IATA World Passenger Symposium 24 October 2017

L IA N C E IO 1 SP DIT UE E S IS

I N T E R N AT I O N A L DA I LY 24 OCTOBER 2017

WORLD PASSENGER SYMPOSIUM

Airlines International Daily is sponsored by:

24 - 26 October 2017 | Barcelona, Spain

WELCOME

The goal of the World Passenger Symposium (WPS) is to create greater value for the air traveler. Under the theme of “Innovating better, together” stakeholders in the travel value chain come together to define a transformative vision for meeting the growing demand for air travel safely, securely, and efficiently

nspired by the idea of value chain collaboration to better serve the customer, the World Passenger Symposium (WPS) is centered on IATA’s firm commitment to drive movement from talk to action.

The fi rst WPS was held in 2011 in Singapore.

“Six years on, our value chain community theme of “Innovating better

I

together” is strong, firmly established, and successful,” says Aleks Popovich, IATA’s Senior Vice President, Financial and Distribution Services.

Nick Careen and Aleks Popovich “It’s fueled by industry innovation, which focuses on the customer’s ‘shop– offers, and order from the full range of airline order–pay–engage–experience’ cycle, guided product content, in the travel agent channel, by the Simplifying the Business Steering as they are able to do on airline websites.

Group. From this, we’ve seen emerge industry “Perfect airline distribution will be delivered innovations like New Distribution Capability by leaders who come from a strong collabora(NDC), ONE Order, and the Customer tion of airlines, travel agents, and technology Journey.” partners, supported by agile IATA standards The vision for airline distribution—which and industry utilities,” says Popovich. is being realized through NDC—is to enable The advent and implementation of digital customers to easily receive and compare airline technology is boosting the airlines’ determi-

nation to be customer-centric. “We are essentially moving to a point where an individual customer can tailor their journey around what they want,” says Nick Careen, IATA’s Senior Vice President for Airport, Passenger, Cargo, and Security.

This year’s WPS will explore these rapid changes.

“We hope to introduce the concept of Future Travel and begin to shift minds towards the way travel could and will look over the next five, 10 and 20 years, and what we need to do as an industry to innovate, create, and support these activities to meet the changing needs of the industry and its customers,” Careen adds.

Session tracks include Distribution and Payment, Tomorrow’s Journey, The CIO Forum, Baggage and Infl ight and Connectivity. The third day of the conference will be an Innovation Jam, featuring cutting-edge thinking on improving the passenger experience.

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

2 F ES STERN AG F FEI C G POSIUM I A T A W OWR ILLDD LPI A R KSI N YM

Get ready to provide the streamlined experience travelers have been waiting for.

100% secure self-service at every step of the journey – check-in, security and boarding.

Simple, fast and secure, SITA Smart PathTM makes the stroll-through convenience of single token travel a reality.

Using the latest facial scanning technology, Smart PathTM captures and matches travelers’ biometric details with their travel documents and positively links this to their flight details.

Modular by design, it allows you to introduce secure identity management into your passenger flow step-by-step, or all at once.

Explore more at: www.sita.aero/smartpath

G .FU C K H A R G E , V I S I T W W W. I A T A . O R G / O P T I N T O S U B S C R I B E T O A I R L I N E S I N T E R N A TW I OWNW. A ILA TFAR.EOER O

3 I ATA W O R L D PA S S E N G E R S Y M P O S I U M

Benefits for all with ONE Order

ADVERTORIAL

NE Order creates a uniquely identifi able order for every customer, eliminating the need for air travelers to juggle reference numbers and documents on their journey.

“It will greatly simplify the passen-

O

DELIVERING NDC GOALS R Technologies has been actively involved in New Distribution C a p a b i l i t y ( N D C) s i n c e i t s conception and is a key contributor to the development of IATA NDC Schemas as well as the structuring of IATA ONE Order.

From our perspective, true NDC is not

J

Need for an end-to-end NDC pilot to demonstrate NDC capabilities Need for a merchandising engine Need for travel agents to be able to book directly on the airline’s website Need for a solution that does not require a Passenger Service System (PSS)

about the technical ability to exchange XML messages, it is about developing tools that actually empower airlines to de-commoditize and personalize any product they wish to sell, in any channel, on any device.

