Financial Symposium September 2018 Madrid Marriott Auditorium Hotel & Conference Center

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1 5 World th Financial Symposium September 2018 Madrid Marriott Auditorium Hotel & Conference Center

2 7 th SIS General Meeting 18 th September 2018 Madrid Marriott Auditorium Hotel & Conference Center

3 3 Tom Gregorson VP of Products & Solutions

4 Our collective challenge 4

5 5 All content. All routes to market. All relevant offers*. * That change all the time.

6 It s complicated. 6

7 ATPCO is proud of how it has helped the industry navigate this complexity. 7

8 8 8 ATPCO is the industry s trusted partner in driving innovation, reducing complexity, and delivering network economics to the entire distribution ecosystem through standards, technology, and effective governance.

9 Our vision To fuel the future of air travel, leading the industry into the next generation of distribution, by enabling smart connections of all content through all channels The ATPCO Platform 9

10 Our solutions 10 CONTENT Pricing Retailing Taxes and fees Contract solutions Revenue accounting TECHNOLOGY NDC connectivity Monitoring & analysis Data platform services Open systems / APIs Developer portal INDUSTRY LEADERSHIP Innovation Standards Consulting and training

11 We are now leading the industry through a landscape that is changing faster than ever before. 11

12 Four initiatives to help the industry 12 NDC Exchange Dynamic Pricing Taxes Next Generation Storefront

13 Four initiatives to help the industry 13 NDC Exchange Dynamic Pricing Taxes Next Generation Storefront

14 14 NDC 14 Community Marketplace

15 NDC Exchange Customer Pipeline 15 Pipeline specifics In production June 2018 AC and 5 sellers 131 suppliers and sellers (also aggregators and tech providers) 71 active companies 28 airlines 43 Sellers Engaged with three primary GDS 49 Non-Disclosures executed

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17 Four initiatives to help the industry 17 NDC Exchange Dynamic Pricing Taxes Next Generation Storefront

18 Study on the development towards more tailored offers and pricing Level of tailored offer Fully personalized offers (Customizable) offer bundles Unlikely combination Static bundled offers Dynamicallyadjusted tailored offers Dynamicallyadjusted bundled offers Fully-tailored and dynamic offers Stages are not mutually exclusive but rather represent different RM approaches used by different airlines based on their scale, business model, proportion of inhouse legacy IT systems and other factors Limited predetermined offers Separate static seat and ancillary offers Assortment optimization Dynamic price adjustment/dynamic offer availability Unlikely combinations Dynamic/continuous pricing Pricing approach Stages with extreme misalignment between pricing approach and offer personalization are deemed unrealistic

19 Assortment Optimization Two-Character & Dual RBD Validation 19 Exists Today Two-Character (YN) Internal to airline systems Dual Validation (C if M is available) All channels Instant upgrade fares Limited use within cabin for fare brands

20 Dual RBD Validation: Implementation 20 Distribution of Fares and Rule Data Fare Class Application (Record 1) Prime booking code Booking Code Exception (Table 999) - Prime permitted when secondary is available

21 Dual RBD Validation: Implementation 21 Revenue Accounting and Audit Ticket reflects the prime RBD Fare amount and fare basis are the lowest available Same process as current upgrade fares that are booked in a single premium RBD based on economy class availability

22 26+ 22

23 Dynamic Price Adjustment 23 PRICING SYSTEM (SABRE) Request Availability Pricing Price Adj RQ/RS Response CONTENT AIRLINE Availability Schedules DPE Fares/Rules Ancillaries CRM ATPCO Data Collection and Distribution

24 24 ATPCO distributes public fares FARE AND RULE DISTRIBUTION ATPCO distributes DPE fares to the DPE and airline internal systems (Two-Character or Dual RBD based) Eligible fares/itineraries will be identified by the Airline Profile

25 25 REVENUE ACCOUNTING AND AUDIT Ticket will reflect DPE tariff and fare GDS and public tariffs will not reflect DPE fares

26 CONTINUOUS PRICING 26 Stay Tuned

27 Four initiatives to help the industry 27 NDC Exchange Dynamic Pricing Taxes Next Generation Storefront

28 Continue the move to Industry Single Source of Tax Data and Automation 28 Closes the gap between distribution and revenue accounting Reduces rejection in the back office environment Supports NDC Initiative

29 Tax Concept 29 Q End of years Today Phase 1 Phase 2 Phase 3 IATA Industry Resolution New RATD Industry Interline Tax Calculator Industry Tax Reference Real Time Tax Engine

30 Four initiatives to assist the industry in this NDC & traditional distribution world 30 NDC Exchange Dynamic Pricing Taxes Next Generation Storefront

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32 Routehappy offers multiple types of rich content 32

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