SITA Customer Seminar
Simplify your businessMunich, 21 Sept 2005Self Service andE
Commerce
Jim Callaghan
E Commerce | 21 Sept 2005
AgendaA challenged industry
Real world E Commerce
The road to success
Building blocks of E Commerce
Case Study
Summary
E Commerce | 21 Sept 2005
Industry challengesFuel pricesIncreasing competitive threat to
market share Ticket prices too low to support cost baseThe need to
reduce costs everywhere :Distribution - direct connections to all
market channels Operating - simplify business processesPassenger
handling - efficient self service solutions
Now, more than ever, IT is the critical enabler of change
E Commerce | 21 Sept 2005
Airline costsEasy cost reductions: Commission caps Reduce paper
tickets Reduce GDS fees Promote self service
E Commerce | 21 Sept 2005
Relative % costs of sales channelEvery airline in the world has
cost reduction as its number 1 priorityTravel agent booking via
GDSVia online agentVia airline online call centreDirect online
E Commerce | 21 Sept 2005
Key Airline Priorities
Reduce distribution costs by providing direct connections to all
channels to market
Reduce operating costs by simplifying business processes
Reduce the cost of passenger handling through efficient self
service solutions
Maximise Yield with optimised pricingAchieve your own e-commerce
and customer self service vision
E Commerce | 21 Sept 2005
Priority projects Web booking and Self ServiceEnable your own
internet sales and service vision
Electronic ticketing Airlines stand to save $3 billion p.a.
Elimination of fraud and lost ticketsNo need for prepaid tickets
Fares ManagementPrice competitivelyOptimise yieldsSimplify business
processes
E Commerce | 21 Sept 2005
AgendaA challenged industry
Real world E Commerce
The road to success
Building blocks of E Commerce
Case Study
Summary
E Commerce | 21 Sept 2005
Doing it right.ClarityThe banana test.SimplicityThe right
information at the right timeTest - Information is it relevant
?TrustThat you will deliver value That you will do what you say you
willThat they know where you live !
E Commerce | 21 Sept 2005
Clarity and Focus
E Commerce | 21 Sept 2005
Spot the banana ..
E Commerce | 21 Sept 2005
Doing it right.ClarityThe banana testSimplicityThe right
information at the right timeTest - Information is it relevant ?
TrustThat you will deliver valueThat you will do what you say you
willThat they know where you live !
E Commerce | 21 Sept 2005
Simplicity in action
E Commerce | 21 Sept 2005
Clear ? Relevant ? Legible?
E Commerce | 21 Sept 2005
Doing it right.ClarityThe banana test SimplicityThe right
information at the right timeTest - Information is it relevant
?TrustThat you will deliver valueThat you will do what you say you
willThat they know where you live !
E Commerce | 21 Sept 2005
Trust in Value
E Commerce | 21 Sept 2005
Doing it right.ClarityThe banana test SimplicityThe right
information at the right timeTest - Information is it relevant
?TrustThat you will deliver valueThat you will do what you say you
willThat they know where you live !
E Commerce | 21 Sept 2005
Confidence inspiring?Gateway TimeoutThe proxy server did not
receive a timely response from the upstream server. Reference
#1.12e7b3f.1126172712.fe0431
E Commerce | 21 Sept 2005
AgendaReal world E Commerce
A challenged industry
The road to success
Building blocks of E Commerce
Case Study
Summary
E Commerce | 21 Sept 2005
E Commerce pitfallsInefficient E Commerce operationSolutions the
customer cannot or will not use Compromised by host system
limitationsNo visitors and huge look/book ratioCannibalisation of
high yield businessDownward price spiralAlienation of travel agency
channelBusiness travellers switching to cheaper optionseCommerce
operational costs get out of controlExcessive marketing spend,
analysis paralysisPoorly focussed service development (no
ROI)Over-engineering (technology overkill)The organisation is not
aligned No coherent E-Commerce strategyNo understanding of the
values and costsMissed opportunities to maximise return on
investmentOrganisation unable to adapt to E Commerce needsA
consulting led approach to build a strategy that works
E Commerce | 21 Sept 2005
8 Barriers To Organisational ChangeMotivation for changeOther
Priorities & Resources
InvestmentMomentum
Programme communications
DeploymentLogisticsComplexityIt is not necessary to change.
