Air transport evolution 2011 by Luis Francisco


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Seminar gave at University of Algarve, Portugal, to finalists and teachers, but also to all campus.

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  • Ideia é mostrar-lhes que as aparências podem enganar
  • Ideia é mostrar-lhes que as aparências podem enganar
  • Air transport evolution 2011 by Luis Francisco

    1. 1. By Luis S. Francisco Algarve University, Portugal March 2011 Air Transport Evolution and the new technologies , GDS's, Internet, eDistribution,… English version
    2. 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. Extensive experience in tourism and aviation as:
    3. 3. Airlines Evolution <ul><li>From… </li></ul>
    4. 4. and…
    5. 5. and…
    6. 6. To…
    7. 7. I’m a lucky guy!!! ... For being an active part in the &quot;revolution&quot; 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...
    8. 8. Reservations System
    9. 9. Some history
    10. 10. Talking abroad: the Telex
    11. 11. Telex… more modern
    12. 13. Did they use calculators?... Of course…
    13. 14. Documents to clients…
    14. 15. Computers appear… «uau, man…»
    15. 18. … but always evolving…
    16. 21. And how about DB’s?…
    17. 24. 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…
    18. 25. Mobiles appear… «thank God…»
    19. 27. The early days of Air Transport
    20. 28. Lack of airports, so…
    21. 31. First intercontinental airplanes
    22. 32. … vs. today’s airplanes
    23. 33. Prominent Organizations in the Airline Industry <ul><li>IATA </li></ul><ul><ul><li>International Air Traffic Association between 1919 and world war II </li></ul></ul><ul><ul><li>International Air Transport Association since 1945 </li></ul></ul><ul><ul><ul><li>IATA* has two functions </li></ul></ul></ul><ul><ul><ul><ul><li>Trade Association (technical, legal, financial, traffic services and most agency matters) ; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Tariff Coordination (passenger fares and cargo rates, agents' commissions ) . </li></ul></ul></ul></ul>*IATA only controls International flights
    24. 34. SITA, OAG e ATPCO xtenho em UK <ul><li>SITA - Societe Internationale des communications aeronautiques </li></ul><ul><ul><li>Handles shared communication means, including network and devices (airlines, airports,…) </li></ul></ul><ul><li>OAG - Official Airline Guide </li></ul><ul><ul><li>Contains the airline schedule information, so for every flight essentially: </li></ul></ul><ul><ul><ul><li>The departure and destination airports, </li></ul></ul></ul><ul><ul><ul><li>The departure and arrival times, </li></ul></ul></ul><ul><ul><ul><li>The flight number. </li></ul></ul></ul><ul><ul><li>OAG maintains an airline schedules database, which holds flight details for 1.000 airlines and more than 3.000 airports </li></ul></ul><ul><li>ATPCO - Airline Tariff Publishing Company </li></ul><ul><ul><li>Is a fare distributing company.. worldwide. </li></ul></ul>
    25. 35. Air tickets Issued manually, with many duplicates or coupons…
    26. 36. AGENCY IATA TICKET… Issuing dept needed…
    27. 37. AGENCY IATA TICKET (Qantas auth)
    28. 38. IATA-BSP Ticket
    29. 39. Boarding Pass
    30. 40. Boarding Pass Check
    31. 41. ATB Tickets
    32. 42. eTickets
    33. 43. eTickets ---» Ticket Less PNR / code only Online Check-in Home check-in Mobile Check-in Auto check-in at airport.
