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Self-Booking Tools: Perspectives on NDC & the SBT Demonstrator Gap Analysis A Report to IATA By Aurélie Krau Paul Tilstone Associate Founder & CEO Festive Road Festive Road

CONFIDENTIAL ©Festive Road 2015

“Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable” (William Pollard)

[2] Creating Your Global Voice

Festive Road Solutions Limited is a Limited company registered in England & Wales, registration number 08830752 and VAT Registered: 181 0051 52

Contents Page

Executive Summary .................................................................................. 3

Report Methodology, Use & Objective ..................................................... 4

Background Information ........................................................................... 6

The Gap Analysis ....................................................................................... 7

Part 1: IATA’s SBT Demonstrator: Identified gaps and recommended changes............................................................................. 7

The Gap Analysis ..................................................................................... 28

Part 2: IATA’s NDC Mobile Demonstrator ............................................... 28

Features: Development opportunities, benefits and challenges ............. 29

Questions to consider ............................................................................. 40

Conclusions ............................................................................................. 41

Appendix 1: identified gaps on the SBT Demonstrator ........................... 43

About Festive Road ................................................................................. 46

“Technology made large populations possible; large populations now make technology indispensable” (Joseph Wood Krutch)



Executive Summary In 2013, IATA produced an SBT Demonstrator which sought to show how NDC would present itself through the buyers’ portal of choice, the Self-Booking Tool (SBT). This Demonstrator was built after interviews with key corporate buyers and other stakeholders based on the knowledge of NDC at that time. Two years on and IATA wishes to review that Demonstrator and appointed Festive Road to undertake an analysis of how NDC would be manifested in corporate self-booking tools to create a more dynamic offering to the corporate buyer. The Demonstrator has always intended to act as a visual representation of what NDC might look and feel like. The review seeks to enhance the Demonstrator based on a.) evolving SBT capabilities since the first Demonstrator was produced b.) the heightened knowledge about what NDC will be able to do and c.) the feedback from SBTs. The findings of the gap analysis show that the main enhancement needs for the NDC Demonstrator are:

The demo platform presents itself as a system.

The platform needs to be more educational and highlight which features will be facilitated by NDC.

A more dynamic UI would be appreciated, e.g. clickable images, better description of ancillaries, bubbles would contribute to make the demonstrator an educational tool.

The power of personalization of NDC is not wholly reflected: show the ability to experience a personalized shopping vs. anonymous shopping.

The advanced shopping/booking experience is not reflected as the demo does not follow through to book ancillary services: it only shows those who are included and those who are optional.

The Demonstrator does not have advanced fares comparison features.

The admin section / reports need to distinguish between ancillary services included in the core fare and those added at an extra cost.

When we consider how NDC would be reflected in the future of SBTs, the main findings are:

NDC could bring exhaustive content and give travel managers / buyers more control over it.

It would allow the development of cross selling and down selling capabilities.

It would allow the development of personalization.

It would allow development of advanced and smart engines in order to compare fare types across all airlines and to find the best fare available, regardless if the user is identified or not by the airline. It could also allow a more Amazon-style approach where the fare options provided offer different fulfilment partner options.

In addition, the findings of the interviews that we had with SBT representatives show that their main concerns are concentrated around data, content sourcing and implementation of NDC. Also, we noted that because SBTs are particularly focused on travel managers / buyers’ needs, as they are their privileged customers, the interests of both parties are similar.

“The human spirit must prevail over technology” Albert Einstein



Report Methodology, Use & Objective

Methodology a) Approved Insights via Planned Workshops Workshops were conducted with SBTs, either face to face or via WebEx, based on the following:

Open discussion about NDC: their knowledge of the standard, their view, their expectations.

Open discussion about the needs of their customers (i.e. corporations and corporate buyers/travel managers).

Demo of the SBT Demonstrator: desktop version & mobile version. o Launch a search and focus on rich content enabled thanks to NDC. o Go through the customer journey and focus on NDC functions (search results page,

compare page, itinerary page).

Focus on the admin menu and reporting capabilities. o Personalize display/rights depending on user/traveler profile. o Reporting: focus on reports available linked to ancillary services.

Discussion on how NDC would be manifested in a corporate booking tool: o In terms of UI. o In terms of new functionalities/development opportunities. o In terms of new offers available. o In terms of personalization. o In terms of data.

Prospective: their view on the potential of NDC. We have put together briefing documents so that they could understand the objectives of the workshops and knew what to expect. This initial briefing document was sent by email when requesting their participation: Then we rolled out a quick presentation introducing the workshop, and reminding them that the sessions would be mutually beneficial. b) Additional Insights via Open Access Assessments have also been made based on data and demo platforms available on the Internet. c) Additional Insights via Public Presentations Assessments by gathering, analyzing and insights shared during industry events (e.g. Global Business Travel Association).

“The art challenges the technology, and the technology inspires the art” John Lasseter



Report Use Definition Participants were advised that the report itself would only contain aggregated information and feedback. The report would be limited in its distribution to IATA working groups (which could include external participants) and IATA staff. Any external communication of the report’s findings would exclude individual participant names and use aggregate data only. Any use of data outside of those above will require the permission of participants.

Report Objective The brief from IATA was as follows:

Produce a report based on interviews with SBTs, external sources and own assessments.

Focus the report on a.) SBT Demonstrator gap analysis and recommendations on how to enrich it, b.) Thoughts on how SBTs would make usage of NDC.

“Any sufficiently advanced technology is equivalent to magic” Arthur C. Clarke



Background Information There are varying needs when it comes to a corporate booking tool. The Corporation Travel managers / buyers want to make the right choices that are aligned with their business needs. They are also keen on productivity and need a tool that is easy to use. On the top of that, they are committed to driving compliance with the travel policy: they are looking at controlling the content displayed to the travelers, and want control and visibility of costs related to travel. That is why they want to control what the traveler can and can’t purchase. They want to be proactive rather than reactive. Initially the tools were mostly company focused, but this has created frustrations among travelers, who have been more and more influenced by consumer websites and apps (OTAs, metasearch…) over the past years, which are sometimes more advanced in terms of content and user interface, and offer more flexibility. Consumerization is now the new standard: the business travelers’ needs have evolved. That is why travel managers and buyers are becoming traveler focused. The User Content has become king in order to drive online adoption. As a consequence, travel managers / buyers have to find the right fit in terms of offers displayed and bookable in the corporate booking tool. Indeed, travelers will not adopt the tool if the content is poor and if they do not find offers relevant to them. For example, they will not find the tool relevant if the full price range is not displayed, regardless of whether fares are not bookable. This raises distrust and dissatisfaction. In parallel, travelers expect the right product and service at the right time. They are requiring a more personalized shopping experience. Given this context, travel managers / buyers are eager to find solutions so that travelers have a good perception of the corporate booking tool.

