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SITA Customer Seminar Simplify your business Munich, 21 Sept 2005

SITA Customer Seminar Simplify your business Munich, 21 Sept 2005. Self Service and E Commerce Jim Callaghan. Reduce Costs. Asset Optim. Improved PAX exp. Agenda. A challenged industry Real world E Commerce The road to success Building blocks of E Commerce Case Study Summary.

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SITA Customer Seminar Simplify your business Munich, 21 Sept 2005

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  1. SITA Customer SeminarSimplify your businessMunich, 21 Sept 2005 Self Service and E Commerce Jim Callaghan

  2. Reduce Costs Asset Optim. Improved PAX exp. Agenda • A challenged industry • Real world E Commerce • The road to success • Building blocks of E Commerce • Case Study • Summary

  3. Industry challenges • Fuel prices • Increasing competitive threat to market share • Ticket prices too low to support cost base • The need to reduce costs everywhere : • Distribution - direct connections to all market channels • Operating - simplify business processes • Passenger handling - efficient self service solutions Now, more than ever, IT is the critical enabler of change

  4. Airline costs • Easy cost reductions: • Commission caps • Reduce paper tickets • Reduce GDS fees • Promote self service

  5. 100% 86% 38% 26% Relative % costs of sales channel Travel agent booking via GDS Via online agent Via airline online call centre Direct online Every airline in the world has cost reduction as its number 1 priority

  6. Priority projects • Web booking and Self Service • Enable your own internet sales and service vision • Electronic ticketing • Airlines stand to save $3 billion p.a. • Elimination of fraud and lost tickets • No need for prepaid tickets • Fares Management • Price competitively • Optimise yields • Simplify business processes

  7. Agenda • A challenged industry • Real world E Commerce • The road to success • Building blocks of E Commerce • Case Study • Summary

  8. Doing it right…. • Clarity • The banana test…. • Simplicity • The right information at the right time • Test - Information – is it relevant ? • Trust • That you will deliver value • That you will do what you say you will • That they know where you live !

  9. Clarity and Focus…

  10. Spot the banana …..

  11. Doing it right…. • Clarity • The banana test • Simplicity • The right information at the right time • Test - Information – is it relevant ? • Trust • That you will deliver value • That you will do what you say you will • That they know where you live !

  12. Simplicity in action……

  13. Clear ? Relevant ? Legible?

  14. Doing it right…. • Clarity • The banana test • Simplicity • The right information at the right time • Test - Information – is it relevant ? • Trust • That you will deliver value • That you will do what you say you will • That they know where you live !

  15. Trust in Value

  16. Doing it right…. • Clarity • The banana test • Simplicity • The right information at the right time • Test - Information – is it relevant ? • Trust • That you will deliver value • That you will do what you say you will • That they know where you live !

  17. Confidence inspiring? Gateway Timeout The proxy server did not receive a timely response from the upstream server. Reference #1.12e7b3f.1126172712.fe0431

  18. Agenda • Real world E Commerce • A challenged industry • The road to success • Building blocks of E Commerce • Case Study • Summary

  19. E Commerce pitfalls • Inefficient E Commerce operation • Solutions the customer cannot or will not use • Compromised by host system limitations • No visitors and huge look/book ratio • ‘Cannibalisation’ of high yield business • Downward price spiral • Alienation of travel agency channel • Business travellers switching to cheaper options • eCommerce operational costs get out of control • Excessive marketing spend, ‘analysis paralysis’ • Poorly focussed service development (no ROI) • Over-engineering (technology overkill) • The organisation is not aligned • No coherent E-Commerce strategy • No understanding of the values and costs • Missed opportunities to maximise return on investment • Organisation unable to adapt to E Commerce needs A consulting led approach to build a strategy that works

  20. 8 Barriers To Organisational Change • Other Priorities & Resources • Motivation for change • Investment • Momentum • Programme communications It is not necessary to change. Survival is not mandatory--W. Edwards Deming • Deployment • Logistics • Complexity

