session 6: expanding choices in distribution
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Session 6: Expanding Choices in Distribution
Moderator:Mark Pilling, Editor, Airline BusinessPanelist: Michael Randall, VP, Worldwide Business Development, ITA SoftwareGeorg Bolz, Director Portflio Management Airline Solutions, Lufthansa SystemsMaurice Coleman, Head of Commercial Strategy, Aer LingusDarren Peisley, General Manager of Distribution Strategy & Sales Planning, Qantas Graham Wareham, Star Alliance: General Manager for Product Distribution, Air Canada
SESSION 6:Expanding Choices in
DistributionLufthansa Systems
Dr. Georg F. BolzDirector PortfoliomanagementAirline Solutions
Am Weiher 24D-65451 Kelsterbach
georg.bolz@lhsystems.com
Distribution
Channel
ManagementLoad Control
Check-In/Boarding
Ticketing
InventoryReservationSchedule
Management
Future Airline Core Environment
Hotel/Car
ATO’s/CTO’sCall CenterCorporateImplants
Airline.com
GDS 2-NGDS 2-N
GDS
GNE
Travel agents/Tour operators/Consolidators
Private ACAP’s
LSYTMC’s / Corporate
Thesis 1: Active management of the various distribution channels will be a vital core ingredient of advanced airline business models.
Thesis 2: GNE‘s are about to become a viable alternative, and evolve to absorb a significant portion of the market in a sustainable way.
GDS
FACE
Distribution Channel Mgr
Travel Agencies
Airline
GDSGDSGDSGDSGNE
selective access
private fares
global access
public fares
Status GNE’s:
Industry background of their management teams
Endorsement from major carriers, including Star Alliance
Functionally ready, platforms installed, test usage
Contracts with major carriers and large TMC’s signed
DCA-type contracts expire in 2006, GNE’s ready to take-off
GNE’s started in the US market in 2005 and will expand internationally, with support from regional airline groups and alliances.
GNE’s are backed by Venture Capitalists to expand their scope.
GNE providers are enhancing their functionality by partnering with airline IT providers to become a full scale alternative to traditional GDS.
GNE‘s are serious contenders and a viable alternative
GNE‘s will become real in 2006
GNE‘s and GDS‘s will continue to coexist in the market, developing different profiles, serving different needs
- -off
onally,
th airline DS.
Thesis 3: Evolution of airline distribution is driven by cost reduction; selective availability of content and control of channel cost are key.
Airline RESOwn ContentDirect Sales
NewGen Tech.
Community PlatformsCommunity ContentPrivate/Nego Fares
GNE-Tech.&Comm.Enh.
GDS„Full Content“
TA‘s, TMC‘s, CorporatesHost Tech.
AirlineReservation Center
GDSPublished Tariffs
Trad.TA with global reachHost Tech.
GDS/spec.contractsCorporate/Private Fares
Host Tech./marg.costGNE
Full ContentNewGen Tech.GNE
Private/Corporate FaresTMC‘s/Corporates
NewGen Tech.
Airline CRSOwn Content
Own Sales Offices
Airline RESOwn ContentDirect SalesHost Tech.
IBE„Web Fares“Direct Sales
GDSFull Content
Travel Agencies
new scale
Airline RESOwn ContentCall Center
Cutting CommissionsIntroducing
ServiceFees
DirectConnect
„DCA3“
OnlinePortals
AirlinePortals
Note: conceptual - not to scale.overall distribution costs before,platform costs to airlines after „disruptive period“ ca. 2000-2005.
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