You are on page 1of 20

AIRLINE DISTRIBUTION

Leveraging the power of smart distribution technology

Positioning Paper

Specialists in air transport communications and IT solutions

Contents

Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Room to grow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 An integrated approach to customer service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Making distribution more effective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 How can airlines improve distribution? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Making it easier and better to book online . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Extend the geographic reach of online direct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Tap into agency and corporate online direct bookings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Grow the proportion of direct revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Maximize customer online self-service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Case study VLM Airlines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Streamline airline reservations agents operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 The benets of smart distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Horizon SITAs leading edge distribution portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 About SITA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Annex Horizon portfolio detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Notes and references . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

SITA 2009

AIRLINE DISTRIBUTION 3

Executive summary

For marketing, sales and information technology executives responsible for developing or driving airline distribution strategies, this document will provide an overview of the main distribution issues facing airlines today, and details a range of solutions for making distribution both more effective and less costly. More specically, youll learn how SITAs Horizon portfolio can help you address distribution challenges while driving further cost reductions, better returns on investment, and innovative strategies for tapping new revenue streams.
Todays airlines need agile, cost-effective distribution solutions to sharpen their competitive edge and help them respond quickly to fast-changing market conditions and passenger expectations. The biggest single challenge faced by airlines today is staying protable. Having lost money in every year from 2001 to 2006, the industry as a whole turned a prot in 2007, but margins are still wafer thin (just 1% last year), and airlines are still far from the prot of US$40 billion a year which IATA says would be necessary to make the industry sustainable1. In todays highly competitive, cost-conscious environment, airlines must look for protable growth and develop the responsiveness needed to manage both future opportunities and market disruptions. One answer is smart, cost-effective distribution solutions, which offer opportunities for rapid gains through the adoption of new technologies and business models. The dramatic growth of online channels has already irrevocably changed the face of distribution. Airlines are using e-commerce to radically transform their business models, capitalizing on the strength of their direct distribution capabilities to slash overhead costs. The need to trim costs is also driving a hybrid approach whereby airlines leverage a variety of different distribution strategies ranging from direct-only to multi-channel, shifting their business to the most efcient, lowest-cost channel for each different market environment. But while many airlines have already signicantly reduced their distribution costs, there is still much that can be achieved, and different distribution solutions still remain a major point of differentiation between airlines. In a world where the vast majority of airlines sell via the web2, SITA has the technological know-how and expertise to optimize the effectiveness of all distribution channels helping carriers broaden their market reach, increase revenues and maximize the benets of online passenger self-service while streamlining call centre and remote sales locations. SITA has over 25 years experience supporting the distribution management needs of over 150 airlines globally. And SITA know-how allows for the seamless integration of the third party systems that are increasingly vital to airlines business continuity and growth.

4 POSITIONING PAPER

SITA 2009

Room to grow

SITAs 2008 Airline IT Trends Survey3 revealed that over 90% of airlines are now using their own website to sell tickets. While the average percentage of tickets sold through airline sites industry-wide is still below 25%, some carriers are handling upwards of half their ticket sales through their own sites. But despite the industrys success in dramatically reducing the overall cost of distribution, theres still much room for improvement in the way airlines leverage their most cost-efcient distribution tools. The aggressive direct sales strategies of low cost carriers have enabled them to build impressive market share by passing on cost savings in distribution to their customers, in the form of lower fares. But many full-service airlines have less room for manoeuvre because of agreements to provide full content for distribution through GDSs. That means they cant differentiate their online channel on price alone, and must seek other ways to actively engage with their customers, to build loyalty and repeat purchasing behaviour. Online travel agencies are another relatively new channel favoured by many airlines. For passengers, much of their appeal is based on the convenience of being able to purchase multiple travel components in one place, with some shoppers saying they value this time-saving one-stop shop approach as much as they value low prices4. Its worth noting, however, these sites target the same prole traveller that would be likely to book directly via the airlines own site but at a higher cost to the airline.

