• Save
Air Transport evolution by Luis S Francisco
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Air Transport evolution by Luis S Francisco

on

  • 5,995 views

 

Statistics

Views

Total Views
5,995
Views on SlideShare
5,984
Embed Views
11

Actions

Likes
14
Downloads
0
Comments
3

4 Embeds 11

http://www.slideshare.net 6
http://www.lmodules.com 2
http://www.linkedin.com 2
http://translate.googleusercontent.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Ideia é mostrar-lhes que as aparências podem enganar
  • Ideia é mostrar-lhes que as aparências podem enganar

Air Transport evolution by Luis S Francisco Presentation Transcript

  • 1. By Luis S. Francisco Algarve University 24th March 2010 Air Transport Evolution and the new technologies, GDS's, Internet, eDistribution,… English version
  • 2. Vice President, General Director, General Manager, Strategy Director, Executive Director, Director of Marketing & Sales Luis S. Francisco of Tour Operators and Travel Agencies GDS’s (Galileo e Amadeus) Airlines (Air Luxor, PGA-Portugália Airlines, Delta, Transbrasil, Japan Airlines, TAP) Czech Tourism, Algarve Tourism. 28 years of experience in tourism and aviation as:
  • 3. By Luis S. Francisco Algarve University 24th March 2010 Air Transport Evolution and the new technologies , GDS's, Internet, eDistribution,…
  • 4. Airlines Evolution
    • From…
  • 5. and…
  • 6. and…
  • 7. To…
  • 8. I’m a lucky guy!!! ... For being an active part in the "revolution" operated in the aviation industry and tourism in general. I started with dial phones, chips card, telex, billboards pionaises ... Evolved to dump PCs working in network (like TAPmatic) For the GDS (Galileo, Amadeus) Internet ... From aircraft with 100 to 250 seats to 600+ seats...
  • 9. Reservations System
  • 10. Some history
  • 11. Talking abroad: the Telex
  • 12. Telex… more modern
  • 13.  
  • 14. Did they use calculators?... Of course…
  • 15. Documents to clients…
  • 16. Computers appear… «uau, man…»
  • 17.  
  • 18.  
  • 19. … but always evolving…
  • 20.  
  • 21.  
  • 22. And how about DB’s?…
  • 23.  
  • 24.  
  • 25. In 1992, the high-tech CRS Galileo claimed with pride that it’s database had a size of 10 football fields ... Today’s is just a room…
  • 26. Mobiles appear… «thank God…»
  • 27.  
  • 28. The early days of Air Transport
  • 29. Lack of airports, so…
  • 30.  
  • 31.  
  • 32. First intercontinental airplanes
  • 33. … vs. today’s airplanes
  • 34. Prominent Organizations in the Airline Industry
    • IATA
      • International Air Traffic Association between 1919 and world war II
      • International Air Transport Association since 1945
        • IATA* has two functions
          • Trade Association (technical, legal, financial, traffic services and most agency matters) ;
          • Tariff Coordination (passenger fares and cargo rates, agents' commissions ) .
    *IATA only controls International flights
  • 35. SITA, OAG e ATPCO xtenho em UK
    • SITA - Societe Internationale des communications aeronautiques
      • Handles shared communication means, including network and devices (airlines, airports,…)
    • OAG - Official Airline Guide
      • Contains the airline schedule information, so for every flight essentially:
        • The departure and destination airports,
        • The departure and arrival times,
        • The flight number.
      • OAG maintains an airline schedules database, which holds flight details for 1.000 airlines and more than 3.000 airports
    • ATPCO - Airline Tariff Publishing Company
      • Is a fare distributing company.. worldwide.
  • 36. Air tickets Issued manually, with many duplicates or coupons…
  • 37. AGENCY IATA TICKET… Issuing dept needed…
  • 38. AGENCY IATA TICKET (Qantas auth)
  • 39. IATA-BSP Ticket
  • 40. Boarding Pass
  • 41. Boarding Pass Check
  • 42. ATB Tickets
  • 43. eTickets
  • 44. eTickets ---» Ticket Less PNR / code only Online Check-in Home check-in Mobile Check-in Auto check-in at airport.
