GO ELECTRONIC PLAN UPDATE Travel Distribution Task Force

Transcription

1 GO ELECTRONIC PLAN UPDATE Travel Distribution Task Force Tom Mistrot Manager - Industry Product Development Agency/CTD

2 Vision ARC s goal is to move its financial reporting and settlement to a totally electronic system. The goal is to remove paper, and the cost associated with the issuance and movement of paper, from the system.

3 Highlights Sales Summary Reports Agent Coupons Industry Agent s Handbook Fax and Communications

4 Sales Summary Reports Short Term Plan! Receipt of Sales Summaries is optional for Agents receiving tape, ARIA Diskettes or Microfiche.! Airlines have agreed to accept Agent Generated documentation in lieu of photocopies of sales summary reports.

5 Sales Summary Reports Long Term Plan! Sales Summary Reports available to Agents via the internet! Available 4th Quarter 2000

6 Agent Coupons! Manual Agent Agent Coupons Agents copy of transaction and must be printed on ARC accountable stock and retained by Agent for two years.

7 Agent Coupons Agent Coupons! IAR Agent Phase 1 Agent may print coupon on ARC accountable stock, non-accountable stock, plain paper or capture image on optical media (CD-ROM) Agents copy of transaction and must be retained by Agent for two years.

8 Agent Coupons Agent Coupons! IAR Agent Phase 2 ARC will develop ability to produce agent coupons on demand from Sales History Database. Storage of Agent Coupons by agent will be optional although it will be a recommended practice.

9 Agent Coupons Agent Coupons! IAR Agent Phase 2 Phase 2 will not be launched until Agents, Field Integrity and Customer Support Center are able to produce agent coupons on demand.

10 Industry Agents Handbook Available through the ARC Web site. In the Future, Agents will only be sent a paper copy on the Industry Agents Handbook only on request.

11 Communications ARC will make communications with Travel Agents via and Fax the norm. This will enable faster notifications e.g. cessation of operations by a carrier

12 Application Processing System APS Travel Distribution Task Force George Cromartie Senior Manager - Accreditation Services

13 APS and the ARC Strategic Plan Implement Application Processing System (APS) 4.0 so that all location-type and ownership applications can be processed electronically, and retire the former CARES system

14 ADM Application Types (Agent/CTD) New Independent Entity New branches Ownership Changes Change of Location Database Change-Agency Information Database Change-Personnel Information 10 other application types, with more coming to meet Industry demands

15 Application Processing History Pre-1994 Prior to 1990 all applications were paper CARES (Computerized Accreditation Responsive Entry Support) designed Semi-automated system (diskette and paper Agent output) with ARC processing support Programmed in DOS clipper language, with no provisions for electronic application submission Externally produced prior to any technical staff at ARC, and update capability was limited

16 1994 Strategic Decision Enhance CARES or build a new system? Decision:! 1. Build a new system, Application Processing System (APS), using ARC internal resources! 2. Pilot test with STP application,if successful move other application types from CARES to APS

17 APS History 1994-Present APS : DOS software versions using BBS for electronic submission, APS 3.1 processed 7 application types; other applications were CARES or manual process APS 4.0 is first Windows release of APS software Processes 24 applications types, using 59 forms Electronic submission is through FTP server(internet) and flexibility exists to update forms without additional programming

18 APS 4.0 System Components Data Entry Module Communications Servers using FTP(Internet) Management Module Checklist Server Applications Database Links to accomplish: " Credit Card charges for electronic submission " Traffic document requisitions to Doc. Services

19 APS 4.0 System Diagram D/E Approved ARC Agent Only Applicant CTD/ Travel Agent Disk Communications Servers APS/DB Paper US Mail D/E ARC Data Entry Checklist Server Management Module/ ARC Review and Action

20 APS 4.0 Data Entry Module Used at Agent Location (ARC Web Site download) Also used by ARC for paper/disk load Provides all application data entry into the APS Database Electronic submission for approved ARC Agents/CTDs (with authorization) Application and message capability Diskette/hardcopy submission for new Agent/CTD

21 Microsoft WordForms Advantage Industry standard word processing software Easy to develop/maintain Decreases development time Increases variety of forms available

