IATA e-services Project
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1 IATA e-services Project AFRAA e-services/emd Workshop Nairobi 28 th of March 2012 Sébastien Touraine Project Manager, e-services e-services (100% EMD) 1 COPYRIGHT IATA 2012
2 IATA Geneva team proud to be here in Nairobi! 2011 EMD regional Workshops 400+ delegates Area 2: EUROPE + MENA + AFRICA MAD 23 & 24-Mar-2011 Area 1: AMERICAS MIA 13 & 14-Apr-2011 Area 3: ASPAC SIN 04 & 05-May-2011 Area 3: NORTH ASIA BJS 06 & 07-Jul-2011 Many thanks to AFRAA for bringing its members in Nairobi today! Objectives: Understand industry benefits of Electronic Miscellaneous Document (EMD) Know how to implement successfully an EMD project Understand challenges to be expected, discuss technical issues and identify solutions Speak to system providers and GDS to facilitate EMD implementation Be clear how to reach 100% EMD e-services (100% EMD) 2 COPYRIGHT IATA 2012
3 Workshop Agenda e-services (100% EMD) 3 COPYRIGHT IATA 2012
4 930 Workshop Opening - Secretary General Dr. Elijah Chingosho - AFRAA Opening remarks and introduction of participants 945 IATA e-services Project - Sebastien Touraine - IATA IATA approach, project benefits, business case, system providers/gdss roadmap and latest update on EMD implementation in the industry 1045 Coffee 1100 How EMD really works? - Thibaut Ruy - IATA Introduction and explanation of EMD standard, followed by interactive Q&A session 1215 Lunch Agenda 1330 Kenya Airways - EMD case study Learn why and how Kenya Airways is planning to implement EMD 1400 What to consider when implementing an EMD solution? Robert Booth - Amadeus A system provider perspective to EMD implementation 1445 End-to end EMD implementation processes - Nigel Hughes - Sabre Review of process change and systems impacted when implementing EMD 1530 Tea Break 1545 EMD deployment with travel agencies reported in IATA BSPs See how IATA plans to support EMD implementation in IATA all BSPs with your GDS followed by a panel with 3 majors GDSs representatives (status review and roadmap deployment) 1615 Interactive discussion related to interlining and airport delivery EMD in interlining scenarios and with systems at the airport After One-to-one with IATA e-services (100% EMD) 4 COPYRIGHT IATA 2012
5 EMD Workshop rule of engagement Participants AFRAA 17 Airlines 51 delegates registered IT providers & GDS invited IATA EMD team from Geneva Don t be shy Ask questions Be Positive! e-services (100% EMD) 5 COPYRIGHT IATA 2012
6 Why IATA is striving for a global EMD standard for Ancillary Revenues? e-services (100% EMD) 6 COPYRIGHT IATA 2012
7 Airlines Ancillary Services trend continues 32.5 billion in 2011 (Source : Ideaworks ABCs to EMD report, Oct -11 ) Jay Sorenson - Ideaworks: $32.5 billion projection could jump to $100 billion in the future as travel agencies and online travel agents become integral components of ancillary revenue distribution e-services (100% EMD) 7 COPYRIGHT IATA 2012
8 IATA e-services initiative: Airline CEOs endorsement at IATA Board 1. Airlines CEOs acknowledged growing industry trend of airline ancillary services IATA Board of Governors approved the IATA e-services project in December Airlines CEOs endorsed IATA Simplifying the Business model to deliver the project IATA e-services next major IATA StB initiative after 100% ET e-services (100% EMD) 8 COPYRIGHT IATA 2012
9 Remember 2004 IATA Board e-travel vision Paperless travel vision First phase: e-ticketing (done!) Second phase: e-boarding passes (done!) Third phase: automate other paper documents e-travel e-ticketing BCBP e-services e-services (100% EMD) 9 COPYRIGHT IATA 2012
