IATA World Passenger Symposium 25 October 2017

L IA N C E IO 2 SP DIT UE E S IS

I N T E R N AT I O N A L DA I LY 25 OCTOBER 2017

WORLD PASSENGER SYMPOSIUM

Airlines International Daily is sponsored by:

24 - 26 October 2017 | Barcelona, Spain

Passenger numbers set to soar ATA forecasts 7.8 billion passengers to travel in 2036, a near doubling of the 4 billion air travelers expected to fly this year.

“All indicators lead to growing demand for global connectivity,” says Alexandre de Juniac, IATA’s Director General and CEO. “The world needs to prepare for a doubling of passengers in the next 20 years. It is fantastic news for innovation and prosperity, which is driven by air links. It is also a huge challenge for governments and industry to ensure we

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can successfully meet this essential demand.”

According to the latest IATA 20-year Passenger Forecast, Asia-Pacific will see the biggest growth, hosting more than half the new passengers over the next two decades.

Some 3.5 billion travelers will take to the sky in the region in 2036, an extra 2.1 billion passengers compared with today.

China will displace the United States as the world’s largest single aviation market (traffic to, from and within) in about 2022, and will continue to grow.

The five fastest-growing markets in terms of annual additional passengers in 2036 compared with 2016 will be: China (921 million new passengers for a total of 1.5 billion) United States (401 million new passengers for a total of 1.1 billion)

India (337 million new passengers for a total of 478 million) Indonesia (235 million new passengers for a total of 355 million) Turkey (119 million new passengers for a total of 196 million).

Many of the fastest-growing markets will be in Africa. A compound growth rate of more than 7.2% per year means a doubling in the size of the aviation market each decade in countries such as Ethiopia, Ivory Coast, Mozambique, Senegal, Uganda, and Zambia.

A number of factors will influence the accuracy of the forecast. Current levels of

trade liberalization and visa facilitation must be maintained, for example.

If trade protectionism and travel restrictions are put in place, it could mean 1.1 billion fewer journeys annually in 2036. Conversely, greater liberalization could lead to a tripling in passenger numbers over the next 20 years.

Increasing demand will also bring a significant infrastructure challenge. “The solution does not lie in more complex processes or building bigger and bigger airports but in harnessing the power of new technology to move activity off-airport, streamline processes, and improve efficiency,” says de Juniac.

K E E P U P T O DAT E W I T H A L L T H I N G S A I R L I N E S R E L AT E D AT A I R L I N E S . I ATA . O R G

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How do you keep a 250-ton aircraft on the tarmac? All it takes is a few missing bags.

With SITA Baggage Management airports, airlines and ground handlers can monitor and manage the entire baggage handling process.

Allowing them to track, trace and predict the flow of bags to reduce mishandled baggage and minimize aircraft turnaround times.

Our integrated solution is used by over 200 airports and 500 airlines, giving everyone a crystal clear view of each bag’s journey, from drop off to delivery at the final destination.

Get a firm grip on your baggage handling with SITA Baggage Management.

Explore more at: www.sita.aero/bags

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ADVERTORIAL

Airlines’ focus must be on retail strategy

NEXTT to revolutionize on-ground concepts ATA and Airports Council International ( AC I ) h a v e l a u n c h e d t h e N e w Experience in Travel and Technologies (NEXTT) initiative.

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u r i n d u s t r y i s p o i s e d fo r a fundamental change in distribution t e c h n o l o g y, d r i v e n b y a n unprecedented requirement for agility in airline product modelling. The issue is not that airlines must adapt to change, it is rather that airlines need to predict and deliver what each passenger needs at the right time and the right place.

The core principle underlying all of our product development at JR Technologies, is that in order for an airline to maintain and increase revenues, the airline must shift its focus towards a retailing strategy giving it access to new revenue streams, brand differentiation, and increased passenger loyalty.

Speed to market is also critical. Agility to change system components or integrate them with other components is a must, and full supplier control over what is offered, ordered,

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delivered, and paid, is built into our systems.

JR Technologies does not work alone. We have partnered with major players in our industry to deliver everything from pricing, to NDC-enabled retailing, to payment solutions.

Partnering with JR Technologies will give you access to the best problem-solvers in our industry and a coordinated approach to your NDC transformation.

Contact: ndc@jrtechnologies.com Regardless of where you are on your NDC journey, join us @WPS Booth 22 to learn about NDC end-to-end solutions and don’t miss out our presentation on “Implementing a Full Offer and Order Management Solution” in the Distribution and Payment Track Today, 9:10-9:25

With air travel demand projected to double by 2036, new on-ground concepts will be required to optimize the use of emerging technologies, processes, and design developments. NEXTT aims to help deliver this future by developing a common vision to guide industry investments and help governments improve the regulatory framework.

This vision will support concepts that facilitate faster movement of cargo, convenient and hassle-free handling and tracking of baggage, a seamless a nd persona l i zed jou rney for the passenger, and—for aircraft—a fully coordinated airport turnaround process, using the latest in automation and environmentally-friendly technologies.

“We w i l l not be able to ha nd le the g row th or evolv i ng customer expectations with our current processes, installations and ways of doing business,” says Alexandre de Juniac, IATA’s Director General and CEO. “And accommodating growth with ever bigger airports will be increasingly difficult if not impossible.

NEXTT will address these challenges.

“Working with our airport partners, we will explore the important changes in technology and processes to enhance the customer experience. And we will ask some fundamental questions about what really needs to happen at the airport and what can be done off-site.”

For more information please visit nextt.iata.org.

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Benefits of NDC highlighted as adoption rates rise ew Distribution Capability (NDC) continues to enjoy impressive adoption rates. As of end September 2017, 43 a i rl i nes h ad ach ieved N DC certification, demonstrating the ability to send and receive NDC messages that will enable them to display rich product content in travel agency channels.