    34. 44. <ul><li>Travellers and tourists started to seek and obtain information about: </li></ul><ul><ul><ul><ul><li>Products </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Prices </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Schedules </li></ul></ul></ul></ul><ul><li>and to book online (travel agencies, hotels, hotel chains, airlines, ...). </li></ul>IT’s in Tourism and Aviation
    35. 45. <ul><li>The 60’s: </li></ul><ul><li>Airlines begin development of computerized systems to manage information </li></ul><ul><li>American Airlines and IBM join forces to create a CRS - Computerized Reservation System - SABRE </li></ul><ul><li>Delta Air Lines launches DATAS (Delta Automated Travel Account System). </li></ul>Historical development of IT’s in aviation
    36. 46. <ul><li>The 70’s: </li></ul><ul><li>With the liberalization of air traffic in the U.S., other airlines create their own CRS's </li></ul><ul><li>United Airlines creates APOLLO and TWA - PARS </li></ul><ul><li>CRS's used only for private use of each airline </li></ul><ul><li>CRS's placed in travel agencies in the U.S. </li></ul>Historical development of IT’s in aviation
    37. 47. <ul><li>The 80’s: </li></ul><ul><li>Need to Globalize the offer (hotels, car rental, cruises, concerts, shows, trains, ...) </li></ul><ul><li>Appearance of GDS's </li></ul><ul><li>(Global Distribution Systems) </li></ul>Historical development of IT’s in aviation
    38. 48. <ul><li>The 90’s: </li></ul><ul><li>Interconnection of networks around the world... </li></ul><ul><li>... the Internet </li></ul><ul><li>Airlines provide direct sales with Consumers. </li></ul>Historical development of IT’s in aviation
    39. 49. <ul><li>Today: </li></ul><ul><li>There are no limits ... </li></ul><ul><li>... we may not even know where are we going to... </li></ul><ul><li>But we are sure we are going... fast! </li></ul>Historical development of IT’s in aviation
    40. 50. <ul><li>What are GDS's: </li></ul><ul><li>Systems that connect all vendors worldwide with their distributors (travel agencies, tour operators, consolidators, charter operators, ...) </li></ul><ul><li>These become in its main users. </li></ul>Global Distribution Systems
    41. 51. <ul><li>The integrated offering of GDS's: </li></ul><ul><li>Information </li></ul><ul><li>Reservations </li></ul><ul><li>Database of customers and suppliers </li></ul><ul><li>Issuing electronic tickets </li></ul><ul><li>Booking of additional services: hotels, car rental, cruises, concerts, trains, insurance, ... </li></ul><ul><li>Agendas </li></ul><ul><li>Trip Plans </li></ul><ul><li>Connection to multiple networks of airlines ... worldwide. </li></ul>Global Distribution Systems
    42. 52. <ul><li>The main GDS's: </li></ul><ul><li>GALILEO </li></ul><ul><li>WORLDSPAN </li></ul><ul><li>AMADEUS </li></ul><ul><li>SABRE </li></ul><ul><li>ABACUS </li></ul>Global Distribution Systems
    43. 53. <ul><li>United Airlines </li></ul><ul><li>British Airways </li></ul><ul><li>Swissair </li></ul><ul><li>KLM </li></ul><ul><li>US Airways </li></ul><ul><li>Alitalia </li></ul>Galileo <ul><li>Olympic </li></ul><ul><li>Air Canada </li></ul><ul><li>TAP </li></ul><ul><li>Austrian Airlines </li></ul><ul><li>Aer Lingus. </li></ul>* no longer exists *
    44. 54. <ul><li>TWA </li></ul><ul><li>Delta Airlines </li></ul><ul><li>Northwest Airlines </li></ul>Worldspan * * no longer exists
    45. 55. <ul><li>United Airlines </li></ul><ul><li>Lufthansa </li></ul><ul><li>Air France </li></ul><ul><li>Iberia </li></ul><ul><li>SAS </li></ul>Amadeus <ul><li>and few time after </li></ul><ul><li>Continental Airlines </li></ul><ul><li>Finnair. </li></ul>
