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Addressing the urgency amongst airlines to choose reliable and relevant technologiesA Travelport white paper based on primary research across airlines worldwide

Trends and Spending Projections

Airline Passenger Service Systems and IT Solutions

Trends and Spending Projections for Airline Passenger Service Systems (PSS) and IT Solutions

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Addressing the urgency amongst airlines to choose reliable and relevant technologiesA Travelport white paper based on primary research across airlines worldwide

IntroductionClearing the fog: A global study on passenger service systems and IT solutions 3

Purpose of the research 4

Three key insights you will gain from this white paper 4

Research methodology 4

Part TwoHow large a role does IT play in airline business decisions? 7

Three major challenges that new IT is beginning to solve 7

New PSS and IT solutions that are helping airlines eliminate challenges 9

Overarching research findings that confirm the evolving role of IT 10

Part Three

Airlines plan to increase IT investments over the next three years 11

Solutions airlines identified as necessary to support “what's next" 11

Top five airline IT priorities by 2013 12

Top five areas of interest in software and application development 12

2010 IT and headcount budgets increased over 2009, by 52% of airlines 12

What factors led to increased IT budgets in 2010? 13

Most airlines' 2011 IT and headcount budgets will exceed 2010 levels 13

Part Four

Where airlines find value in emerging technologies 15

Distribution continues as a major focus and evolving space 16

The need for outsourcing will continue to grow 18

Additional compelling research findings 19

Summary

How will your airline establish a competitive edge? 25

A new landscape in forecasting, planning and development 25

Trends and Spending Projections


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Clearing the fog — A global study on airline passenger service systems and IT solutions There is a real sense of urgency amongst airlines to identify and adopt reliable IT solutions built for the evolving global business environment. What the airline industry has needed for some time, especially now, is a close-up, in-depth look at what’s next in airline IT and passenger service systems (PSS), with a specific focus on projected spending and explicit areas of planned IT investment.

Recognising the big picture and challenges for airlines – and how IT spend must make sense from the inside out – Travelport commissioned Forrester Consulting to conduct a study in mid-2010 amongst 55 airline business and IT decision makers worldwide to better understand how airlines are adapting to and taking advantage of the ever-changing IT and PSS technology landscape.

Airline decision makers indicated in the Travelport study that spending on passenger service systems and IT would increase between 2010 and 2013 to meet evolving operational, customer service and market requirements.

New technologies and software lead the rationale for increased IT budgets.

Given today’s rapid and constant industry changes, airlines expressed the need for agile, nimble platforms and applications.

Introduction

Clearing the fog: A global study on passenger service systems and IT solutions


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■ Purpose of the research

In spite of the recent economic downturn, airlines are addressing trends, modernising existing technologies and adopting more relevant solutions to take their IT portfolios to the next level. Ancillary revenues are helping to fund this innovation; however, knowing where and when to invest is no easy task. Travelport conducted this research to:

1. Provide airlines a solidly researched overview of the global PSS and IT landscape

2. Identify current areas of IT spending by airlines, as well associated initiatives, requirements, projections and trends

3. Help airlines analyse, prioritise and plan current and future IT investments

■ Three key insights you will gain from this white paper

1. IT challenges faced by airlines today

2. A meaningful sampling of airline IT spending patterns – past, present and future

3. Areas of IT priority for airlines over the next three years

■ Research methodology

• A dual approach to primary research extracted distinct and meaningful patterns. Research included both qualitative and quantitative methods of obtaining data and trends from airline IT decision makers. In-depth interviews were conducted via phone and quantitative findings were gleaned from online surveys. Results of the research comprise aggregated responses from both methods for a broad-based and accurate representation of the industry.

• Which airlines participated in the research? The base of respondents included airline business and IT decision makers or influencers able to discuss their IT initiatives, investments, current and future spending, and IT changes and expansion plans.



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Participants included a cross section of large to mid-size network airlines and low-cost carriers. The geographic scope included airlines in the Middle East, Africa, Asia/Pacific, Europe, North America and Latin America.


