Distribution 2.0: Innovating the Airline Indirect Channel

Copyright 2010 Open AXIS Group, Inc. All Rights Reserved www.openaxisgroup.org 1 Distribution 2.0 v1110

Distribution 2.0: Innovating the Airline Indirect Channel

Distribution 2.0:

Innovating the Airline Indirect Channel

Published by Open AXIS Group, Inc. November 2010



Table of Contents

Executive Summary ............................................................................................................................ 3

Current State of Airline Distribution .................................................................................................... 4

Airline Direct Channel (supplier.com) .............................................................................................4 The Traveler-Authenticated Marketplace ............................................................................................................ 4 Why Supplier.com Has Advantage ....................................................................................................................... 5

Indirect Channel (TMC/OTA/Corp) ..................................................................................................6 The Anonymous Marketplace (“Distribution 1.0”) .............................................................................................. 6 Why Indirect Channels Are Disadvantaged .......................................................................................................... 8

Closing the Gap: Distribution 2.0 ........................................................................................................ 9

Key Components ............................................................................................................................9 #1 - Extending Modern XML Messaging Connections for Distribution (rather than Edifact) .............................. 9 #2 - Support for Traveler-Authenticated Shopping ............................................................................................ 10 #3 - Expanded Transaction Reporting (I-EMD) ................................................................................................... 11

Consumer/Market Drivers ............................................................................................................ 12 The Demand for Personalization ........................................................................................................................ 12 New Consumer Touch Points ............................................................................................................................. 12

Business Drivers ........................................................................................................................... 13 Leverage Technology Investment ...................................................................................................................... 13 Deepen Supplier-Customer Relationships ......................................................................................................... 13 Deliver Product/Pricing Transparency ............................................................................................................... 13

Technical Drivers .......................................................................................................................... 14 Extending XML as a Primary Messaging Language............................................................................................. 14 Reduce Dependency on Outdated Workflows (i.e. “Push Model”) ................................................................... 15 Establish Needed Standards ............................................................................................................................... 15

Implementation: Distribution 2.0 and the Supply Chain ..................................................................... 16

Airline ......................................................................................................................................... 16 Opportunity ........................................................................................................................................................ 16 Action Items for Implementation ....................................................................................................................... 16

TMC/Agency/OTA ........................................................................................................................ 17 Opportunity ........................................................................................................................................................ 17 Action Items for Implementation ....................................................................................................................... 17

Corporations ................................................................................................................................ 18 Opportunity ........................................................................................................................................................ 18 Action Items for Implementation ....................................................................................................................... 18

GDS ............................................................................................................................................. 19 Opportunity ........................................................................................................................................................ 19 Action Items for Implementation ....................................................................................................................... 19

Conclusion ....................................................................................................................................... 20

About Open AXIS Group ................................................................................................................... 21



Executive Summary Distribution 2.0 is a new Indirect Channel model that expands the level of airline products and services available to agencies, corporations, the GDS and other travel intermediaries, while simultaneously enabling a vital competitive distribution advantage for the airlines. Based on technology and workflows already in production today, Distribution 2.0 is fully aligned with the XML Standard from Open AXIS Group, and supported by several of the world’s leading airlines. The objective of Distribution 2.0 is to eliminate the disparity – or the Distribution Gap – that presently exists between the Airline Direct Channel (supplier.com) and the Indirect Channel. Distribution 2.0 consists of three fundamental components:

Extending XML messaging (rather than Edifact) for distribution system connections

capable of supporting new and evolving airline products and services, inclusive of much-

needed product transparency during the shop and book process.

Support for Traveler-Authenticated Shopping, in which customized offers for airline

products and services are provided by the airline according to several factors, including

the traveler individual needs, negotiated corporate contracts, available inventory of

options at a particular time, and loyalty program status.

Expanded Transaction Reporting (I-EMD), to ensure all parties have detailed and timely

data regarding ancillary services without dependency on full-scale ARC/IATA EMD

production rollouts.

This paper is intended as a Call to Action for the industry to give the Indirect Channel a long-overdue upgrade. Let’s close the Distribution Gap!

Until the Distribution Gap is eliminated, there will be a perpetual erosion of customer and agency/intermediary satisfaction with the Indirect Channel.