Over the past few years we have been gathering airline executives and staff across disciplines in numerous private workshops, to demonstrate true NDC capabilities and assess how each airline’s business imperatives can be achieved through the airline’s NDC transformation.

This deep dive into the real needs of airlines, as well as the actual concerns related to their NDC transition, helped us identify six main areas of airline needs at the current stage of the NDC evolution:

Need for testing true dynamic pricing Need for help with the airline’s strategic NDC transition plan Visit us @WPS Booth 22 to fi nd out how JR Technologies is responding to all NDCrelated emerging needs of airlines—and how we can help your airline find the optimal direction in the NDC world.

Contact: ndc@jrtechnologies.com Don’t miss George Khairallah’s presentation on ‘Implementing a Full Offer and Order Management Solution’ in the Distribution and Payment Track.

Wednesday, 9:10-9:25

W W W. I A T A . O R G

ger experience, particularly when dealing with changes or disruptions,” says Sébastien Touraine, IATA’s Head, ONE Order program. “Passengers will also be better informed about the delivery status of services they have ordered.”

For airlines, ONE Order addresses the inefficient processes and unnecessary costs inherited from a paper-based world. “This will complete the vision started with New Distribution Capability (NDC) toward a customer-supplier relationship,” Touraine says.

Standards are being determined for ONE Order ahead of its fi rst official release next year. And a number of companies have joined a pilot program, coordinated by IATA, aimed at evaluating the candidate schemas, including Amadeus, Sabre, SAP Hybris, InteRES, NIIT, and Aviasoftica.

“Just like NDC, ONE Order is not mandatory,” Touraine says. “It comes with a massive shift in industry mindset and a challenging transition period.”

Distribution and Payment: Change is in the Air! Today, 14.45-18.30 Wednesday, 9:00-17.30

4 I ATA W O R L D PA S S E N G E R S Y M P O S I U M

World Air Transport Statistics 2017

3.8 billion

Passengers by region 5 % 2% 7%

In 2016, airlines carried 3.8 billion passengers on scheduled services.

This is an increase of 7% over 2015, or an additional 242 million air trips.

35 %

24 %

HONG KONG-TAIPEI was the busiest international/regional airport-pair, transporting 5.2 million passengers, up 2.1% from 2015.

26 % Asia-Pacific: 35% market share (1.3 billion passengers, an increase of 11.3% compared with 2015)

JEJU-SEOUL GIMPO

Europe: 26% market share (992.4 million, up 6.1% over 2015) North America: 24% market share (911.5 million, up 3% over 2015)

was the top domestic passenger airport-pair with 11.6 million passengers, up 4.6% over 2015).

Latin America: 7% market share (275.1 million, up 1.8% from 2015) Middle East 5% market share (206.1 million, an increase of 9.1% over 2015) Africa 2% market share (84 million, up 6% over 2015)

28.3%

69.5%

2.2%

New Model Airlines

Network carriers

Leisure carriers

New Model Airlines (encompassing low-cost carriers), accounted for 28.3% of all passengers in 2016, up from 27.1% of passengers in 2015. Network carriers accounted for 69.5% of total passengers while leisure carriers contributed 2.2% to passenger volumes.

Top 5 Airlines (by total scheduled passengers carried, domestic and international)

1 2 3 4 5

Southwest Airlines (151.8 million) American Airlines (144.2 million) Delta Air Lines (143.3 million) China Southern Airlines (114.5 million) Ryanair (112 million)

Cargo (top five airlines ranked by total freight tonnes carried on scheduled services)

38%

STAR ALLIANCE

was the largest airline alliance in 2016 with 38% of total scheduled traffic (in RPKs) followed by....

33%

SKYTEAM

29% ONEWORLD

W W W. I A T A . O R G

1 2 3 4 5

FedEx Express (7.1 million) United Parcel Service (4.7 million) Emirates Airline (2.5 million) Qatar Airways (1.8 million) Cathay Pacific Airways (1.6 million)

Taken from WATS 2017, available from www.iata.org

5 I ATA W O R L D PA S S E N G E R S Y M P O S I U M

“So, a system might now build any flight it has enough bags for, rather than having a particular place and time for building a given flight,” Price explains. “Robotics is showing that it can be a useful solution for the majority of bags, so long as it is designed into the system to compliment the operational activities.”