  • 45.
    • Travellers and tourists started to seek and obtain information about:
          • Products
          • Prices
          • Schedules
    • and to book online (travel agencies, hotels, hotel chains, airlines, ...).
    IT’s in Tourism and Aviation
  • 46.
    • The 60’s:
    • Airlines begin development of computerized systems to manage information
    • American Airlines and IBM join forces to create a CRS - Computerized Reservation System - SABRE
    • Delta Air Lines launches DATAS (Delta Automated Travel Account System).
    Historical development of IT’s in aviation
  • 47.
    • The 70’s:
    • With the liberalization of air traffic in the U.S., other airlines create their own CRS's
    • United Airlines creates APOLLO and TWA - PARS
    • CRS's used only for private use of each airline
    • CRS's placed in travel agencies in the U.S.
    Historical development of IT’s in aviation
  • 48.
    • The 80’s:
    • Need to Globalize the offer (hotels, car rental, cruises, concerts, shows, trains, ...)
    • Appearance of GDS's
    • (Global Distribution Systems)
    Historical development of IT’s in aviation
  • 49.
    • The 90’s:
    • Interconnection of networks around the world...
    • ... the Internet
    • Airlines provide direct sales with Consumers.
    Historical development of IT’s in aviation
  • 50.
    • Today:
    • There are no limits ...
    • ... we may not even know where are we going to...
    • But we are sure we are going... fast!
    Historical development of IT’s in aviation
  • 51.
    • What are GDS's:
    • Systems that connect all vendors worldwide with their distributors (travel agencies, tour operators, consolidators, charter operators, ...)
    • These become in its main users.
    Global Distribution Systems
  • 52.
    • The integrated offering of GDS's:
    • Information
    • Reservations
    • Database of customers and suppliers
    • Issuing electronic tickets
    • Booking of additional services: hotels, car rental, cruises, concerts, trains, insurance, ...
    • Agendas
    • Trip Plans
    • Connection to multiple networks of airlines ... worldwide.
    Global Distribution Systems
  • 53.
    • The main GDS's:
    • GALILEO
    • WORLDSPAN
    • AMADEUS
    • SABRE
    • ABACUS
    Global Distribution Systems
  • 54.
    • United Airlines
    • British Airways
    • Swissair
    • KLM
    • US Airways
    • Alitalia
    Galileo
    • Olympic
    • Air Canada
    • TAP
    • Austrian Airlines
    • Aer Lingus.
    * no longer exists *
  • 55.
    • TWA
    • Delta Airlines
    • Northwest Airlines
    Worldspan * * no longer exists
  • 56.
    • United Airlines
    • Lufthansa
    • Air France
    • Iberia
    • SAS
    Amadeus
    • and few time after
    • Continental Airlines
    • Finnair.
  • 57.
    • All Nippon Airways
    • Cathay Pacific
    • China Airlines
    • EVA Airways
    • Garuda Indonesia
    • Dragonair
    Abacus
    • Philippine Airlines
    • Malaysia Airlines
    • Royal Brunei
    • SilkAir
    • Singapore Airlines.
  • 58.
    • GALILEO
    • WORLDSPAN
    • AMADEUS
    • SABRE
    • ABACUS
    GDS's progress to ... TRAVELPORT Operational and strategic partnership
  • 59. Electronic Travel Market Suppliers Agencies Agencies Services Payment Consumer
  • 60. Electronic Travel Market Suppliers Agencies Agencies Services Payment Communication Information Consumer
  • 61. Flight booking
    • NN2YFAOLGW25FEBYSU3M/TP
    • After reply
    • P1.FRANCISCO/LUISMR P2.ALMEIDA/CLAUDIAMRS
    • PH.289000000
    • M.VEGETARIAN
    • T.123456789
    • F.CASH
    • ...
  • 62. Hotel booking
    • HOA25FEB-2NTLONDON/UI
    • Access to rack rates and corporate rates
    • HOA25FEB-2NTLONDON/UI @GBTA
    • Access to GEBTA special tariffs
  • 63. Car booking
    • 0CCRZINN1LIS 25FEB-28FEB EBMN
    • /ARR- 1000 /PUP- LIS /DO- LIS /DT- 1000
    • /RC- EQ /G- AV00000000000000 T ...