Distribution Gap



Current State of Airline Distribution The world of Airline Distribution has undergone remarkable change over the past fifteen years, as a direct result of the introduction and maturation of the Airline Direct Channel (supplier.com). For decades prior to the existence of airline websites, approximately 80% of airline product was sold through Indirect Channels (mainly travel agencies). The introduction of the Airline Direct Channel has accounted for a dramatic channel shift, with up to 50% of airline bookings now managed through this (relatively) new channel. Below we examine each of the current primary airline channels (Direct and Indirect) as they exist today, including exposing the growing value gap between them.

Airline Direct Channel (supplier.com)

The Traveler-Authenticated Marketplace

Since the advent of the airline “direct channel” (www.airline.com), the travel industry has witnessed nothing short of a revolution in the way the online airline product is defined, purchased, sold and experienced. Fueled by a combination of cost-saving technology, the seemingly continual introduction of new customer touch points (kiosks, mobile, internet, social media, etc.), richer and more intelligent CRM systems and proven new ancillary revenue models, airlines have clearly evolved their online product strategy far beyond blindly selling as many seats as they can to a largely anonymous market. Over the past decade, airline websites have matured into savvy, traveler-centric online marketplaces capable of personalizing product/service offers and the overall end-user experience. This maturation process has proven to be a distinct competitive advantage for the airline and has allowed the airline to develop a closer relationship with its customer. The introduction of optional products and services (such as one-day airline club admission), has further confirmed the transformation of supplier.com from a very limited fixed-price bundled product to a collection of fares and services that can be mixed and matched according to the needs of the individual customer. These traveler identification features include his/her airline frequent-flyer status, corporation identity, and travel agency identity. Despite well-publicized consumer frustration (“mad as hell”) about ancillary fees, trends overwhelmingly suggest that consumers have embraced the new and more personalized supplier.com approach, as evidenced by record numbers of travelers enrolled in loyalty programs as well as the dramatic channel shift whereby upwards of 50% of airline bookings now occur on the Airline Direct Channel.



Why Supplier.com Has Advantage

The success of any particular airline website can no doubt be attributed to the unique product, brand, marketing and operations strategies employed by that airline. Nevertheless, it is possible to identify several common factors that have contributed to the overall success of the matured Airline Direct Channel, and also why the airlines are typically able to offer more varied and comprehensive information and offerings in this channel when compared to today’s Indirect Channel environment. These factors include:

Availability of Loyalty Systems Data. Full integration with airline CRM and loyalty

program databases.

Traveler-Authenticated Offers. Capability to personalize offers that leverage

corporation and/or traveler status and known preferences, or any number of airline-

defined variables.

Airline-Controlled Pricing/Products. Wider selection of products and services than

achieved through traditional fare-filing mechanisms.

Closer Traveler Relationships. Multiple touch points with the traveler for either

o Additional or modified offerings before and after ticket purchase or during the

trip

o Proactive customer recovery opportunities based on trip status and traveler

identity (e.g. complimentary lounge access for delayed flight, for best customers

or customers targeted for loyalty programs)

Transparency. Capability to quickly update content presented to the traveler to ensure

full transparency in what is being sold.

Inventory/Capacity Control. Integration with inventory and/or other capacity-based

systems (e.g. lounge utilization).

Speed to Market. Capability for airline to test and refine new offerings in a relatively

short time-span with minimal external dependencies.

Reporting. Comprehensive data collection and reporting for airline operational,

marketing and financial purposes.

This huge shift in buying patterns over the past decade demonstrates a desire by consumers to seek the optimal airline product that is specifically tailored to their needs. It is not surprising that, based on the success of www.supplier.com, airlines are now seeking to deliver similar value and capabilities via the Indirect Channel as well.



Indirect Channel (TMC/OTA/Corp)

The Anonymous Marketplace (“Distribution 1.0”)

For decades, the three main Global Distribution Systems (GDS) – Amadeus, Travelport and Sabre

– have served as the primary access mechanisms for travel agencies, online travel agencies (OTAs),

corporate booking tools and other third party intermediaries that sell the airline product. Facilitating

approximately 50% of airline bookings, there is no doubt that the GDS represents a cornerstone of the

Airline Indirect Channel. However, as described here, there are inherent limitations that, at present,

restrict the opportunities for agencies and corporations shopping through this channel, relative to

supplier.com.

The initial development of today’s Indirect Channel/GDS structure took place at a time when computing

power and connectivity to suppliers was extremely expensive and challenging to develop. The GDS

pioneers recognized that system centralization was the only way to deliver airline content to a massive

base of travel agencies/consumers with a high degree of speed, efficiency and processing power. And

thus was born the assembly-line fashion of airline distribution, or “Push Model” – where multiple pieces

of airline product data (such as fares, availability, and schedules) are pushed out to a vastly powerful

central system (GDS), from where they are compiled and distributed to the world at large.

