Transcript Slide 1

Future of Distribution
Jürgen Witte
Regional Managing Director
Germany & Switzerland
Travelport GDS
Tenerife, April 08, 2011
Talking about…
Travelport Corporate Background
Current GDS performance
Future of Distribution
uAPI, Universal Desktop, Caching
...your questions, ideas, remarks....
2
Travelport Corporate Background
Facts & Figures
5.500 employees in 160 markets
600 airlines, thereof > 60 Low Cost Carrier
90.000 Hotels
30 Car Rental Companies, 30.000 stations
> 70.000 agencies worldwide
4
Global Distribution Systems: Evolution of the Big 6
• 1960: American Airlines founded Sabre, 1976 first travel
agency terminal
• 1971: United Airlines founded Apollo
• 1971: START (LH, DB, TUI) -> 2001-03 Amadeus
• 1975: Abacus by JAL, SIA, Qantas etc.
• 1986: Initiation of Galileo by British Airways, KLM, Alitalia,
Swissair, US Air, Austrian Airlines, Air Canada...
• 2007: Merger Apollo/ Galileo / Worldspan -> 2009 under
Travelport GDS
• 2010: Initial Public Offer from Amadeus
5
How a GDS customer sees the circumstance…
1975
The first digital camera,
developed by Steve Sasson,
Kodak
Weight: 3,5 KG
Pixel: 10.000 (oder 0,01 MP)
Media: Cassette,
Black/White,
displayed via TV
6
Travelport ownership overview
Blackstone
11.3% 7.0%
11.3%
70.3%
Technology Crossover
Ventures
One Equity Partners
Management
Company
Position
% of Total
Shares Outstanding
Blackstone
818,706,823
70.3
Technology Crossover Ventures
132,049,488
11.3
One Equity Partners
132,049,487
11.3
82,064,177
7.0
Management
Source: Travelport
6
Travel industry dynamics
End-Consumers have multiple ways of buying travel; either through
agencies or direct with suppliers. Corporations also have the added benefit
of utilizing self-booking tools
8
Agency and corporate customers
60,000+ travel agencies worldwide
Global Corporate
Agencies
Leisure & Corporate
Agencies
Online Travel
Agencies
Corporations
9
Airline customers
• 430 Airlines including over 70
low cost carriers
• Over 4bn fares available
• 46m air searches every day
• Over 327m air segments annually
• 40% of our Top 10 customers
total bookings are made outside
of their country of origin – only
possible because of the reach of
the GDS
10
What our customers are telling us...
“We need a global reach but also
support for local requirements”
responsibility
“We want help in reducing costs”
“We need
strong, robust and
flexible technology”
“We need online
solutions to make it
easy for our customers
to book travel”
“We need to be able to compete using
solutions that grow our business”
11
“We need to
differentiate
ourselves from
the competition”
“We need analytical
Intelligence to
maintain vision and
control of our
business”
Which translate into these customer needs
SUBSCRIBERS
TRAVEL
SUPPLIERS
Access to global & local content
Global reach and local expertise
Competitive fares & rates
Tools to save time, money and
make processes more efficient
Technologies & services that
reduce costs and generate
revenue opportunities
Stand out in the crowd in
order to get and keep
customers
A committed partner
positioned to support
unique requirements
13
How Travelport meets these needs
TRAVEL
SUPPLIERS
SUBSCRIBERS
Access to relevant,
rich & diverse content
Comprehensive low prices
Distribution to
60,000
agents worldwide
Convenience
Grow revenue streams
Reliability
Extend brand reach
Flexible technology solutions
Merchandising
Efficiency tools
Pricing flexibility
Control
14
VALUE
Travelport value proposition
Empowering
your business
globally
through local
focus
15
Delivering
solutions
you need
Building
valuable
partnerships
Innovation to
keep you
competitive
Empowering your business globally through local focus
Our global reach
Travelport has the size, scale and scope to shop, price, book and
aggregate content from multiple suppliers on behalf of multiple travel
agencies on behalf of millions of travellers in one place, seamlessly
Multiple Suppliers
600 airlines
Over 87,000 hotel
properties
30 car rental
companies
Over 400 cruise and
tour operators
13 major rail
networks
Size & Scale
5,700 employees worldwide
Over 4bn stored fares
65 mm daily searches for pricing and
availability
Dynamic connection build
1 billion messages per day
160 countries
60,000+ travel
agencies
Travel management
companies
Corporations
Real time booking
Comprehensive low fares and rates
Travel intelligence services
Mission critical IT services
and software
16
Multiple Agencies
& Travellers
Tour
Operators
Metasearch
Empowering your business globally through local focus
Our local focus
Our local account, development and technical teams are positioned
close to our customers to support local needs.
