competing with low cost carriers using legacy distribution

TECHNOLOGY AND INNOVATION IN AIRLINE DISTRIBUTION AND MERCHANDISING 2015

Best of both worlds: Competing with low cost carriers using legacy distribution

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• Madrid-based airline operating shortand medium-haul flights

• Commenced operations in March

2012 with over 6 millionpassengers and 50,000 flights in

its first two years

• Most punctual European airline and

recognized as one of the best in the

world

• Wholly-owned subsidiary of Iberia

• Operates 31 routes in Spain and

Europe, flying 17 Airbus A320

aircraft

• Indra is one of the leading IT

companies in the world both in

consulting and technology.

• 43.000 employees and projects in

138 countries.

• First-class customers worldwide from

all sectors

• Solutions and services for Transport

and Traffic, Energy and Industry,

Public Administration and Healthcare,

Financial Services, Security and

Defense and Telecom and Media

sectors

01 ROADMAP TO DIGITAL EVOLUTIONBEST OF BOTH WORLDS: COMPETING WITH LOW COST CARRIERS USING LEGACY DISTRIBUTION

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01 ROADMAP TO DIGITAL EVOLUTIONSTARTING POINT

First Iberia

Express website

is set out as a

spin off of

Iberia’s.

For it’s go live

day the portal is

just a clone.

MAJOR INCONVENIENCES:

- Not oriented to its own customer

- Heavy content website

- Offer based on legacy carrier

- Architecture based on central

systems.

GOAL:

Create a website

focused on the

customer and ready to

compete with other

LCC and legacy

carriers.

2012

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WEB STRATEGY

CLOUD COMPUTING

ENHANCING DISTRIBUTION

SYSTEM

FAST TIME TO MARKET

CUSTOMER ORIENTED INTERFACE

QUICK ADOPTION

AFFILIATION PROGRAM

02 ROADMAP TO DIGITAL EVOLUTIONDEFINING STRATEGY

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03 ROADMAP TO DIGITAL EVOLUTIONWEB STRATEGY: CLOUD COMPUTING WEB

STRATEGY

PNRs generated in a week

TRAFFIC PATTERNS ARE UNPREDICTABLE:

Marketing campaigns, special sales, daily

behavior impact on infrastructure sizing.

Unfeasible dimension infrastructure attending only to

traffic peaks

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STRATEGY

= OPTIMIZED BUSINESS =AGILITY +

BUSINESS & IT

ALIGNMENT +SERVICE FLEXIBILITY

INDUSTRY STANDARDS+

CLOUD COMPUTING

= Reduced Cost

….leverages virtualization, standardization and automation to free up operational budget for new investment

=VIRTUALIZATION + ELASTICITY +STANDARDIZATION AUTOMATION+

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INCREASE OPERATIONAL EFICIENCY: Dynamic scaling improves efficiency offering asolution to main two problems for infrastructure:

traffic pattern is unpredictable: there are peaks of request in holidays, due tospecial offers…

users demand for faster responses.

REDUCE INITIAL COST: Move from application/tenant to user/transaction/volume pricingin a opex model.

BUSINESS OUTCOME: To handle budget constraints

Paying only for the infrastructure you a really using

Reducing IT operations and maintenance staff

TIME TO MARKET: Reducing effort, time, staff to provision new infrastructure andservices

CLOUD COMPUTING: gives a technical solution to business problems on direct channel distribution


STRATEGY

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WEB STRATEGY

04 ROADMAP TO DIGITAL EVOLUTIONWEB STRATEGY: ENHANCED DISTRIBUTION SYSTEM

ENHANCED BOOKING

EXPERIENCE

BOOKING FLOW

MANAGER (BFM)

ENHANCED SHOPPING

NEW REVENUE & CUSTOMER

ATTRACTION

PAYMENT ALTERNATIVES

ONLINE CHANNELS

CONVERGENCE

Indra’s BFM is an Integration Platform that allows integration with external providers allowing:• Centralize and simplify configuration

setting from PSS & GDS, Ancillaries providers and payment gateways.

• Easy and quick offer definition from marketing and commercial staff.

• Allows personalize product and price definition.

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WEB STRATEGY

04 ROADMAP TO DIGITAL EVOLUTIONWEB STRATEGY: ENPOWER DISTRIBUTION SYSTEM

AmadeusSITASabre

RadixxNavitaire

Travelport

Psp

INDRA BOOKING FLOW MANAGER

CACHE FEEDER

XMLSOAP, EDI, CRYPTIC

CUSTOMER KNOWLEDGE

SOA, XML, REST & HTTP

SOA, XML & DB ACCESS FILES

ANCILLIARES HUB

CUSTOMER & COMPANY PROFILE

BU

SIN

ES

S S

ER

VIC

ES

(RE

ST

, SO

A, X

ML)

CALENDAR WS

METASEARCH

DB LOG FILEWS

RESERVATION

SOA, XML, REST & HTTP

PAYMENT GATEWAY

PSS & GDS

INV: InventoryRES :ReservationTKT: TicketingDCS: Departure Control

PSP, MCO, EMDVOUCHER, COST

CENTER

Air AncilliaresAirline services

External

KPI & REPORTING

Internet

Local

Loyalty

Air

Services

Hotel

Car

Insurance

CRM

Loyalty

Corporate

External

1to

1 p

rod

uct

an

d p

riceca

talo

g

ND

C

PNREMD

EXTERNALORDER ID

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DISTRIBUTION & FARING

WEB STRATEGY

04 ROADMAP TO DIGITAL EVOLUTIONWEB STRATEGY: EMPOWER DISTRIBUTION SYSTEM

PASSENGERCMS CHANNELS

EASY AND QUICK OFFER DEFINITION

MARKETING

SIMPLIFY DISTRIBUTIONCOMPLEXITY: Providing business

services to marketing, commercial

and user interface designer

POWERFUL INTERFACE: Allowing

access in multiple protocols from

direct access (cryptic) to new

standard (NDC, OTA, E-retail)

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04 ROADMAP TO DIGITAL EVOLUTIONIBERIA EXPRESS: SUCCESS HISTORY

THE HANDICAPS THE GOAL THE RESULT

- Heterogeneous reservation and distribution system (legacy)

USAS (Resiber): INV, DCS, TKT

Amadeus: Reservation

- Fare settlement dependency with IAG members

- No EMD support (dependencies with Amadeus implementation slots)

New generation business services handling all direct channel.