22 Microsoft WordForms

23 Management Module Used exclusively at ARC Provides ARC reviewer access to application data Used to route electronic messages relating to applications between Agent and ARC Generates letters, s and validations Automated risk management tools Module management by ADM

24 Benefits to Agent/CTD Simplified, quicker application process Expanded range of forms offered Windows format familiar to most Agents/CTD Electronic transmission for select high volume applications, i.e. paperless Credit Card payment options Agent/CTD database included with software Software downloaded & updated from ARC Web Site

25 Benefits to ARC and Carriers Edits against Agent Database for Agent/CTD error Edits names against Affiliations Database for individual affiliation (APS 5.0) Automated transfer and storage of Agent personnel data to Affiliations Database (APS 5.0) Productivity Enhancements for ARC More ARC control of forms, checklists & changes

26 Current Status ARC internal programming and testing completed Jan-Aug 00 APS 4.0 software released to Agents/CTD Jul 31, 2000 via ARC Website High volume agents convert to APS 4.0 by Oct 31; retirement of CARES and APS 3.1 4Q00 APS 5.0 under development (Revenue and production reports, Affiliations Database auto interface)

27 APS 4.0 Summary Supports ARC values! Data and financial integrity enhancements! Innovative design and processing, flexible change/update/expansion capability! Enhances processing productivity and reduces paper

28 APS 4.0 Summary APS 4.0 passes the old and is ready for the new ARC Elevator Test Electronic processing (Go Electronic) Incorporates PR/VI (Go Global) Supports Agent, CTD (Multiple Distribution Channels) Flexible for future innovation

29 ARC: Facilitating Connections Travel Distribution Task Force Bruce Berndt, Senior Manager - Industry Product Development, ARC

30 Discussion Points ARC 101- a few basics Impact of Recent Distribution Trends Strategic Initiatives - Supporting Distribution Alternatives Carrier Sales - Supporting Direct Connections Future Implications for Industry Trends Q & A

31 ARC s Traditional Mission Facilitate distribution of the airline product Provide low cost, highly efficient financial transaction to support airline product distribution Settlement of those transactions

32 ARC s Mission has Undergone a Fundamental Change From an organization providing an efficient financial transaction processing system to support airline product distribution through the travel agency distribution system. To an organization providing an efficient financial transaction processing system to support airline product distribution through multiple distribution systems.

33 ARC Strategic Plans 3 Consistent Themes!Become a totally electronic system!make ARC expertise and technology available to industry settlement plans in other countries!support carrier moves in the marketplace to multiple distribution systems

34 2000 Strategic Plan - Go Electronic 80% 70% 60% 50% 40% 30% 20% 10% IAR and Electronic Ticketing Sales Processing Volume Percentage 0% Est. IAR ET

35 Impact of Recent Distribution Trends New initiatives on ARC s Strategic Plan Implemented new phases of the Carrier Sales (CS) Program Launched Corporate Travel Department (CTD) Accreditation Program Get on the road to meet with carriers, agents and corporations

36 What Does Supporting Multiple Distribution Systems Mean? Working with new entities other than Travel Agents -! Cruise Lines! Tour Operators! Consolidators More recently -! Internet Agents - Expedia, Get There.com Priceline.com, Travelocity, HotWire, etc.! Corporate Travel Departments! Carrier Sales

37 Industry Trends Fall, 2000 Carriers are establishing multiple Internet portals to their products GDSs are diversifying their offerings to retain business Agents are redefining roles and seeking niche markets

38 Industry Trends Fall, 2000 (continued) Booking Engines are finding partnerships Corporations are seeking cost-reducing alternatives ARC positions itself to meet the needs and add value

39 Strategic Initiatives - Asking the Tough Questions Which role suits ARC best? Where can ARC meet the greatest need? Who s driving the business? When will it be too late? Where is the rest of the world?

40 ARC s Role - Past, Present, and the Crystal Ball Traditionally, move the paper, move the money Present - Go Electronic - lose the paper Present II - Carrier Sales, CTDs, Internet, Diversification for agents to sell new products Future - Paper s gone, consolidation, simplify connections, provide more service Future II - Going global, providing stakeholders with expertise How we get there...