Areas we invest in locally
• Account management
• Product management
• Helpdesk support – including
ASK Travelport
• Partner marketing with
our customers
• Local technology partnerships
• Training
• Localised product &
marketing material
• More than 40 local websites
• Business conducted in
29 languages
17
Solutions that save cost –
Travelport Rapid RepriceTM
Delivering the solutions you need
Travelport Rapid RepriceTM - The industry’s first and most sophisticated
automated re-pricing tool
Quickly and accurately
calculates a new fare
reflecting appropriate
fare rules, taxes, and
other fees in any
currency .
Reprices
fare in
less than
1 minute
And by completely
automating the ticket exchange
and re-price process online,
increases customer satisfaction.
“Our strategy to deploy efficient technologies made Rapid Reprice a good
fit for United Airlines. The product has provided financial and operational
benefits while improving the overall service we deliver to our customers.
We are very pleased with this innovative solution.”
United Airlines
19
Innovation - Unprecedented low-fare
pricing options worldwide
Innovation to keep you competitive
Average
savings of
According to the latest International study (Dec 2008),
Travelport e-PricingTM:
• Returns lowest fares most frequently
• Found lower fares most often
• Generates the greatest average savings per ticket
$68.13
per ticket , or
9.4% over the
competition
• Delivers the lowest average ticket price
“We are able to search for a wider selection of low-fare options and
flight combinations in seconds, allowing us to maintain a high level
of competitiveness in the market.“
Antonella Marchesi, Site Manager
Easy Market S.pA, part of TUI Travel Italy
20
Delivering high return for today’s airlines
Achieving competitive advantage through innovative technology
Selected Customers
Protect mission
critical operations
Cost-efficient hosting utilising
common architecture
infrastructure
Capture lost
revenue
Solutions to improve
profitability and maintain
revenue integrity
Connectivity to the
world
A suite of messaging hubs
allowing easy connection
to partners
Expand revenue
opportunities
Business insights and
innovative solutions to grow
your business
21
Airline hosting
World class data centres operating at the highest industry standards and
compliance requirements
“Travelport knows what it takes to support
mission critical infrastructure to a global
business. Combine that with strong
operational staff and you have a recipe for
success. Travelport is more of a partner
than a vendor.”
Douglas Register, Vice President
Service Management & Engineering
Information Services Division
Tony Thierjung
Director of Operations Management
United Airlines
22
•
•
•
•
Two out of the three largest
U.S. airlines are clients
Secure, infrastructure –
independent site in Atlanta
Provides significant cost
savings allowing clients to
focus on their core business
Unprecedented 10+ year track
record of zero data center
downtime
IT solutions
Capture Lost Revenue
• Fare Verified: Pre-ticketing audit
tool, eliminating under priced
tickets and reducing fraud
Expand Revenue Opportunities
• Rapid Reprice: Automated ticket
re-issue tool, eliminates manual
processes
• Reservation Sales Solution (RSS) - Single link
to Travelport GDS with access to over 430
airlines, 280 hotel chains and 25 car companies
• Electronic Miscellaneous Documents (EMDs) Utilizing ATPCO Optional Service fees, document
and track charges not provided for on a passenger
ticket (e.g. residual value, miscellaneous charges,
excess baggage), in development
Connectivity to the Rest
of the World
Interchange Suite: suite of
messaging hubs that allows for
quick and easy connection to
airline partners and provides a
rapid deployment methodology
23
• Electronic Credit Vouchers (ECVs) - Create,
store and redeem electronic credit vouchers for
Travel Credit Vouchers, Reference Documents,
MCOs or Gift Certificates
Competitive industry insights and analysis
Providing affordable industry intelligence for smarter, more profitable
business decisions
Travelport
expertise:
Customer
necessities:
Competitive
insight
Cost
management
Identification of
new opportunites
Market strategy
development
Market share
growth
Increased
revenue
24
Custom Solutions
for:
Market, network & sales planning
Airline Business Performance
Insights to Market Opportunities
Scheduling
Travelport AcuityTM
Travelport DiscoverTM
Industry
knowledge
GDS booking &
share data
Data expertise
Analytical
experience
Solutions to
reduce costs
Ability to merge
multiple data
sources
The Future of Distribution
The future: Innovation and Changes
Integrating into the customer, not vice versa!
