David Rutnam, Manager, New Distribuon Capability Regional Implementaon, IATA Together, Let’s Build Airline Retailing NDC Program Update – Conferenza GBTA 2018 Milano, 9 Oobre 2018 NDC Basics Airline.com v OTA

From EK website, bundled fares, well presented with fare details.

Customer can choose what is important for them. Airline.com v OTA

More choices: Seats Meals In future - Paid Meal choice, Lounge, Fast Track, Wifi, limo service etc.

Airline.com v OTA

A lot of Product information

Visual representations

• Conversion rates increase with rich content.

• Westjet, Australia’s biggest online travel agency saw a 26.3% increase for customers exposed to rich content in a test.

Upgrade options

Airline.com v OTA

Visual seatmap

Prices, Seat Product information Photos – 3D coming soon

Airline.com v OTA

Meanwhile on a well known OTA, booking the same flights.

Limited info on fare families.

After selecting fare, you are taken to payment page

- No seat selection

- No branding or rich content

- No other options

Flight ‘Distribution’ since 1960’s

Schedule & fares

publication

Airline

Travelers

Travel Agents

Sabre - 1960 Centralized reservaon Manual agent ckeng Sll no BSP What’s the market problem?

Customer Airlines Travel Agents Experience

• Don’t have the freedom to • Can’t easily access many • Is not consistent depending distribute their products airline products that are on where they search for across channels without available on the airline travel and not rich when being commodized direct websites shopping through travel agents What do airlines want?

Revenue opportunities: • Differentiation (product description) • Merchandizing (ancillaries, fare families) • Personalization (based on loyalty, preferences) • Dynamic Pricing (based on supply, demand)

Cost savings: • New models (new entrants, new contracts, new commercial relationships)

Together, Let’s Build Airline Retailing

Why NDC? What is NDC? Who will benefit from NDC?

• To modernize the way air • A travel industry supported • Full-service and low-cost airlines products are being retailed to program for the development travel agents, corporations and and adoption of a new data • Content aggregators and travel travelers transmission standard agents • Corporate Buyers and travelers Traditional Flight Distribution Airline Retailing in an NDC World Today’s Shop Window Compare airlines mainly on price and schedule

Source: Expedia 27th November 2017 Tomorrow’s Shop Window Enabled by NDC

Full airline products seen by consumer via travel agents

Information here is purely for illustration purposes Tomorrow’s Shop Window Enabled by NDC

Comparison shopping capability

Information here is purely for illustration purposes NDC live examples Rich content

Seamless shopping experience Seamless shopping experience (cont’d)

Augmenng key productAugmenting informaon key product at the information point of sale at the point of sale NDC Program Update What is IATA doing for NDC?

500 Engagement & Adoption • Airlines • IT providers • Travel trade • Corporates

Standard settings & evolution • Standard versions • Implementation support ( start up , developers..) • Hackathons

A new structural baseline

Industry feedback:

17.2 • A robust standard as a new baseline The new industry • Provides functionalities to go for baseline critical mass