Base: 47 business and IT decision makers, not including cargo/freight airlines

Source: A commissioned study conducted by Forrester Consulting on behalf of Travelport, mid-2010

Fair representation of airlines in size and across all regions

North America,

21%

Central / South

America / Caribbean,

13%

Europe (including Russia),

19%

Middle East / Africa,

9%

Asia / Pacific,

38%

“Which of the following best reflects where your company is located?”

Over 25 million, 21%

Between 10 and 25

million, 13%

Between 5 and 10 million, 19%


Less than 1 million,

26%

“Please specify the number of passengers boarded per year.”

North America,

21%

Central / South

America / Caribbean,

13%

Europe (including Russia),

19%

Middle East / Africa,

9%

Asia / Pacific,

38%

“Which of the following best reflects where your company is located?”

Over 25 million, 21%

Between 10 and 25

million, 13%



Less than 1 million,

26%

“Please specify the number of passengers boarded per year.”


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* IATA estimates 2010 global air traffic = 2.439 billion passengers http://www.iata.org/pressroom/facts_figures/fact_sheets/Documents/Industry-Facts-March-2011.pdf

• Other critical findings with bearing on this research: Research leveraged Forrester Research, Inc.’s existing research and data, including Forrester’s Business Data Services Enterprise and SMB Global IT Budgets and Spending Survey, Q2 2009, and Forrester’s North American Consumer Technographics Travel Online Survey, Q1 2010.

Unless otherwise noted, all findings in this paper are gleaned from the commissioned study conducted by Forrester Consulting on behalf of Travelport in mid-2010.

More than one-third of airline respondents carry 10+ million passengers annually, representing approximately 15% of global airline traffic.*



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Part Two

How large a role does IT play in airline business decisions?This research focused on the role and impact of technology in dictating airline decision making. Although consumer behaviour heavily influences travel trends, consumer behaviour is also dictated by new technology.

The question for airlines isn’t which comes first. Rather, it is acknowledging the critical role IT plays in making business decisions. Since technology has a substantial and increasing impact in influencing both consumer behaviours and industry trends, Travelport’s study assesses not only how important technology is for today’s airlines, but in what key areas.

Three major challenges that new IT is beginning to solve

No industry is immune to the challenges of customising and personalising offerings to satisfy evolving consumer expectations. Today, airlines recognise that technology is essential to overcoming those challenges, especially when operating in multiple channels. IT and effective brand strategies are each required to protect and gain market share, and remain operationally competitive.

This environment calls for IT with the intelligence and strength to differentiate content and pricing at the point of sale, giving travel buyers complete pricing transparency and the ability to buy the products and services they want. At the same time, airlines need solutions that increase internal productivity, efficiency and revenues. It’s a tall and multifaceted order.

So which paradigm is it?

or

Industry Trends

Consumer Behaviour

Technology

Technology

Consumer Behaviour

Industry Trends

How large a role does IT play in airline business decisions?


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To remain competitive, there are three major challenges airlines must surmount:

1. Challenge: The travelling public has entered a period of "neoFrugal Chic" 1

• Travellers are more disciplined in their spending behaviour

• Saving has become a point of pride amongst consumers

• Every major purchase is heavily researched and considered

• Travel is considered a reward, not an entitlement

2. Challenge: There is anemic brand loyalty amongst today’s travellers 2

• Only one in three U.S. online business travellers and 28% of leisure travellers are loyal to any travel company

1 Forrester Consulting

Base: US online leisure travelers

Source: Forrester's North American Technographics Travel Online Survey, Q1 2010

Percent who agree with the following statements

Travelers are disciplined in their travel purchases


39%

46%

43%

33%

26%

Travel is an area in which I indulge myself

Staying within my budget is more important tome than going to my first choice destination

In general, I select the lowest-priced traveloptions available to me

I will pay above-average prices for a noticeablybetter-quality travel product or service

I will pay above-average prices for travelproducts that save me time and hassles


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• Travellers reassess loyalty to airlines amidst industry consolidation, LCC expansion, and changing airline business models and product offerings

• Travellers do not live in vacuums; they contrast their interactions and experiences with airlines against their encounters with banking, retail and wireless

