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NDC InFocus: Settlement with Orders Standard A simpler & more efficient way to settle NDC sales Thibaut Ruy / Philippe Truchet / Gianna Monsch / Momchil Momchilov

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  • NDC InFocus: Settlement

    with Orders Standard

    A simpler & more

    efficient way to settle

    NDC salesThibaut Ruy / Philippe Truchet / Gianna Monsch /

    Momchil Momchilov

    � � � � � � � �

  • Agenda

    • A new Airline Retailing world with NDC and SwO

    • How does the Settlement of NDC Orders work with the new SwO standard?

    • What are the benefits for the Industry?

    • The program roadmap

    • A transformation built with the Industry, for the industry

    • Next Steps

    • Q&A with the SwO Team

    � � � � � � � � �

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • A new Airline Retailing world with NDC and Settlement with Orders (SwO)

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • Airline Retailing, NDC without SwO

    � � � � � � � � �

    Sellers / IATA Travel Agents

    Offer

    Management

    Order

    Management

    Airline

    Ticketing

    Revenue

    Accounting

    Accounting

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

    Payment

    /

    Settlement

  • Airline Retailing, NDC with SwO

    � � � � � � � �

    Sellers / IATA Travel Agents

    Offer

    Management

    Order

    Management

    Airline

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

    Payment

    /

    Settlement

    SWO

    Finance

    SwO Automation/Integration

    � � ! " # ! ! $ % & '

    ( ) # * + % '

    , -

    . - / % - 0

  • 1 2 3 4

    5 6 7 8 7 9

    1 2 3 4

    5 7 : ; < : 3 = 9

    1 2 3 4

    5 > = < < = ; 9

    ? @ @ A B C ? B D A B E F G H A E

    I J B H J K A L M N E O P P Q B R A D

    S F T G K D L U F

    V W X YZ V [ \ ] [

    F G H A E L A P Q B R J K ^

    Carrier NDC or Finance

    Data flows to enable the Settlement in 2020

    ? @ @ A B C ? B D A B E F G H A E

    F _ ? F O P P Q B R A D

    Y ` ]

    a b c c d e b c

    F A R R H A f A K R g G K G ^ A B

    F A R R H A f A K R

    Y ` ]

    a b c c d e b c

    L A f J R R G K h A

    Seller Finance

    i j F E G H A E

    i j F L M N E O P P Q B R A D

    \ ] [

    F G H A E L A P Q B R J K ^

    Z V [

    S F T G K D L U F

    k l m n o l p q l r

    s l t u

    Seller

    Airline

    v � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • The SwO Standard Framework is enabled

    Contractual

    PaConf*/42 - October 2019 approved

    Resolution 866 – Update to Definitions of Terms Used in Passenger Agency Programme Resolutions to enable SwO usage

    Technical

    PSC* - October 2019 approved

    SwO Standard Carrier-Seller

    • PSC Resolution 750a

    • SwO messaging standard Rel 19.2.

    • Unanimously approved by PSC on 14 Nov 2019 WAW

    �w x y z { | } ~ x y | | z { | } | w x z ~ x y | z { | } |

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • Settlement with Orders : How does it work ?

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • ? B D A B T G f A K R Q f f J R f A K R

    F Q P ? @ @ A B

    Order

    Management

    System

    Order

    Management

    System

    Airline

    F N M T

    Distribution:

    Order processing

    Seller

     

    Finance System

    T Q E R S Q Q ¡ J K ^

    g J D C S G h ¡ C Q @ @ J h A

    Finance System

    F N M T ¢

    Finance:

    • Order Accounting

    • SwO Remittance & Settlement

    processing & Accounting

    £ ¤   ¥ ¦   §

    F N M T ¨

    Banks: Transfer

    of funds processing & Accounting© ª � « © ª � «

    ¬

    SwO between Carriers and Sellers

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • Agreement ID: 1234567890

    Commitment ID: 0987654321

    Payee: Airline ABC 945

    Payer: Agent X

    Currency: EUR

    Net Clearance Amount: 1’000

    Seller System(Mid-/Back-office - Finance)