• A solid base to invest in Aegean Airlines EVA Air Shandong Airlines Aer Lingus Finnair Shenzhen Airlines PJSC Aeroflot Flybe Sichuan Airlines NDC Live Air Austral flydubai S7 Siberia Airlines Air Canada FlyEgypt SilkAir Implementations Air China GOL Singapore Airlines Air France Jiangxi Air SunExpress Germany - American Airlines Hainan Airlines SunExpress APG Airlines Hong Kong Turkey Austrian Airlines Airlines SWISS Avianca Airlines Iberia T’way Air British Airways Iberia Express Taca International Brussels Airlines InselAir Airlines Cathay Pacific KLM Royal Dutch TAP Air Portugal Airways Airlines Thomas Cook China Airlines Korean Air Airlines 65 China Eastern Lufthansa Manchester China Southern Norwegian Air Turkish Airlines NDC Certified Shuttle Colorful Guizhou United Airlines Olympic Air Deployments Condor Virgin Atlantic CORSAIR Onur Air Vueling Airlines Qatar Airways Delta WestJet Emirates Qantas Airways Xiamen Airlines Etihad Rotana Jet Level 3 Airlines as of 5/9/2018 Ethiopian Airlines Saudi Arabian Airlines Aaron Group Information Sabre System Providers Airlines Systems SAP Customer Technology Associates Experience certified & capable AirGateway InteRES Shanghai AirSky ISO Software Aqueduct Information Systeme Information to date Technology Amadeus ITA Software by Google Shree Partners APG - "Sirena-Travel" ATPCO Iween Software Solutions JSC Atriis SITA Technologies JR Technologies Skyscanner Beijing Asia KAYAK Software Technology Co Co TOPAS Birdres Maureva TPConnects Technologies Marco Polo Travelfusion Conztanz Technology Travel Planet 60 Caravelo Navitaire Travelaer Datalex On Travel Travelport Solutions • 45 IT Providers - Capable DXC Technology Travelsky Openjaw Farelogix Verteil Polarium Co • 15 Aggregators - Certified HitchHiker Technologies Pribas Hitit WTMC • Includes 5 Start ups PROS IBS Wintelia Quadlabs Technology Co Indra Technologies TravelgateX Infiniti Software Reserve Solutions GDSs have become Level 3 NDC aggregators 2018

• Cerfied Level 3 in July • Cerfied Level 3 in • Cerfied Level 3 in 2018 September 2018 December 2017 Latest industry announcements Business Travel engagement Corporate Buyers also see opportunies with NDC

• Content - Improved, rich content, to match brand.com

• Cost - Greater visibility of fare types & ancillary costs

• Control – Could encourage the traveller back into the chosen channels

• Customer experience - Segment traveller types and personalise their trip Corporate buyers envision the future of the TMC

• Total management: TMCs taking a more strategic role

• Real-time: TMCs leveraging the combination of deeper supply chain relationships, more dynamic technology & better data to support the corporation & buyer along the journey, in real-time

• The power of personalization: Personalization applied at corporate & individual levels to improve engagement & service satisfaction Travel Agencies have their reference architecture

Objectives

1. For TMCs to think about their future IT (from small to large TMCs) 2. For IT providers to identify technology needs and build solutions 3. For airlines to better understand the TMC mid and back office implications

NDC Roadmap set with IATA Board Industry NDC volume Strategy

Crical mass and 2020 target

Ø Crical mass: “Leaderboard” airlines

Ø Leaderboard: 20% of sales powered by an NDC API by 2020

Ø ‘’Followers’’: More soluons, barriers tackled, increased speed to market The NDC Leaderboard is growing Value Chain Readiness

§ Airlines • 60 airlines cerfied – worldwide momentum • Some front runners added commercial model (incenve), some added content differenaon • Sales teams are beer briefed / trained • APIs are improving (funconalies, servicing etc) § IT providers and GDSs • Lots of players connue to build / improve soluons • More “holisc” view of industry needs (payment, dynamic pricing, reporng etc) • Sabre, Amadeus, Travelport announced plaorm “plug and play” readiness for 2019 • Addressing pain points: servicing, IROPs, mark up etc

§ TMCs and OBTs • Gap between Large players and others in terms of readiness • Private channel to offset surcharge • Sense of urgency to adopt NDC due to content differenaon New! - NDC InFocus

1. How API help airlines 2. Neutral ticketing versus Airline ticketing 3. TMC reference architecture 4. ONE Order in an NDC environment; what do I need to know? 5. Data Privacy in an NDC world 6. Typical NDC collaborative scenarios across the airline internal value chain 7. China distribution 8. What financial analysts say about NDC & Changes in Distribution NDC (Nuova Capacità di Distribuzione) Cos’è e cosa significa per il Business Travel Panelists: David Rutnam, Manager, New Distribuon Capability Regional Implementaon, IATA Francesca Bena – Execuve Vice President Online Travel Agencies Western Europe, Middle East, Africa & Managing Director Italy - Amadeus IT Group Davide Rosi – Managing Director, BCD Travel, Italy Flavio Ghiringhelli – Country Manager Italy, Emirates

Moderator: Andrea Giuricin – Adj. Prof, Università Bicocca Milano