“The Internet is becoming the town square for the global village of tomorrow” Bill Gates



The Gap Analysis Part 1: IATA’s SBT Demonstrator: Identified gaps and recommended changes In this section, we will detail our recommendations to enrich data and functions which already exist on the SBT Demonstrator, based on a description of functions and on screen shots enriched by bubbles and pop-ups, or mock-ups built with PowerPoint.

Chapter 1: Mark NDC features in the Demonstrator The demonstrator presents itself as a system and this is misleading. Users may think that IATA has built its own tool which integrates NDC features. The users who will navigate in the SBT Demonstrator must easily understand which features are NDC related. Functions associated:

Reference Description

DEMO-1a Add a pop-up window informing the purpose of the Demonstrator on the hope page.

DEMO-1b Insert an educational video on the home page that starts automatically [create a specific video dedicated to SBTs].

DEMO-1c Define signage i.e. create specific pictograms highlighting NDC features all along the customer journey, e.g. on ancillaries, and display bubbles including explanations when hovering on the icon.

Figure 1 – [DEMO-1a] - Add a pop-up window informing the purpose of the Demonstrator on the home page

Notice The Demonstrator is intended to act as a visual representation of what NDC might look and feel like. IATA has no intention of building a system. NDC is a standard.

OK

Add a notice explaining the essence of the SBT Demonstrator in the home page

“I have not failed. I've just found 10,000 ways that won't work” Thomas A. Edison



Figure 2 - [DEMO-1b] - Insert an educational video on the home page

Figure 3 - [DEMO-1c] - Define signage i.e. highlighting NDC features

Insert a specific icon that identifies NDC related features all across the screens

Display educational video & start it automatically when landing on home page (include possibility to skip it)

When hovering on the “NDC icon”, display a bubble with explanations on the feature shown in the page:

Ancillary services with NDC, you will be able to see which ancillary services are included in your fare, and which are available and bookable…

“This is why I loved technology: if you used it right, it could give you power and privacy” Cory Doctorow



Chapter 2: show personalized vs. anonymous shopping By showing the two ways that a user can shop, the users have to be able to see the power of personalization. Functions associated:


Personalized shopping

DEMO-2a Show the ability to experience a logged-in customer journey: add a “logged in” button. With this function turned on, the user will experience a personalized journey.

DEMO-2b Add personalization options – Frequent Flyer details.

DEMO-2c Add personalization options – Preferred payment.

DEMO-2d Add personalization options – Preferred itinerary.

DEMO-2e Add personalization options – Social media profiles.

Anonymous shopping

DEMO-2f Show anonymous customer journey. This will show the travel managers/buyers that they can control the level of personalization.

Figure 4 – [DEMO-2a] - Show logged-in customer journey

Add a button to allow personalized shopping

Logged in

Add NDC icon + explanation when hovering over

Personalized shopping With NDC, you will be able to opt for personalized shopping mode. You will also have an option for anonymous shopping.

OK

Log in

“Programs must be written for people to read, and only incidentally for machines to execute” Harold Abelson



Chapter 3: show the ability to book ancillary services The system already shows which ancillaries are included and which ones are optional + their price, but does not give the ability to actually book an ancillary service. Functions associated:


Book ancillaries at the time of shopping:

DEMO-3a In search results page: show ancillaries which are included in the flight + show those which can be purchased in the tool.

DEMO-3b In search results page: against each optional ancillary, add a “book” button with instant price update when selected.

DEMO-3c Add ability to purchase ancillaries in the check-out page.

DEMO-3d In the booking confirmation page: add a line showing the ancillary services included and those who have been booked.

DEMO-3e In the itinerary: show ancillaries included/available.

Book ancillaries post booking in the SBT:

DEMO-3f Some ancillaries will not necessarily be booked at the time of booking e.g. lounge access, seat, fast boarding pass…

Figure 5 – [DEMO-3a] - Show ancillaries which can be purchased in the tool

Show ancillaries which are included in the flight + show those which can be purchased in the tool

“One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man” Elbert Hubbard



Figure 6 - [DEMO-3b] - Add a “book” button with instant price update

Book

Add a “book” button

Add NDC icon

Instant price update when ancillary is selected

“Innovation is taking two things that already exist and putting them together in a new way” Tom Freston



Figure 7 - [DEMO-3c] - Add ability to purchase ancillaries in the check-out page

Chapter 4: refine search options & filters The Demonstrator does not show any possibility to select a flight based on ancillaries, except a filter on baggage in the search results page. Advanced search options as well as filters should be refined. Functions associated:


DEMO-4a Refine advanced search options In the advanced search results form, add filters per ancillary or most demanded ancillaries (e.g. bags, seat, meal, wifi).

DEMO-4b Refine filters In the search results screen margin, add the filters enabling to show only flights which include x service (will show bundles rather than ancillaries bookable for additional costs).

Add NDC icon + explanation

Add additional service (not included) if it has been selected in the previous screen

Add a service

Show the ability to add a service before confirming the booking

“Technological innovation is indeed important to economic growth and the enhancement of human possibilities” Leon Kass



Figure 8 – [DEMO-4a] - Refine advanced search options

Figure 9 – [DEMO-4b] - Refine filters

Bags is the only filter related to ancillary services enabled thanks to NDC. Add a filter showing for instance only flights which include x ancillary (e.g. most used seat choice, fast boarding pass…)

Add NDC icon + explanation when hovering over

Add NDC related search options

“The real problem is not whether machines think but whether men do” B. F. Skinner



Chapter 5: introduce dynamic content Rich content is already available in the NDC Demonstrator when the user hovers over images. However this should be more dynamic in order to show how NDC will change the user experience. Functions associated:


DEMO-5a Make the ancillary icons clickable to display a description of the service: In the search results page, allow the access to a set of information and a description of services available, e.g.