10 IATA e-services Vision 100% EMD to facilitate sales, fulfillment and collection of ancillary services through all distribution channels Ancillary Services Traditional Miscellaneous Documents Optional services Direct sales Travel Agencies EMD Multi-channel Sales Distribution Industry adopted Electronic Miscellaneous Document e-services (100% EMD) 10 COPYRIGHT IATA 2012
11 IATA e-services EMD adoption benefits Improve airlines revenues with travel agencies sales of ancillary services A global industry standard for issuance, fulfillment and collection of ancillary services Can be interlined to partners and compatible with different systems Considered as an integral part of the business model where carriers sell ancillary services (e.g. ATPCO - Optional Service Fee Product) Reduce cost by eliminating paper documents and better back-office productivity A common sales process across all channels Can replace airlines proprietary solutions and all miscellaneous documents Increase auditing visibility in Revenue Accounting and visibility of ancillary services in Revenue Management e-services (100% EMD) 11 COPYRIGHT IATA 2012
12 e-services IATA Board Target End-2010: 6 major GDS and 10 airlines EMD capable (achieved!) End-2011 : 40 airlines EMD capable and 6 major GDS EMD live* in IATA BSP (achieved!) End-2012: 75%* industry EMD capability and increase EMD usage in IATA BSP End-2013: 100% EMD usage in BSP 2010: Pioneer year 2011: Pivotal year 2012: Critical year 2013: Final year 1 st January 2014: end of vmco/vmpd => 100% EMD * EMD capable airlines should represent at least 75% of passenger volume by end 2012 e-services (100% EMD) 12 COPYRIGHT IATA 2012
13 EMD Deployment Industry Status e-services (100% EMD) 13 COPYRIGHT IATA 2012
14 53 airlines have implemented EMD 10 EMD live airlines in IATA BSP (AY, JL, IB, SV, MS, CA, CZ, NZ, UU, SS) 43 capable airlines (HU, FM, B7, MF, WM, TX, FC, ME, KU, RJ, 9H, EK, EY, QR, AT, CI, MU, BR, PZ, JJ, KL, A3, YM, ZI, AB, AF, VS, AZ, JK, TK, IG, MH, BA, UL, MK, VA, OB, I9, KE, SK, CX, KA, WF ) 16% 0% 13% Airlines in scope* having implemented EMD represents: 41% 30% 43% of traffic volume * Airlines outside of scope does not issue any miscellaneous documents in BSP or does not intend to use EMDs via GDS and settle via IATA BSP - Status: 7 March 2012 (subject to update) e-services (100% EMD) 14 COPYRIGHT IATA 2012
15 System providers EMD Server ROADMAP Host System HP(A xres, *Share: in Jun-10) Q1-12* Q4-12 Hexaware H1-12 H1-12 EMD - S EMD - A Key functionalities Source: IATA e-services Project Team 31 January based on e-services session (subject to update) Distribution in " Own GDS" : when IT provider is also a GDS like 1A, 1S, 1G, 1W or 1E e-services (100% EMD) 15 COPYRIGHT IATA 2012 Direct Sales "Own" GDS 3rd party GDSs Using Same EMD Server Using different EMD Server EMD-S integrated w ith ticket reissue/refund + GUI deployment Q1-12 N/A Plug and play EMD Hub w ith core EMD functionalities H1-12 N/A H1-12 Q2-12 Q2-12 Multi coupons EMD supporting recommended RFIC N/A H Mercator Resiber / Unisys EMD core services Q1-12 SITA H2-12 Amadeus EM D Server Solution Farelogix Q1-12 Q1-12 Sabre Q2-12 Q2-12 Q4-12 Single coupons EMD-S, major RFIC except baggage N/A H2-12 H2-12 Multi - coupons EMD w ith all RFIC and core functionalities Waiting partner XML based EMD supporting airlines merchandising N/A Q1-12 N/A N/A EMD integration w ith Miscellanous doc, seats and bagages Q2-12 Q2-12 Q3-12 Travelsky 2012 EMD-S for revalidation fee 2012 Travelport H2-12 Distribution via Accept and process EMD-S key functionalities H2-12 H airlines INTERLINING Q H2-12