• Airlines must improve how they recognize and treat their customers, based on factors like purchase frequency, profitability and past experiences, and provide services that offer commensurate value across touchpoints and customer interactions

3. Challenge: Technology must become more useful for airline business 3

• Fares and pricing solutions need to evolve to perform more proficiently in an increasingly competitive environment, and meet ever more intense revenue growth demands

• The industry's increasingly complex revenue environment is driving changes in current online shopping and booking applications

• Mobile technology is a rapidly evolving touchpoint that airlines must master

• Demands for better business decision-making criteria will require more comprehensive and useful business intelligence and analytics

• Operationally focused applications are becoming more important to fulfill airline desires to reduce costs and increase employee productivity and efficiency

New PSS and IT solutions that are helping airlines eliminate challenges

The following IT solutions and many more are helping airlines protect and grow revenue:

• Merchandising and ancillary service technologies that enable airlines to promote special offerings, differentiate their products at the point of sale, and provide transparent pricing

• Up-sell and cross-sell capabilities

• Solutions that allow airlines to sell products the way they want to – through any channel

• More advanced website tools that enhance shopping, booking and e-ticketing

2 Forrester Research, Inc.; 3 Forrester Research, Inc.



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• Website enhancements that improve loyalty, convenience and customer service, such as online check-in, award travel redemption, ticket re-pricing and low-fare shopping

• Traveller-centric passenger service systems

• Customer-facing mobile applications

• Business intelligence and analysis tools that help airlines cater to specific market needs

Overarching research findings that confirm the evolving role of IT

The study shows that airlines are aware of the real disconnect between what their technologies and IT platforms can provide and what consumers want and need from airlines – hence the importance airlines now place on IT.

Following are broad-scope findings from the airlines’ collective IT experiences, representing their approach to IT, attitudes toward the changing role of software and overall IT spending:

■ Most airlines don’t see a benefit to being on the cutting edge of technology — but they want to follow quickly.

■ Given today’s rapid and constant industry changes, airlines expressed the need for agile, nimble platforms and applications.

■ Airlines expressed reasonably strong intentions to increase spending on most applications over the next three years.

■ There is solid interest in third-party software providers and developers as airlines seek economies of scale and avoid increasing headcount any more than necessary.

■ More than 40% of airlines surveyed procure IT and hosting applications from external firms in many areas studied in the survey, with Passenger Services leading outsourcing demand. These and other specific areas of outsourcing are revealed farther down in this paper.

■ Software is seen as shifting to a more active role in airline business, propelling the business forward.

■ Numerous applications are or will be approaching the end of their useful lives, but few airlines expressed definitive plans on replacement.



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Part Three

Airlines plan to increase IT investments over the next three years Travelport’s study indicates that IT spend amongst airlines will increase from 2010 to 2013 to meet business needs and market demands that are increasing in number, complexity and scope. Following are several reasons why:

■ Technology is now considered by airlines a key initiative in future success and performance.

■ There is an increasing shared dependency on technology across all airline departments, in which advanced solutions serve multiple operations.

■ CFOs, CEOs and airline boards of directors understand how technology enables distinctive and defensible strategic and competitive advantages.

■ Airlines want newer, more flexible platforms to support a growing array of operational and customer-facing applications.

Airlines want insight and improvement-related applications now, but in three years will want solutions that support new channels and provide more flexibility.

Solutions airlines identified as necessary to support "what's next"

1. Business intelligence and business analytics

2. Website improvements

3. Revenue management and pricing

4. Customer relationship management (CRM)

5. Customer service

Airlines plan to increase IT investments over the next three years


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Top five airline IT priorities by 2013

1. New/right channel investment (e.g., mobile, and the next big thing)

2. Replacing key legacy systems

3. Web-based applications, software as a service (SaaS) and cloud computing (the shift from traditional software models to the Internet)

4. Business intelligence and business analytics

5. Customer relationship management (CRM)

Top five areas of interest in software and application development

Emerging areas of airline business, including merchandising and ancillary services, and new channels (e.g., mobile, tablets), are creating many opportunities for growth. These opportunities are bolstered by initiatives to improve business-critical areas, such as e-commerce and pricing.