Fast implementation roadmap (4 moths)

New end-user functionalities not found on legacy distribution

New booking experience:

Availability&price: Low price & upsell

Ancillaries shopping basket

New payment and promotion tools

New affiliation program

Responsive design (mobile, tablet, desktop)

WEB STRATEGY

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WEB STRATEGY

05 ROADMAP TO DIGITAL EVOLUTIONWEB STRATEGY: FAST TIME TO MARKET

MANAGE CHANGES, CONTROLLING COSTS. change is risk and it isexpensive because it implies rework.

Using Scrum (an Agile methodology) allows us to:

SMALL DELIVERIES: this not only makes things simple, we havefeedback of these deliveries and the project very often and early, soif adjustments have to be made they are done in «real- time».

PAY ATTENTION ON QUALITY: since early steps quality control isestablished in the deliver process, including automated tests, usersvalidation, good design…

ENHANCE TEAM MOTIVATION: Scrum is focused on collaboration,implying continuous customer involvement, every member of theteam is aligned with the project goals.

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WEB STRATEGY


Graphical design

Front officeProgramming

Indra BFMProduct & Price

Catalog

THE GOAL THE ACTION THE RESULT

Create a new website.

Implementation 4 month

New business model

New affiliation program

No impact on fare and IAG agreements

From design to implementation in 4 months

Full cloud implementation minimum IT operations.

Full affiliation program.

Full KPI support to monitor activity.

From business to implementation using agile methodology.

Full Business process redesign attending customer needs.

Airline complexity solved using Indra BFM product

Strong collaboration with Design and Front office programming

Focus on delivery

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06 ROADMAP TO DIGITAL EVOLUTIONWEB STRATEGY: CUSTOMER ORIENTED INTERFACE WEB

STRATEGY

“Reviews and design are very important at the moment to buy on the internet” Felipe 29, Spain

“One of the most boring things when looking for tickets is having to add data all over again” Ramiro 24, Brazil

“What is more annoying is the lack of transparency, the extra charges. It has to be clearer, show me the final price” Francine 29, USA

“With age comfort inside the plane is more and more important”Lidia 48, Chile

“Airline website should be easier to figure out” Ruth 52, Portugal

“I lost a reservation because I couldn’t find the moment to go and pay”Carlos 42, Mexico

PROFILE CONSIDERATIONS

INDRA AIRLINE E-COMMERCE SURVEY 2013

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STRATEGY

NON-NATIVE DIGITAL

MOBILE

PROFESSIONAL

YOUNG

EXPLORER

MATURE HEDONIST

Consumers are living multiple personalities and thus demonstrating diverse needs

There exists a greater lack of consistency in their work, home and play ‘profiles’

Consumer profiling has become an uphill task

Businesses find it more difficult to understand the varied needs and thus create a

greater gap between themselves and their consumer

INDRA AIRLINE E-COMMERCE SURVEY 2013

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• DEVELOP FEATURE.• TEST YOUR HYPOTESYS• INCLUDE BEST PRACTICES


STRATEGY

BUILD

LEARNMEASURE

• HOW USERS REACT?• GET FEEDBACK

• IS A PIVOT NEEDED, SHOULD I PRESERVE?• DID I OBTAINED THE EXPECTED RESULTS?

LEAN + UX:Learn Fast

Learn CheapIndra BFM

KPIs

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07 ROADMAP TO DIGITAL EVOLUTIONWEB STRATEGY: QUICK ADOPTION AFFILIATION PROGRAM WEB

STRATEGY

AIRLINES LOYALTY PROGRAM STRATEGIES HAVE EVOLVED OVER THE YEARS, FROMDISCOUNT COUPONS IN PRESS TO ADVANCED LOYALTY SCHEMAS

Discount coupons in newspapers and

magazines

Loyalty card by points

•Exchange points for flights with other carriers

•Diversification and synergies with hotels, car rental ...

Loyalty model by Apps

Personal Loyalty Model

Customer Identification Card

Attract and retain customer base with a quick adoption product withminimum complexity

Affiliation program:Quick access to discount with only email required.

- No EMD

- No Special Fares

- Quick promotion definition

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07 ROADMAP TO DIGITAL EVOLUTIONIBERIA EXPRESS: SUCCESS HISTORY WEB

STRATEGY

THE GOAL

THE ACTION

THE RESULT

Create Iberia Express own

client base: attract and

create a brand impact to

retain them.

Affiliation program to

access discounts: both

guest and registered users

can book a flight, but

registered (“Club Express” members) get an extra

discount.

100.000 club members in

the first four months.

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4Months

Project duration


Availability on cloud premises

x4 Bookings through Iberiaexpress.com

+100k Club Express users on first 4 months

99,99%

Functionalities focused on customer needsNEW

SPAINAvda. de Bruselas 35

28108 Alcobendas,

Madrid Spain

T +34 91 480 50 00

F +34 91 480 50 80

www.indracompany.com

Indra, We Speak Airlines!