RENDEZVOUS
Q & A with
19
Susan Adelman
Airlines want to support greater value, by showing additional passenger amenities that are included in their bundled fares or by promoting a-la-carte ancillary services that can enhance the travel experience. Susan Adelman, director of marketing, Navitaire, explains this can be done using the company’s technology services.
Travel Trade Weekly: What are the latest trends regarding global distribution models, and how does Navitaire make sure to follow these pattens? Susan Adelman: Based on our experience, we believe that airlines are looking for more ways to show customers more about their products and to show added value during the shopping process. They also want to offer more direct connections to agencies that are equipped to embrace the direct channel. These direct connections are often able to provide greater support to show and sell product aspects to agencies, and in turn, make it easier for them to sell these features. [...] These ancillaries can help influence a traveller’s buying decision while helping to boost the airline’s bottom line. Direct connections to agencies can enable airlines to trim distribution costs and use newer technologies such as web services, extensible markup language (XML), and mobile platforms offering greater flexibility to display, promote and sell the additional ancillary content plus the individual fare. To support these trends, Navitaire’s New Skies passenger services system provides a broad suite of web services that span the travel experience, as well as a new, integrated mobile and e-commerce platform, Navitaire dotREZ. Both of these options let our clients tap these direct sales opportunities with their business partners that are ready to adopt them. Also, Navitaire solutions have been developed as a true merchandising platform right from the beginning, and can support a diverse set of airline-supplied ancillary offers, as well as external travel supplier connec-
08 MARCH 2014
tions, including activities, travel insurance, car, hotel, parking, and more. We believe that airlines are anxious to tap into this capability. Travel Trade Weekly: Is there a shifting pattern in the way airline and travel products are distributed? What are your airline customers’ major concerns in this aspect?
Navitaire Kiosks
Susan Adelman: We have seen that carriers are looking to sell via direct channels wherever possible while avoiding the loss of potential sales. We believe that many carriers are making significant progress is shifting leisure travel to the direct channel and to a slightly lesser extent, small and mid-size business travel. Large, managed corporate travel continues to be sold predominantly via the traditional global distribution system (GDS) channels and larger agencies, yet there are changes emerging within this segment as
well. For example, agencies of all sizes are looking for the ability to sell hybrid and lowcost carrier (LCC) seats and their amenities more easily, ideally via a common integrated desktop solution to let them service clients more easily. This is driving an increase in GDS platforms using XML and other new technologies which are more attractive to LCC and hybrid carriers. The XML and other new technology options can often provide more flexibility in terms of conveying the products offered and contribute to potential cost savings. Our clients are always watching the bottom line, and compare the cost versus benefit of embracing any new distribution channel. The ability to connect to GDS using newer technology helps support this goal. Travel Trade Weekly: According to some recent surveys, the ability to present competitive fares on GDS including those of LCC was seen as vital to the offering. How important is the distribution of LCC products nowadays, and how does Navitaire seek to take advantage? Susan Adelman: We agree that the interest in LCC content is growing, and believe that the recent new distribution capability initiative being promoted by the International Air Transport Association confirms this interest. We believe that each carrier is seeking greater choice by selecting the distribution channels that best fit their needs, and then using these channels in the way they deem best. However, they must also consider the business practices of their agency business partners in areas of strategic growth. One example of this is the use of GDS outside their home market to drive incremental sales.