Reflecting airlines’ intentions to become more agile, the Travelport study revealed that airlines are most interested in the following solutions as the industry continues its evolution in selling, marketing, distribution and operations:

1. Mobile shopping and check-in

2. Airport self-service

3. Online shopping and check-in

4. E-ticketing and electronic miscellaneous documents (EMD)

5. Codeshare and interline inventory and pricing

2010 IT and Headcount budgets increased over 2009

Over half of the airlines surveyed reported seeing 2010 total IT budgets increasing over 2009. While 38% felt IT staffing would remain the same or almost the same, another 52% saw IT staffing increasing in 2010.



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What factors led to increased IT budgets in 2010?

■ The highest-ranking factor that drove increases in IT budgets in 2010 over 2009 was the purchase of hardware, due to costs associated with running large data sets.

■ The second and third highest-ranking factors were new technology adoption and purchasing and increasing software, along with improved telecommunications and networking systems.

■ The latter finding suggests more reliance by airlines on third-party software developers – a trend that’s expected to grow in 2011.

Most airlines' 2011 IT and headcount budgets will exceed 2010 levels.

■ The airline industry relies heavily on third-party vendors and contractors, yet many airline decision makers reported that they expect headcount increases in their IT departments from 2010 to 2011.

■ As explained by one European LCC head of commercial, “Effectively 50% of our teams are contract resources now.”


Base: 47 business and IT decision makers, not including cargo/freight airlines


2010 IT budget and headcounts are above 2009 levels

Lower17%

The same32%

Higher51%

“How will your firm’s 2010 total IT budget compare with its actual spend in 2009?”

6%

4%

38%

32%

19%

Decrease 5% or more

Decrease up to 5%

The same or almostthe same

Increase up to 5%

Increase 5% or more

“How do you expect your firm’s IT staff headcount in 2010 to compare with 2009?”


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■ Although most airlines reported that they expected headcounts and IT budgets to grow in 2011, these increases will be minimal and tightly controlled.

“Over the last year we’ve been unable to spend our budget because of major inefficiencies in the way the IT function was working and structured. Budget will be higher in the future because we are now more able and efficient.

The squeeze from prior years resulted in suffering in infrastructure and investment. We expect the budget will increase slightly over the next few years and then come down a bit. Overall we want to drive more real efficiencies in infrastructure operations.”

– Information Management Executive Network Airline, Asia-Pacific

Base: 52 business and IT decision makers with a higher IT budget in 2010


79%

73%

67%

65%

63%

56%

56%

54%

52%

50%

44%

40%

33%

23%

2%

Purchasing / increasing hardware / infrastructure

New technology adoption

Purchasing / increasing software

Purchasing / increasing telecommunications / networking

Desire to improve customer service / responsiveness

Increased technical full time headcount

Security-related need

Desire to reduce costs / improve business efficiency

Purchasing / increasing use of IT consulting and systems integration

New product / market entry

Increasing costs of operations and support services

Purchasing / increasing external services / outsourcing

Increased technical contractors headcount

Non-security related compliance

Other

“What factors are driving the increase in your IT budget?”

New technologies and software lead rationale for increased IT budgets



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Part Four

Where airlines find value in emerging technologiesResearch results suggest strong investments in all emerging technologies, and especially for evolving channels, such as mobile and functionality applications, and merchandising – strategies airlines can use to distinguish themselves amongst the competition:

■ Advancements in e-commerce and supplier.com

■ Social media and social networking

■ Business intelligence

■ Customer relationship management (CRM)

■ Employee/internally-facing mobile applications

■ Consumer-facing mobile applications

■ Security mandates

■ Merchandising, cross-selling and up-selling

One airline respondent's opinion reflects the collective mindset:

“We need a fresh challenge to some of the ways we do things. On the commercial side, almost every airline’s website is identical. Cover up the brand, the logo, and it’s the same – origin airport, destination, outbound dates, return, number of people, etc. I’d love to see someone challenge that.”