For “Snacks & drinks”, display the menu and description about some specialties for instance.

For “Entertainment”: provide a list of services available (movies updates, music, games).

For “Seat”: display a contextual photo and a description.

…

DEMO-5b Insert contextual images Generic images of services do not bring value. If not possible to add contextual images in the Demonstrator, then add a bubble/pop-up mentioning that this capability is enabled.

DEMO-5c Insert videos If not possible to add a video in the Demonstrator, then add a bubble/pop-up mentioning that videos can be uploaded.

Specify the source of the image: 1) does it differ from airline to airline? 2) Is it contextual (depending on the flight i.e. long haul, short haul…)

Make the pop-up window/the photo clickable in order to access more details/description on snacks & drinks available during the flight (e.g. here 2 hots meals are mentioned: which ones?).

Images Here add an explanation on images.

OK

“If you look at history, innovation doesn't come just from giving people incentives; it comes from creating environments where their ideas can connect” Steven Johnson



Figure 10 – [DEMO-5a and DEMO-5b] - Insert contextual images and make the pop-up window clickable

Figure 11 – [DEMO-5a and DEMO-5b] - Seat: example of clickable image and show it moves to video

Figure 12 – [DEMO-5a and DEMO-5b] - WiFi: example of clickable image

Make the pop-up window/the photo clickable in order to access more details/description on the seat, and a description of all seats available in the aircraft. Or show that it moves to video.

Make the pop-up window/the

photo clickable in order to

access more

details/description on the in-

flight WiFi usage.

“Technology is just a tool. In terms of getting the kids working together and motivating them, the teacher is the most important” Bill Gates



Chapter 6: display more fares The Demonstrator does not reflect the variety of offers available thanks to NDC. It already displays the fares available per selected flight/airline. However the display can be enriched for a same flight/same airline by taking into consideration ancillaries. Functions associated:


DEMO-6a Enrich the fares available / airline: include unbundled fares in the user interface along bundled fares / family fares.

DEMO-6b Show ability for the Admin (travel manager / buyer) to set-up display rules (e.g. show bundle/unbundled fares by airline).

Figure 13 – [DEMO-6a] - Enrich the fares available: include unbundled fares along bundled fares

Include unbundled fares along bundled fares and offer comparison functions (ref. chapter 7)

“Innovation is the central issue in economic prosperity” Michael Porter



Figure 14 – [DEMO-6b] - Show ability to set-up display rules

[Admin] Add option to show bundle/unbundled fares by airline

“We're still in the first minutes of the first day of the Internet revolution” Scott Cook



Chapter 7: improve fares comparison features The Demonstrator only allows the comparison between bundled fares. The comparison capability needs to be enhanced by including unbundled fares (ref. chapter 6). This will demonstrate the added value of NDC. Functions associated:


Compare fares across same flight and same airline

DEMO-7a Compare fares for the same flight and the same airline + associated sales conditions (the Demonstrator uses wording such as “non-flex”, “refundable”, “changeable” as fare types, but the airlines’ fares wordings are not that explicit). E.g. Air France has several fares for a same itinerary/same flight, some will include baggage, some will not, and will have restrictive conditions (e.g. “mini” fares).

DEMO-7b Create a flight details page: this page would show all fares proposed by a given airline for a given flight + show ancillaries available whether included or not (like a hotel page, with a description of the services, and the different fare available + associated sales conditions) – ref. to Festive Road mock up Figure 16.

Compare fares across multiple airlines

DEMO-7c Enhance existing comparison page: build a matrix showing 1 criteria /line in order to allow a better comparison, and then display the images (too much scrolling down needed to access & read the information easily).

DEMO-7d Allow comparison based on the same criteria + compare the price of ancillaries which are not included. E.g. some fares include luggage; some do not.

DEMO-7e Set a dedicated page showing all options available (included or not), like for hotel shopping.

DEMO-7f Compare price of ancillaries from airline to airline.

DEMO-7g Compare flights with ancillaries included vs. ancillaries which are not + compare the price of each ancillary separately.

DEMO-7h Create a comparison page to compare multi fares & multi airlines (matrix) – ref. to Festive Road mock up Figure 18.

“Technology has to be invented or adopted” Jared Diamond



Figure 15 – [DEMO-7a] - Compare fares for the same flight and the same airline

Figure 16 - [DEMO-7b] - Festive Road created visual to demonstrate flight details page

Add a “compare fares” button to give the ability to compare fares provided by a given airline in a matrix to see the total price of the ticket depending what ancillaries are included or not (like on the airlines’ websites)

Compare fares

By clicking on the button, the user would access a flights details page

“Just because something doesn’t do what you planned it to do doesn’t mean it’s useless” Thomas Edison



Build a matrix showing 1 criteria /line, and then display the images (too much scrolling down needed to access & read the information easily).

“Technology is anything that wasn’t around when you were born” Alan Kay



Figure 17 - [DEMO-7c] - Enhance existing comparison page: build a matrix showing 1 criteria /line

“Computers are useless. They can only give you answers” Pablo Picasso



Figure 18 – [DEMO-7h] - Festive Road created visual to demonstrate comparison page

Chapter 8: refine itinerary The itinerary of the Demonstrator shows a simple reminder of the flight selected and a long lists of ancillaries included. This page could be enriched and enhanced so that the Demonstrator shows how NDC can enrich travel documents. Functions associated:


DEMO-8a Display icons of ancillaries available/booked for each segment.

DEMO-8b Add icons showing ancillaries available/booked against each flight segment (at the top of the screen).

DEMO-8c Add the ability to sync. the itinerary with an external system.