Using a relatively simplistic algorithm in which the only airline product differentiators are schedule

(frequency and time of departure/arrival) and the actual price of the ticket, in the “Push Model”, the

airline product becomes a commodity that is then controlled entirely by the GDS/Intermediary.

At a high level, the assembly line is as follows: Individual “ingredients” are provided to the GDS by the airline and various third parties,

such as (but not limited to):

o Availability

o Fares (typically ATPCO-filed)

o Schedules (typically OAG)

The GDS then “manufactures” the priced airline offer, typically using a pricing engine

and traveler profile system that is outside of the airline’s control. This is also referred to

as an “anonymous traveler” sale, because the airline is unaware of whom the traveler is

before the airline product is offered and sold.



The assembly-line workflow of the Indirect Channel has been the foundation for agency and corporate point of sale tools introduced over the past three decades, many of which remain in place today. The anonymity inherent in the process, combined with core limitations of legacy Edifact messaging, are two of the key root causes of selling limitations within the Indirect Channel, and why Distribution 2.0 is so vital to the travel industry going forward.

Status Current Indirect Channel Model



Why Indirect Channels Are Disadvantaged

Looking at a combination of technology and workflow factors, it is relatively easy to understand how, in the present “Distribution 1.0” conditions, the Airline Indirect Channel is at a growing disadvantage relative to the Airline Direct Channel. Specific attributes that presently limit the Indirect Channel include:

Anonymous Sale. The status quo “assembly line” model makes it impossible for the

airline to offer individual travelers, agencies or corporations unique product or service

offerings based on “who’s asking”, outside of filing individual fares per traveler

(outrageous even in concept), or attempting to use proposed static “customer value

indicators” supported by some GDS. Let’s be clear: in order to truly compete with

supplier.com, as well as maintain airline competitive presence, a traveler-authenticated

pricing model (such as what is available in Direct Channels) is essential.

Product Commoditization. The current system limits airline competitive differentiation

largely to “schedule and price”. As such, the airline product becomes fully

commoditized, forcing the airlines to continually compete on price alone. History has

clearly shown that the airline industry, and generally speaking any industry, that must

compete on price alone perpetuates, at best, a marginal business model. Combined with

the high volatility and unpredictability of airline fuel prices, airline profitability and

sustainability is a constant challenge under a commoditized model, which is bad for all --

including the Indirect Channel.

Legacy Technology and Long Development Cycles. Although powerful in its own right,

Edifact based messaging systems are inherently limited in comparison to internet-driven

(XML, web-services) distribution systems. Until both channels (Direct and Indirect)

benefit from the same modern airline connection capable of highly-flexible

functionality, rapid speed to market and newer more robust schemas (such as those put

forth by Open AXIS Group), it will remain infeasible for airlines to provide the Indirect

Channel with content/data as rich or deep as what can be quickly pushed out on

supplier.com today.

Limited Supplier Control. Unlike the Airline Direct Channel model where the supplier

has control over its product, the “assembly-line” model of the Indirect Channel is 180

degrees the opposite, where with the exception of filed fares, schedule and real time

availability, airlines hand over control to intermediaries who do not have access to the

full scope of internal airline CRM, frequent flier, merchandising and inventory and

pricing systems that enable product differentiation and personalized service.

Lack of transparency. Legacy systems grossly limit the capability of the airline to push

data required for the product/service transparency that is so vital to travelers. This fuels

frustration throughout the supply chain.



Closing the Gap: Distribution 2.0

Key Components Distribution 2.0 consists of three fundamental components:

#1 - Extending Modern XML Messaging Connections for Distribution (rather than Edifact)

The reason so many airlines have invested in newer internet-based messaging connections (or to use an

old term, “Direct Connect”) is due to the vastly more powerful functionality and flexibility afforded by

newer, more modern systems. By developing to the Open AXIS Group standard, travel intermediaries

open up floodgates of new functionality (all that is available in Edifact plus much more) available

through Airline XML Connections.

Distribution 2.0 Indirect Channel Model



#2 - Support for Traveler-Authenticated Shopping

In order for the Indirect Channel to benefit from the high degree of product and service personalization

seen in the Direct Channel, the Indirect Channel must adopt and support Traveler-Authenticated

Shopping, which is also referred to as “Who’s Asking” or the “Pull Model”. This enables both the airline

as well as the travel agency to custom-tailor product/service offers based on traveler or corporate

identity; and, in the process optimize their respective relationships with individual travelers and

corporations.