In developing effective distribution strategies for evolving markets, airlines need to be mindful of what really builds customer loyalty and ensure that the features of their direct sales outlets support the desired balance across chosen channels. A solid understanding of customer needs relating to value, choice, convenience, service and a pleasant purchasing experience is an essential starting point. Airlines must adopt a thoroughly customer-centric perspective, and learn to think more like retailers.

SITA 2009

AIRLINE DISTRIBUTION 5

An integrated approach to customer service

Getting customers to buy direct means providing attractive content and convenient booking capabilities tailored to each type of purchaser in all target markets. In a highly competitive environment, airlines must be able to adapt the features of direct distribution strategies to changing market conditions, customer expectations and evolving business strategies. From a technology point of view, providing direct sales and customer service whether online or via a contact centre typically involves multiple systems and information sources spanning:
I I I I

Reservations Pricing Frequent yer account information Non-air travel components such as hotel, car, and travel insurance, and multi-currency payment processing systems.

While some of these systems may be based on next-generation open platforms, others may not have been built for the Internet age. Thats why SITAs Horizon portfolio orchestrates these systems to operate seamlessly in a streamlined customer service environment. This approach also adds exibility by allowing airlines to add, remove, swap or upgrade components without the need for a complete system overhaul.

An airlines direct market touchpoints can encompass leisure travel consumers, business travellers, the airlines own reservations agents, and retail travel agents each of which need different types and levels of functionality from the direct booking channel. Any future-proof solution must be able to translate the booking capabilities of the platform through multiple interfaces that provide exactly the right experience for each user. Incorporating the right tools and functionality will help airlines stake out a strong position as the channel of choice for each type of customer.

6 POSITIONING PAPER

SITA 2009

Making distribution more effective

As margins grow thinner, airlines are under continuous pressure to strengthen their direct channel. But for real, long-term benets, its important that the supporting technology not only fully enables each airlines current strategy, but offers the exibility and scalability to support future growth.

How can airlines improve distribution?


I I I I I I

Make it easier and better for customers to book online. Extend the geographic reach of online direct. Tap into agency and corporate online direct bookings. Grow the proportion of direct revenue. Maximize customer online self service. Streamline airline reservations agents operations.

Making it easier and better to book online


Better website design, advanced functionality and useful, targeted content can transform the online shopping experience. First-time customers are usually drawn to the website by a desire to get the best deal. But theyre retained as loyal online shoppers through power shopping tools that help them quickly locate the prices and services they want. SITAs Airfare Shop offers calendar, price-led and other power shopping tools that dramatically improve the way customers and agents retrieve fare information and availability. Airfare Shop makes it easy to identify available fares across multiple dates using search criteria such as lowest price, weekend travel and direct only. Airfare Shop also helps airlines shift demand to low-occupancy ights by ensuring high visibility of promotional pricing.

SITA 2009

AIRLINE DISTRIBUTION 7

Extend the geographic reach of online direct


Airlines looking to grow their business can leverage the global growth of web-based services and e-commerce to penetrate international markets. But success in the global marketplace depends on being able to support multiple languages, offer pricing in multiple currencies, provide exible payment options, and impose business rules appropriate to each market. While web design rms provide solutions for displaying the static content of a website in multiple languages, the booking engine also needs to be able to translate dynamic content, such as city names, fare rules, user prompts, and eld names. SITA E-Commerce provides a dynamic text translation capability and displays the appropriate fare according to the country of sale. Accepting a broader range of payment types is an effective way of further driving down distribution costs while driving up online sales. While web bookings have traditionally grown faster in markets with high levels of credit card possession, in many countries credit cards are not used extensively, or are not the favoured purchase mechanism. In Germany, for example, only 24% of online leisure travellers prefer credit cards, while 45% prefer direct electronic bank transfer5. The merchant fees associated with credit card payment are also prompting some airlines to levy surcharges for their use. Supporting alternative forms of online, ofine and mobile payments direct debit, open invoicing, PayPal, Bill Me Later, Western Union and others, as well as the airline-owned Universal Air Travel Plan corporate travel payment network helps extend market reach to corporate bookers, lower-income households, older travellers and ethnic communities. It also addresses the security concerns that drive some leisure travellers who research online to book ofine. As many as 32% of US leisure lookers cite security as a reason for booking ofine6. Payment security and credit card fraud were also cited as the most important business issue associated with online travel sales in SITAs 2008 Airline IT Trends Survey. SITA E-Commerce can integrate a comprehensive range of payment processing solutions tailored to a target country or region. It also provides a book and hold capability, setting a time limit for the customer to make a payment at an airline ofce or other authorized location, such as a convenience store or bank.