Survival is not mandatory --W. Edwards Deming
E Commerce | 21 Sept 2005
Bringing about beneficial changeBusiness transformationService
strategy & designChange management
TechnologyService designProduct positioningOnline
strategyAirline strategyWebsite & supporting systems designUser
experience optimisation, based on reservation system
capabilitiesDetermine products & services for each online
market segmentHow to use eCommerce to support the airline
strategyFundamental business objectivesOnline service design
E Commerce | 21 Sept 2005
Implementing an effective e-commerce strategyA compelling case
for change inspires at both a rational and emotional levelChange
will be compelling if it is driven by the business
strategy.provides opportunities for those involved.Personal
winsPersonal lossesFuture visionCurrentThis is where we want to
be..has a sound financial rationale and.BenefitsCosts
E Commerce | 21 Sept 2005
Stages of consultancyImplementing an E-Commerce IT solution
E Commerce | 21 Sept 2005
Strategy brings results
Online bookings from 4% to 42% in 18 months
Without the middleware it would probably have taken 2 to 3 times
as long
Best Travel/Tourism website at the annual Netguide Web
Awards
Easy access to flight and holiday informationGreat
interactivityAn easy to use site with highly relevant searches so
we don't waste timeGood online pricing
E Commerce | 21 Sept 2005
The benefits of best of breed, best practiceVLM eCommerceStarted
with generic GDS booking engine
Switched to SITA eCommerce platform with best practice online
sales approach
3% online sales (2003) increased to 17% (2004) and still growing
strongly
Online eTicket live within 3 weeks of SITA launching Horizon
eTicket service
E Commerce | 21 Sept 2005
AgendaReal world E Commerce
A challenged industry
The road to success
Building blocks of E Commerce
Case Study
Summary
E Commerce | 21 Sept 2005
Getting the price right.
E Commerce | 21 Sept 2005
Technologies that exploit competitive knowledgeView of
competitive fares by market, carrier, etc as soon as they are
publishedGraphical view of volume and type of fare changes filed by
your competitorsObserve and respond to competitive fare filings in
your key markets
E Commerce | 21 Sept 2005
Technologies that attract and keep the customerSITAs solution
for shopping based on fares and availability informationThe Airfare
shopper services provide key features to allow the airline to tune
its pricing and products by channelSelected shopper functions are
available via green screen for agent and call centre useCost
savings in the drive for efficient online salesWorlds leading
multi-host pricing systemA fully next generation systemVery high
performance with ultra-fast data loading and diagnosticsCustomised
by SITA for state of the art US domestic and full international
pricingExample calendar showing best prices on available travel
dates
E Commerce | 21 Sept 2005
Technologies to aid fulfillmentAvailable for all airline direct
and indirect distribution channels Support all usage levelsSales
and services722h Interactive and ControlHost and Handling
Agents
Industry leading solution100% electronic ticketing by December
2007 - IATA
E Commerce | 21 Sept 2005
AgendaReal world E Commerce
A challenged industry
The road to success
Building blocks of E Commerce
Case Study
Summary
E Commerce | 21 Sept 2005
Amtrak - integrated Self ServiceAMTRAK.COMQUIK-TRAKKIOSKSA
single self-service platform WEB and Kiosk10,000 bookings a day200+
KiosksSales, Ticketing, updates, loyalty Designed visually and
physically disabled customers
E Commerce | 21 Sept 2005
In summarySelf service and E Commerce can be easy levers for
cost controlDrive from business objectives, not ITBusiness
implementation is criticalClarity, Simplicity and Trust are
vitalRemember the Banana test
E Commerce | 21 Sept 2005
Strategy without tactics is the slowest route to victory.
Tactics without strategy is the noise before defeat.
(Sun Tzu)
E Commerce | 21 Sept 2005
in co-operation with our partner
An outline of an end to end strategy..Airfare InsightComplete
local or ASP database of fares & rulesPublished, private and
negotiated fare workflowsWorkflow based fare managementAutomates
market fare creation, approval and publicationFare sheets built
from branded templatesCutting costs through efficiency and reduced
errorsCutting costs by reusing your own data in other
systemsResponding faster than the competitionFully integrated with
competitor analysis & decision supportCompetitive fare analysis
& response from ATPCO & SITA filingsRobot to find, analyse
and match online faresAirfare Insight customers
(selection)Singapore AirlinesEmiratesJet BlueLan Chile