Implementation of Traveler Authenticated Shopping involves a workflow change whereby the point of

sale system (agency, corporate booking tool, or other) sends traveler identification information

(frequent flier status, corporate identity, agency identity), to the airline prior to asking for a price or

offer. The airline can then return its best product/service offer based on “Who’s Asking”, inclusive of

relevant details to ensure full transparency during the shopping process.

Traveler Authentication



#3 - Expanded Transaction Reporting (I-EMD)

Essential to Distribution 2.0 is ensuring that accurate and timely reporting data is available to the

Indirect Channel for airline ancillary products and services. A logical reporting baseline is the EMD or

Electronic Miscellaneous Document – an industry accepted standard for the processing, documenting,

and settling the selling of ancillary services.

Recognizing that industry-wide implementation of EMDs with settlement from ARC/IATA will take years

to fully evolve, Open AXIS Group has included an additional solution as part of Distribution 2.0: the

I-EMD (a virtual EMD image). The I-EMD enables any corporate or agency point of sale tool to obtain

ancillary service transaction detail directly from the airline, at time of purchase and ticketing.

The I-EMD is fully compliant with – and identical to – the data and structure of the Electronic

Miscellaneous Document, which includes all product/service and purchase data that would typically be

required for corporate reporting and reconciliation. This new XML reporting document is available as

part of the Open AXIS Group standard and supported by its member airlines offering ancillary services

through XML Connections.

Advantages of the I-EMD include:

Available immediately for corporate booking tools and agency point of sale systems

(including GDS) to obtain ancillary service transaction data.

Independent of the launch time frame for settlement with ARC/IATA production

systems (full production implementation of EMD may extend to 2011-2012 for some

airlines, which is too much delay).

Applicable regardless of whether airline opts for Direct Settlement or ARC/IATA

settlement.

Architected so as to not require rework when ARC/IATA EMDs go into production (quite

literally identical to the EMD that will eventually be submitted to ARC/IATA for airlines

opting to use this as a settlement vehicle).



Consumer/Market Drivers

The Demand for Personalization

The availability of customized products, services and experiences has evolved from the occasional “wow factor” to a core requirement and expectation of consumers across all market demographics. Whether surfing the internet, using a mobile device, communicating with friends/colleagues, buying a car, watching home entertainment, or even paying the bills, today’s consumer expects technology to provide an intelligent environment that behaves, learns and reacts based on personal likes and dislikes. The act of shopping for and experiencing travel is one of the most obvious examples of consumer-driven product customization, as evidenced by the dramatic growth in supplier loyalty programs and the migration to supplier.com by over 50% of travel buyers over the past decade. The opportunity to customize one’s trip by selecting from a broad array of travel amenities gives consumers a greater degree of influence over the price they are willing to pay for travel. In this environment, offers are presented to the traveler based on both situational conditions and known personal preferences (such as airline departure schedule, airline loyalty program status, seat selection options, checked or no checked bags, etc.). The end result is a highly personalized shopping experience, where the consumer is empowered to select and pay for only those services that add value to his or her trip.

New Consumer Touch Points

The point of booking is only the beginning for frequent travelers demanding a personalized experience. Frequent travelers expect personalized service not just at the point of purchase, but throughout the trip lifecycle. It is for this reason that supplier-traveler communications, and the availability of optional services, are exploding across multiple consumer touch points (kiosk, mobile, internet, wireless personal devices). By supporting location and situational-based logic within the customized offer, Distribution 2.0 enables the Indirect Channel to remain competitive and relevant to today’s increasingly savvy and discriminating traveler.



Business Drivers The business motivation for Distribution 2.0 is directly tied to the successes, lessons learned and positive Return on Investment in the Airline Direct Channel, or supplier.com. With well over ten years of experience under their belts, and billions of dollars per year in ancillary revenue, airlines have recognized the value of product/service differentiation, including knowing what works – and what doesn’t – in terms of meeting traveler requirements. Distribution 2.0 asks the question: why not extend these benefits to the other ~50% of tickets sold, via the Indirect Channel? Below is a recap of the key drivers behind the Distribution 2.0 business case:

Leverage Technology Investment

Airline Direct Channel (www.supplier.com)

XML Connections (new internet-enabled connections to supplier systems, “Direct

Connect”), available to Indirect Channels with all functionality presently in the Indirect

Channel plus much more, in particular the components of Distribution 2.0.