8 POSITIONING PAPER

SITA 2009

Tap into agency and corporate online direct bookings


Many airlines have existing direct booking relationships with travel agencies. In non-domestic locations, a general sales agent (GSA) is also frequently involved, representing the carrier to distributors in each country. These special relationships with agency groups allow airlines to leverage preferential agreements that reduce distribution costs and provide important sales incentives in the form of agency commissions. Airlines also have special relationships with corporate customers and may wish to offer a portal through which a companys business travellers can make direct bookings, rather than going via an agency. While many large corporations already use online travel management tools from travel management groups and GDS suppliers to enforce travel policies and processes, there remains a huge untapped market for unmanaged travel solutions among small and medium enterprises. SITAs E-Commerce portfolio gives airlines the opportunity to extend tailored direct booking to travel agency groups and corporate customers in chosen markets. The travel agency module provides an Internet portal that allows agents to sign-in for access to booking capabilities and customer prole information using their existing desktop booking console. It also supports advanced reporting capabilities, and the ability to access multiple customer accounts and to view special fares. The corporate module provides a user-friendly portal for business travellers comprising air travel search and booking tools, as well as access to negotiated fares. Airlines can use standard reports to track productivity and reward or rebate corporate customers accordingly.

SITA 2009

AIRLINE DISTRIBUTION 9

Grow the proportion of direct revenue


Airlines are discovering that the ability to offer ancillary services can make a major difference in generating repeat purchase activity at their own points of sale, as well as serving as a valuable source of additional revenue. Ancillary revenue sources encompass passenger services such as food and beverages, checked baggage, seat assignments, priority ight boarding charges, in-ight entertainment and merchandise sales. Some airlines have also adopted the cinema model by cross-selling revenue-generating non-air components, such as commissions on the sale of hotel accommodation, car rental, bus transfers, lounge access and travel insurance.

Low cost carrier business models are prompting many airlines to unbundle their pricing, allowing customers to purchase a basic airfare and then pay for the extra services they require. During Ryanairs scal year 2007, some 42 million passengers contributed ancillary revenue in excess of 362 million an amazing 8.50 per passenger carried7.
SITAs E-Commerce portfolio is designed to help airlines maximize up-sell and cross-sell opportunities through the provision of sophisticated fares shopping, the ability to drive incremental revenues through booking-related service fees, and the integration of relevant third-party revenue-generating ancillary content. In addition, SITAs Airfare Shop helps airlines maximize every up-sell opportunity by providing calendar displays that make it easy for customers to see all available fare options that match their needs, rather than just the cheapest.

10 POSITIONING PAPER

SITA 2009

Maximize customer online self-service


The more customers can self-serve, the less an airline has to provide in the way of personalized customer service. This is particularly true when it comes to changes and cancellations for pre-booked tickets. According to the Airline Tariff Publishing Company (ATPCO), almost one air ticket in ten is reissued at least once before travel is completed. Modifying a reservation and re-issuing a ticket has traditionally been a labour-intensive process requiring the support of a contact centre agent dealing with paid tickets, frequent yer award tickets, and changes to the itinerary, date and time, and class of service. The upside, however, is that ATPCO estimates that each change to a ticket can generate an additional US$160 in revenue, when higher fares and cancellation penalties are taken into account. Enabling customers to make their own trip modications online represents major savings in employee resources and extends the customer self-service experience, offering more convenience to passengers through 24/7 service availability, no waiting time and full control over their trip planning. SITA E-Commerce helps airlines take maximum advantage of this valuable source of incremental revenue by enabling users to retrieve bookings and upgrade fare type, change travel dates or cancel reservations, redeem frequent yer points, and provide the advance passenger information required by certain border security agencies.