16 GDS EMD deployment is an industry priority IATA urges airlines and GDSs to work together as 96% of airlines engaged said they are planning to deploy EMD in all sales channels (including direct sales and through GDS as well) Sales channel deployment Only direct sales (e.g. ATO/CTO, call center) 4% All sales channels 96% Source: StB e-services campaign Oct 2010 e-services (100% EMD) 16 COPYRIGHT IATA 2012
17 EMD in Travel Agencies environment: GDS implementation in IATA BSP BSP validation Process EMD live* in IATA BSP GDS EMD Certification in IATA BSP EMD - S EMD - A Amadeus Axess 2012 Farelogix Q1-12 Q1-12 Sabre 2012 Travelport Q1-12 Travelsky 2012 * A travel agency connected to a GDS has issued a 1st airlines EMD and transaction is reported in IATA BSP Source: IATA e-services Project Team Jan-2012 (subject to update) e-services (100% EMD) 17 COPYRIGHT IATA 2012
18 EMD key facts & figures 53 airlines representing 43.1% of passenger volume have issued a 1 st EMD. Millions of EMDs have been issued in st EMD issued by a travel agency connected to a GDS in February 10 airlines are EMD live with GDS sales in 10 different BSPs : Finland, Japan, Saudi Arabia, Egypt, Spain, China, New Zealand, Nordic & Baltic, United Kingdom and France EMDs reported in IATA BSP in 2011, representing in December about 1% penetration against total number of vmco/vmpd All 6 major GDSs are IATA certified to issue EMDs in IATA BSP Finnair and Egyptair issued in Dec-11 the 1 st interline EMD between 2 independent airlines e-services (100% EMD) 18 COPYRIGHT IATA 2012
19 Number of airlines EMD in the interline business 87% of committed airlines plan to use EMD in interlining scenario Finnair and Egyptair issued the 1st interline EMD between two independent airlines. Plans to use EMD for interlining No 13% Yes 87% Source: StB e-services campaign Oct Baggage *Air transportation EMD service to interline *Financial impact Airport services In-flight service Surface transportation Merchandise *Air Transportation - e.g. pre-reserved seat, upgrade *Financial impact - e.g. fees collection, refund, residual value e-services (100% EMD) 19 COPYRIGHT IATA 2012
20 Basic understanding of an EMD? e-services (100% EMD) 20 COPYRIGHT IATA 2012
21 What is a Electronic Miscellaneous Document? An official IATA standard document to facilitate fulfillment of optional/ancillaries services: Airlines Sales: direct or via travel agencies connected to a GDS Services delivery at the airport Revenue collection by airlines revenue accounting system EMD works like ET An IATA standard document is issued for the services A receipt is issued to the customer Value coupons Concept Two Versions: EMD-S (Stand Alone) or EMD A (Associated to ET) Reason for Issuance Code (RFIC) defines the document (i.e baggage charges, inflight or airport services, financial fees, merchandising, etc ) Reason for Issuance sub-code (RFISC) qualifies the actual coupon usage, aligned with ATPCO optional services fees filing e-services (100% EMD) 21 COPYRIGHT IATA 2012
22 EMD impacts industry systems Airline Pricing Revenue management 3 rd Parties Fares distribution Global Distribution System Key Industry systems EMD Server Reservation Booking E-Ticketing PNR IATA BSP HOT RET Data Processing Center PNR Travel Agent Messages Impacts Passenger PNL Revenue Accounting BSPlink Departure Control System Checked-in / Flown Airport Handling Agent Misc. docs. Processes & Systems Airline Crew e-services (100% EMD) 22 COPYRIGHT IATA 2012
23 100% EMD: Implementation Methodology e-services (100% EMD) 23 COPYRIGHT IATA 2012
24 IATA e-services: apply StB Methodology IATA Simplifying the Business model is proving to be a successful / efficient delivery mechanism to engage / mobilize the industry e-services (100% EMD) 24 COPYRIGHT IATA 2012