“You cannot endow even the best machine with initiative; the jolliest steamroller will not plant flowers” Walter Lippmann



Ancillaries are shown by flight, segment by segment. This is not easy to read: users need to scroll down and this is a) not easy to read b) not convenient Efforts on interface: build a matrix showing 1 ancillary /line

Display icons of ancillaries available/booked for each segment

Sync. the itinerary Give the ability to send the itinerary by email or sync. it with an external system (e.g. app…)

“One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man” Elbert Hubbard



Figure 19 - [DEMO-8b] - Add icons showing ancillaries and ability to sync. the itinerary

“For good ideas and true innovation, you need human interaction, conflict, argument, debate” Margaret Heffernan “



Chapter 9: refine reporting / back office related capabilities The Admin screens of the Demonstrator show that the travel manager / buyer is able to monitor the content based on the user profile, on ancillaries types and on carriers, but the Demonstrator shall be able to show more details in order to demonstrate the visibility NDC can bring on corporate expense, namely on ancillary fees. Functions associated:


General dashboard

DEMO-9a Clarify if ancillaries switched on are included in the fare (bundles) or booked individually?

DEMO-9b Add a “sources” box to show all channels (as data may come through the GDS or through an API) and allow switching them on and off.

Ancillaries report

DEMO-9c Add an ‘export’ option (.xls, or .csv format) i.e. show the ability to reconcile data and to integrate data in the clients’ IT systems (ERP). Note: SBT is considered as a mid-office tool; ERP is back office tool.

DEMO-9d Select channels - Add a box showing that any channel can be switched off if the admin does not want to go through it, as data may come through the GDS or through an API. This is valid for each individual airline. E.g. with the recent example of Lufthansa who wants to add surcharge for any booking made via the GDS, the Admin would be able to switch of / off channels such as GDS or any other API (Direct Connect, another aggregator)…

“Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow” William Pollard



Figure 20 – [DEMO-9c and DEMO-9d] - Dashboard: refine report of ancillaries

Needs clarification: are these ancillaries referring to those who are included in the fare (bundles) or bookable?

Data sources

Add “source” box This box [on general dashboard] would show all channels and allow to switch them on and off on an individual basis. + allow the selection of channel(s) by individual airline [dedicated Admin page]

GDS

Direct Connect

Aggregator A

Aggregator B

“The heart and soul of the company is creativity and innovation” Bob Iger



Figure 21 – [DEMO-9a and DEMO-9c] - Ancillaries report

Differentiate ancillaries which are included in the air fare vs. ancillaries which are booked separately by the traveler. This report (as it is) is misleading.

Differentiate bundle fares / family fares vs. ancillaries booked separately

Airline: 1 fare= 1 product 1 airline has x fares SBT = multi airlines & multi fares > the report has to reflect this granularity

e.g. break down each fare line: 15 inclusive tickets (Easyjet) 15 standard tickets (Easyjet) + take into consideration combined fares in case of return trip, e.g. restrictive fare + flexible fare for return flight

Export

Most travel managers / buyers look for export capabilities to reconcile data. They may use data from SBTs as a basis and to rework them in Excel, and also upload them in their ERP system.

Bundled fares

Unbundled fares

Add an ‘export button’ (xls, or .csv format)

“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient

operation will magnify the inefficiency” Bill Gates



The Gap Analysis Part 2: IATA’s NDC Mobile Demonstrator We looked at the Mobile NDC Demonstrator, and identified that it presented a different perspective, with a focus on services to be purchased “on the road” i.e. once traveler is on trip. Background: SBTs’ today mobile app usage is mostly for shopping purposes, or to book a hotel, although the market is going to experience changes in a short term as major SBTs developed or are developing their “on the go” services which are bookable with a mobile device. In this context, ancillaries are relevant with a mobile device as it is the preferred way of communication for travelers on the road. Push notifications shown in the Mobile NDC Demonstrator based on geolocation or timing do make sense. We therefore have no major enhancement comments to add as it is not consistent with the SBT Demonstrator because it represents different perspective. Suggested developments, however, would be: e.g. push contextual offers within 24 hours of the fight (purchase lounge access, fast track…). e.g. develop reconciliation capabilities so that the ancillary purchased on the mobile can be attached to the main booking and reduce the cost of back office processing (e.g. ancillaries result in the creation of EMD segments in GDS systems). In addition to these comments, questions were raised about the feasibility for a SBT to propose certain services shown in the Mobile NDC Demonstrator such as fast track or airport lounge access, as they would not be proposed by airlines.

“Changes call for innovation and innovation leads to progress” Li Keqiange



Features: Development opportunities, benefits and challenges In this section, we will detail features development opportunities for SBTs -enabled by NDC- based on a) Approved Insights via Planned Workshops with SBT representatives, b) insights via Open Access sources of information, c) insights via Public Presentations, d) personal assumptions. Development opportunities will be expressed in functionalities, and illustrated with mock-ups built with PowerPoint or diagrams built with Bizagi using Business Process Modeling (BPM) methodology - when relevant. These developments represent enhancements and selling points for the SBTs. Next to each development opportunity, we added the ‘reality factor’ –on a score out of 10- indicating how likely this will happen, 10 being the most likely. This section will also detail benefits for SBTs, as well as challenges related to these developments.

Features development opportunities

Chapter 1: Build corporate bundles and control the display of offers [Reality factor: 10/10] NDC could mean a more open distribution. This is already the case for family fares or bundled fares available in SBTs for some airlines. NDC could enable new opportunities to build fares combinations and make them bookable in the SBT. As a consequence, travel managers / buyers may need to have more control on the offers displayed to their travelers in their corporate booking tool. Note: some SBTs do not promote the ability to filter the content shown to users. For instance, if a flight is not shown on the SBT but is shown on the airline’s website, this leads to a distrust from travelers and will have as a consequence bad SBT adoption rates. They will also display all flights available and flag those who are compliant with the travel policy. Those not compliant may not be bookable, but at least visible, in order to show that the SBT is able to display an exhaustive content. Functions associated:


DEV-1a Allow and build corporate packages:

In addition to Economy fixed, economy flexible, there could be a column of “Corporate X negotiated bundles” – i.e. rates negotiated with the airline and corporate specifically for a group of travelers at that corporate (maybe it includes Lounge Access for example).

TMC created packages offers could be imagined, as TMC help to segment travel type in the corporations.

DEV-1b Extend bundles to other types of services (intermodality) Propose additional services thanks to the connectivity switched on (hotels,

“"Life was much more easier when apple and blackberry were just fruits" Anonymous



ground transportation such as taxis or rail).