Deepen Supplier-Customer Relationships

Traveler-authenticated product/service offerings based on “Who’s Asking”

Reduction in the amount of “blind anonymous selling” regardless of channel

Deliver Product/Pricing Transparency

The extension of expanded product/service offerings beyond the Airline Direct Channel

naturally requires corresponding product detail information to ensure full transparency

on what is included for what price

Distribution 2.0 will address the much-publicized travel agency complaints about lack of

product information for corporate and leisure customers

http://www.supplier.com/



Technical Drivers As touched on earlier, delivery of Distribution 2.0 involves long-overdue upgrades and changes to outdated airline and Indirect Channel selling systems, including:

Extending XML as a Primary Messaging Language

The cornerstone for most airline-intermediary connections is Edifact, a decades-old accepted medium

for Electronic Data Interchange (EDI) and industry-wide standardization. While it is clear that many

Edifact-based transactions and processes will remain viable in the industry for some time, a migration to

newer airline XML connections for distribution transactions and processes is essential to deliver the

modern airline product to the Indirect Channel.

Advantages of newer internet-driven (XML, Web Services) based systems include but are not limited to:

High flexibility enables faster development and speed to market, with development

cycles cut by well over half from legacy models

Support for a broad range of new capabilities not available in Edifact, including the

capability to send non-textual information (pictures, videos), easy integration with

internet/web services applications and systems including CRM or other databases, and

relatively painless extension to new platforms such as Mobile

Designed for modern, scalable and lower-cost distributed computing environments

Intuitive method for describing information (metadata) enables more rapid and clear

dissemination/documentation, lowering costs both during and after the development

lifecycle



Reduce Dependency on Outdated Workflows (i.e. “Push Model”)

The “Push Model” was revolutionary in its day, as it allowed airlines to sell their product efficiently and

broadly to a mass-market. The fact that the airlines did not know the identity of the traveler

(anonymous sell), nor the fact that the process of “manufacturing” the airline product made all airlines

look the same (commoditization) was not of concern during the initial 20 or 30 years of Indirect Channel

distribution. Consumers didn’t expect anything different, and even if they did, technology didn’t exist to

support any other model. Even proposed use of static customer value parameters for “rating” airline

customers within the GDS are insufficient to personalize a product/service sell. Newer systems have

emerged that enable airlines to efficiently manage their own custom price offers.

If we fast forward to today’s marketplace, we see an entirely different landscape. Product customization

and individual traveler-supplier relationships are now paramount both for airlines and consumers. This,

along with the introduction of the internet, distributed systems and accompanying technologies, are

driving the replacement of the “Push Model” with Traveler Authentication, or the “Pull Model”, which

supports the capability to customize highly flexible offers based on first knowing the traveler’s identity

or other factors.

Establish Needed Standards

As a growing number of airlines are replacing or extending their Edifact connections with XML, the

importance of industry standards cannot be overstated. The Open AXIS Group was created expressly to

address this requirement. The group’s published XML Schema has been adopted and is in production by

a number of world’s leading airlines, with participation by both supplier and non-suppliers as the

schema and standards set evolves. Using the Open AXIS Group schema, any travel channel intermediary

can achieve connectivity to multiple airlines with just a single development effort, which further saves

on development and maintenance costs throughout the supply chain.



Implementation: Distribution 2.0 and the Supply Chain Like any promising new product or service model, the adoption of Distribution 2.0 will require actions taken by all players in the Indirect Channel supply chain. Fortunately, a good deal of the technology and workflows required for Distribution 2.0 already exist, and are in use today, including supplier XML connections and agency point of sale systems that support traveler-authenticated shopping. These new systems allow airlines to provide the type of consistent and desired level of disclosure and transparency needed for consumers to make informed shopping, comparison, and buying decisions about airline products and services across both the airline direct (supplier.com) and indirect (travel agency) channels. A proposed summary of Action Items for supply chain adoption of Distribution 2.0 follows.

Airline

Opportunity

Distribution 2.0 supports supplier objectives to:

Invest in and support one selling methodology and workflow that consistently presents

and sells the airline product(s), including merchandising and ancillary services, through

all productive and cost effective distribution channels (Direct and Indirect)

Remain competitive by extending innovation to all distribution channels

Reap the benefits of increased customer loyalty, improved competitive advantage, and

new revenues from ancillary services, now available through the Indirect Distribution

Channel

Action Items for Implementation

Suppliers seeking maximum benefit from Distribution 2.0 are encouraged to:

Maintain focus on traveler authentication workflow – Who’s asking?