25 IATA s credibility : Simplifying the Business Annual industry savings E-ticketing CUSS kiosks US$ 3bn US$ 1bn 2D BC Boarding Passes US$ 1.5bn Baggage Improvement Fast Travel E-services ABR US$ 1.9bn US$ 1.6bn US$ 2.9bn US$ 0.8bn e-services (100% EMD) 25 COPYRIGHT IATA 2012
26 IATA e-services Airlines* status Colour Platinum Wording Your airline has issued 100% EMD in IATA BSP Green Your airline has issued at least one EMD in IATA BSP 1 Yellow Orange Orange Striped Your airline has declared issuing at least one EMD Your airline has a plan for EMD including an implementation date Your airline is committed to implement EMD before end 2012 Red Your airline has no intention to implement EMD by end ) EMD penetration in IATA BSP will be tracked separately with EMD Matchmaker * Airlines outside of scope does not issue any miscellaneous documents in BSP or does not intend to use EMDs via GDS and settle via IATA e-services (100% EMD) 26 COPYRIGHT IATA 2012
27 Airline EMD sample required for validation EMD CAPABILITY PHASE Sample screenshots of : 1. EMD stored PNR (S or A or both) 2. EMD receipt including value coupon display Example: Amadeus IT provider GDS-EMD PHASE BSP Testing required e-services (100% EMD) 27 COPYRIGHT IATA 2012
28 IATA support and priorities e-services (100% EMD) 28 COPYRIGHT IATA 2012
29 IATA e-services: project activities in 2010 Documents available EMD standard - Resolution 725fgh Web page with project update, fact sheet and Business case Airline Guide to EMD Implementation 1 st edition (free!) Industry awareness campaign and mobilization Successful airline engagement with 200+ committed airlines worldwide Support EMD pioneer airlines to achieve 10 airlines capable target in 2010 System providers / GDS visits to ensure that EMD is under development e-services (100% EMD) 29 COPYRIGHT IATA 2012
30 IATA e-services: project activities in 2011 Documents available Interline EMD GBR (General Business Rule) available (NEW) on project document EMD regional workshops to drive airline implementation Area 2: EUROPE + MENA + AFRICA MAD 23 & 24-Mar-2011 Area 1: AMERICAS MIA 13 & 14-Apr-2011 Area 3: ASPAC SIN 04 & 05-May-2011 Area 3: NORTH ASIA BJS 06 & 07-Jul-2011 Coordinate implementation between airlines, system providers, GDSs to facilitate EMD deployment in BSPs (EMDTesting@iata.org) Coordinate with other systems impacted by EMD deployment (revenue accounting, DCS, ground handlers) to mitigate implementation risks e-services (100% EMD) 30 COPYRIGHT IATA 2012
31 IATA e-services: project activities in 2012 Industry meeting (EMDTF2, JPTC, RESWG, DISH) to coordinate EMD deployment with host system, revenue accounting, DCS, ground handlers and airlines AFRAA workshops to drive airline implementation in Africa (28 th March NBO) Increase EMD penetration in IATA BSP: EMD Matchmaker GDS industrialization of EMD deployment in BSP Travel Agents engagement (trade show) Airline Guide to EMD Implementation 2nd edition (to be updated) Continuous monthly airlines engagement by IATA local EMD Industry campaign status Communication: IATA participation to conferences to promote EMD e-services (100% EMD) 31 COPYRIGHT IATA 2012
32 IATA e-services: EMD implementation priorities 3 main EMD airlines implementation phases 1. EMD capability on direct sales 2. EMD deployment in GDS, reported in BSP -> 100 % usage in BSP (end 2013) 3. EMD interline capability based on business requirements (bilateral, MITA, alliance) GDS/Airlines EMD live in BSP: Increase EMD penetration over vmco /vmpd in IATA BSP Stakeholder management with other systems impacted by EMD introduction Revenue accounting DCS & ground handlers e-services (100% EMD) 32 COPYRIGHT IATA 2012
33 For regular updates: e-services web page e-services (100% EMD) 33 COPYRIGHT IATA 2012
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