Figure 22 – [DEV-1a] - Features development – Business Process created by Festive Road to illustrate how the system would search for multiple sources to create corporate packages Chapter 2: Develop a personalized shopping experience [Reality factor: 8/10] NDC could allow companies to offer a more personalized customer journey to the corporate bookers thanks to new features. Functions associated:


DEV-2a Enhance the traveler profile Allow travelers to store their Frequent Flyer details, their seat preference, and their preferred options (wifi, fast boarding pass…). Note: offers displayed would take into consideration the travelers profiles if they choose to be identified by the system (personalized shopping vs. anonymous shopping).

DEV-2b Display contextual offers based on traveler profile - Display dynamic pricing based on who logs in e.g. display perks related to Frequent Flyer status for all airlines, suggest priority boarding depending on the traveler profile. This will encourage road warriors for instance to book on the SBT as they may be used to booking on the airlines websites because they are being offered special fees and discounts. They also know what type of fares they are eligible to and they need to book to be upgraded. They are smart and they know how to

"Access to computers and the Internet has become a basic need for education in our society” Kent Conrad



make the game. Plus, they are attracted by loyalty and rewards programmes.

DEV-2c Display contextual offers based on traveler profile - Display dynamic pricing based on buying behaviors Just like OTAs, SBTs are starting to take into consideration the travelers’ search and booking history, user preferences in order to display targeted offers.

DEV-2d Display contextual offers based on traveler profile – Display ancillaries dynamically e.g. display ancillary services based on route (menu…).

DEV-2e Offer upgrading options Use gamification to offer upgrading options. E.g. if economy flight has been booked and premium economy is available for the given flight “would you like to redeem your points and book premium economy”?

Chapter 3: Develop advanced comparison options [Reality factor: 8/10] Air fares structures are complex. A given airline has several products: 1 fare = 1 product, and all of them are likely to be displayed in the SBT. But they are not compared based on the same criteria, and NDC could make comparison more complex. SBTs could build new functions in order to allow a better comparison. This will also underline the importance of the settings in order to show the best option. Functions associated:


DEV-3a Give an aggregated view of all options available per flight.

DEV-3b Offer comparison capabilities: multi flights/multi airlines. Ref. to figure 16 and figure 18 for an illustration (mock-ups created by Festive Road).

DEV-3c Offer advanced setting options that would allow the display of the best fare (in the admin section). Ref. to below figure 28 for an illustration (mock-up created by Festive Road)..

Scenario: For a given date, Airline A has bundled fare including baggage for 150 €. Airline B has unbundled fare structure: fare is 120 € + 12 € for baggage which makes it 132 €. If Airline B is not allowed in the tool, the company will have missed savings

"A journey of a thousand sites begins with a single click” Unknown



Figure 23 – [DEV-3b] - Festive Road created visual to illustrate settings options Chapter 4: Develop cross selling capabilities [Reality factor: 6/10] Based on the traveler’s selection and on the cross selling scenarios defined, the system would suggest additional services.


DEV-4a Suggest ancillaries in the check-out page by displaying a contextual message: E.g. “Your air ticket does not include any luggage, would you like to add one?”. “Last time, you booked a priority boarding pass, would you like to buy one”?. “Last time, you selected seat x, would you like to check if it is available for booking?”. “Have a safe flight to xxx city and enjoy a special meal – would you like to see the menu?”.

DEV-4b Add cross selling scenarios in the admin section.

"The Internet is the world's largest library. It's just that all the books are on the floor” John Allen Paulos



Chapter 5: Develop down selling capabilities [Reality factor: 6/10] Based on the traveler’s selection and according to the company’s downgrade policy (set-up in the admin section), the system would suggest another type of service.


DEV-5a Suggest alternative offers by displaying a contextual message. e.g. If a corporate wants to downgrade policy from business class to Premium Economy, messaging and video would show the benefits of Premium economy to the travel booker + savings made and potentially points earned if gamification is applied.

DEV-5b Add downgrading scenarios in the admin section.

Chapter 6: Develop smart search engines [Reality factor: 8/10] With the introduction of personalization and targeted offers, IT providers could create search engines that would look for all types of fares in the background and consolidate results in order to find the best fare. E.g. if a traveler has logged-in and is identified by the airlines, the engine would fetch data behind the scene and make sure that the fares displayed to the user are the most relevant ones. Note: such functions would reassure travel managers/buyers as personalization is a subject of concerns for some of them, risk being of lack of transparency with the airlines showing fares according to “whether they like the look of you” or not vs. offers compliant with the company’s interest. Associated functions:


DEV-6a Develop anonymous vs. logged-in search In case the travelers has logged-in, the system would launch search and fetch data from other sources (anonymous shopping) to cross check that the fares displayed is the best available, and prevent any bad usage of personalization. Ref. to below figure for an illustration (mock-up created by Festive Road).

DEV-6b Develop intelligent search The system would recommend fares which are the most relevant to the user based on the travel policy, on their preferences…based on:

Analysis of all fare types across compliant airlines + airlines out of travel policy.

Analysis of fares across distributors (airlines, GDS, other aggregator/metasearch, TMC).

Refer to below figure for an illustration (mock-up created by Festive Road).

DEV-6c Add advanced set-ups

"Technology is teaching us to be human again” Simon Mainwaring



Set dynamic cap rates (like it is the case for hotel) e.g. allow the display of offers corresponding to best fare + 15%.

Figure 24 - [DEV-6a] - Features developments – Business Process created by Festive Road to illustrate how SBTs would consolidate anonymous and identified search in order to display the best fare.

Figure 25 - [DEV-6b] - Features developments – Business Process created by Festive Road to illustrate how SBTs would developed intelligent search based on a consolidation of public and personalized fares.

"The digital revolution is far more significant than the invention of writing or even of printing” Douglas Engelbar



Chapter 7: Provide an Amazon type fulfilment option for the same booking [Reality factor: 2/10] With NDC, we can imagine that SBTs could provide a more open system, and fetch different fare types from different sources (e.g. airlines, TMC, OTAs…) which include different levels of fulfillment service. Although this is not the most likely scenario, this would place SBTs like bookable metasearch platforms, such as OTAs, squarely on the consumer side and allow the traveler to choose the fulfillment option.


DEV-7a Set top options (admin section). e.g. top 3 options have preferred TMC, with data inclusion etc. at various prices, next few sets are with other fulfilment agents. User feedback scores provided and additional fulfilment fees detailed (like extra postage costs in Amazon).

