real-time

•  The power of personalization: Personalization applied at corporate & individual levels to improve engagement & service satisfaction

Corporate buyers envision the future of the TMC

Travel Agencies have their reference architecture

Objectives 1.  For TMCs to think about their future

IT (from small to large TMCs) 2.  For IT providers to identify technology

needs and build solutions 3.  For airlines to better understand the

TMC mid and back office implications

NDC Roadmap set with IATA Board

Cri>cal mass and 2020 target

Ø  CriRcalmass:“Leaderboard”airlines

Ø  Leaderboard:20%ofsalespoweredbyanNDCAPIby2020Ø  ‘’Followers’’:Moresolu5ons,barrierstackled,increasedspeedto

market

Industry NDC volume Strategy

The NDC Leaderboard is growing

ValueChainReadiness

§  Airlines •  60airlinescer5fied–worldwidemomentum•  Somefrontrunnersaddedcommercialmodel(incen5ve),someaddedcontentdifferen5a5on•  Salesteamsarebe]erbriefed/trained•  APIsareimproving(func5onali5es,servicingetc)

§  IT providers and GDSs •  Lotsofplayerscon5nuetobuild/improvesolu5ons•  More“holis5c”viewofindustryneeds(payment,dynamicpricing,repor5ngetc)•  Sabre,Amadeus,Travelportannouncedpla_orm“plugandplay”readinessfor2019•  Addressingpainpoints:servicing,IROPs,markupetc

§  TMCs and OBTs •  GapbetweenLargeplayersandothersintermsofreadiness•  Privatechanneltooffsetsurcharge•  SenseofurgencytoadoptNDCduetocontentdifferen5a5on

New! -NDCInFocus

1.  How API help airlines 2.  Neutral ticketing versus Airline ticketing 3.  TMC reference architecture 4.  ONE Order in an NDC environment; what

do I need to know? 5.  Data Privacy in an NDC world 6.  Typical NDC collaborative scenarios

across the airline internal value chain 7.  China distribution 8.  What financial analysts say about NDC &

Changes in Distribution

NDC(NuovaCapacitadiDistribuzione)Cos’eecosasignificaperilBusinessTravelPanelists:DavidRutnam,Manager,NewDistribu5onCapabilityRegionalImplementa5on,IATAFrancescaBenaR–Execu5veVicePresidentOnlineTravelAgenciesWesternEurope,MiddleEast,Africa&ManagingDirectorItaly-AmadeusITGroupDavideRosi–ManagingDirector,BCDTravel,ItalyFlavioGhiringhelli–CountryManagerItaly,EmiratesModerator:AndreaGiuricin–Adj.Prof,UniversitaBicoccaMilano