The Views. Also Known As: Hearing from those you voted not to hear from

Transcription

1 The Views Also Known As: Hearing from those you voted not to hear from

2 he Views The Views Our Moderator Tony D Astolfo: Chief Sales Officer, GroundLink Our Commentators Jim Davidson: President and CEO, FareLogix Holly Hegeman: Founder, CEO and Publisher, PlaneBusiness Michelle Holmes: General Manager, Travel and Transport Chuck Jensen: Vice President - Supply & Distribution, Mr. Arlo.com Alan Tyson: CEO, Databasics

3 How to get $20 of value from a $2 transaction Jim Davidson Farelogix, Inc.

4 Getting $20 of Value Out of a Two Dollar Transaction Jim Davidson President & CEO

5 Turning $2 into $20

6 THE SHIFT TO CUSTOMER-CENTRIC MODEL Legacy Model (3 rd Party Controlled) Anonymous Selling Model: Airline doesn t know who the traveler is until after the sale is made; airline is prevented from delivering its value proposition and competing for a customer s business. Airline Host System (Availability) Consumer-Centric Model Personalized Selling Model: Airline knows who the traveler is and dynamically creates a relevant offer in order to truly compete for the customer. Airline Distribution Gateway (Host System, FF Database, CRM, etc.) Jay s Offer Tony s Offer Holly s Offer OAG (Schedule) GDS ATPCo (Fares) GDS (Or 3rd party) Travel Agency Online Agency Travel Agency Online Agency Jay s Request Tony s Request Holly s Request

7 Getting $20 of Value Out of a Two Dollar Transaction Jim Davidson President & CEO

8 Jim Davidson Thank You

9 What is the Problem or as we prefer the Opportunity? Chuck Jensen Mr. Arlo.com

10 The Opportunity Recent surveys show that 1 in 2 online travel shoppers are dissatisfied with their current shopping experience Online travel is a fast-growing but technology mature $313 billion dollar marketplace Of an estimated 10 billion mobile consumers, over 50% will be using mobile devices to book travel by 2015

11 Are You Ready? As a Supplier or Travel Management Company are you ready for the personalization and mobile explosion that is already here? As a company are you ready for your travelers who are demanding better experience while traveling? If not, why?

12 WTF! Is Gen-Y the end of Travel Management as we know it? (Didn t we raise them better than that?) Alan Tyson CEO DATABASICS, Inc.

13 Gen-Y and Travel Management The Gen-Y Imperative: Not Science Not History Not Helpful

14 Welcome To.

15 Issue #1 Gen Y appears unwilling to comply to the same degree as their more seasoned workplace peers

16 Issue #1 Alan Tyson asked: Are our young (Gen Y) colleagues really plotting the overthrown of all we hold dear? Travel Policies Internal Controls Reasonable Productivity TMC Transaction Fees According to Michelle Holmes: Today s travel environment is all about the traveler. What s in it for me? What are you going to give me?

17 Question #1 Will the emergence and greater penetration of Gen Y into the workforce result in an increase in Business Travelers going rogue? Is this the beginning of the end of Managed Travel as we know it?

18 Issue #2 Mobile Surpasses PCs When is the Inflection Point?

19 Issue #2 According to Dhiren Fonseca, Expedia "We've seen a 28% growth in same day transactions. This speaks to the growth we ve seen in our mobile business; 65% of mobile transactions are happening same day and travelers are taking shorter trips. According to Chuck Jensen: By all estimates, 50% of all travel bookings will be made via a Mobile device. Today s most travel management companies and OTA s have very inadequate apps.

20 Question #2 Everyone agrees that Mobile is a game changer, yet Managed Travel Programs have been slow to embrace Mobile. Are they non-believers, not capable, or is this someone else s job? Do they delay at their own peril?

21 Issue #3 Judge Puts Brakes On AA's Federal Suit; Sabre To Sit Out Mediation The Beat ~ a travel business newsletter 09/06/12 A U.S. district court judge today granted a request by American Airlines, Orbitz and Travelport to temporarily suspend the carrier's federal antitrust suit against distributors. Those parties now turn their attention to a potential out-ofcourt settlement. Sabre, the third defendant, is not expected to take part in the upcoming round of mediation, set for mid-december. In court filings, AA has characterized its previous settlement talks with Sabre as "fruitless."

22 Issue #3 Sabre, has been working hard in Washington and every day with the airlines to get ancillary fees disclosed so that they can be compared across airlines by consumers before passengers purchase their tickets to travel. Now they are reaching out directly to consumers via their Let the Market Fly campaign. Sabre is asking consumers to file comments directly to the docket of the Advisory Committee for Aviation Consumer Protection to let their voices be heard.

23 Question #3 Is there an end in sight to the GDS and AA talks and if so, what will the outcome be? Who are the winners and losers? Does Jim Davidson go back to being a mild mannered CEO?

24 Predictions

25 he Views Thank You Commentators! Our Moderator Tony D Astolfo: Chief Sales Officer, GroundLink Our Commentators Jim Davidson: President and CEO, FareLogix Holly Hegeman: Founder, CEO and Publisher, PlaneBusiness Michelle Holmes: General Manager, Travel and Transport Chuck Jensen: Vice President - Supply & Distribution, Mr. Arlo.com Alan Tyson: CEO, Databasics