Together with the necessary regulations and processes, this will add up to what Price calls “freedom for baggage”. This holds out the promise of giving passengers more options in terms of how they check their bag— whether at the airport or at an off-airport location such as their home or a hotel. And the airline could route the bag independently of the passenger. If a passenger fl ies from Barcelona to Singapore via London, for example, the airline could choose to use

Freedom for baggage his year’s WPS has a real baggage focus.

As always, a technology stream will explore baggage tracking, including the real-time tracking of bags. But, rather than just a focus on mishandling reduction, WPS will look at wildlife smuggling, fraud prevention, improved baggage services, improved baggage performance, and how baggage affects the boarding process—all in some detail.

“WPS will provide a lot of value for anyone involved in operations, and there will be a lot to learn,” says Andrew Price, Head of Global Baggage Operations at IATA. “I hope that, as a result of WPS, we will see an increase in our

T

awareness figure as well as attendees having ideas on where they can embrace best practices across all aspects of the baggage operation.”

In addition, Resolution 753—which requires airlines to track each item of checked baggage at key points in the journey by 2018— will be examined in detail.

“The resolution is going well,” says Price.

“The latest figure for awareness is that 73% of our members are aware of the resolution.

Fewer airlines have shared their implementation plans, but we are currently carrying out certifications for some big airlines. You can expect to hear more about that at WPS.” It is not only tracking technology that is moving baggage forward. Robotics and more advanced baggage systems are coming to the fore, for example. The concept of a build, where the system outputs bags for a fl ight, is changing as systems move towards a focus on bags rather than fl ights.

partner services and fly the bag direct or via an alternative transit point, enabling it to better manage its own capacity as well as passenger requirements.

Finally, the passenger would have the freedom to choose a bag delivery option, perhaps straight to the rental car, a hotel or an office.

“I also hope that Airline Industry Data Model work allows other industries to become integrated into the value chain, so that we see new services being developed,” concludes Price. “We could get bags arriving with the laundry done.”

A notion that, no doubt, will please the road warriors!

Baggage: Can you handle it?

Wednesday, 9.00-17.45 Series of tracks incorporating tracking, fraud risk, tech trends, and performance

IATA Financial Gateway delivers efficiencies ATA Financial Gateway (IFG) was launched to provide a unique and consolidated payment optimization solution that will help airlines improve their cost efficiency, user experience and payment success rate. IFG will also facilitate the acceptance of different forms of payment and give airlines the chance

I

to leverage the BSP (Billing and Settlement Plan)/ARC (Airlines Reporting Corporation) benefits for all-channel agency sales.

IFG will be a Neutral Payment Marketplace for all service providers who wish to offer their services directly to airlines. For the new players entering into the market, IFG will act

W W W. I A T A . O R G

as a Payment Innovation Incubator that will allow connectivity and testing of new forms of payments.

T he I FG te a m i nv ites you to j oi n for a lunchtime session on Wednesday at 13:00 in CCIB Room 120 (1st floor) to learn more on Omni-channel payment optimization.

6 I ATA W O R L D PA S S E N G E R S Y M P O S I U M

Overcoming legacy thinking ubai Airports and its home airline, Emirates, have had a huge impact on global travel. That desire to break molds is not going away. “Today’s travel processes were developed over time and from an outdated perspective, which suited the convenience of the supplier versus the

D

customer,” says Paul Griffiths, Dubai Airports CEO. “There are too many links in the journey.

Those links are too short and the transition between them is jarring.”

Griffiths calls for nothing less than “a complete rethink and a complete redesign” of aviation processes and infrastructure, with the customer at their heart. “We need to move beyond making incremental changes to legacy processes,” he asserts.

“Amazon, eBay, Uber, Tesla and the like have demonstrated the value of breakthrough and customer-centric thinking. We must learn from these examples and have the vision and collaborative commitment to bring them to the travel industry.”

Today, aviation infrastructure influences technology and process. In future, it must be the other way around, says Griffiths. “Driverless cars, hyperloop technology, and other advances will fundamentally change ground transportation networks and intermodal connections. Our challenge is to create flexibility in airport designs that anticipate and can respond to these changes.”

Fully integrating customer-centric processes across all transport modes from origin to final destination is an example of that flexibility. In effect, this would expand airport boundaries upstream to the point of departure.