DEV-7b Give the ability to export data (.xls or .csv) to allow the company to reconcile travel data.

Chapter 8: Display tailored marketing messages [Reality factor: 6/10] SBTs could be more dynamic and display contextual messages related to NDC offers. Functions associated:


DEV-8a Display tailored marketing message, e.g. to inform the traveler about a product/service available.

Chapter 9: Set “easy to book” functions: push most booked ancillaries [Reality factor: 7/10] Functions associated:


DEV-9a Within the UI, suggest the 2/3 most frequently booked ancillaries and then offer a ‘show more options’ button showing additional ancillaries available.

Chapter 10: Develop advanced social features [Reality factor: 6/10] Although it wasn’t raised during the interviews or public presentations, we felt it would be interesting to add additional insights related to social networks, different from the known Facebook, Twitter or LinkedIn…

"The real danger is not that computers will begin to think like men, but that men will begin to think like computers” Sydney Harris



Like it has become the case for hotel bookings, reviews from travelers will gain importance for flights. There already exist several services, for instance:

Seatguru that help travelers choose the best airline seats and in-flight amenities, based on reviews from the online community.

SeatID, that tells travelers if someone from their network has booked the same flight/hotel as them, and advises on the seat choice.

SBTs could envisage adding such features.

“Digital technology has several features that can make it much easier for teachers to pay special attention to all their students” Bill Gates

http://www.seatguru.com/

http://www.seatid.com/



Benefits of these developments Offer a single point of entry to improve productivity One of the main issues for travelers is that they do not have the same offers and same information available on all channels, especially when it comes to their personal status. Until today travelers would book with the SBT, and when fulfilled, they would go straight to the airlines website to choose a better seat, to synchronize their loyalty programme, to check their loyalty status etc. This won’t happen with NDC as it is integrated within the SBT so both the airline, the SBT and the buyer retain control over the contact with the traveler. Improve reporting capabilities: provide a better forecasting The major issue for travel managers / buyers today is that they do not have the visibility on some fees because travelers book services on different platforms (i.e. on the airlines’ website when it comes to ancillaries). They are able to see them thanks to the expense claims and once they reconcile data (provided they do it). NDC will enable travelers to book ancillaries directly in the booking flow, whether it is a bundled fare or not. Travel managers will then be able a) to gain in visibility and reporting b) to forecast their spending, especially by types of trip (e.g. international/domestic perimeter). Streamline data: offer a better visibility & control of costs Travel managers / buyers are confronted to a major issue: data comes from multiples sources and in different formats. With NDC, data is structured, which allows a better visibility and analysis of costs. This means savings and a better productivity. Help travel managers/buyers with their negotiations with airlines Travel managers / buyers are more and more looking at creating packages. Benefits are multiple: it improves the user experience and avoids separate bookings and multiple payments, it facilitates data reconciliation and it allows them to negotiate bundled fares. If ancillaries are bookable in the corporate booking tool (i.e. unbundled fares), travel managers will be able to see which types of ancillaries are booked, which will help them when they negotiate with airlines.

Challenges related to these developments Rich data creates complexity From a SBT perspective, NDC means that they will have a lot more information to handle vs. what they have today:

From a User Interface perspective: it makes the shopping process more complex and has impacts on the display of offers: how to display ancillaries? How to integrate them in the booking flow?

"The art challenges the technology, and the technology inspires the art” John Lasseter



From a business perspective: travel managers want to control the options proposed to the traveler: how to provide them with flexible options to monitor their corporate tool?

NDC has financial implications For IT providers, the adoption of NDC implies a cost to consider for the development of rich data and the connectivity with airlines through APIs. Besides, travel managers / buyers need to understand the financial implications of NDC. T&E for 2015 has already been budgeted. Will NDC increase travel costs of x% because of more features available in the SBT? Or will it simply capture spend which is already being booked elsewhere? As a result, SBTs will most probably be eager to rally as a community in order to understand what the best practice is. Access to content and implementation of NDC involve costs Negotiated fares, including “bundle fares” or family fares are already available and bookable in SBTs today. This is mostly handled thanks to Direct Connections with the airlines’ inventory (XML based technology), or via the GDS API if the GDS has developed the feature. SBTs have to deal with a complex environment as they have several content sources, which means they have to make sure that each of these sources supports the NDC standard if they want to provide a consistent booking to their customers i.e. travel managers / buyers and corporate bookers.

Content from several GDSs,

Content from several potential web-based aggregators (such as Travelfusion),

Content from airlines thanks to Direct Connect, which implies the maintenance of individual sources of content.

In the future, we could envisage SBTs would fetch content directly from airlines websites or from other aggregators such as OTAs, like metasearch sites, difference being that with NDC this would be bookable metasearch platform.

The main challenge for SBTs is that NDC could make access to rich content more complex as every intermediary platform has to support NDC. In this configuration, how SBTs would maintain the content is a challenge although we understand there are “rich content platforms” which will seek to solve this issue. Based on the discussions we had with SBT representatives, one of the best options for them would be to have a single point of entry to fetch NDC formatted data, because it is expensive to handle individual connections.

Integration of data in back office systems may be challenging In GDSs, today ancillaries are handled as a separate segment in the PNR (EMD). GDS charge users based on their usage of specific segments in the PNR. Questions raised are:

With NDC, will ancillaries be included within the active segment of the PNR?

What will happen for ancillaries booked separately? (i.e. after the initial booking, or on a mobile device): will that result in the creation of a new PNR? Or will a segment be added in the PNR? And how: as an EMD segment or included in the active segment?

Related to Direct Connect with airlines: will NDC bring changes as regards to the connectivity built with airlines? (Direct Connect is costly to maintain).

"This is the whole point of technology. It creates an appetite for immortality on the one hand. It threatens universal extinction on the other. Technology is lust removed from

nature” Don DeLillo



Reporting capabilities will need to be refined With new connectivity and new content, workflow needs to be redesigned in order to reflect rich data and make sure that the information is captured in reports for reconciliation purposes. This will involve time and investment.

