DRIVING REVENUE THROUGH IMPROVED CUSTOMER EXPERIENCE. by Brett Ansley

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1 DRIVING REVENUE THROUGH IMPROVED CUSTOMER EXPERIENCE by Brett Ansley 1

2 Differentiation Relevance Strong Brand Commodity 2

3 23% more loyalty 10% more satisfaction Personalise Tong et al. International Journal of Economics and Finance, March

4 10% more revenue Offer meaningful choice Román et al. Journal of Marketing Management, Volume van Ryzin et al. Manufacturing and Service Operations Management, Summer

5 Provide an experience 5

6 Be consistent Park et al. Journal of Consumer Research, Sept

7 Personalise a range of meaningful choices, let me experience them and be consistent across all touch points. 7

8 New Distribution Capability Claude Muller Head, NDC Program To represent, lead and serve the airline industry 8

9 Why is there a need for change? Agent channel closed for airline product merchandising F J M 9

10 Why is there a need for change? Agent channel closed for airline product merchandising Lounge Access Meal Special Services F J M Baggage F J M Frequent Flyer Miles Fast-Track Inflight Entertainment Etc 10

11 What it is & why A 5 year travel industry-wide program (NDC Program) Development, testing and deployment of a new, XML-based data transmission standard (NDC Standard) Communication between airlines and travel agents The NDC Standard will enable travel agents to better retail air products to corporations, leisure and business travellers, by addressing the industry s current distribution limitations: 1. Product differentiation 2. Access to full and rich content 3. A greater shopping experience 11

12 New Distribution Capability (NDC) Standards to enable shopping via all channels Airlines file fares and schedules with 3 rd parties GDSs package and push offers based on 3 rd party databases Agents submit travellers requests using GDS Airlines last to know who has purchased airline ticket Distribution capability constrained by current level of innovation Schedule TMC / OTA GDS Fares Consumers Airline website / e-commerce engine Airline Reservation Systems Availability 12

13 New Distribution Capability (NDC) Standards to enable shopping via all channels Airline provides offer Just as for direct channel NDC Standard Lower costs, speed of innovation Facilitates comparison Connections exist, not interoperable Airline rich products: Available via travel agents Direct, or via Aggregator Enable comparison shopping TMC / OTA GDS Aggregators Consumers New Entrant NDC Airline Reservation Systems Airline website / e-commerce engine 13

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15 What benefits does NDC bring Product Differentiation Merchandize airlines uniqueness Distribute personalised products (if requested) Access to Full and Rich Air Content Compare flight products based on schedule, price and equality Work with real-time fare and product information A Greater Shopping Experience Deliver the right products at the right prices to corporate buyers Offer each traveller the opportunity to shop based on what they value be it anonymous or personalised. 15

16 TECHNOLOGY ENABLEMENT FOR NEW DISTRIBUTION

17 Why Technology Enablement? Personalized, dynamic and contextually relevant offers require airline-controlled distribution, merchandising, and retailing across channels Travelers demand superior user experiences as they are accustomed to in other areas of their lives Legacy systems were not designed to deliver on these requirements Technology enablement for NDC and merchandising = airline competitive advantage

18 Copyright Farelogix 2013 Enabling New Distribution Technology

19 THE GATEWAY IS POWERED BY SIX ESSENTIAL COMPONENTS XML Direct Connect from Host (PSS) Merchandising Engine Distribution Rules Engine Pricing Engine Ticketing, EMDs, & Settlement Gateway API

20 THANK YOU Brett Ansley Claude Muller Jim Davidson