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