An Extraordinary Journey into Data Science and AIAaron Sugarman – Chief Commercial Architect TUI Group November 2018

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ContentsIntroduction to TUI and myself

Some AI Definitions

The TUI Yield Journey

Repeating similar journeys, but quicker

Some TUI Case Studies

Keep CALM: Collaborate, Automate, Learn and Measure

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The world’s number one tourism group with a promise to help you discover your smile

381 hotels 16 cruise shipsOnLine Sales Mix of 46%

67,000employees

A FTSE 100 company

Turnover€18.5bn*

Underlying EBITA €1,1bn*

~150 TUI aircraft +3rd Party Flying

OUR PROMISEDiscover Your Smile

TRUSTEDreliable,

consistent, quality

UNIQUEExclusive,

designed around you

INSPIRINGFresh and effortless

OUR VISIONThink Travel, Think TUI

>20m Customers travelling with us

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Our Sales & Marketing business and airlines are clustered into three regions and are operated under one brand

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Western Region

Northern Region

Central Region

We deliver global digital platforms to enable each region to deliver for its customers, colleagues and shareholders

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Some AI Definitions

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Artificial Intelligence and Related Concepts

Artificial IntelligenceThe theory and development of computer systems able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.

Expert SystemA subset of artificial intelligence that replicates the decision-making of a human expert and its more advanced form includes optimisation algorithms

Machine LearningA subset of artificial intelligence in the field of computer science that often uses statistical techniques to give the computers the ability to learn with data without being explicitly programmed

cat dogSupervised unsupervised

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There are 4 core areas of benefits within TUI and we have projects in all categories..

Opportunities for Analytics

Business Efficiency/AutomationLow complexity, but drives agility and reduces errors

Tactical Granular DecisionsMillions of granular decisions,

good, but sparse history

Strategic Investment Decisions(High Levels of Uncertainty on

Future)

Complex Combinatorial ProblemsRelative small number of variables, but

high number of combinations

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The Yield Journey

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In essence yield management is very simple…

1st Day of Sale Nov 2018

Target demand profile

Departure Date 19 Oct 2020

£High Demand Flight/Hotel

£Low Demand Flight/Hotel

0%

100%

Flight Load Factor OR

Hotel Occupancy

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The yield solution and roadmap has focused on excellence in 7 key areas leading to millions of better, granular decisions..

1. Accuracy of forecast and resulting decisions

3. Trader control

6. Timeliness

5. Transparency / Data Visualisation

4. Business Process Alignment &

Training

7. Package Control

2. Scope of yield decisions

Simultaneous focus on technology, people and process is key

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Lets focus in on the recent yield timeline...

• 2012 to 2014 TUI data science develop expert system with automated intra-day demand forecasting

• Focus on transparency and controls with science ensures high engagement and benefit resulting in more price aggression earlier

Implement new yield solution in UK with great feedback

2014

Solution rolled out to other markets and developed

2015-

Bed Swapping PoC goes live to drive global yield

2017

Next generation yield drives global yield

Ongoing

• July 2017 –Deploy algorithms to move beds between 3 markets and implements blockchain to track the moves

• Yield solution re-platformed to CLOUD with increasing use of machine learning to drive better yields at lower costs and enabling optimisation of a single inventory pool

Capability Step Change

2015 2016 2018

• Solution rolled out to new source

• Base product continually enhanced based on scope , algorithm, usability and performance improvements

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How to repeat, but quicker..

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We are targeting delivering better and faster decisions across the business in both operational and digital contexts

Digital Experience

CRM Destination Services

Aviation Purchasing and Yield

The key first step is to have the imagination to see how Artificial Intelligence can revolutionise a process to improve an outcome

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The yield journey is a success, but our challenge is how to repeat at a significant increase in pace across other business domains and for next phase of yield…

Platforms for rollout speedLearn fast, build momentum3.

Focus on reducing cycle time: Remove Blockages/Improve Quality/Automate

2.Focus on early value creation Whilst thinking long termLearn fast, build momentum

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SPEED & AGILITY

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We are setting up mixed teams to deliver “data products” IT / Analytics with a focus on delivering solutions that are long terms sustainable and flexible whilst still delivering early value..

Big Data Architect

DataAnalyst

Business Customer

Integration Architect

Lead Consultant “Product Owner”

Dev Ops Engineer/Automation Engineer

Software Engineer

Quality Engineers /Test Automation

Business Users / Analyst/Local Analytics

Ultimate Accountability for Business BenefitsHigh Level Prioritisation

Focus on business solution to deliver benefits and incentivised on set of agreed outcomes…

IT

SecurityArchitect

IT Subject Matter Experts / Advisory Roles

Cloud / AWSArchitect

Analytics &Data Science

High Collaboration

Cost Optimisation

Data Scientists/Analytics Consultants

Reporting Analyst

PMO

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Acceleration depends on changing technology, people and process simultaneously…

• Domain knowledge of business processes remains critical –Embedded data scientist

• Simultaneous focus on bringing in tech. experience and upskilling current colleagues

• Understand what skills you need and do not “make do”

• Focus on self-serve across value chain, reducing hand-offs, empowering data scientists

• Culture of Early Value and building for the future

• Data Education and story telling• Empowerment for users

• Demystify AI

People• Automation as a principle

• Best practice in development and code management

• Agile working with mixed skill scrum teams

• Focus on ensuring and measuring data quality

• Outcome focus and joint accountability

Process• Big Data Platform for granular,

real time low cost data storage => Data Available

• Standard APIs => services/data easily re-used and cost of future change low

• Cloud Processing => Lower running costs and reduced development time

• Streaming =>Real Time

• Platform capabilities deployed across group make re-use “easy”

• Security built in by design• Search for emerging products

to reduce cycle time

Technology

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Lets look at some real example projects and impact process/technology/people has..…

• Flight Planning• Delay Simulation

Ancillary Recommendations

Sear

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Purchasing

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Our philosophy is to keep CALMCollaborateAutomateLearnMeasure

Check us out at: https://tuijobsuk.co.uk/work-at-tui-travel/head-office/data-science/