    Settlement

    Platform

    � � � � � � � � � �

    ® ª � ª ¯ � � °

    ± ² ³ ´ µ ¶ · · ¸ · ¹ º » ¼ ½ ¾ ¼ ¿ ³ ¶ À · ¶ » ¼

    ± ² ³ ¿ Á ¸ ¸ Â º ¸ · ¹ º » ¼ ½ ¾ ¼ ¿ Ã Ä Å ¸ · ¹ º » ¼

    H A G B G K h A

    L A Æ O A E R

    1

    SwOmessaging flow Ç È ª � É � � Ê � � � � � � � � � � � � Ë ª Ì � � � � Ë Í � � � � � �

    Remit ID : SWR00000001

    L A f J R R G K h A

    N B G K E @ A B Î Q R J @

    Ï Ð Ñ Ò Ó Ô Õ

    3

    Agreement ID: 1234567890

    Commitment ID: 0987654321

    Payee: Airline ABC 945

    Payer: Agent X

    Currency: EUR

    Net Clearance Amount: 1’000

    Airline System (Finance)

    Ö × · ¸ Â º º Ä ¹ Ø · Ä ¹ À ± · º º Ù · ¸ · ¹ º ¼ Ä º · Ú Û Á Ù Ù Á ² Ü ± Ã Ø Ä Ù · ¹ À Ä ¶ Ú

    H A G B G K h A

    L A E P Q K E A

    Ý Ð Ó Ó Þ Ð Ñ Ð ß Ó Õ à Ó Ð

    Ï Ð Ñ Ò Ó Ó à ß á Ð Õ à Ó Ð â2

    Settlement Date: DD MM YYYY

    Clearance ID: 202095400000111

    Remittance Date: DD MM YYYY

    Clearance ID: 202095400000111

    H A G B G K h A

    Î Q R J @

    Ï Ð Ñ Ò Ó Ó à ß á Ð Õ à Ó Ð

    Ý Ð Ó Ó Þ Ð Ñ Ð ß Ó Õ à Ó Ð â

    2

    Settle ID : SWS00000001

    F A R R H A f A K R

    N B G K E @ A B Î Q R J @

    Ý Ð Ó Ó Þ Ð Ô Õ

    4� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � ��

  • SwO beyond Carrier-Seller settlement

    £ ¤   ¥ ¦   §

    © ª � «

    ã ä ä

    å æ æ   ç è

    æ æ ä   æ

    ã

    é   æ ä   æ æ ä   æ

    £ ¤   ¥ ¦   §

    © ª � « © ª � «

    ? B D A B T G f A K R Q f f J R f A K R

    F Q P ? @ @ A B

    Order

    Management

    System

    Order

    Management

    System

    Order

    Management

    System? B D A B T G f A K R Q f f J R f A K R

    F Q P ? @ @ A B

    SellerOffer Orderretailer

    Offer Order supplier

    Finance System

    Post Booking

    Mid-/Back-office

    Finance System

    Finance System

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� �

  • The SwO standard is published!

    � � � � � � � � � �

    The full standard documentation is available:

    • https://airtechzone.iata.org/industry-programs/swo

    • 19.2 & 20.1 versions

    • Implementation guide, XSD schemas, XML samples

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • SwO :What are the benefits for the Industry?

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • SwO complements & supports NDC

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� �

    Streamlined

    &

    Efficient

    Simplified settlement

    of your

    NDC Orders

    Easy to implement

    Lean XML data

    exchange

    standard

    Simplified process

    Re-usable

    For settlement

    between any NDC

    travel industry

    partners

    Any type of service

    Does not require

    ONE Order

    A first step

    Supports AIR Vision

  • ê ë ì í î ï ì

    ð ñ ò

    ê ë ì í

    ð ñ òSwO Benefits for finance (Airline & Seller)

    • Manual

    • Costly

    • Time consuming

    • Automated

    • Efficient

    • Fast!

    • 5-6 days saved

    monthly !