Case study VLM Airlines


VLM Airlines was able to realize signicant benets by directly interfacing SITA E-Commerce to its inventory, hosted by SITA Reservations. VLMs web booking site now displays multiple fare options, enabling customers to select the appropriate service level for the desired itinerary. With cost reductions of well over 5 per PNR, and direct GDS bookings down from over 80% of total bookings to around 60%, VLM Airlines is realizing annual savings of close to 1 million, or 1% of the carriers annual turnover. Web-based check-in is another self-service component thats growing fast. Compared with traditional desk check-in, online check-in delivers a cost saving of as much as US$5.34 for passengers without baggage, according to IATA estimates8. In addition to added convenience for passengers, online check-in benets airports and airport users by reducing congestion and pressure on staff resources. SITA provides off-airport check-in through its PassengerWeb Check-in and PassengerMobile Check-in solutions, and is also a major supplier of kiosk check-in systems based on its Passenger FastCheck solution.

SITA 2009

AIRLINE DISTRIBUTION 11

Streamline airline reservations agents operations


Direct strategies also include an airlines own reservations agents, working in a number of different environments ranging from traditional contact centre operations, ticketing ofces and remote stations to outsourced contact centres, ground handling agent ofces and even home ofces. While reservations agents have long been accustomed to green screen interfaces, these are time consuming to learn and cannot easily be integrated with other systems such as frequent yer systems, payment gateways and local fares systems. And while contact centres remain a very important direct channel for airlines, representing over 15% of all ticket sales9, concerns over costs and agent productivity is prompting many airlines to opt for the exibility of outsourced call centres and home-based outworkers. For airlines, the greatest rewards will come from using exible pools of agents, trained in customer service and sales techniques, and armed with the right tools. SITA Reservations Desktop addresses these needs by eliminating green screen terminals. Reservations Desktop users dont need to know cryptic host commands; instead, all functionality can be accessed using simple, intuitive, easy-to-navigate screens. This reduces training times from weeks to hours, and ensures that even occasional users are productive immediately. Airlines can also use their telecommunications infrastructure to improve contact centre performance and efciency for example, by pre-qualifying calls and providing self-service capabilities. Airlines might also want to balance call loads across multiple contact centres, optimize calls according to time of day, country of origin, or call quota, or route calls to the agents best qualied to address specic needs. Airlines able to take advantage of shared cost and premium-rate numbers can also generate additional revenue for services where the customer elects not to use a self-service option. SITA offers a number of advanced communications applications for contact centres, including a comprehensive suite of highly exible, feature rich, managed products and services for inbound call management. These enable airlines to improve their contact centre service and maximize revenue generation on a global scale.

12 POSITIONING PAPER

SITA 2009

The benets of smart distribution

In summary, leveraging smart, cost-effective distribution solutions brings:


I I I I

An opportunity to establish direct relationships with customers and better understand their needs. The chance to slash distribution costs compared with traditional travel agency/GDS channels. The ability to leverage negotiations with third-party distribution channels. An extension of the corporate brand and customer experience.

Online channels also provide additional advantages including:


I I I

Support for market segmentation geographic, demographic and lifestyle. Faster response to changing market conditions. Ubiquity a storefront thats open to everyone, everywhere, at all hours.