Move from static pricing to dynamic pricing of offers, as required to support conditional,

customized product and service offerings

Leverage investments (technology and lessons learned) made in supplier.com as well as

XML connections by extending this functionality to the Indirect Channel

Define for distribution partners the required selling workflow as well as preferred

standards for XML and handling of product/services and pricing (airline controlled;

ATPCO; or some combination)



TMC/Agency/OTA

Opportunity

Distribution 2.0 supports TMC/Agency/OTA objectives to:

Efficiently sell and service ancillary products/services to existing and new customers and

be compensated in some form when successful

Be provided with full product transparency for these optional services

Provide customers with detailed reporting regarding ancillary services

Achieve this with minimal workflow disruption


Agencies seeking to reap the benefits of Distribution 2.0 are encouraged to:

Develop distribution “partnerships” with key suppliers as it relates to selling and

supporting ancillary products and services

Lobby distribution providers to develop modern ancillary selling capabilities inclusive of

Traveler Authentication, recognizing that green screens simply won’t suffice for

product/service customization that competes with supplier.com

Develop a pro-active approach to selling and servicing these new services – there will be

some early winners



Corporations

Opportunity

Distribution 2.0 supports Corporate Travel Buyer objectives to:

Offer the best package of services at the optimal price for their corporate travelers

Ensure travel buyers have full product transparency for optional services

Have much-needed detailed reporting regarding ancillary services

Achieve this in close collaboration with both suppliers and travel agencies


Corporations seeking maximum benefit from Distribution 2.0 are encouraged to:

Lobby corporate booking tool providers to develop modern ancillary selling capabilities

inclusive of Traveler Authentication workflows

Insist on standardized reporting – I-EMD is a good place to start with accelerated

adoption of EMD in the near future

Developer deeper supplier relationship through product and service bundles and

performance



GDS

Opportunity

Distribution 2.0 supports Distribution Technology Provider (GDS) objectives to:

Attract suppliers and buyers to utilize their distribution technology solutions

Maintain deep relationships with both buyers and suppliers


GDS and other distribution technology providers seeking to benefit from Distribution 2.0 are encouraged to:

Invest in and develop modern ancillary selling capabilities within agency selling

platforms, inclusive of traveler authentication workflows and support for a higher

degree of product differentiation capability for suppliers

Continue with projects that support integration of XML and other web-based

capabilities and sources to ensure agencies have technology and supplier connections

that provide the widest selection of content offerings



Conclusion The present circumstances in the travel industry represent a unique watershed moment for airline distribution. After nearly forty years, the current Indirect Channel systems, workflows and commoditized product approach are simply unable to compete with the newer web-based systems and traveler-authenticated shopping that have evolved in the Airline Direct Channel over the past decade. Distribution 2.0 is nothing short of a competitive requirement for airline growth and prosperity, reflecting a fundamental choice: whether to remain commoditized in an anonymous sales environment, or whether to fully leverage the power of the investments made in airline websites, CRM, pricing, frequent traveler and other systems that support personalization of the travel product. Effective industry-wide change must be accompanied by industry standards as well as technology that can be easily integrated with existing systems, while at the same time offering new benefit. Distribution 2.0, in conjunction with available XML standards and airline connectivity, precisely and uniquely delivers these advantages to the travel supply chain. We encourage all industry players to contemplate the potential damage that could be done should Distribution 2.0 and its benefits not be propagated across the Indirect Channel. These risks include the real likelihood that the Distribution Gap (Direct vs. Indirect) will continue to widen and the Indirect Channel will continue to lose its advantage. This does not serve anyone in the supply chain and is, in our view, a worst case scenario. To download a soft copy of this white paper, as well as supporting PowerPoint and Video presentations, please visit www.openaxisgroup.org.

http://www.openaxisgroup.org/



About Open AXIS Group Open AXIS Group is a non-profit organization dedicated to the promotion of XML as the optimal electronic messaging structure for airline system connectivity worldwide. The Open AXIS Group is focused on the following key areas:

Promotion of XML as the de facto standard messaging structure

Standards Development and Maintenance, as exemplified by the group’s robust airline

XML schema

Advocacy for innovation in standards and distribution practices

Service to the industry in the form of Support, Certification and Collaboration with other

industry entities

Learn more at www.openaxisgroup.org

http://www.openaxisgroup.org/about-overview.html

http://www.openaxisgroup.org/



Copyright 2010 Open AXIS Group Inc. www.openaxisgroup.org

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Distribution 2.0: Innovating the Airline Indirect Channel