Importantly, partners throughout the travel value chain are also seeing the benefits of engaging with NDC. Global travel technology giant Sabre made headlines this month when it announced a roadmap to achieve Level 2 and Level 3 certification for its global distribution system (GDS) in 2018. It is already Level 1 compliant.

“NDC started the public conversation about building out a new level of technology standards that enable airlines to offer more customized products and services, indicative of the branded fares, ancillary services, and digital retailing trends that characterize air travel today,” says Sean Menke, Sabre President and CEO. “We are fully committed not only to incorporating NDC standards, but also giving them broader application so that airlines, agencies, and consumers will get the full benefit of what NDC intends to accomplish.”

“GDSs are fundamental business partners for airlines and other travel providers,” says Yanik Hoyles, Director NDC Program, IATA. “These are exciting times as we see the big players taking bold steps on our efforts to build airline retailing, together.” Meanwhile,

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American Express Global Business Travel (GBT) is working with British Airways, Iberia and GDSs to evaluate NDC and its applicability to managed travel programs.

Stephen Humphreys, British Airways Global Head of Sales, says that corporate customers will reap the rewards of the NDC standard.

“We look forward to working closely with American Express GBT and the GDSs on developing NDC implementation plans,” he notes.

Hoyles says the focus of the program is turning toward increasing the volume of NDC-supported transactions.

Release of the latest version of the standard

NDC 17.2 should help. Hoyles notes that future releases, which occur twice yearly, will be evolutionary, not revolutionary.

“The 17.2 version of the NDC standard is a critical milestone as it is a robust standard upon which the next versions will build in a phased manner,” says Hoyles.

“IT providers have been waiting for this opportunity to either start their build or to update their current deployments.”

Distribution and Payment - Change is in the Air! Today, 9:00-17:45

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WPS welcome reception

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Highlights from the 2017 Global Passenger Survey

74%

of passengers used an electronic boarding pass on a smartphone in the

49%

past 12 months

of passengers prefer self-bag drop. This is up from 46% in 2016

82%

78%

said the maximum acceptable bag-drop time is 3 minutes

of passengers would use a digital passport on their smartphone instead of their regular paper passport

74% Almost as many passengers want to watch digital content on their own devices (42%) as on a seatback device (45%)

said the maximum acceptable queuing time at immigration is 10 minutes

Preferred ways to board the aircraft:

Top 3 services to improve the travel disruption experience

72%

of passengers prefer self-boarding

• Real-time information shared with passenger

33%

• Flight re-booking

would replace boarding token with biometric recognition

• Hotel accommodation

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ADVERTORIAL

Are you ready? he deadline for IATA Resolution 753 is approaching fast. With 1 June, 2018 just around the corner, airports, airlines, ground handlers and suppliers are getting ready to track baggage from departure to arrival.

Three things are needed to be ready: the hardware to scan baggage at the relevant points throughout the journey, the ability to collect, collate and analyze the data collected,

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SITA is also opening its dedicated baggage platform to make its information as widely available as possible.

Istanbul New Airport is a great example of how to be ready from day one. It will use SITA technology to track bags at key points in the journey, including check-in, transfer and arrival.

Airlines will also be able to receive updates on where their baggage is at each step of the

and the willingness to share it widely. SITA is supporting the community to achieve all three.

Sharing data can be challenging because different stakeholders provide data in different ways and formats.

SITA has developed platforms to bring all the data together, in particular to produce a standard manifest covering all the information required by Resolution 753.

journey, allowing them to comply with Resolution 753.

Ersin Inankul, CIO of IGA Airports Construction, which is the contractor and designated operator of Istanbul New Airport, said: “Baggage tracking is a must-have to meet the June 2018 deadline of Resolution 753.

“Thanks to SITA, we will meet the requirements of IATA Resolution 753 from day one.”

Disrupting the aviation industry irlines and airports are expected to spend $33 billion on IT this year, according to SITA. Despite the enormous spend, however, the industry must do more to modernize its tools and practices in digital technology.

Eric Leopold, IATA’s Director, Transformation, noted in his keynote presentation yesterday that there are three phases in industry change. Up to 2010, the focus was on automating complexity, such as e-ticketing. Now, aviation is embarked on digital transformation, with projects like New Distribution Capability (NDC). This is ongoing but from 2018, Leopold says, there must be true industry transformation.

“How do we ‘hyperloop’ or ‘Uberize’ aviation?” he asked.

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Eric Leopold, IATA’s Director, Transformation

The question framed a panel discussion, hosted by BBC News Anchor & Presenter, Aaron Heslehurst. It was agreed that the industry must be broader in scope when exploring innovative ideas.

There are many more ideas outside the

industry than there are within it. And connecting with those ideas and adapting them to the aviation value chain may bring surprising results.

Aidan Brogan, CEO of Datalex, felt the consumer would be the true disruptor, bringing to aviation expectations formed by their interactions with companies in other spheres, such as Amazon and Google.

But it is not only outside influences that will drive the industry toward substantial and speedier transformation.

Ultimately, it was suggested, there is the oldest incentive in the book: aviation has everything it needs to be more innovative because everybody in the industry value chain needs to make more money.

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IMPLEMENTING A FULL OFFER & ORDER MANAGMENT SOLUTION PRESENTED BY GEORGE KHAIRALLAH PRESIDENT, JR TECHNOLOGIES

IATA WPS 2017 BARCELONA DISTRIBUTION & PAYMENT TRACK WEDNESDAY, OCTOBER 25th Ä­ 09:30 - 09:45

DISCOVER MORE@ WPS BOOTH 22

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