SITA 2009

AIRLINE DISTRIBUTION 13

Horizon SITAs leading edge distribution portfolio


SITA addresses airlines needs for improved direct distribution through its Horizon portfolio a suite of inter-related technologies that supports advanced airline distribution and customer management strategies. SITA offers a comprehensive distribution and customer management solution based on its SITA Reservations host. A number of components are also available separately, and can be tailored to support a range of host and data systems. SITA Reservations is the worlds largest international, neutral, multi-host system, handling 110 million passengers per year and supporting the full spectrum of airline multi-channel distribution. SITA Reservations provides the ability to distribute via all nine GDSs as well as via partner airlines and alliances. It also supports tier processes including priority waitlisting, seating and re-accommodation. Partner Access is an optional function that provides airline agents and code share partners with full access to last seat availability, allowing them to be able to sell, conrm and view seat map availability. SITA Reservations also offers sophisticated nesting and point-of-sale parameters that enable airlines to manage inventory control precisely.

Tailored solution sets


Fares Management and Pricing: Expansion into the online direct space comes at the risk of yield erosion and loss of customer loyalty caused by the transparency of fares and the relative ease with which consumers can comparison shop across channels. Through a solution set based on SITAs Airfare suite, SITA enables smarter pricing through competitive fares analysis and fast and accurate response to market changes. SITA is the only organization that provides a fully integrated, end-to-end airfare distribution and pricing solution. Revenue Optimization: A tailored solution set aimed at improving operational margins through revenue retention and increased yields for example, by helping airlines sell more tickets, even in a highly competitive business environment, while maximizing revenue per ticket, increasing revenue retained and expediting revenue recognition. Includes SITAs Revenue Management, Revenue Integrity, and Passenger Revenue Accounting products, along with competitive monitoring using Airfare Insight. Passenger Management: This solution provides as-needed access to a exible foundation of core customer management systems reservations, inventory management, check-in, pricing and ticketing - which underpin distribution and customer management processes. The components of this solution provide functionalities that enable airlines to perform key tasks while also helping them grow and adapt, support multi-channel distribution, improve operational management, efciency, business performance and customer service. Includes SITA Airfare Shop, SITA Departure Control Services, SITA Reservations Web Services and SITA Ticketing. Distribution Management: SITAs exible, state-of-the-art distribution management solution empowers airlines to control and optimize the effectiveness of all their distribution channels and help them broaden their market reach. As a result, airlines will benet from increased revenues, simplied online passenger self-service, improved customer service and streamlined call centre and remote sales locations. Includes SITA E-Commerce, SITA Integration Platform, SITA Airfare Shop, SITA Revenue Optimization and SITA Contact Center Solutions.

14 POSITIONING PAPER

SITA 2009

Business transformation
When it comes to redening distribution, airlines need more than just technology. Effectively managing change requires an in-depth understanding of the travel industry and expertise in a full range of ATI business processes. SITAs Business Transformation consulting service is dedicated to ensuring our customers realize the maximum possible business benets from our Horizon portfolio. Our Business Transformation team is entirely focused on helping our customers leverage the right solutions to cut costs, improve performance, adapt to changing direct and third-party distribution trends and boost their bottom line.

About SITA
We are the world's leading specialists in air transport communications and IT solutions. We deliver and manage business solutions for air solutions for airline, airport, GDS, government and other customers over the worlds most extensive network, which forms the communications backbone of the global air transport industry. Created and owned by the air transport community, SITA is the communitys dedicated partner for information and communications technology. As a team of industry experts, our know-how is based on working with customers across the global air transport community. Almost every airline and airport in the world does business with SITA. SITA innovates collaboratively with the air transport industry, and the industry itself drives the companys portfolio and strategic direction. Our portfolio includes managed global communications, infrastructure and outsourcing services, as well as services for airline commercial management, passenger operations, flight operations, aircraft operations, air-to-ground communications, airport management and operations, baggage operations, transportation security and border management, cargo operations and more. With a customer service team of over 1,600 staff around the world, we invest significantly in achieving best-in-class customer service, providing integrated local and global support for both our communications and IT application services. We have two main subsidiaries: OnAir, which is the leading provider of in-flight connectivity, and CHAMP Cargosystems, the world's only IT company dedicated solely to air cargo. We also operate two joint ventures providing services to the air transport community: Aviareto for aircraft asset management and CertiPath for secure electronic identity management. In addition, we sponsor .aero, the Internet top level domain reserved exclusively for aviation. We are one of world's most international companies. Our global reach is based on local presence, with services for over 550 air transport industry members and 3,200 customers in over 200 countries and territories. In 2009, SITA celebrates 60 years in business. Set up in 1949 with 11 member airlines, today we employ people of more than 140 nationalities, speaking over 70 different languages. SITA had consolidated revenues of over US$1.42 billion (1.06 billion) in 2007. For further information go to www.sita.aero.