– Head of IT, LCC airline, Europe

Where airlines find value in emerging technologies


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Having established the growing importance of advanced IT for airlines, the research also concluded that IT budgets will continue to expand in purchasing technology and contracts with third-party experts, rather than developing software in-house, as airlines seek to increase immediacy with the traveller through online, mobile and merchandising. Integrating information and IT into an effective business strategy will also play a significant role along the value chain.

When asked about the most important ways technology can add value, airlines said it is by:

■ Reducing overall costs (46%)

■ Improving product/process quality (45%)

■ Improving employee productivity (40%)

■ Improving the customer experience (37%)

Distribution continues as a major focus and evolving space

■ Airlines tend to be channel agnostic – provided the economics are equitable

■ Commitment to the web/online channel is universal amongst airlines worldwide

■ For many airlines, direct connections to consumers is not a priority

■ GDSs must maintain their value whilst creating relevant solutions to support airline websites



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Comments regarding GDS distribution gleaned from qualitative research

“We’re not averse to doing a direct connect, but usually there is a significant workload required from the partner to do that. We don’t think it’s necessarily worthwhile to do that.”

– Head of Commercial LCC, Europe

“When it comes to inventory, GDS does that well. If you’re building a network of direct connects to bypass this inventory, I think it’s going to be hard.”


“The GDS is our primary channel. It continues to be by far the major revenue driver for us. The online channel has developed over the last 10 -12 years, from purely informational into an increasing revenue channel. We are planning a major rebuild of our entire commercial online channel to scale to levels larger than today.”


“Our online channel represents 90% of our business. We see GDS as an opportunity to give a proper multi-channel offering.”

– Head of Commercial LCC, Europe

“Customers that we want to go for in the future in the next 10 years want to book through GDS/travel agencies.”

– Systems Manager, Network Airline, America



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The need for outsourcing will continue to grow

Research indicated that airlines develop too many applications in-house, a costly initiative that draws human and financial resources away from an airline’s core business.

More airlines are recognising that third-party IT experts enable them to focus exclusively on their core business of flying, use available technology to gain a distinct competitive edge, and operate and compete more effectively.

Airline decision makers expressed the desire for agile, nimble IT providers open to out-of-the-box thinking and solutions that take competitive advantage of emerging channels and technologies.

Base: 55 business and IT decision makers in the Airline industry

“Please indicate which applications are outsourced / purchased as external services.” – Airlines

Airlines procure 40% or more of measured apps externally


4% 4% 2% 0%

45% 47%55%

60%51% 49%

44% 40%

Passenger Services(Airlines)

Sales, Distribution andmarketing (Airlines)

Pricing, Revenuemanagement andnetwork planning

(Airlines)

Operations (Airlines)

Do not use No Yes



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Additional compelling research findings

■ Passenger Services lead outsourcing demand as airlines seek to increase immediacy with the traveller through online, mobile and merchandising applications, including:

• Online shopping, booking, fulfillment and check-in

• Mobile shopping, booking, fulfillment and check-in

• Airport self-service check-in

• Online merchandising and ancillary services

Pax services lead outsourcing demand

Base: 28 Business and IT decision makers in the Airline industry using Passenger Services applications


Airlines – Passenger Services



16

19

20

23

10

8

8

5

2

1

Online merchandising/ ancillary services

Airport self servicecheck-in

Mobile shopping /booking / fulfillment /

check-in

Online shopping /booking / fulfillment /

check-in

Yes No Do not use

Do not use 4%

No 45%

Yes 51%

Passenger Services (Airlines)Base: 55 business and IT decision-makers in the

Airline industry

“Please indicate which applications are outsourced / purchased as external services.”“Please indicate which applications are outsourced /

purchased as external services.”


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■ Most airlines believe their current online applications are adequate, but based on consumer attitudes around the world, they’re not.

■ Airlines may think their mobile applications are adequate, but the channel is rapidly evolving, and airlines will need to invest more.

■ Airport self-service remains an area of strong planned investment, though many airlines plan to enhance their current applications.

■ E-commerce distribution is a key area as airlines seek to cut costs and increase loyalty.

