Farelogix Corporate Backgrounder. February 2014
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1 Farelogix Corporate Backgrounder February 2014 Copyright Farelogix 2014 farelogix.com
2 CORPORATE BACKGROUNDER Founded in 1998, Farelogix Inc. is a recognized travel industry leader whose innovative technology is modernizing the airline commerce and distribution landscape. The company is headquartered in Miami, Florida, with a technical implementation office in Toronto, Canada and is funded by Sandler Capital Management of New York. Farelogix solutions enable airlines to control, personalize, monetize, and enhance their product offerings at an unparalleled competitive cost advantage. Using Farelogix technology enables airlines to be more flexible, creative, and customer- focused in how they develop, package, and sell products and services and ultimately how they compete for travelers and corporate business. The Farelogix Airline Commerce Gateway is a technology platform that consists of fully integrated and optimized components for airline- controlled distribution, merchandising, and retailing across channels. Designed as a complement to existing airline IT systems, the Farelogix Airline Commerce Gateway provides airlines with the necessary tools to compete and adapt in a changing marketplace. Airlines are able to focus on essential strategies for improving customer experience, growing loyalty, generating new revenues and introducing new products and services without the headache of multi- year, high cost legacy system upgrades. Significant cost savings are also possible, as proprietary outdated distribution connections and hard- coded services can be retired. A Marketplace in Revolution The air travel marketplace is undergoing radical change. The days of airlines competing based on commoditized schedules and fares are over. Customized Service, Dynamic Offers, Personalization and Mobile Merchandising are the new realities of this emerging marketplace. As airlines shift from commodity sellers to bona fide retailers, the nature of competition is also changing for the benefit of both airlines and consumers. Airlines are no longer competing solely on schedules and price, but rather on the ability to deliver a custom- tailored shopping and travel experience that meets or exceeds customer expectations. 78% of airlines are focused on personalizing what they offer*, whether it be for- sale optional services, earned traveler rewards, premium white- glove service, or real- time customer recovery after a trip disruption. IATA s Resolution 787 (New Distribution Capability NDC) is yet another example of a sea change happening in the air travel industry, reflecting the need for modernized data exchange standards to support an increasingly sophisticated airline- customer relationship. Investment in new technology for dynamic pricing, distribution, and commerce is essential for any airline seeking to meet today s growing list of competitive challenges. Legacy systems must be quickly and efficiently supplemented by newer, more flexible technologies that make dynamic pricing, traveler- authenticated offers, and real- time customer engagement a reality. To succeed, airlines must transform their technology shops into modernized retail environments. *Airline IT Trends Survey 2012(Airline Business and SITA) Copyright Farelogix 2014 Page 1
3 CORPORATE BACKGROUNDER Farelogix Technology Solutions The Airline Commerce Gateway The Farelogix Airline Commerce Gateway is a comprehensive airline distribution technology platform that enables airlines to easily, efficiently, and dynamically deliver content including custom- tailored product offers to travelers across multiple distribution outlets and customer touchpoints. The Gateway is the travel industry s first solution that integrates and optimizes industry leading distribution technology engines into a single out- of- the- box commerce platform that can serve all airline sales outlets including the fast- growing mobile channel. Powered by the next generation of Farelogix s flagship distribution technology, the Gateway combines six essential components in one robust airline- controlled commerce environment: FLX Direct Connect: The Farelogix Direct Connect allows users to make and manage bookings and reservations out of the Airline Reservation System without any third- party intervention, with full support for dynamic pricing and personalized offers through traveler- authenticated workflows in alignment with IATA s Resolution 787 (NDC). Direct Connect brings measurable and significant value to airlines by executing three main strategic distribution initiatives: traveler authentication, sale of ancillary services, and distribution cost savings. Copyright Farelogix 2014 Page 2