SITA 2009

AIRLINE DISTRIBUTION 15

Annex Horizon portfolio detail

As highlighted earlier in the document, SITA addresses airlines needs for improved direct distribution through its Horizon portfolio a suite of inter-related technologies that supports advanced airline distribution and customer management strategies. SITA offers a comprehensive distribution and customer management solution based on its SITA Reservations host. A number of components are also available separately, and can be tailored to support a range of host and data systems. SITA Reservations is the worlds largest international, neutral, multi-host system, handling 110 million passengers per year and supporting the full spectrum of airline multi-channel distribution. SITA Reservations provides the ability to distribute via all nine GDSs as well as via partner airlines and alliances. It also supports tier processes including priority waitlisting, seating and re-accommodation. Partner Access is an optional function that provides airline agents and code share partners with full access to last seat availability, allowing them to able to sell, conrm and view seat map availability. SITA Reservations also offers sophisticated nesting and point-of-sale parameters that enable airlines to manage inventory control precisely. SITA Reservations Web Services (SRWS) lets an airline design its own applications using SITAs XML application programming interface, for secure, direct connectivity to the SITA Reservations host. This new interface provides the openness, exibility, platform independence, security and performance needed to support new and emerging customer service and distribution strategies. SITA Reservations Desktop is an intelligent, intuitive graphical user interface that gives reservations agents access to all relevant data in a single application, including SITA Reservations, SITA E-Ticketing and SITA Airfare, without having to learn cryptic legacy terms and technology. SITA Reservations Desktop helps reduce training costs, improves customer service, reduces agent errors and increases revenues from both experienced and novice airline reservations agents in central or remote locations. SITA E-Commerce provides a comprehensive range of solutions that enable airlines to manage multi-channel direct distribution and to maximize up-sell and cross-sell opportunities. E-Commerce incorporates fares shopping (through Airfare Shop) and allows customers to rapidly access available fares and ight options, make reservations, pay online, store their personal information and preferences for easy recall, complete the advance passenger information required by border security agencies, and view and re-use past itineraries. The solution supports brand and multi-channel faring objectives, multilingual/multi-currency requirements, and frequent yer point redemption, as well as integrating customer or market-specic ancillary non-air content. It also supports the change/cancel/rebook processes and supports book and hold reservations. SITA E-Commerce can be integrated with a range of payment process providers to support the most prevalent forms of payment for each marketplace. SITA E-Commerce can also be used to provide a portal for unmanaged corporate travel offering the same advanced booking capabilities. When combined with SITAs private fares distribution capability, SITA E-Commerce enables airlines to distribute fares to individual customers or customer groups. In addition, the SITA E-Commerce airline-to-agent portal provides an interface for GSAs and travel agents to support professional-level booking capabilities and management functions. SITA E-Commerce allows an airline to monitor responses to marketing activity and customer booking behaviour, for accurate tracking of online strategies. In addition, airlines can leverage customer prole information to support new marketing activities. SITA Airfare Shop breaks new ground with e-commerce shopper tools that provide complete airline support for direct sales, whether via the web or agent-supported channels, including availability-led shopping. With support for multiple host reservations systems, Airfare Shop supports calendar displays of airfare prices for which there are available seats. These displays can be customized using an XML data feed to display many ight and fare combinations over multiple days, to help customers nd seats at the best price. If the customer seeks a promotional fare, the best available price calendar locates the cheapest fares on a given day or across multiple days.