    46. 56. <ul><li>All Nippon Airways </li></ul><ul><li>Cathay Pacific </li></ul><ul><li>China Airlines </li></ul><ul><li>EVA Airways </li></ul><ul><li>Garuda Indonesia </li></ul><ul><li>Dragonair </li></ul>Abacus <ul><li>Philippine Airlines </li></ul><ul><li>Malaysia Airlines </li></ul><ul><li>Royal Brunei </li></ul><ul><li>SilkAir </li></ul><ul><li>Singapore Airlines. </li></ul>
    47. 57. <ul><li>GALILEO </li></ul><ul><li>WORLDSPAN </li></ul><ul><li>AMADEUS </li></ul><ul><li>SABRE </li></ul><ul><li>ABACUS </li></ul>GDS's progress to ... TRAVELPORT Operational and strategic partnership
    48. 58. Electronic Travel Market Suppliers Agencies Agencies Services Payment Consumer
    49. 59. Electronic Travel Market Suppliers Agencies Agencies Services Payment Communication Information Consumer
    50. 60. Flight booking <ul><li>NN2YFAOLGW25FEBYSU3M/TP </li></ul><ul><li>After reply </li></ul><ul><li>P1.FRANCISCO/LUISMR P2.ALMEIDA/CLAUDIAMRS </li></ul><ul><li>PH.289000000 </li></ul><ul><li>M.VEGETARIAN </li></ul><ul><li>T.123456789 </li></ul><ul><li>F.CASH </li></ul><ul><li>... </li></ul>
    51. 61. Hotel booking <ul><li>HOA25FEB-2NTLONDON/UI </li></ul><ul><li>Access to rack rates and corporate rates </li></ul><ul><li>HOA25FEB-2NTLONDON/UI @GBTA </li></ul><ul><li>Access to GEBTA special tariffs </li></ul>
    52. 62. Car booking <ul><li>0CCRZINN1LIS 25FEB-28FEB EBMN </li></ul><ul><li>/ARR- 1000 /PUP- LIS /DO- LIS /DT- 1000 </li></ul><ul><li>/RC- EQ /G- AV00000000000000 T ... </li></ul><ul><li>A simple booking to AVIS with special rates </li></ul>
    53. 63. Direct Sales Recasting the traditional channel of distribution AIRLINES CAR RENTAL HOTELS INTERNET CONSUMERS
    54. 64. <ul><li>Profound change in the market: </li></ul><ul><li>Airlines develop their own websites </li></ul><ul><li>Exceed GDSs </li></ul><ul><li>Establish connections to sell directly to consumers . </li></ul>Direct Sales
    55. 65. <ul><li>Airlines force travel agencies to redefine their role and business model, </li></ul><ul><li>... going directly to their customers and dramatically reducing their commissions </li></ul><ul><li>This new situation forced GDS's to create web interfaces </li></ul><ul><li>... this led to major players on the Internet, such as Travelocity. </li></ul>Direct Sales: conclusion
    56. 66. The new GDS’s… Internet based
    57. 67. <ul><li>Access to the final customer </li></ul><ul><li>Transmission of information as per customer profile </li></ul><ul><li>Easier and faster to make a sale </li></ul><ul><li>Flexibility in providing information </li></ul><ul><ul><ul><ul><li>Via text, graphics, video, sound,… </li></ul></ul></ul></ul><ul><ul><ul><ul><li>On pages with total flexibility. </li></ul></ul></ul></ul>Advantages of the Internet vs. GDS's
    58. 68. <ul><li>Direct and selective marketing </li></ul><ul><li>New interfaces and attractive tools </li></ul><ul><li>Faster and effective processing </li></ul><ul><li>New forms of payment </li></ul><ul><li>Multimedia </li></ul><ul><li>Brand consistency </li></ul><ul><li>Always available 24 / 7 / 365 </li></ul>Opportunities the Internet provides
    59. 69. <ul><li>Huge cost savings </li></ul><ul><li>E-ticketing </li></ul><ul><li>E-brochures, e-flyers, e-information </li></ul><ul><li>Better communication </li></ul><ul><li>All this, both at a external and internal level ... </li></ul>Opportunities the Internet provides
    60. 70. Internet: some figures!! <ul><li>42% of all online purchases are travel related </li></ul><ul><li>Travel & Tourism market: </li></ul><ul><ul><li>1999: $2.1 trillion </li></ul></ul><ul><ul><li>2010: $4.9 trillion </li></ul></ul><ul><ul><ul><li> ( Source : Satellite Accounting Research) </li></ul></ul></ul><ul><li>Online Travel Booking </li></ul><ul><ul><li>1999: $6 billion </li></ul></ul><ul><ul><li>2002: $30 billion </li></ul></ul><ul><ul><li>2010: +$60 billion </li></ul></ul><ul><ul><li> ( Source: PhoCusWright) </li></ul></ul>
    61. 71. 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!