    • A simple booking to AVIS with special rates
  • 64. Direct Sales Recasting the traditional channel of distribution AIRLINES CAR RENTAL HOTELS INTERNET CONSUMERS
  • 65.
    • Profound change in the market:
    • Airlines develop their own websites
    • Exceed GDSs
    • Establish connections to sell directly to consumers .
    Direct Sales
  • 66.
    • Airlines force travel agencies to redefine their role and business model,
    • ... going directly to their customers and dramatically reducing their commissions
    • This new situation forced GDS's to create web interfaces
    • ... this led to major players on the Internet, such as Travelocity.
    Direct Sales: conclusion
  • 67. The new GDS’s… Internet based
  • 68.
    • Access to the final customer
    • Transmission of information as per customer profile
    • Easier and faster to make a sale
    • Flexibility in providing information
          • Via text, graphics, video, sound,…
          • On pages with total flexibility.
    Advantages of the Internet vs. GDS's
  • 69.
    • Direct and selective marketing
    • New interfaces and attractive tools
    • Faster and effective processing
    • New forms of payment
    • Multimedia
    • Brand consistency
    • Always available 24 / 7 / 365
    Opportunities the Internet provides
  • 70.
    • Huge cost savings
    • E-ticketing
    • E-brochures, e-flyers, e-information
    • Better communication
    • All this, both at a external and internal level ...
    Opportunities the Internet provides
  • 71. Internet: some figures!!
    • 42% of all online purchases are travel related
    • Travel & Tourism market:
      • 1999: $2.1 trillion
      • 2010: $4.9 trillion
        • ( Source : Satellite Accounting Research)
    • Online Travel Booking
      • 1999: $6 billion
      • 2002: $30 billion
      • 2010: +$60 billion
      • ( Source: PhoCusWright)
  • 72. The Survival Strategies! With the Internet Consumer’s decision is more dispersed Appearance of Low Cost Carriers Democratization of air travel ... Airlines pushed to form alliances to ... survive!
  • 73. Airline Industry Value Chain INBOUND LOGISTICS OPERATIONS OUTBOUND LOGISTICS MARKETING AND SALES SERVICE PROCUREMENT TECHNOLOGY DEVELOPMENT HUMAN RESOURCE MANAGEMENT AIRLINE INFRASTRUCTURE -Financial Policy - Accounting - Regulatory Compliance - Legal - Community Affairs Pilot Training Safety Training Agent Training In-flight Training Baggage Tracking System
    • Promotion
    • Advertising
    • Advantage
    • Program
    • Travel Agent
    • Programs
    • Group Sales
    • Ticket Counter
    • Operations
    • Gate Operations
    • Aircraft
    • Operations
    • On-board Service
    • Baggage Handling
    • Ticket Offices
    • Route Selection
    • Passenger Service
    • System
    • Yield Management
    • System (Pricing)
    • Fuel
    • Flight Scheduling
    • Crew Scheduling
    • Facilities Planning
    • Aircraft Acquisition
    Information Technology Communications Product Development Market Research
    • Lost Baggage Service
    • Complaint Follow-up
    • Baggage System
    • Flight
    • Connections
    • Rental Car and
    • Hotel Reservation
    • System
    Computer Reservation System, In-flight System Flight Scheduling System, Yield Management System Baggage Handling Training Flight, route and yield analyst training
  • 74. Airline system Components Pricing And Revenue Management System Maintenance And Engineering System Flight Operation System Finance System (load factor) Crew Management System Central Reservation System Airport Management System Air Cargo System Business Processing System (check-in, luggage) Sales and Marketing System HR Management System CRM System (customer behavior)
  • 75. Internet and its importance for airlines INTERNET EXTRANET INTRANET ACESS TYPE OPEN CONTROLED PRIVATE USED BY PUBLIC BUSINESS PARTNERS ORGANIZATION MEMBERS TYPE OF INFORMATION GENERAL SELECTIVE SHARE OWNER
