And Accounting Under. One Order

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Barnard Morris
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1 And Accounting Under One Order World Financial Symposium 2015

2 Opening Remarks Bryan Wilson Director Industry Architecture IATA World Financial Symposium 2015

3 Second Part One Order Concept Sebastien Touraine, IATA Panel Navitaire perspective on One Order Brian Messerich WNS perspective on Revenue Integrity A. Ragunathan IATA Work Group general comments Eric Leopold Airline member comments & discussion: Myriam Burget, Swiss Michael Stulpe, Lufthansa 3

4 And Accounting Under One Order World Financial Symposium 2015

5 The One Order Proposal Sebastien Touraine Head Airline Merchandising IATA World Financial Symposium 2015

6 Industry Trends

7 Three major industry trends Ancillary revenue and increasingly complex airline merchandising products Continuous growth of ticketless low cost carriers NDC brings a new XML based offer & order management between agents & airlines A century of tickets & 50+ years of PNRs Confusing for customers & complex for airlines and agents Digital transformation with 100% ET/EMD but keeping the paper mentality ONE Customer Order is modernizing the airline merchandising delivery! Details available in the 2014 StB White Paper

8 ONE Order Complements NDC Travel Agent Shop Order Aggregator Offer Receipt Offer Management Offer Responsible Airline Order Management NDC Why have separate reservation and payment confirmation records? Reservation Record Ticketing Record Could we build upon the ticketless carriers approach and support a more complex service delivery and interlining? with order items and fulfillment 8 control status Product Delivery ONE Order Let s build a ONE Order standard to drive service delivery and accounting

9 Do current industry processes provide a satisfactory customer experience?

10 Objectives One Reference One Process One Industry

11 ONE REFERENCE Improved customer servicing One customer reference as the only access point, even in case of disruption More reliable communication of customer orders to interline partners and service delivery suppliers

12 ONE PROCESS Reduce processes/systems complexity and cost Building upon the new NDC messages for interaction between concerned industry parties, sharing the order information One complete set of XML schemers from Shop to Services delivery Liberating the market for PSS systems from constraining backward capabilities

13 ONE INDUSTRY Allow interoperability, including LCCs Make it easier for new service providers to become part of an order promoting interlining with LCC and intermodal Move travel industry to other retailing industry aligning to the digital and e-commerce world Preserve the principle that the Offer Responsible Airline holds the total order payment (unless bilaterally agreed differently)

14 High-level Concept One Container One Identifier Single source of truth Standardized control status

15 ONE Order Design (1) Main actors Workflow & control mechanism Messaging Accounting process Airlines hold the single source of truth in their Order Management Systems (OMS) Delivery providers (e.g. ground handling systems) Revenue accounting systems

16 ONE Order Design (2) Main actors Workflow & control mechanism Messaging Accounting process New status flags of the ordered items replace ticket issuance and its coupons status flags to support the workflow ONE Order control mechanism ensures that the right actor is taking the authorized actions on the order

17 ONE Order Design (3) Main actors Workflow & control mechanism Messaging Accounting process New standard XML messaging will be put in place between the involved stakeholders ONE Order messaging will leverage on NDC existing message and adding control mechanism

18 ONE Order Design (4) Main actors Workflow & control mechanism Messaging Accounting process Accounting will be based upon workflow of a single order, bringing the industry closer to standard retail accounting principles ONE Order enable NDC interlining with billing based on information available on OMS (not on ET/EMD)

19 Industry Case for Change

20 ONE Order key industry drivers Reduce cost Simpler, faster customer servicing No more complex processes, systems and data inefficiencies No more industry jargon: use of more standardized IT solutions as opposed to dedicated airline solutions Increase revenues Supporting delivery of more complex product enabled by NDC Assisting a wider array of business models, interlining between all carriers and further entities Drive innovation By moving travel industry to a consumer retailing industry, aligning to the digital and e-commerce world By opening the technology market to more vendors

21 Industry implementation cost and risk Cost Reduce Cost systems) Risks Upgrade of information technology used by the industry (PSS or ERP Order Transition (training, business process adaptation, setup of new systems and migration of data) Risk of Transition Willingness to Change Industry Alignment

22 Summary An opportunity for the industry Reduce Cost Concept is feasible and aligned with other industry ecommerce platforms It completes the modernization of airline passenger services systems started with NDC Business case indicates that longer benefits are greater than the cost of transition Airline passengers will be happy! Standard development roadmap Industry commitment by the IATA Board in December 2015 Standard development and industry pilots from

23 And Accounting Under One Order World Financial Symposium 2015

24 Panel Discussion Brian Messerich, Principal Director, Global Product Management, Navitaire A. Raghunathan, Head Airline and Travel Operations WNS Global Services World Financial Symposium 2015

25 And Accounting Under One Order World Financial Symposium 2015

26 Socializing the New Standards Through IATA s Committees World Financial Symposium 2015 Eric Leopold Director of Transformation for Financial and Distribution Services IATA

27 NDC & One Order widely discussed across IATA IATA Industry Groups involved with NDC & One Order Board of Governors Industry Committees* Financial Committee Policy directives & guidance Financial Svces Devlt Interline Billing & Settlement Payment Methods Simplifying the Business IATA General Meeting Policy Guidance Traffic Conferences Passenger Agency Conference Passenger Services Conference Pax Distrib Mgmt Group Ticketing Committee Reservations Committee PADIS Role of Group with NDC & One Order Champion, Standard Setting, Advisory

28 And Accounting Under One Order World Financial Symposium 2015

29 Panel Discussion and Q&A Myriam Burget, VP Revenue Accounting, Swiss Michael Stulpe, Director Quality Management Revenue Accounting, World Financial Lufthansa Symposium 2014 World Financial Symposium 2015

30 Curious to Understand the Benefits of NDC? Learn how to use IATA s financial simulator for NDC IATA s settlement services (BSP) & reporting tools make it easy to adopt NDC > Visit the IATA Booth for some chocolate and more insight on NDC World Financial Symposium 2015

New Distribution Capability (NDC) Together Let s Build Airline Retailing. September 2015

New Distribution Capability (NDC) Together Let s Build Airline Retailing September 2015 Overview Welcome to NDC The NDC Program, Today What s In It For You Learn More About NDC 2 3 Welcome To NDC From