    62. 72. 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 <ul><li>Promotion </li></ul><ul><li>Advertising </li></ul><ul><li>Advantage </li></ul><ul><li>Program </li></ul><ul><li>Travel Agent </li></ul><ul><li>Programs </li></ul><ul><li>Group Sales </li></ul><ul><li>Ticket Counter </li></ul><ul><li>Operations </li></ul><ul><li>Gate Operations </li></ul><ul><li>Aircraft </li></ul><ul><li>Operations </li></ul><ul><li>On-board Service </li></ul><ul><li>Baggage Handling </li></ul><ul><li>Ticket Offices </li></ul><ul><li>Route Selection </li></ul><ul><li>Passenger Service </li></ul><ul><li>System </li></ul><ul><li>Yield Management </li></ul><ul><li>System (Pricing) </li></ul><ul><li>Fuel </li></ul><ul><li>Flight Scheduling </li></ul><ul><li>Crew Scheduling </li></ul><ul><li>Facilities Planning </li></ul><ul><li>Aircraft Acquisition </li></ul>Information Technology Communications Product Development Market Research <ul><li>Lost Baggage Service </li></ul><ul><li>Complaint Follow-up </li></ul><ul><li>Baggage System </li></ul><ul><li>Flight </li></ul><ul><li>Connections </li></ul><ul><li>Rental Car and </li></ul><ul><li>Hotel Reservation </li></ul><ul><li>System </li></ul>Computer Reservation System, In-flight System Flight Scheduling System, Yield Management System Baggage Handling Training Flight, route and yield analyst training
    63. 73. 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)
    65. 75. 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)
    66. 76. 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...
    67. 77. The Survival Strategies! Alliances, Spin-offs and Cross-Holdings… the top airlines SkyTeam (11) Star Alliance (26) OneWorld (11)
    68. 78. Star Alliance
    69. 79. OneWorld
    70. 80. Sky Team
    71. 81. 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 &quot; Healthy Quality &quot;.
    72. 82. The Survival Strategies! Important niche markets appear Quit well used by some airlines Going in the opposite direction of LCC .
    73. 83. 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.
    74. 84. 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 ...
    75. 85. 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.
    76. 87. Air Canada
    77. 88. Etihad
    78. 89. Air New Zealand
    79. 90. Etihad
    80. 91. Air France
    81. 92. Eurofly
    82. 93. Lufthansa
    83. 94. Emirates
    84. 95. Emirates
    85. 96. Etihad
    86. 97. Etihad
    87. 98. Thai Airways
    88. 99. Singap ore Airlines
    89. 100. Etihad
    90. 102. Ethiad
    91. 103. 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
    92. 104. Compared with low-cost terminals
    93. 105. Compared with low-cost terminals
    94. 106. Emirates offers a five-star lounge - &quot;Emirates Terminal 3&quot; - with individual spaces for their customers to relax and rest. The spaces are varied, to work, read, or even meditate …
    95. 107. 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
    96. 108. Two Zen gardens are part of the unique design to create an oasis of calm within the bustling environment of an international airport.
    97. 109. 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!
    98. 110. Speaking of airports ...
    99. 111. Speaking of airports ...
    100. 112. Questions? please email me at: [email_address] Luis S. Francisco Senior Advisor and Consultant in Tourism, Airlines, GDS's, Hotels, Tourism Boards, Country Branding; Thanks!