  • 76. The Survival Strategies! Alliances, Spin-offs and Cross-Holdings They are the largest and best strategy in terms of network expansion Global alliances covering different continents and different markets SkyTeam (11) Star Alliance (26) OneWorld (11)
  • 77. The Survival Strategies! Alliances, Spin-offs and Cross-Holdings Partnerships include : sales and marketing, and operational code sharing schedule co-ordination joint sales offices ground handling and maintenance combination of frequent flyer programs...
  • 78. The Survival Strategies! Alliances, Spin-offs and Cross-Holdings… the top airlines SkyTeam (11) Star Alliance (26) OneWorld (11)
  • 79. Star Alliance
  • 80. OneWorld
  • 81. Sky Team
  • 82. Low Cost vs “Healthy Quality” Carriers - « How was the trip to Moscow? » - « Everything went well but I'm completely exhausted » «... I'm completely exhausted » Here's a phrase that users of Long Haul airlines no longer say or feel, quite the contrary. While in EU, airlines follow a model of low-cost due to short flights of 2h to 2h30, the airlines flying out of Europe have opted for what I dubbed " Healthy Quality ".
  • 83. The Survival Strategies! Important niche markets appear Quit well used by some airlines Going in the opposite direction of LCC .
  • 84. Gulf and Far East Airlines such as Cathay Pacific, Singapore Airlines, Malaysia Airlines, Thai, Ethiad, Emirates and Qatar Airways Concern themselves more with the convenience and health of their passengers. Take the Emirates and Qatar Airways example.
  • 85. Aim : the high quality standard (not the quantity). These companies have opted for Airbus, in particular, the series A330, A340 and A380, beside Boeing 777. Planes with enormous space, comfort and high technology ... ... luxury oriented for a healthy and sophisticated way to travel: Individual cabins with shower (1st class) spacious seats that transform into comfortable beds, bars, restaurants, gyms ...
  • 86. Luxury in every detail, from the tissues used on the seats to the size and quality of individual LCD’s and huge list of films and programs. Special environment for transition zones Aircrafts with lights system that simulate the time at destiny.
  • 87.  
  • 88. Air Canada
  • 89. Etihad
  • 90. Air New Zealand
  • 91. Etihad
  • 92. Air France
  • 93. Eurofly
  • 94. Lufthansa
  • 95. Emirates
  • 96. Emirates
  • 97. Etihad
  • 98. Etihad
  • 99. Thai Airways
  • 100. Singap ore Airlines
  • 101. Etihad
  • 102.  
  • 103. Ethiad
  • 104. But not only in flight that there is the convenience and quality of these airlines. The airport lounges are authentic places of luxury and health. They are spaces that, just by itself, provide great relaxation and rest with spectacular surroundings as witnessed some of the photos from the terminal of Dubai Airport terminals / Lounges
  • 105. Compared with low-cost terminals
  • 106. Compared with low-cost terminals
  • 107. Emirates offers a five-star lounge - "Emirates Terminal 3" - with individual spaces for their customers to relax and rest. The spaces are varied, to work, read, or even meditate …
  • 108. Spaces inspired by Arab and Asian themes with water and plants that enhance the feeling of harmony and wellbeing. Lavish facilities, having SPA - Timeless Spa - with several therapists offering beauty treatments, massage therapies in a soothing and tranquil environment
  • 109. Two Zen gardens are part of the unique design to create an oasis of calm within the bustling environment of an international airport.
  • 110. The Qatar Airways Premium Terminal at Doha has jacuzzi, showers, rooms with 2 beds, various types of massages, meals, games, playstation and many others ... high quality and... Absolutely free!
  • 111. Speaking of airports ...
  • 112. Speaking of airports ...
  • 113. Questions? please email me at: [email_address] Luis S. Francisco Senior Advisor in Tourism, Airlines, GDS's, Hotels, Tourism Boards, Country Branding; and Law Thanks!