“People use technology only to mean digital technology. Technology is actually everything we make” Margaret Atwood



Questions to consider

Look & feel vs. purpose of the SBT Demonstrator Whilst we have made broad look & feel recommendations, understanding the true purpose of the NDC Demonstrator might provide a different perspective. This might allow us to make more appropriate recommendations on how to enhance its capabilities. Does IATA require further work on making the User Interface the most realistic possible? (Note: beware that this might drive confusion as NDC is not a system). Is the Demonstrator only aimed at showing NDC features and how NDC would present itself in the corporate booking tool? If IATA wishes futures enhancements, Festive Road will be happy to share appropriate recommendations in terms of User Interface, as based on our knowledge of major SBTs on the market (i.e. Amadeus eTravel Management, Concur, KDS and Traveldoo), we are in a position to assess that the ergonomy, or look & feel, of the SBT Demonstrator is not as advanced as it is in the SBTs.

Wording used across the report In Europe, the wording “Self-Booking Tool” (SBT) is most commonly used. However, it is common to find the wording “Online Booking Tool” (OBT) as well, especially in the USA. OBT makes sense, all the more when we consider the proportion of travel arrangers (mainly Personal Assistants) who book on behalf of travelers.

NDC content: which source of data? Among principle questions that need answered is: how will SBTs integrate NDC? Will NDC be reflected in the GDSs’ APIs? Will data come through the GDS or through an API? How to combine those multiple sources of content?

Intermodality and ability to extend bundles thanks to NDC connectivity One of the highlights identified as part of NDC adoption for a SBT is the capability to extend bundles to other types of services, and thus propose additional services thanks to the connectivity switched on: hotels, ground transportation such as taxis, rail. Scenarios would be that SBTs are connected to airlines inventory through NDC, and that this connectivity allows parallel XML-based standards of communication. Should it be considered that airlines will create the bundle and distribute them through NDC or any other standard connectivity? (such as Open Travel Alliance for hotel). This point will have to be clarified.

"Science and technology revolutionize our lives, but memory, tradition and myth frame our response” Arthur Schlesinger



Conclusions During the course of the gap analysis, Festive Road identified that perceptions on NDC vary depending on the people we interviewed and their locations, although it is difficult to determine whether variance occurs by company or by culture because of the small sample, the geographical heart, disruptive appetite and market position of each of the companies. The main highlights are: they are demanding to get to know more about NDC operational aspects i.e. understand how they will get data from airlines, understand how to implement the standard, and its benefits. The gap analysis identified some work to be completed on the SBT Demonstrator in order to further show NDC enhancements. Main suggestions are: adapt the Demonstrator so that one understands that NDC is not a system i.e. mark NDC related features with an identified signage all along the shopping and booking journey, display pop-up bubbles including explanations… ; show personalized vs. anonymous shopping experience in order to show the power of NDC ; show the ability to actually book ancillary services and not only display bundles ; refine search options and filters, display more fares and improve fares comparison features in order to illustrate that NDC allows advanced shopping options. Introduce dynamic content to show how NDC will change the shopping experience, refine itinerary so that the Demonstrator shows how NDC can enrich the travel documents. Also, refine reports available in order to demonstrate the visibility NDC can bring on corporate expense, namely on ancillary fees. Besides, we have identified some inconsistencies between the SBT Demonstrator, the video promoting NDC and the Mobile Demonstrator. Festive Road also thought about how NDC could provide enhanced SBT features and alongside identified benefits and hurdles. Questions demonstrate that the SBTs’ main challenges are to get the right content and to maintain data. They have developed Direct Connect with some airlines, mostly to be able to distribute family fares / packages, they consolidate data from GDS and other aggregators to be able to capture exhaustive data and to reflect a complete offer and all price range, e.g. for Low Cost Carries such as Easyjet. Self Booking Tools are the delivery mechanism at the heart of the indirect, travel management ecosystem. So it’s important for them to engage with all parties to understand the need and opportunity, and important for IATA to facilitate these engagements.

"As the Internet of things advances, the very notion of a clear dividing line between reality and virtual reality becomes blurred, sometimes in creative ways” Geoff Mulgan



Appendix

"One of the Internet's strengths is its ability to help consumers find the right needle in a digital haystack of data” Jared Sandberg



Appendix: identified gaps on the SBT Demonstrator This appendix recaps the recommendations detailed in section “IATA’s Demonstrator: identified gaps and recommended changes” aimed at enriching data and functions which already exist on the SBT Demonstrator. Chapter 1: mark NDC features in the Demonstrator


DEMO-1a Add a pop-up window informing the purpose of the Demonstrator on the hope page.

DEMO-1b Insert an educational video on the home page that starts automatically [create a specific video dedicated to SBTs].

DEMO-1c Define signage i.e. create specific pictograms highlighting NDC features all along the customer journey, e.g. on ancillaries, and display bubbles including explanations when hovering on the icon.

Chapter 2: show personalized vs. anonymous shopping


Personalized shopping

DEMO-2a Show the ability to experience a logged-in customer journey: add a “logged in” button. With this function turned on, the user will experience a personalized journey.

DEMO-2b Add personalization options – Frequent Flyer details.

DEMO-2c Add personalization options – Preferred payment.

DEMO-2d Add personalization options – Preferred itinerary.

DEMO-2e Add personalization options – Social media profiles.

Anonymous shopping

DEMO-2f Show anonymous customer journey. This will show the travel managers/buyers that they can control the level of personalization.

Chapter 3: show the ability to book ancillary services


Book ancillaries at the time of shopping:

DEMO-3a In search results page: show ancillaries which are included in the flight + show those which can be purchased in the tool.

DEMO-3b In search results page: against each optional ancillary, add a “book” button with instant price update when selected.

DEMO-3c Add ability to purchase ancillaries in the check-out page.

DEMO-3d In the booking confirmation page: add a line showing the ancillary services included and those who have been booked.

DEMO-3e In the itinerary: show ancillaries included/available.

Book ancillaries post booking in the SBT:

DEMO-3f Some ancillaries will not necessarily be booked at the time of booking e.g. lounge access, seat, fast boarding pass…

"Information on the Internet is subject to the same rules and regulations as conversation at a bar” George Lundberg



Chapter 4: refine search options & filters


DEMO-4a Refine advanced search options In the advanced search results form, add filters per ancillary or most demanded ancillaries (e.g. bags, seat, meal, wifi).