41 Generic Settlement Process - With ARC GDS Carrier 1 Funds Agent or CTD Reservations & Ticketing Transactions-Daily Funds, Data, Reports ARC Funds, Data, Reports Carrier 2 Funds Weekly Funds, Tickets, Reports Daily Feeds Funds, Data, Reports Carrier 3 Funds Credit Card Processing

42 Direct Connections & Carrier Sales (CS) Carrier Sales (CS) is the ARC process in which a carrier submits, or has submitted on its behalf, transactions to be processed by ARC. The transactions may be sold/initiated by ARC accredited travel agencies and CTDs or other entities designated by the carrier using a variety of immerging technological options.

43 Direct Connections and Financial Implications CTD and CS are both standalone ARC options No requirement to interface both programs Flexibility only increases your options First understand generic supplier issues

44 Why Go Through ARC? We have the connections - over 40,000 agent locations and CTDs. 140 Airlines participate 6 system providers We re the lowest price game in town

45 Generic Settlement Process - With ARC GDS Carrier 1 Funds Agent or CTD Reservations & Ticketing Booking Engine Transactions - Daily Electronically Reported Transactions - Weekly ARC Funds Carrier 2 Funds Funds Carrier 3 Funds Credit Card Processing

46 Typical Distribution Costs Using $ Average Ticket GDS Costs Average Agent Costs ARC 0.1% or.40 Credit Card Costs Total Distribution Cost = 11.80% or $45.40 per ticket

47 Considerations about Going Direct Just how direct do you want to go? Elimination of costs or just substituting new ones? What are the supplier considerations? Can t we just connect directly to each supplier? Why rock the boat - Is it all worth it? What are the technical and financial issues? What outside help will I need?

48 What About Booking Tool Trend? 6 months ago some Carriers and Booking Tools were looking at a solution outside of ARC. Now most are seeing ARC s CTD/CS products as an integral part of their process. What caused the shift? Answer: Complexity

49 Direct Settlement Process - Without ARC Funds Agent or CTD Reservations & Ticketing Booking Engine Transactions Carrier 1 Credit Card Transactions GDS Credit Card Transactions Credit Card Processing Transactions Transactions Funds Carrier 2 Carrier 3 Funds Credit Card Transactions

50 Future Implications for the Travel Industry Continual need for best pricing, best value Change will continue to accelerate Greater access and flexibility to critical information needed

51 What If ARC Waits Too Long? Carriers needs will be met some other way Transaction volumes will drop Cost advantage will be reduced Technology will be found elsewhere

52 Where s the Rest of the World? IATA Plans consolidation of BSPs IATA Plans electronic reporting Some increases to electronic ticketing Some increase to Internet selling Gradual fading of boundaries

53 Conclusions - ARC s Approach ARC will continue to enhance existing tools and develop new tools facilitating distribution alternatives ARC will continue to investigate, and where appropriate, implement new technology: To meet functional needs in the marketplace To be more responsive to time critical needs ARC will continue to seek customer requirements aggressively

54 More Questions and Answers For more information, visit ARC s Web site section on Corporate Travel Departments at Contact us directly: Carrier Sales - Bruce Berndt (703) or David Julias (703) CTDs - Jeannine Rehel (703) Booking Engines and/or System Providers - Shelly Berdine (703)

55 ARC: Facilitating Electronic Ticketing Standardization Travel Distribution Task Force Barry M. Lemley, CTC Director Accreditation and Database Management, ARC

56 Electronic Ticketing (ET) Standardization The issue: ET growth is somewhat stagnant due in part to the fact that the product is not complete or standard. Early on, the TDTF group advised that if you want agent and consumer buy-in then make it a good product. Inconsistent service offerings are part of the problem that as an industry we need to address. ARC is offering it services to meet that goal.

57 Electronic Ticketing (ET) Standardization Some initial ARC suggestions: Form small working group or groups to come up with common issues and solutions. Make sure that the groups have similar disciplines but come from different market sectors. First catalog the issues. Be aware of any pending industry changes that may impact the work.

58 Electronic Ticketing (ET) Standardization Some initial examples to consider: ET Voids Related debit memos Re-instatement of voids by airport staff Automatic refunds Ghost ticketing issues Are there others that could be addressed? Do we have specific working groups to form?