Base: 17 Business and IT decision makers in the Airline industry using online shopping/booking/fulfillment/check-in applications

*Base: 12 Business and IT decision makers in the Airline industry using online shopping/booking/fulfillment/check-in applications and “somewhat likely” or “extremely likely” to increase the level of

investment in this area


Airlines – Passenger Services: Online shopping/booking/fulfillment/check-in

Most airlines believe their current online apps are adequate, but based on consumers’ attitudes, they’re not


“Is the planned level of investment for these software applications going

to grow in the next 3 years?"

“How well are these software applications meeting the needs

of your business”

“Why do you consider each of the following software applications to require investment over the next

three years?” *

2 6 9

Does not meet any of my needs Meets some of my needs Meets all of my needs Do not use

4 1 8 4

Extremely unlikely Somewhat unlikely Somewhat likely Extremely likely

3 5 4

We will be purchasing a competitor’s applicationWe will be developing additional functional features that the current application is lackingWe will be investing to modernise the application


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■ New business models are reflected through strong investment intentions in revenue drivers (e.g., ancillary serices) and industry standards (e.g., IATA, ATA, EMD).

■ Although most airlines appear to be content with their loyalty-related applications, many intend to invest to improve them.

■ Most airline respondents may view CRM and analytics applications as adequate, but strong investment intentions reveal airlines’ desire to have these solutions do more.


eCommerce/distribution is a key area as airlines seek to reduce costs, increase loyalty

Base: 27 Business and IT decision makers in the Airline industry using Sales, Distribution, and marketing applications


Airlines – Sales, Distribution, and Marketing


16

20

20

23

10

7

4

3

1

3

1

CRM / data analytics /business planning

e-Commerce distribution

Loyalty accountmanagement /merchandising

E-ticketing / electroniccredit vouchers /

electronic miscellaneousdocuments

Yes No Do not use

Do not use 4%

No 47%

Yes 49%

Sales, Distribution and marketing(Airlines)

“Please indicate which applications are outsourced / purchased as external services.”“Please indicate which applications are outsourced / purchased as

external services.”


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■ Ancillary revenues and alliances may drive demand for advanced pricing applications.

■ Airlines intend to increase spending for fares and pricing applications, with half of respondents open to switching providers.

■ The increasing environment of alliance dependency is creating the need for more robust codeshare, interline, inventory and pricing applications.

Base: 24 Business and IT decision makers in the Airline industry using Pricing, Revenue management and network planning applications



Airlines – Pricing, Revenue Management, and Network

Planning

13

14

17

20

11

9

6

4

1

1

Re-pricing / re-issue

Fare auditing

Codeshare / interlineinventory / pricing

Fares and pricing

Yes No Do not use

“Please indicate which applications are outsourced / purchased as external services.”

Do not use 2%

No 55%

Yes 44%

Pricing, Revenue management andnetwork planning (Airlines)

“Please indicate which applications are outsourced /

purchased as external services.”

Ancillary revenue, alliances may drive demand for pricing apps



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■ Airlines are generally satisfied with their fare auditing applications, though the majority sees a need to increase future investment to improve capabilities.

■ Re-pricing and re-issue applications – airlines acknowledge the need to enhance and modernise these applications.

■ Fleet planning and maintenance is an area of solid increased spending intentions as carriers seek to improve capabilities.

■ DCS will need to evolve to handle changing business models and provide increased operational efficiency, as well as support ancillary sales and improve customer service.

Base: 7 Business and IT decision makers in the Airline industry using re-pricing/re-issue applications

*Base: 6 Business and IT decision makers in the Airline industry using re-pricing/re-issue applications and “somewhat likely” or “extremely likely” to increase the level of investment in this area


Airlines – Pricing, Revenue management and network planning: Re-pricing/re-issue

Airlines acknowledge the need to enhance and modernise their re-pricing/re-issue applications


1 2 4

Does not meet any of my needs Meets some of my needs Meets all of my needs Do not use

1 5 1


“Is the planned level of investment for these software applications going to

grow in the next 3 years?"