  21. Bringing about beneficial change • Business transformation • Service strategy & design • Change management Online service design Technology Website & supporting systems design User experience optimisation, based on reservation system capabilities Service design Determine products & services for each online market segment Product positioning How to use eCommerce to support the airline strategy Online strategy Fundamental business objectives Airline strategy

  22. Implementing an effective e-commerce strategy Change will be compelling if it is driven by the business strategy…. ..has a sound financial rationale and…. …provides opportunities for those involved. Future vision Benefits Costs Current Personallosses This is where we want to be Personal wins A compelling case for change inspires at both a rational and emotional level

  23. Stages of consultancy Identify commercial strategy Devise compatible IT strategy Requirement analysis Architecture design and technology evaluation Detailed specification Development planning and sizing Development management and rollout Positioning and IT strategy Systems definition Implementation support Market positioning Opportunity analysis IT strategy study Requirement definition Functional specification Architecture design Technology evaluation Existing systems audit Project planning System sizing Project management Project oversight Implementing an E-Commerce IT solution

  24. Online bookings from 4% to 42% in 18 months “Without the middleware it would probably have taken 2 to 3 times as long” Strategy brings results Best Travel/Tourism website at the annual Netguide Web Awards • “Easy access to flight and holiday information” • “Great interactivity” • “An easy to use site with highly relevant searches so we don't waste time” • “Good online pricing”

  25. The benefits of best of breed, best practice VLM eCommerce • Started with generic GDS booking engine • Switched to SITA eCommerce platform with best practice online sales approach • 3% online sales (2003) increased to 17% (2004) and still growing strongly • Online eTicket live within 3 weeks of SITA launching Horizon eTicket service

  26. Agenda • Real world E Commerce • A challenged industry • The road to success • Building blocks of E Commerce • Case Study • Summary

  27. Decision support Fare management Fare distribution International pricing eCommerce shopping How do I manage my fares, allowing regional decisions yet retaining central control? How do I distribute my fares to global pricing systems quickly & cost effectively? What is the best fare to offer to maximize my yields, and what are competitors doing? How do I get my domestic and international fares priced no matter how complex they may be? How do I power my point of sale applications to drive sales while cutting the cost of distribution? AirfareInsight Airfare Data AirfarePrice AirfareShop Decision support Fare management Automated distribution Next generation pricing Airline focussed shopper Getting the price right….

  28. Track competitor’s pricing strategy and yield management to see what they are really selling & respond Spot opportunities to raise fares while still remaining cheaper than your key competitors View of competitive fares offered and available on a route for given period Technologies that exploit competitive knowledge Observe and respond to competitive fare filings in your key markets Graphical view of volume and type of fare changes filed by your competitors View of competitive fares by market, carrier, etc as soon as they are published

  29. Technologies that attract and keep the customer Example calendar showing best prices on available travel dates • SITA’s solution for shopping based on fares and availability information • The Airfare shopper services provide key features to allow the airline to tune its pricing and products by channel • Selected shopper functions are available via green screen for agent and call centre use • Cost savings in the drive for efficient online sales • World’s leading multi-host pricing system • A fully next generation system • Very high performance with ultra-fast data loading and diagnostics • Customised by SITA for state of the art US domestic and full international pricing

  30. Agenda • Real world E Commerce • A challenged industry • The road to success • Building blocks of E Commerce • Case Study • Summary

  31. Full Service WEB based kiosk Amtrak - integrated Self Service • A single self-service platform • WEB and Kiosk • 10,000 bookings a day • 200+ Kiosks AMTRAK.COM • Sales, Ticketing, updates, loyalty • Designed visually and physically disabled customers QUIK-TRAK KIOSKS

  32. In summary • Self service and E Commerce can be easy levers for cost control • Drive from business objectives, not IT • Business implementation is critical • Clarity, Simplicity and Trust are vital • Remember the Banana test

  33. Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat. (Sun Tzu)

  34. …in co-operation with our partner

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