“Airports must be fully integrated with ground transport and enable passengers and their baggage to be efficiently, securely, and

conveniently transported from their home to the aircraft,” says Griffiths.

“Our design for Dubai World Central, for example, includes an underground rail network that delivers customers to within 400 meters of their gate.

“In a nutshell, airports cannot be designed in isolation. They must be designed as part of global, multi-modal, and rapidly evolving transportation network.”

The starting point for this transformation is real-time shared access to comprehensive and standard information about travelers.

Biometrics can link the passenger to that information, which can be stored in the cloud for timely access by all partners in a simpli-

W W W. I A T A . O R G

fied and seamless supply chain. Not only will this facilitate a better journey but also it could be used to capture and relay customer preferences that create more choice and more personalized experiences.

In this way, says Griffiths, the aviation value chain will construct a customer service platform that can be all things to all people.

“We don’t have a choice to be anything other than that,” he concludes.

“The travel experience is very individual and consumers have elevated expectations based on their experiences with innovative approaches taken in other industries. The technology exists to pave the way for bespoke experiences.”

7 I ATA W O R L D PA S S E N G E R S Y M P O S I U M

A new reality

ADVERTORIAL

irtual Reality (VR) is gaining in popularity and will be a part of in-fl ight entertainment (IFE) sooner rather than later, says Nikolas Jaeger, Founder and Managing Director, Infl ight VR. “The first airline implementing a thought-through VR IFE system can set a real milestone in modern passenger experience and become a winner in the industry,” he says.

By simply putting on a VR headset,

V

BETTER WITH BIOMETRICS dentity checks are a vital element of the passenger journey and traditionally a stress-point for travelers. Passport control has one of the lowest satisfaction ratings of all the stages of the passenger’s journey, according to the SITA 2017 Passenger IT Trends Survey.

But the same survey shows that automat-

I

ed identity checks which use biometrics boost passenger satisfaction at passport control and boarding—an encouraging sign for passengers’ use of biometrics.

This demonstrates passenger acceptance of biometrics as a secure technology capable of delivering a secure and seamless journey.

Biometric self-service solutions are being rolled out for automated ID control at more airports, including SITA Smart Path™ at Brisbane Airport where passengers can enjoy a secure walkthrough experience at check-in and boarding.

Keeping the process simple and easy for passengers has not only helped with the ease of adoption but has also eliminated many of the stress factors passengers face at check-in.

Passengers are ready to use the technology. In fact, 37% of passengers took advantage of an automated, self-service solution for identity checks on their last flight.

In the USA, SITA has worked with JetBlue and the US Customs and Border Protection to successfully merge the boarding process with the country’s biometric exit check.

The ‘board in a snap’ program is highly popular with passengers who simply step up to a camera and get authorized to board and leave the country without having to present any boarding pass or passport.

It is clear from research that most passengers are open to the idea of using a single biometric token to speed their way through the airport without having to show their passport or boarding pass.

If the service was available on their next fl ight, 57% of passengers say they would “defi nitely use” a biometric token. SITA is driving the industry initiative to transition this technology from an experimental to a live process. And it is encouraging that passenger response is already very positive.

W W W. I A T A . O R G

passengers can become immersed in any reality they wish—from a relaxing beach to a thrilling game. It will still be possible to watch blockbuster movies, but now—by wearing a VR headset—the cinema screen will appear so big that it wouldn’t even fit in an aircraft.

“VR also offers a platform to drive ancillary revenues,” adds Jaeger. “Renting the VR devices is an option, but the real potential lies in the virtual world. Imagine being able to book hotel rooms you just checked out in 3D, or buy tickets to a Broadway show you just previewed as if you were in the fi rst row.”

Technology: New Trends Wednesday, 11:15-12:30

8 F ES STERN AG F FEI C G POSIUM I A T A W OWR ILLDD LPI A R KSI N YM

INTEGRATED ECOSYSTEM 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

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

25/10/17 FROM 0 9.00 - 10.30 IATA WPS 2017 BARCELONA DISTRIBUTION & PAYMENT TRACK

DISCOVER MORE@ WPS BOOTH 22

G .FU C K H A R G E , V I S I T W W W. I A T A . O R G / O P T I N T O S U B S C R I B E T O A I R L I N E S I N T E R N A TW I OWNW. A ILA TFAR.EOER O