    Fully

    automated

    reconciliation

    • 100 % accurate

    • Early visibility

    • In ERP

    Fast and

    accurate cash

    visibility

    • Not accurate

    • Not timely

    • Manual or

    somehow

    automated

    • Not visible in ERP

    ê ë ì í

    ð ñ ò

    ê ë ì í î ï ì

    ð ñ ò

    SwO strengthen

    your NDC

    implementation

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � ��

  • What is the SwO roadmap ?

    � � � � � � � � � v � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • SwO High-level Roadmap 2018 - 2021

    ó ô õ ö ÷ ø ô ù ú ö ù õ û ô ù ü

    ý þ ÿ � � � � � � � � �

    ó ô õ ö ÷ ø ô ù � û õ ô ù ø ÷ û ô� û ÷ ù ô � õ � ö ø ô ü ý � � � � � � �

    2018

    � �

    � � �

    � � � �

    SwO Draft Standard

    2019

    SwO Standard + , ¢

    ) % � '

    � # ! , '

    � � � � � � �

    � � � �

    � �

    � ! � " � #

    � � � �

    2021

    $ & / � � ' - %

    & / , ' ' # , &

    ( ) * - .

    / ( / )

    SwO Standard ¢ , ¢ , ¢

    � . 0� 1 2

    3 4 5 6 7 8 9

    # : ;

    j J E h H G J f A B < _ J H H h G K ^ A D O A R Q Q = J D C + J f P G h R

    � �

    ) % � '

    � # ! , '� 1 2

    > # ? %� # ! , '

    � @ A B C � � � �

    2020

    SwO Standard ¢ D , ¢ D , ¢

    3 4 5 6 7 8 9

    � � E F G

    � � � �

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • Built with the Industry, for the industry

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • Airlines - Settlement with Orders Group (SOG)

    • Airlines set the SwO Standard

    • 13 airlines participated : AA, AF, BA, CX, EK, HR, JU, KL, LH, LX, SQ, TK, UA, QF

    • Reports to the Pay-Account Standards Board (PASB) under the Passenger Services Conference (PSC)

    • Deals with all aspects of financial settlement between two parties – payer and payee – where at least one of the parties is an airline, and within the scope of IATA resolutions

    • Sales payment & settlement processes experts with accounting and finance process knowledge

    � � � � � � � � � ¬ � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • Providers - SwO Adoption GroupWorking together with various providers to allow adoption

    …. more to come

    H y I J K J K

    H y I J K J K

    H y I J K J K

    x { L { L M M | L I N { J K O P

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • First successful implementation!

    • Test Pilot: Nov & Dec 2019

    • Live Pilot: April 2020

    • In production since 01 April 2020

    • Major benefits materialized

    • Lean messaging

    • Cash Flow Management

    • Automated Reconciliation� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� �

  • The world has changed with COVID-19

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • SwO supports post-COVID restart

    � � � � � � � � � �

    Simplified

    Finance

    Better Cash

    Management

    Automated

    Reconciliation

    For

    Ticket or OrderEnable

    New businessSupport NDC

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

    Reduce

    Cost

    Generate

    Cash

    For carriers and sellers!

  • Next steps

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

  • Get ready, embrace the SwO standard!

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � ��

    Airlines

    • Bridge the gap

    • Contact your provider(s)

    • Create SwO business cases

    • Link SwO strategy with NDC one

    • Build a plan

    Sellers

    • Bridge the gap

    • Contact your provider(s)

    • Create SwO business cases

    • Link SwO strategy with NDC one

    • Build a plan

    Providers

    • Involve your clients

    • Get ready for SwO

    • Create a plan

    • Support the industry transformation

    Contact IATA

    Sign Expression of Interest letter

    Pass certification

  • Contact the SwO team

    [email protected]

    Thibaut RUY

    Head Settlement with Orders Program

    Momchil Momchilov

    Settlement with Orders Group Secretary

    Philippe Truchet

    Head, Risk and Settlement with Orders

    Implementation

    Gianna Monsch (consultant)

    Settlement with Orders Strategy & Mobilization

    � v

    Q&A

    � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