26
Universal API (uAPI)
Travelport Universal API – Architecture
Standalone API Offering
OTA’s &
Travel Agents
Software
developer &
Supplier
“...access to a centralized
selling & service platform.”
Travelport POS Engine
Corporate &
Multi
National
Universal
Desktop
Traversa
ViewTrip
Universal API
Supports individual GDS functions as structured messages
Multi GDS
AIR
CAR
HTL
Rail
Content
Hub
Air
Content
Hub
Planned development
2828
Supports wrapped processes (similar to Encapsulated
Business Logic modules on GWS)
Merchandis
ing Hub
Universal
Record &
Profile
New content
Future
Universal Desktop
3030
Travelport Company Confidential
31
31
3232
Dashboard/ Activity Panel
Dashboard
• Search
• Reports
• Data Tracking
• InBox
Activity Panel
• Links
• Messenger
• Contacts
3333
Travelport Company Confidential
Booking GUI & Workflow
Workflow
(Runways)
Merchandising
(Optional
Services)
Profiles
(Traveler
Profile)
Policy
(Air Policy)
Direct
Connect
3434
Travelport Company Confidential
GDS
Air
Terminal
Terminal Entry
•
•
•
•
•
3535
Travelport Company Confidential
Galileo
Worldspan
Apollo
Sabre
Amadeus
(WIP)
Flightplayer (T‘Cache)
• Travelport FlightPlayer - T´Cache “Published Fares”
Overall Work-Flow:
Fulfillment
Booking via GWS / uAPI
TO 1
Fulfillment
PCC TO1F
TO 2
Fulfillment
PCC TO2F
Travelport
GDS
Galileo
TO 3
Fullfillment
PCC TO3F
Tour Operator
Travelport
Request via HUB
TO 1
Booking
Front End
PCC TO1B
TO 1
Peakwork
HUB/Dyna
Player
TO 2
Booking
Front End
PCC TO2B
TO2
Peakwork
HUB/Dyna
Player
TO 3
Booking
Front End
PCC TO3B
TO3
Peakwork
HUB/Dyna
Player
Tour Operator
Loading
PSE Flight
Player
Travelport
Flight Player - - - - - - - - - - - Centralised
PCC TPTC
T´Cache
Published Fares
Market Specific
T´Cache
Generator
Travelport
Arrow colour legend: fulfillment transaction booking transaction Peakwork transactions content loading transaction
37
Travelport
GDS
Galileo
• Travelport FlightPlayer - T´Cache “Private Fares”
Overall Work-Flow:
Fulfillment
Booking via GWS / uAPI
TO 1
Fulfillment
PCC TO1F
TO 2
Fulfillment
PCC TO2F
Travelport
GDS
Galileo
TO 3
Fullfillment
PCC TO3F
Tour Operator
Travelport
Request via HUB
TO 1
Booking
Front End
PCC TO1B
TO 1
Peakwork
HUB/Dyna
Player
TO 2
Booking
Front End
PCC TO2B
TO2
Peakwork
HUB/Dyna
Player
TO 3
Booking
Front End
PCC TO3B
TO3
Peakwork
HUB/Dyna
Player
Tour Operator
Loading
PSE Flight
Player
Travelport
Flight Player - - - - - - - - - - - TO 1 Specific
PCC TO1PF
T´Cache
PrivateFares
TO Specific
T´Cache
Generator
Travelport
Arrow colour legend: fulfillment transaction booking transaction Peakwork transactions content loading transaction
38
Travelport
GDS
Galileo
• Travelport FlightPlayer - T´Cache
“Published and Private Fares”
TO 1
Peakwork Hub
TO 2
Peakwork Hub
PSE Flight
Player
PSE Flight
Player
PSE Flight
Player
Travelport
Flight Player
Travelport
Flight Player
Travelport
Flight Player
TO 1 Specific
Centralised
TO 2 Specific
PCC TO1PF
PCC TPTC
PCC TO2PF
T´Cache
T´Cache
T´Cache
PrivateFares
TO 1 Specific
Published Fares
Market Specific
PrivateFares
TO 2 Specific
T´Cache Generator
-------------------------------------------------------Travelport GDS Galileo
39
Though this
setup can
handle
PrivateFares it
mutliplicates
the requests
by factor x for
each city pair!
The more TOs
having Private
Fares the
more
extensive and
expensive the
data load is.
Loading
Integration
40