4 CORPORATE BACKGROUNDER FLX Merchandise: FLX Merchandise (as well as FLX Merchandise- Xpress) is a highly flexible and efficient merchandising solution from Farelogix that puts airlines squarely in control of how their product is differentiated and branded in terms of ancillary services and flight merchandising. This solution supports retailing and personalization across multiple sales channels, including airline.com, check- in kiosks, call centers, and travel agencies (direct or via GDS). FLX Merchandise takes personalization and merchandising to new heights. The system s limitless choices of products and attributes, and dynamic business rules enable airlines to design and serve up targeted offers to customers with unprecedented flexibility and speed to market. For those airlines who may be limited by hard- coded solutions or budget, we offer FLX Merchandise- Xpress, a low- risk, high- opportunity solution for airline e- commerce by delivering airline- controlled merchandising as a service (SaaS/Cloud Model) that uses a lite version of the world s leading merchandising engine, FLX Merchandise. FLX Shop & Price: The FLX Docs solution provides airlines full flexibility to ticket, settle, and report each transaction. Farelogix today handles e- ticketing and ticketless carriers and is certified in both ARC and BSP. Farelogix, supporting both EMD- A and EMD- S documents, is an industry leader with BSP certification for EMDs in over 85 markets. The Gateway s ticketing, EMD, and settlement solution is unique in its cross- channel flexibility, giving the airline control in its method of ticketing, settlement and reporting for each channel. FLX Docs: FLX Shop & Price (FSP) provides airlines with a state- of- the- art airline pricing engine for comprehensive handling of pricing and faring requirements within the Gateway, including published fares from ATPCo, private fares, and merchandising/ancillary offers generated directly by the airline. Currently, FLX Shop & Price requires airlines to select among available pricing solutions (e.g., ITA Software or SITA), but in the near future FSP will transition to a Farelogix developed airline pricing engine, complete with full integration into FLX Merchandise. The pricing engines are seamlessly integrated into the Direct Connect/Airline Commerce Gateway environment for shopping, booking, and pricing, as well as handling of customized bundles and personalized offers across one or more distribution outlets. Distribution Manager (DM): Farelogix Distribution Manager (DM) is a robust, customizable business rules processing engine designed to strategically manage sources for searching, shopping, and booking as related to airline content delivery across various channels and distribution outlets. FLX Gateway API: A robust XML API provides the delivery vehicle by which the airline s full suite of content reaches the marketplace. Fully aligned with IATA s Resolution 787 (NDC), Copyright Farelogix 2014 Page 3
5 the Gateway API enables airlines to dynamically deliver customer offers no matter what touchpoint or channel direct, indirect, or mobile happens to be in play. The Farelogix Airline Commerce Gateway is optimized for integration with mobile applications, and provides support for PNR (Passenger Name Record) self- service, ticket changes/exchanges, ancillary purchases, as well as airline- generated passenger recovery for mobile travelers. Intelligent Aggregation Platform The FLX Aggregation Platform provides sourcing management, normalization, and transactional business rules integration for travel agencies or others in the indirect channel seeking to aggregate multiple sources of travel content. The system seamlessly and simultaneously accesses content from virtually any travel data source, including airline commerce gateways/direct connects, private fare databases, Internet sources, and Global Distribution Systems (GDS). SPRK Point- of- Sale SPRK is a web- based travel agency point- of- sale system that is fully integrated with the FLX Aggregation Platform and the Airline Commerce Gateway. In use by thousands of agencies worldwide, SPRK showcases the airline s product using Brand Standards and Customer- Specific Offers in an intuitive, efficient agent selling environment. SPRK provides comprehensive support for shopping, sales, document issuance (ticket and EMD), and servicing (exchange, refund, etc.) of air travel content, including custom fare bundles, fare families, and á la carte merchandising. Customers The Farelogix customer base includes many of the world s top airlines, including American Airlines, Delta, US Airways, United, Hawaiian, Air Canada, WestJet, Emirates, Qatar, Lufthansa, Austrian, Brussels, and Swiss. The company s market penetration spreads across six continents and 60 countries. Partnerships Farelogix maintains key partnerships with a number of leading companies and organizations in the worldwide travel industry. To learn more, visit Copyright Farelogix 2014 Page 4
6 Executive Team The Farelogix team is comprised of seasoned executives with unparalleled expertise in travel industry technology, including Global Distribution Systems, airline technology, and the corporate and consumer online travel sectors. They include: James K. Davidson President & CEO Tim Reiz Chief Technology Officer Mel Trudeau Chief Commercial Officer Theodorus (Theo) Kruijssen Chief Financial Officer and Treasurer Edna Wehby Lopez Senior Vice President & General Counsel Sue Carter Senior Vice President, Product Marketing John Stewart Senior Vice President, Operations Contact Information Farelogix Inc. 760 NW 107th Ave Suite 300 Miami, FL Tel: Fax: Web: Ask the Question Blog: Press Contact Jodi Echakowitz Echo Communications (for Farelogix) Copyright Farelogix 2014 Page 5
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