Three Key Questions for Airline Distribution
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1 Air Black Box Connecting airlines to sell stuff Three Key Questions for Airline Distribution How (and why) do airlines want to manage inventory? How do GDSs enable airlines to manage inventory? What is going to happen in future?
2 DO YOU KNOW WHAT THIS IS?
3 THIS IS WHAT IT SHOULD BE
4 THE AIRLINE DISTRIBUTION PROBLEM Travel industry supply chain Traditional problems New technology has been added on top of old. Business-critical spaghetti is getting more complex and tangled. Established, vested interests are protecting their cash cows. Airlines and GDSs hate each other (Airlines vs GDS lawsuits). Customers are paying high costs as a result (and suing GDSs). Little (and slow) innovation, ripe for disruption. Airlines are operationally focused, not product and brand-focused.
5 IF ONLY WE HAD A MAGIC WAND 1) Understand your core digital DNA and its context for this specific trip 2) Real-time dynamic personalization based on customer insight 3) Predict with greater certainty qualified results without pissing you off 4) Simplify the search, shop and purchase process 5) Keep you happy
6 KEY AIRLINE PROBLEMS 1) Frequency of use of the product 2) Bad technology legacy and just plain bad 3) Airlines are not customer-focused they are operations-focused. 4) Customer insight is a scarce thing in an airline 5) Airlines are too siloed 6) Airlines do not cooperate
7 FOCUS ON THE CUSTOMER Supply Government Competition Demand
8 THE CUSTOMER CONTEXT CONUNDRUM related and dependent forces Punters Demand Supply Components all channels travel vs. non-travel direct vs. indirect products consumer forces supply forces
9 MORE KEY QUESTIONS 1) What are the primary products that the customers want/expect to buy? 2) Do consumers buy the lowest fare? 3) Airline air/travel products different enough to require different purchase processes? 4) Do consumers trust travel products? 5) Where are the critical supply context problems in the search/shop/purchase path? 6) How easy/difficult is it to implement different customer flows?
10 WHICH ONE WORKS BEST? GDS/PSS Airline.com SeatGuru
11 IT REALLY IS TOO HARD TO SHOP
12 AND THE THREE QUESTIONS? 1) How (and why) do airlines want to manage inventory? a) ANSWER: Badly why? 2) How do GDS enable airlines to manage inventory? a) ANSWER: Badly why? 3) What is going to happen in future? a) ANSWER: It s going to change why?
13 HIGH-LEVEL CONNECTIONS OVERVIEW OFLTS-DB OFLTS Othello Format X Content ttt Legacy Host Legacy Host LCC Host China Host Navitaire Amadeus Altea SabreSonic USAS Single Host Airline Airline Format 1 Format 2 Content aaa Content mmm Airline Format 3 Content ppp Airline Format 4 Content ttt ABB Cloud Any PSS System Regional alliance Airline bilateral Non Airline Format X Content aaa Content bbb Content ttt Airline Format 1 Content aaa Content bbb Content ttt Airline Format 2 Content aaa Content bbb Content ttt Airline Format 3 Content aaa Content bbb Content ttt Airline Format 4 Content aaa Content bbb Content ttt
14 MULTI-CARRIER SALES PLATFORM Complex, messy, broken Travel industry supply chain ABB s Digital Selling Platform Air Connection Engine (ACE) Traditional problems AirADD OFLTS Opportunity, new forms If only we could Online ecommerce New Travel ecommerce
15 SABRE S POTENTIAL VIEW OF WORLD
16 SELLING BRAND SETS RULES The hosting airline accepts products and services from a partner carrier, but folds it into its own branding. ABB s platform can display product on any number of devices with equal ease.
17 ABB IS A B2B SOFTWARE COMPANY Good pedigree, sound team. ABB founded four years ago by two industry veterans: Timothy, head of product, Expedia exmanagement team. Paul, head of technology, wrote fares engine acquired by Datalex. Also on management team: Team: David, design, ex-amadeus. Ian, commercial, ex-airline. Steve, finance, ex-travel technology. Located in three development centres. Satellite office in Singapore. Steve Driscoll Acting CFO and senior Financial Advisor Steve comes with a great attitude to money he treats it as his own and his is quite conservative. He tips the balance between Northern pragmatism and southern worldliness on the team The ABB Team A highly skilled group In 3 Development centres controlled from the Group hub in Manchester. ABB s teams are split into Product and Development - supported by market based teams
18 WHAT PEOPLE ARE SAYING You have developed the Silver Can Opener finally a way to change airline distribution. SVP distributio n US airline ABB is a creative, empowering, and liberating solution enables airlines to be more compelling competitors, better serve their travelers, and improve both their top-line revenues and bottom-line profits. ABB also incorporates a 21st Century awareness of the more flexible processes airlines need to be more responsive, market-focused enterprises. ABB Technology Winning Top Industry Awards WITovation 2016 Editor s Choice Award Henry Harteveldt Travel Industry Analyst CAPA Global Airline Innovation Award 2016
19 THANK YOU Timothy O Neil-Dunne Head of Product timothyo@airblackbox.com
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