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Air transport evolution 2011 by Luis Francisco
This document discusses the evolution of air transport and technology from the 1960s to present day. It covers the development of computer reservation systems (CRS) by airlines in the 1960s-1970s and the rise of global distribution systems (GDS) like Galileo, Worldspan, and Amadeus in the 1980s. It also discusses how the internet led to direct sales by airlines on their websites, challenging the traditional role of travel agencies. Finally, it contrasts the low-cost carrier model with airlines that have adopted a "healthy quality" approach with luxury amenities on long-haul flights.
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Air transport evolution 2011 by Luis Francisco
- 1. By Luis S. Francisco Algarve University, Portugal March 2011 Air Transport Evolution and the new technologies , GDS's, Internet, eDistribution,… English version
- 2. Vice President, GeneralDirector, 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:
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- 7. I’m a luckyguy!!! ... 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...
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- 10. Talking abroad: the Telex
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- 13. Did they usecalculators?... Of course…
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- 18. … butalways evolving…
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- 21. And how aboutDB’s?…
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- 24. In 1992, thehigh-tech CRS Galileo claimed with pride that it’s database had a size of 10 football fields ... Today’s is just a room…
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- 27. The early daysof Air Transport
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- 32. … vs.today’s airplanes
- 33. Prominent Organizations inthe 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
- 34. SITA, OAG eATPCO 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.
- 35. Air tickets Issuedmanually, with many duplicates or coupons…
- 36. AGENCY IATA TICKET…Issuing dept needed…
- 37. AGENCY IATA TICKET (Qantas auth)
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- 40. Boarding Pass Check
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- 43. eTickets ---» Ticket Less PNR / code only Online Check-in Home check-in Mobile Check-in Auto check-in at airport.
- 44. Travellers and touristsstarted 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
- 45. The 60’s: Airlinesbegin 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
- 46. The 70’s: Withthe 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
- 47. The 80’s: Needto Globalize the offer (hotels, car rental, cruises, concerts, shows, trains, ...) Appearance of GDS's (Global Distribution Systems) Historical development of IT’s in aviation
- 48. The 90’s: Interconnectionof networks around the world... ... the Internet Airlines provide direct sales with Consumers. Historical development of IT’s in aviation
- 49. Today: There areno 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
- 50. 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
- 51. The integrated offeringof 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
- 52. The main GDS's:GALILEO WORLDSPAN AMADEUS SABRE ABACUS Global Distribution Systems
- 53. United Airlines BritishAirways Swissair KLM US Airways Alitalia Galileo Olympic Air Canada TAP Austrian Airlines Aer Lingus. * no longer exists *
- 54. TWA Delta AirlinesNorthwest Airlines Worldspan * * no longer exists
- 55. United Airlines LufthansaAir France Iberia SAS Amadeus and few time after Continental Airlines Finnair.
- 56. All Nippon AirwaysCathay Pacific China Airlines EVA Airways Garuda Indonesia Dragonair Abacus Philippine Airlines Malaysia Airlines Royal Brunei SilkAir Singapore Airlines.
- 57. GALILEO WORLDSPAN AMADEUSSABRE ABACUS GDS's progress to ... TRAVELPORT Operational and strategic partnership
- 58. Electronic Travel MarketSuppliers Agencies Agencies Services Payment Consumer
- 59. Electronic Travel MarketSuppliers Agencies Agencies Services Payment Communication Information Consumer
- 60. Flight booking NN2YFAOLGW25FEBYSU3M/TPAfter reply P1.FRANCISCO/LUISMR P2.ALMEIDA/CLAUDIAMRS PH.289000000 M.VEGETARIAN T.123456789 F.CASH ...
- 61. Hotel booking HOA25FEB-2NTLONDON/UIAccess to rack rates and corporate rates HOA25FEB-2NTLONDON/UI @GBTA Access to GEBTA special tariffs
- 62. 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
- 63. Direct Sales Recastingthe traditional channel of distribution AIRLINES CAR RENTAL HOTELS INTERNET CONSUMERS
- 64. Profound change inthe market: Airlines develop their own websites Exceed GDSs Establish connections to sell directly to consumers . Direct Sales
- 65. Airlines force travelagencies 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
- 66. The new GDS’s…Internet based
- 67. Access to thefinal 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
- 68. Direct and selectivemarketing 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
- 69. Huge cost savingsE-ticketing E-brochures, e-flyers, e-information Better communication All this, both at a external and internal level ... Opportunities the Internet provides
- 70. 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)
- 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!
- 72. Airline Industry ValueChain 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
- 73. Airline system ComponentsPricing 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)
- 74. 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
- 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)
- 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...
- 77. The Survival Strategies!Alliances, Spin-offs and Cross-Holdings… the top airlines SkyTeam (11) Star Alliance (26) OneWorld (11)
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- 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 " Healthy Quality ".
- 82. The Survival Strategies!Important niche markets appear Quit well used by some airlines Going in the opposite direction of LCC .
- 83. Gulf and FarEast 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.
- 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 ...
- 85. Luxury in everydetail, 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.
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- 99. Singap ore Airlines
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- 103. But not onlyin 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
- 104. Compared with low-costterminals
- 105. Compared with low-costterminals
- 106. Emirates offers afive-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 …
- 107. Spaces inspired byArab 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
- 108. Two Zen gardensare part of the unique design to create an oasis of calm within the bustling environment of an international airport.
- 109. The Qatar AirwaysPremium 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!
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- 112. Questions? please emailme at: [email_address] Luis S. Francisco Senior Advisor and Consultant in Tourism, Airlines, GDS's, Hotels, Tourism Boards, Country Branding; Thanks!