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IT in Travel

IT in Travel. Roadmap. Industry stakeholders. Key Challenges. Terrorism Fear Increased security Increased oil prices Environmental issues Economy (financial crisis) Online Collaboration (webinars, online meetings). Role of IT / Drivers of change. Integration & collaboration.

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IT in Travel

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  1. IT in Travel

  2. Roadmap

  3. Industry stakeholders

  4. Key Challenges • Terrorism • Fear • Increased security • Increased oil prices • Environmental issues • Economy (financial crisis) • Online Collaboration (webinars, online meetings)

  5. Role of IT / Drivers of change

  6. Integration & collaboration 2 Main organisations: www.sita.com www.iata.org

  7. 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

  8. Simplifying the Business: History • Industry-wide change program that began in 2004 • Objective: to lower costs and improve customer service • Up to US$16.8 billion in savings every year • Focus on business problem • Technology based solutions • Improvement of business processes • Creation of industry-wide standards • Global network of approximately 4,000 IATA staff, airlines and airports, industry experts and suppliers

  9. Simplifying the Business: How?

  10. 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) • Bar Coded Boarding Passes (BCBP) • Common Use Self-Service (CUSS) kiosks • IATA e-freight • Baggage Improvement Program (BIP) • Fast Travel

  11. Only global provider of IT business solutions and communication services for air transport industry • Founded as SociétéIntenationale de TélécommunicationsAéronautiques in February 1949 by 11 airlines • Owned entirely by its Members • Around 4,500 staff worldwide • representing 140 nationalities • speaking over 70 languages • operating in more than 200 countries and territories • Provides services to over 550 Members and 3,200 customers

  12. Membership represents over 90% of total worldwide airline business, includes: • All major computer reservation systems • International freight forwarders • Aerospace companies • Ground handlers • Governments • UN agencies • Airlines • Airports

  13. 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

  14. Global Distribution Systems

  15. Sabre Holdings • To connect people with the world’s greatest travel possibilities • Retail travel products & IT industry solutions • Joint project between American Airlines & IBM • Semi-Automatic Business Research Environment • Enabled American Airlines to transition to automated reservation systems • Pioneer in: • revenue management • Pricing • flight operations and scheduling • cargo logistics • crew scheduling

  16. Travel solutions for the individual • Business or leisure travel • Integrate the aspect of travel to facilitate the process • Flights • Hotels • Car rentals • Cruises • Vacation packages • Supported by a network of brands • 2005 revenues = $840 million

  17. Sabre Travel Network

  18. Sabre Airline Solutions

  19. Sabre Hospitality Technology & Internet Services

  20. Ticket Sales

  21. E-Tickets • Pressure 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

  22. Booking a flight • 10-30% 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

  23. 2010 Online Travel Sites Review Comparisons • 1. Smarter Travel • 2. Expedia • 3. Orbitz • 4. Travelocity • 5. Kayak • 6. AirGorilla • 7. OneTravel • 8. CheapAir • 9. Priceline • 10. Hotwire • http://online-travel-sites-review.toptenreviews.com/

  24. Brick & mortar travel agencies extinction?... • 1995: 37,000 brick-and-mortar travel agencies in US • 2009: Only 18,000 left

  25. Or survival? • Fewer travelers are enjoying Web to plan and buy trips: • In 2007, 53% of U.S. travelers liked using online booking • In 2009, only 46 %! • New strategy: niche markets specialization for travel agents

  26. New trend: Disintermediation • Airlines 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.

  27. 2009 Passenger demand for the full year was down 3.5% with an average load factor of 75.6%.

  28. 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

  29. 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 consumerism • Limited places on flights reserved for award travel

  30. Check-in 15-20 years ago:

  31. Check-in & Baggage: history • 1996 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

  32. Check-in & Baggage: history • 1996 Alaska Air & Horizon - interactive airport check-in kiosks • 1998 Air Canada - IBM self-service kiosk system • IATA Common User Self Service (CUSS) standard

  33. 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 )

  34. Check-in today • Kiosk 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

  35. Check-in today • 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

  36. Baggage today

  37. Automation & Integration

  38. Baggage today • 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 worldwide • Immediate, worldwide access to files created by airlines or handling companies • Replaces paper filing systems

  39. Check-in & Baggage: benefits

  40. Check-in & Baggage: negatives • Network unreliability • Low cost airlines don’t have any agents at airports • Still have to be 1 – 3 hours early and line up for …

  41. Security

  42. CAPPS II

  43. Comparison of Programs CAPPS II Secure Flight

  44. Secure Flight

  45. Screening Programs

  46. Key Learning

  47. Thank you!

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