UATP 2004 Airline Distribution Conference. Welcome to San Francisco!

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2 UATP 2004 Airline Distribution Conference Welcome to San Francisco!

3 Interlining with E-Tickets The Next E-Thing? Dave McEwen, Manager Ticketing Services, IATA

4 First there were paper tickets

5 Then Along came electronic ticketing > What is it? > Why? > Where are we going with it? > What is happening to interlining?

6 Objective To review the Electronic Ticketing process, to provide an overview of the E-Ticket and Interline E-Ticket processes. To discuss future ticketing practices, and provide an update on latest industry activity.

7 Agenda The Paper World Key Benefits of E-ticketing What is Electronic Ticketing The Key Concepts Why all the Effort Interlining ETs The Challenges Where we are Today Some Facts and Figures What Next Industry Activity Summary and Q and A

8 The Paper World Airline or agent issues a ticket (a value document) Sale is recorded by the airline in their revenue accounting department Ticket is sent to passenger Passenger carries the document around with him/her. Presents it at all the contact points to the airlines for carriage (check-in)

9 The Paper World Airline or ground handling staff uplift the paper coupon Puts it in a bag (ticket lift) and sends it to.. Revenue Accounting Accounts for the ticket as flown revenue or bills the interline partner if it is another airline s ticket they have taken. Coupon ends up where it started now gone from a sale to a flown so the airline gets the money!!!!

10 Key Benefits of ET Reduces ticketing costs estimates are approximately USD2.00 per E-ticket compared to US7-9 per paper ticket. Enables faster processing and revenue accrual Reduces Prepaid Tickets/Tickets on Departure Prevents lost ticket re-issuance

11 What is Electronic Ticketing? It is not: paperless passengers still need a receipt and ticket notices ticketless the ticket still exists with a ticket number in terms of the electronic ticket records stored in an airlines system even though the passenger does not receive the value document.

12 What is Electronic Ticketing? method to document the sale track usage of passenger transportation details of the ticket are stored in the issuing airline s computer system and made available to enable all transactions which could be carried out using a paper ticket.

13 What is Electronic Ticketing? So what does an Electronic Ticket look like???? For the passenger

14 What is Electronic Ticketing? The passenger receives a Passenger Receipt The receipt can be delivered in different formats provided it contains all the relevant information such as Passenger Name, Itinerary, Fare etc in accordance with IATA Resolution 722f/g together with all the legal notices such as Conditions of Contract

15 What is Electronic Ticketing? So what does an Electronic Ticket look like???? For the airline ticket agent? Depends on the display delivered by the GDS/CRS system provider.

16 What is Electronic Ticketing? Which travel documents can be issued Tickets The entire itinerary must be eligible for electronic ticketing Miscellaneous documents excess baggage miscellaneous charges orders

17 What is Electronic Ticketing? Participants in the Electronic Ticketing Process Passenger Travel Agent System Provider (CRS/GDS) Ground Handler Airlines

18 What is Electronic Ticketing? Participants in the Electronic Ticketing Process Airlines Validating Carrier issuing the ticket Marketing Carrier sold as (via carrier box) Operating Carrier operator of the flight an airline could be the validating, marketing and operating carrier (all on-line transportation of the issuing carrier) or all different airlines depending on the circumstances.

19 Key Concepts Electronic Ticket File Validating Carrier keeps a database containing complete details of all ETs that have been issued (plated; numeric code) Contains all the data elements(ticket information) Definitive reference point for all the ET activity with the ticket and it s coupons(open/used/reissued etc..)

20 Key Concepts Electronic Ticket File Validating Carrier keeps a database containing complete details of all ETs that have been issued (plated; numeric code) Contains all the data elements(ticket information) Definitive reference point for all the ET activity with the ticket and it s coupons(open/used/reissued etc..)

21 Key Concepts Coupon Status Each coupon in a Validating Carriers ET database has an associated Coupon Status Indicator. Now let s see what happens to the ET coupon...

22 Key Concepts Coupon Status How it works - online Before departure Validating Carrier issues the ticket and marks the coupon as Open for Use Pre-departure coupon is set to Airport Control Passenger Checks-In - Coupon Status set to Checked-In Passenger Boards - Coupon Status set to Lifted Boarded Passenger Flies - Coupon Status set to Flown - no further changes allowed. Refunds/reissues are actioned after coupon returned Open for Use in the event passenger no-shows.

23 Key Concepts Interline ET What is interline ticketing today? One ticket for carriage Passenger has the paper in the hand to take to any ticketing counter. Airline ticket agent can easily see the information and act upon it. Easily achievable, the data is on on the paper ticket

24 Key Concepts Interline ET To enable the passenger to have one E- ticket for carriage over interline partners as with paper tickets. Need to have bi-lateral agreements to confirm each carriers system is compatible with the other.

25 Key Concepts Control Enables an airline to obtain possession of the ET flight coupon for the purpose of check-in; boarding; transporting; reissue or refunding the ticket. The concept is built around the need with a paper ticket to physically be in possession of the paper coupon to take action.

26 Key Concepts Coupon Status How it works-interline Before departure Validating Carrier issues the ticket and marks the coupon as Open for Use and advises the Marketing Carrier that an Electronic Ticket is issued Before departure the Marketing Carrier s internal process secures Airport Control from the Validating Carrier Passenger Checks-In - Coupon Status set to Checked-In Passenger Boards - Coupon Status set to Lifted Boarded Passenger Flies - Coupon Status set to Flown - no further changes allowed.