“How well are these software applications meeting the needs

of your business”

4 2

We will be purchasing a competitor’s applicationWe will be developing additional functional features that the current application is lackingWe will be investing to modernise the application

“Why do you consider each of the following software applications to require investment over the next

three years?” *


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■ Airlines see end-to-end solutions as useful for new or high-value applications:

• Airport self-service check-in

• Online and mobile shopping, booking, fulfillment and check-in

• e-ticketing, electronic credit vouchers and EMD

• Loyalty account management and merchandising

• Codeshare and interline inventory and pricing

Base: Business and IT decision makers in the Airline industry

“Of the following software applications, please indicate how likely you are to purchase an end-to-end solution from a single vendor, as opposed to best of breed from different vendors.” – Airlines

Airlines


4222

11

43

2

111

0

2222

34

31

21

22

111

10

43

544

53

79

72

54

67

47

43

344

64

53

35

35

46

50

e-Commerce distribution (supplier.com, direct,…Departure control / ground handling services

Fares and pricingCRM / data analytics / business planningOnline merchandising / ancillary services

E-ticketing / electronic credit vouchers / electronic…Flight planning

Online shopping / booking / fulfillment / check-inMobile shopping / booking / fulfillment / check-in

Loyalty account management / merchandisingLost baggage / baggage tracking

Mobile crew / staff flight notificationFare auditing

Codeshare / interline inventory / pricingAirport self service check-in

Aircraft fleet planning / maintenanceRe-pricing / re-issue




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Summary

How will your airline establish a competitive edge?Most airlines will increase IT investments over the next several years to stay on top of trends and growing consumer demands, and to advance internal operations. Moreover, airlines will continue to push for a more service-oriented approach, with newer and more flexible platforms, plug-ins and consumer-facing capabilities – including tools that enhance an airline’s brand and market differentiators.

Although revenue growth will be intimately tied to strategies and tools that cater to today’s well connected traveller, the role of IT for airlines will not be solely driven by consumer demand. To out-maneuver the competition, each IT step an airline takes must also have a positive impact on operations, ROI, efficiency and productivity.

With solid trending growth in IT budgets and investments, technology will continue to play a strategic role in airline business and product/solution decisions. Of critical importance, with the increasing shared dependency on technology across airline departments, airline leadership must continue to support the role technology plays in enabling distinctive and defensible strategic competitive advantages.

A new landscape in forecasting, planning and development

Traditionally, airlines have gathered a lot of data, especially related to operational aspects of the business. Customer segmentation data has been limited and is not always optimised to consistently monitor customer experiences at every touch point.

In today’s environment and for the future, it is increasingly important to know travellers, be familiar with their previous experiences and anticipate their future needs. For 40 years, Travelport has taken a scientific approach through in-depth market and industry research to forecast, plan and develop solutions for the airline industry. What Travelport has learned is that the future of travel is in the hands of travellers and the evolving technologies and social media networks they use to communicate, shop and make purchasing decisions today.

How will your airline establish a competitive edge?


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Research reveals that the airline and travel industries are shifting to a new era in customisation and personalisation that revolves around individual travellers, particularly their growing need to find the right information at the right time. This is as critical to airlines as it is to travellers.

The most successful airlines won’t pursue one-time transactions. They will cultivate relationships.

Travelport’s technology vision is to enable airlines to move faster and further along the value curve through a fully integrated platform that enables merchandising and sales opportunities at every touch point in a traveller’s journey – and simultaneously improve operational productivity and efficiency. How will this be accomplished?

This vision embraces the use of valuable data from many airline sources merged with an innovative architecture that allows quick and easy data source integration and a highly flexible business rules engine. This integration will allow airlines to easily establish and manage business rules to make dynamic offers that are highly relevant within the marketplace. Travelport technologies will also enable distribution of customised offers that can be made available through all customer touch points and channels.

For more information about this research and Travelport’s vision for hosting and IT solutions for airlines, contact a Travelport representative or visit: www.travelport.com

How will your airline establish a competitive edge?

Trends and Spending ProjectionsAddressing the urgency amongst airlines to choose reliable and relevant technologiesA Travelport white paper based on primary research across airlines worldwide

Airline Passenger Service Systems and IT Solutions