16 POSITIONING PAPER

SITA 2009

Airfare Shop supports airline load objectives by improving the visibility of promotional fares and helps make the airline site the channel of choice for customers. Airfare Shop can be integrated into any Internet booking engine and is fully integrated with SITA E-Commerce. SITA Integration Platform uses technology to simplify distribution and improve customer service requires the close integration of multiple airline applications, including back-end systems such as central reservations systems (CRSs), GDSs, mainframe applications, loyalty systems and fares databases. To provide simple integrated access to these assets, airlines need to deploy smart middleware and tools to allow them to communicate with new applications and interfaces, including web applications and wireless servers, desktop and other front-end applications, and customer relationship management (CRM) and content management systems (CMS). By de-coupling back end, front end and supporting systems, IT managers can interchange individual system components to take advantage of new technology when it becomes available or necessary, without the need for a complete system overhaul. SITA Integration Platform links multiple legacy systems, together with the business process views required by the airlines different types of customer. Supporting multiple host reservations systems, SITAs integration approach provides exceptional levels of exibility, enabling an airline to evolve its technology infrastructure and components in tandem with its distribution strategy.

Complementary applications include:


Passenger FastCheck SITAs kiosk check-in application, which can operate in a dedicated or common use conguration. PassengerWeb Check-in SITAs web check-in application, allowing airlines to easily deploy web-based check-in on their sites, and passengers to check-in from any web-connected location. PassengerMobile Check-in SITAs mobile check-in application, accessible via a web browser on a mobile phone or other portable device. SITA Contact Centre Solutions include a comprehensive suite of highly exible, feature-rich products and services for inbound call management. The suite includes provision for various types of access to phone numbers including toll-free, shared cost and shared revenue numbers; a switched voice network to collect inbound calls from different origins/countries and deliver them economically to the designated contact centres; and value added services including advanced call routing features, qualication and performance optimization.

SITA 2009

AIRLINE DISTRIBUTION 17

Notes and references

1 Speech by IATA Director General and CEO Giovanni Bisignani at the World Air Transport Forum, 18 October 2007, available at http://iata.org/pressroom/speeches/18-10-2007-01. 2 2008 Airline IT Trends Survey published by Airline Business magazine (www.airlinebusiness.com) and SITA (www.sita.aero). Over 90% of airlines surveyed sell via the web. 3 Ibid. 4 PhoCusWright: Consumer Travel Trends Survey Seventh Edition. 5 Forrester: Travel Sellers Should Adopt Alternative Payment Options, February 2007. 6 Forresters NACTAS Q4 2006 Healthcare, Travel and Customer Experience Online Survey. 7 Ideaworks 2008 Ancillary Revenue Guide available at www.airlineinformation.org/guide. 8 See IATA StB Support Portal at www.iata.org/stbsupportportal 9 Source: 2008 Airline IT Trends Survey.

18 POSITIONING PAPER

SITA 2009

SITA 2009

Specialists in air transport communications and IT solutions


For further information, please contact SITA by telephone or e-mail:
Africa +27 11 5177000 info.africa@sita.aero East & Central Europe +41 22 747 6000 info.east.central.europe@sita.aero Latin America & Caribbean +55 21 2111 5800 info.latin.america.and.caribbean@sita.aero Middle East & Turkey +961 1 657200 info.middle.east.turkey@sita.aero North America +1 770 850 4500 info.northamerica@sita.aero North Asia & Pacific +65 6545 3711 info.north.asiapacific@sita.aero North Europe +44 (0)20 8756 8000 info.northeurope@sita.aero South Asia & India +65 6545 3711 info.south.asia.india@sita.aero South Europe +39 06 965111 info.southeurope@sita.aero

SITA 09-THW-019-3. All trademarks acknowledged. Specications subject to change without prior notice. This literature provides outline information only and (unless specically agreed to the contrary by SITA in writing) is not part of any order or contract.

You might also like