27 Key Concepts Coupon Status How it works-interline - Other Scenarios Passenger no-shows - Coupon is returned to the Validating Carrier and re-set Open for Use Coupon can be used at a later date for example on a later flight, by another carrier or reissued/refunded subject to tariff restrictions.

28 Key Concepts Electronic Ticket Flow (Code-share scenario/operating Carrier settles the tickets) CRS Validating Carrier 4 Marketing Carrier Operating Carrier Ground handler PNR 1 2 PNR 5 PNR 13 DCS 3 ET database ET database 10(17) 12 ET database (16)

29 Key Concepts Looks complicated but the passenger has travelled Validating carrier has set the coupon to flown thus prohibiting further changes to the coupon Marketing or Operating carrier has received the ESAC code from the Validating Carrier to use for final settlement and collection of the money for the flown ET coupon. Note a bi-lateral ET interline agreement must exist between all three airlines

30 Key Concepts History Reissues Print Suspend Close Unavailable for use as ticketed

31 Why all the effort? Carriers need to reduce costs Moving towards 100 percent electronic ticketing Distribution almost entirely on the internet Ramifications are enormous both for airlines, agents and passengers. No more through baggage check-in No more through check-in No more interline tickets or fares Separate tickets will be required

32 Why all the effort? Does this remind you of anything????

33 Why all the effort? Does this remind you of anything???? Full service carrier picking up on elements of the no frills model

34 Why all the effort? - Reduce costs further - Remove duplicate processing ETs and paper - Re-engineer the business model - Better services for the customer - Streamline all in-house processes and procedures - More automation

35 Why all the effort? - Remove the interline paper as well - Completely change forever the fulfilment and delivery process: - Reservation - Ticketing -Travel - Accounting

36 Why all the effort? Goals: Eliminate Simplify Automate Interline ET required to close the gap to paperless travel

37 Why all the effort? Customer self-sufficiency Frees airport staff to concentrate on value-added transactions Reliable data; simplified processing

38 Why all the effort? Interline e-ticketing Self-Service Devices Remote location customer servicing Proration and settlement enhancements Accuracy and efficiency

39 Why all the effort? Centralising transactions Improves staffing efficiency and transaction processing times Off-airport processing of ticket sales and exchanges Customer contact personnel can focus on exceptional customer service needs and value-added transactions

40 Why all the effort? Streamlines many business processes Reduces costs of ticket issuance and processing Improves audits, processing, and management information

41 Why all the effort? IET enhances Revenue Accounting Sales Data Exchange (TCN and HoT) First & Final Billing Paperless Interline Billing (IDEC)

42 Interlining Where we are today 32 carriers 60 bi-lateral agreements Market leader has 18 Average number of Interline agreements is +140

43 Interlining Where we are today AA: AM AS AQ AY CM CO CX DL HA HP KL LA NW QF TZ UA US YX AC: UA AM: AA CO AS: AA CO DL KS HA KL NW UA AQ: AA CO UA AY: AA STOP PRESS BT: JK BU: SK DL and AF eff 1 Apr CM: AA CO CO: AA AM AQ AS CM DL HP KL NW UA US CX: AA DL: AA AS CO NW UA US HA: AA AS NW UA

44 Interlining Where we are today HP: AA CO JK: BT KF SK WF KF: JK SK KL: AA AS CO NW KS: AS LA: AA LH: OS SK UA LX: SN NW: AA AS CO DL HA KL UA US OS: LH QF: AA SK: BU JK LH WF SN: LX TZ: AA UA

45 Interlining Where we are today UA: AA AC AQ AS CO DL HA LH NW US TZ YX US: AA CO DL NW UA WF: JK SK YX: AA, UA Hubware solutions should hopefully take much of the pain away. SITA/IATA GDS/CRS Development Rapid Expansion

46 Interlining The Challenges How valuable then is interlining? What does it offer? Flexibility One ticket Market penetration Codeshare Still a significant part of the business percent 30 percent unplanned lift in Europe

47 Interlining The Challenges Maintaining interlining is a huge challenge in the electronic world. Not yet readily available in all markets Needs reliable infrastructure Limited Passenger Acceptance feeling of not in control need to obtain a paper document when wishing to transfer voluntary or involuntary.

48 Interlining The Challenges Limited opportunities for full interline ETs Airlines finding their own solutions proliferation of many bi-laterals Seen as too complex or costly to implement Different general business requirements Airlines using differing messaging standards Handling of go-shows

49 Some Facts and Figures Online carriers reporting in excess of 95 percent online E-ticketing BSP globally 12 percent Cost saving USD30 million if we eliminate paper tickets in BSPs Picture differs greatly depending on where you are ARC over 85 percent No activity at all

50 What Next Carriers not doing electronic ticketing will consider implementation Carriers will continue to develop interline electronic ticket relationships. Review their relationships with Non-ET carriers Push aggressively for 100 percent paperless

51 What Next - Industry Activity Develop standards for:- an EMCO and EXBAG ticket open tickets infant interlining

52 What Next - Industry Activity IATA s role:- Continue to facilitate industry activity Educate Present AGIE forum with volunteers

53 The next E-thing The next E-EVERYTHING THANK YOU

54 Q and A Contact:- David McEwen Manager Ticketing Services IATA Geneva CH

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