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Session 6: Expanding Choices in Distribution

Session 6: Expanding Choices in Distribution. Moderator: Mark Pilling , Editor, Airline Business Panelist: Michael Randall , VP, Worldwide Business Development, ITA Software Georg Bolz , Director Portflio Management Airline Solutions, Lufthansa Systems

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Session 6: Expanding Choices in Distribution

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  1. Session 6: Expanding Choices in Distribution Moderator: Mark Pilling, Editor, Airline Business Panelist: Michael Randall, VP, Worldwide Business Development, ITA Software Georg Bolz, Director Portflio Management Airline Solutions, Lufthansa Systems Maurice Coleman, Head of Commercial Strategy, Aer Lingus Darren Peisley, General Manager of Distribution Strategy & Sales Planning, Qantas Graham Wareham, Star Alliance: General Manager for Product Distribution, Air Canada

  2. SESSION 6:Expanding Choices in Distribution Lufthansa Systems Dr. Georg F. BolzDirector PortfoliomanagementAirline Solutions Am Weiher 24D-65451 Kelsterbach georg.bolz@lhsystems.com

  3. Future Airline Core Environment GDS Travel agents/ Tour operators/ Consolidators Schedule Management Reservation Inventory GDS 2-N GDS 2-N GNE Distribution Channel Management Hotel/Car Ticketing Check-In/Boarding Load Control Private ACAP’s TMC’s / Corporate LSY Airline.com ATO’s/CTO’s Call Center Corporate Implants Thesis 1: Active management of the various distribution channels will be a vital core ingredient of advanced airline business models.

  4. Travel Agencies Status GNE’s: n n Industry background of their management teams n n Endorsement from major carriers, including Star Alliance n n GDS GDS Functionally ready, platforms installed, test usage n n GDS GDS GDS GNE Contracts with major carriers and large TMC’s signed n n DCA - - type contracts expire in 2006, GNE’s ready to take - - off off n n GNE’s started in the US market in 2005 and will expand internati onally, onally, n n with support from regional airline groups and alliances. selective access private fares global access public fares GNE’s are backed by Venture Capitalists to expand their scope. n n GNE providers are enhancing their functionality by partnering wi th airline th airline n n IT providers to become a full scale alternative to traditional G DS. DS. Distribution Channel Mgr GNE‘s are serious contenders and a viable alternative n n FACE GNE‘s will become real in 2006 n n GNE‘s and GDS‘s will continue to coexist in the market, n n Airline developing different profiles, serving different needs Thesis 2: GNE‘s are about to become a viable alternative, and evolve to absorb a significant portion of the market in a sustainable way.

  5. Thesis 3: Evolution of airline distribution is driven by cost reduction; selective availability of content and control of channel cost are key. AirlineReservation Center GDSPublished Tariffs Trad.TA with global reachHost Tech. Cutting CommissionsIntroducing Service Fees Airline CRSOwn ContentOwn Sales Offices GDS„Full Content“ TA‘s, TMC‘s, CorporatesHost Tech. „DCA3“ GDS/spec.contractsCorporate/Private Fares Host Tech./marg.cost GDSFull ContentTravel Agencies Online Portals GNEFull ContentNewGen Tech. Airline Portals Airline RESOwn ContentCall Center new scale GNEPrivate/Corporate Fares TMC‘s/CorporatesNewGen Tech. IBE„Web Fares“Direct Sales Community PlatformsCommunity ContentPrivate/Nego Fares GNE-Tech.&Comm.Enh. Direct Connect Airline RESOwn ContentDirect Sales Host Tech. Airline RESOwn ContentDirect Sales NewGen Tech. Note: conceptual - not to scale.overall distribution costs before,platform costs to airlines after „disruptive period“ ca. 2000-2005.

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