DEMO-4b Refine filters In the search results screen margin, add the filters enabling to show only flights which include x service (will show bundles rather than ancillaries bookable for additional costs).

Chapter 5: introduce dynamic content


DEMO-5a Make the ancillary icons clickable to display a description of the service: In the search results page, allow the access to a set of information and a description of services available, e.g.

For “Snacks & drinks”, display the menu and description about some specialties for instance.

For “Entertainment”: provide a list of services available (movies updates, music, games).

For “Seat”: display a contextual photo and a description.

…

DEMO-5b Insert contextual images Generic images of services do not bring value. If not possible to add contextual images in the Demonstrator, then add a bubble/pop-up mentioning that this capability is enabled.

DEMO-5c Insert videos If not possible to add a video in the Demonstrator, then add a bubble/pop-up mentioning that videos can be uploaded.

Chapter 6: display more fares


DEMO-6a Enrich the fares available / airline: include unbundled fares in the user interface along bundled fares / family fares.

DEMO-6b Show ability for the Admin (travel manager / buyer) to set-up display rules (e.g. show bundle/unbundled fares by airline).

Chapter 7: improve fares comparison features


Compare fares across same flight and same airline

DEMO-7a Compare fares for the same flight and the same airline + associated sales conditions (the Demonstrator uses wording such as “non-flex”, “refundable”, “changeable” as fare types, but the airlines’ fares wordings are not that explicit). E.g. Air France has several fares for a same itinerary/same flight, some will include baggage, some will not, and will have restrictive conditions (e.g. “mini” fares).

DEMO-7b Create a flight details page: this page would show all fares proposed by a given airline for a given flight + show ancillaries available whether included or not (like

"The number one benefit of information technology is that it empowers people to do what they want to do. It lets people be creative. It lets people be productive. It lets people learn things they didn't think they could learn

before, and so in a sense it is all about potential” Steve Ballmer



a hotel page, with a description of the services, and the different fare available + associated sales conditions) – ref. to Festive Road mock up Figure 16.

Compare fares across multiple airlines

DEMO-7c Enhance existing comparison page: build a matrix showing 1 criteria /line in order to allow a better comparison, and then display the images (too much scrolling down needed to access & read the information easily).

DEMO-7d Allow comparison based on the same criteria + compare the price of ancillaries which are not included. E.g. some fares include luggage; some do not.

DEMO-7e Set a dedicated page showing all options available (included or not), like for hotel shopping.

DEMO-7f Compare price of ancillaries from airline to airline.

DEMO-7g Compare flights with ancillaries included vs. ancillaries which are not + compare the price of each ancillary separately.

DEMO-7h Create a comparison page to compare multi fares & multi airlines (matrix) – ref. to Festive Road mock up Figure 18.

Chapter 8: refine itinerary


DEMO-8a Display icons of ancillaries available/booked for each segment.

DEMO-8b Add icons showing ancillaries available/booked against each flight segment (at the top of the screen).

DEMO-8c Add the ability to sync. the itinerary with an external system.

Chapter 9: refine reporting / back office related capabilities


General dashboard

DEMO-9a Clarify if ancillaries switched on are included in the fare (bundles) or bookable?

DEMO-9b Add a “sources” box to show all channels (as data may come through the GDS or through an API) and allow switching them on and off.

Ancillaries report

DEMO-9c Add an ‘export’ option (.xls, or .csv format) i.e. show the ability to reconcile data and to integrate data in the clients’ IT systems (ERP). Note: SBT is considered as a mid-office tool; ERP is back office tool.

DEMO-9d Select channels - Add a box showing that any channel can be switched off if the admin does not want to go through it, as data may come through the GDS or through an API. This is valid for each individual airline. E.g. with the recent example of Lufthansa who wants to add surcharge for any booking made via the GDS, the Admin would be able to switch of / off channels such as GDS or any other API (Direct Connect, another aggregator)…

"Innovation distinguishes between a leader and a follower” Steve Jobs



About Festive Road Festive Road (FR) has been providing global industry leadership services in the business travel and meetings market since 2005. The consultancy specializes in two key areas

Global Development Companies looking to expand their businesses globally look to FR to create a business development strategy which will focus on securing the right infrastructure and people with full knowledge of market context. We call this our Infrastructure and People service.

Strategic Voice From supporting the creation of event outlines and content to acting as an outsourced advocate or business moderator, FR provides a trusted, independent perspective and representation service to ensure your external voice resonates with your customers. We call this our Strategy & Leadership service.

Visit www.festive-road.com for more information. The Festive Road Principal Paul Tilstone established Festive Road initially in 2005. Prior to this he acted in senior roles for travel management companies for 13 years. He has also acted as CEO for the Institute of Travel & Meetings UK (ITM) for seven years and as Chief Global Development Officer for the Global Business Travel Association for a further five. His knowledge and networks represent the best in the industry. He has received the UK Buying Business Travel Diamond Award for services to sustainability and was listed by the magazine in the industry’s 2013 “Hot List” as one of thirty professionals driving change in the industry. He has twice been listed as one of the world’s top 25 business travel industry influencers by the Business Travel News, USA, for work in advocacy and sustainability. He is supported by over thirty global associates with specialization in key business development and marketing areas to ensure that Festive Road is able to exceed client requirements. Contact [email protected] The Festive Road associate

“Quality means doing it right when no one is looking.” Henry Ford

http://www.festive-road.com/

https://www.linkedin.com/pub/paul-tilstone-gtp/1/2b1/956

mailto:[email protected]



Aurélie Krau has been a passionate blogger and industry commentator for five years. Driven by her own special interest in the challenges associated with technological evolution as well as the evolution of the travel professions, her career path has enabled her to develop a double vision of travel, as both leisure and business. She writes in-depth content for the main industry stakeholders and offers her expertise under the auspices of TravelThink, her consultancy dedicated to sharing her passion for the travel industry, established in 2014.

Prior to this, she worked for Carlson Wagonlit Travel as well as American Express, and also acts as Operations Manager for the Global Business Travel Association in France.

Contact [email protected]

“Almost overnight, the Internet's gone from a technical wonder to a business must” Bill Schrader

mailto:[email protected]

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