5th - iata.org€¦ · 18 2018 study on the development towards more tailored offers and pricing...
TRANSCRIPT
![Page 1: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/1.jpg)
th
17 – 20 September 2018 Madrid Marriott Auditorium Hotel & Conference Center
5World Financial Symposium
![Page 2: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/2.jpg)
18th September 2018 Madrid Marriott Auditorium Hotel & Conference Center
7th SIS General Meeting
![Page 3: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/3.jpg)
3
Tom Gregorson
VP of Products & Solutions
![Page 4: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/4.jpg)
4
Our collective challenge
![Page 5: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/5.jpg)
5
* That change all the time.
All content.
All routes to market.
All relevant offers*.
![Page 6: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/6.jpg)
6
It’s complicated.
![Page 7: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/7.jpg)
7
ATPCO is proud of how it
has helped the industry
navigate this complexity.
![Page 8: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/8.jpg)
8
ATPCO is the industry’s trusted partner in
driving innovation, reducing complexity, and
delivering network economics to the entire
distribution ecosystem through standards,
technology, and effective governance.
8
![Page 9: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/9.jpg)
9
Our vision
To fuel the future of air travel,leading the industry into the next generation of distribution,
by enabling smart connections
of all content through all channels
The ATPCO Platform
![Page 10: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/10.jpg)
10
Pricing Retailing Revenue accountingTaxes and fees Contract solutions
Our solutions
CONTENT
NDC connectivity Data platform services Developer portalOpen systems / APIsMonitoring & analysis
TECHNOLOGY
INDUSTRY LEADERSHIP
Innovation Standards Consulting and training
![Page 11: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/11.jpg)
11
We are now leading the
industry through a
landscape that is changing
faster than ever before.
![Page 12: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/12.jpg)
12
Four initiatives to help the industry
NDC
Exchange
Dynamic
Pricing
Taxes Next
Generation
Storefront
![Page 13: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/13.jpg)
13
Four initiatives to help the industry
NDC
Exchange
Dynamic
Pricing
Taxes Next
Generation
Storefront
![Page 14: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/14.jpg)
14
14
NDC
Community
Marketplace
![Page 15: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/15.jpg)
15
NDC Exchange Customer Pipeline
Pipeline specifics
• In production June 2018 – AC and 5 sellers
• 131 suppliers and sellers (also aggregators and tech providers)
• 71 active companies
• 28 airlines
• 43 Sellers
• Engaged with three primary GDS
• 49 Non-Disclosures executed
![Page 16: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/16.jpg)
16
![Page 17: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/17.jpg)
17
NDC
Exchange
Dynamic
Pricing
Taxes Next
Generation
Storefront
Four initiatives to help the industry
![Page 18: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/18.jpg)
18
2018 Study on the development towards more tailored offers and pricing
(Customizable) offer bundles
Limited pre-determined
offersPricing approach
Fully personalized
offers
Assortmentoptimization
Dynamic/continuous pricing
Level of tailored offer
Dynamic price adjustment/dynamic
offer availability
▪ Stages are not
mutually exclusive
but rather represent
different RM
approaches used by
different airlines based
on their scale, business
model, proportion of in-
house legacy IT
systems and other
factors
▪ Stages with extreme
misalignment
between pricing
approach and offer
personalization are
deemed unrealistic
Fully-tailored and
dynamic offers
Dynamically-
adjusted tailored
offers
Dynamically-
adjusted bundled
offers
Static bundled
offers
Separate static
seat and ancillary
offers
Unlikely
combination
Unlikely
combinations
![Page 19: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/19.jpg)
19
Assortment Optimization
Two-Character & Dual RBD Validation
Exists Today • Two-Character (YN)
Internal to airline systems
• Dual Validation (C if M is available)
All channels
• Instant upgrade fares
• Limited use within cabin for fare brands
![Page 20: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/20.jpg)
20
Dual RBD Validation: Implementation
Distribution of Fares
and Rule Data
• Fare Class Application (Record 1)
Prime booking code
• Booking Code Exception (Table
999) - Prime permitted when
secondary is available
![Page 21: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/21.jpg)
21
Dual RBD Validation: Implementation
Revenue Accounting
and Audit
• Ticket reflects the prime RBD
• Fare amount and fare basis are the
lowest available
• Same process as current “upgrade”
fares that are booked in a single
premium RBD based on economy
class availability
![Page 22: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/22.jpg)
22
26+
![Page 23: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/23.jpg)
23
PricingAvailability
DPE
Data Collection
and Distribution
CONTENT
Request Response
Price Adj RQ/RS
Availability Schedules
Fares/Rules Ancillaries
ATPCO
AIRLINE
PRICING
SYSTEM
(SABRE)
CRM
Dynamic Price Adjustment
![Page 24: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/24.jpg)
24
FARE AND RULE DISTRIBUTION
• ATPCO distributes public fares
• ATPCO distributes DPE fares to the
DPE and airline internal systems
• (Two-Character or Dual RBD based)
• Eligible fares/Itineraries will be
identified by the Airline Profile
![Page 25: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/25.jpg)
25
REVENUE ACCOUNTING AND AUDIT
• Ticket will reflect DPE tariff and fare
• GDS and public tariffs will not reflect DPE fares
![Page 26: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/26.jpg)
26
CONTINUOUS PRICING
Stay Tuned
![Page 27: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/27.jpg)
27
NDC
Exchange
Dynamic
Pricing
Taxes Next
Generation
Storefront
Four initiatives to help the industry
![Page 28: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/28.jpg)
28
Closes the gap
between distribution
and revenue
accounting
Reduces
rejection in the
back office
environment
Supports NDC
Initiative
Continue the move to Industry Single Source of Tax Data and Automation
![Page 29: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/29.jpg)
29
Phase 3Phase 2Phase 1Today
Industry Interline
Tax Calculator
Industry Tax Reference
Real Time Tax Engine
IATA Industry
Resolution New RATD
Q2 2018 End of 2018
3-6 years
Tax Concept
![Page 30: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/30.jpg)
30
Four initiatives to assist the industry in this NDC & traditional distribution world
NDC
Exchange
Dynamic
Pricing
Taxes Next
Generation
Storefront
![Page 31: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/31.jpg)
31
3
![Page 32: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/32.jpg)
32
Routehappy offers multiple types of rich content
![Page 33: 5th - iata.org€¦ · 18 2018 Study on the development towards more tailored offers and pricing (Customizable) offer bundles Limited pre-determined offers Pricing approach](https://reader034.vdocument.in/reader034/viewer/2022042208/5eabe88b297c8a2d37595795/html5/thumbnails/33.jpg)
33