MAY 2016 NEWSLETTER

American and United Will Soon Offer PAGE 3 No-Frills Fares

Southwest Raises EarlyBird Check-In PAGE 4

Make Business Trips Easier With These 4 Travel Hacks

1 INFocusPAGEPAGE Newsletter 22 Make Business Trips Easier With These 4 Travel Hacks By Brit Tulloch

Travelling frequently for work can be 2. Stress less with a travel stick the bag to the back of the seat in draining, on you and your wallet. But it checklist front of you. You can watch what you want doesn’t have to be that way. without straining your neck. It may seem obsessive, but creating There are a few travel tips you can use a travel checklist before you jet off will 4. Save time with the rolling to save money on business trips, making do wonders for your stress levels. You technique your travel experience a little more no longer have to worry about packing pleasant. enough socks or a spare laptop charger. Ever wondered how soldiers fit all their provisions into one backpack? They have 1. Feel more at home with a Use this free app to organise your a special technique for rolling and folding serviced apartment packing, scheduling and other details. their clothes, to allow for maximum space.

Staying in hotels every time you travel 3. Create your own inflight With this technique, you can save time can be a downer. The sterile surrounds entertainment at the baggage carousel by travelling with lack the warmth and character of home. only one suitcase. Instead, find the next best thing by staying Smartphones and iPads offer better in a serviced apartment. picture quality than any plane television. Take a look at this YouTube tutorial on But holding the device in your hands to how to save space. With a starting price of $50 a night, watch your favourite movies can give you they’re cheaper and you get to enjoy the a headache. comforts of home (like free movies and decent kitchen). Instead, pack a snap lock sandwich bag and place the device inside. Then simply

2 INFocus Newsletter American and United Will Soon Offer No-Frills Fares

By Steve Johnson

United and American will soon be seat mile fell by 8.9 percent, while United’s their no-frills fares will look like. They will following the lead of Delta Air Lines by dropped by 7.4 percent compared to the most likely come without the ability to make launching their own no-frills economy first quarter of 2015. Both airlines have changes or get any sort of cancelation fares. These very basic tickets are meant seen their share prices drop in recent refund. Seats will probably be assigned to compete directly with ultra-budget weeks because of this issue. at the gate based on what is available. carriers like Spirit, Allegiant and Frontier. So, essentially, a basic fare will be a non- The low revenue numbers are due to refundable, non-changeable middle seat. Both United and American should airlines expanding services while also launch these fare options by the end of lowering fares in order to compete with Ability to upgrade this year. Delta has already rolled them one another and with the likes of Spirit and out on some routes. Frontier. Once United and American adopt these fares, they will have one very important Competing with ultra- Appealing to budget advantage over Frontier and Spirit. budget airlines travelers They will be able to offer basic economy passengers the ability to upgrade to The move is a competitive response Of course, low-cost carriers have to something better. to low-cost carriers trying to compete on deal with some disadvantages. Their price. Because of their higher operating fees are higher and their service is often There is another dynamic at play here costs and the higher expectations of inferior. Full-service airlines are able to as well. Once they see that extra perks their shareholders, matching the no- offer more than their budget competitors. are available for a slightly higher price, frills fares of the ultra-budgets is difficult However, a fraction of the flying public still many fliers have the tendency to skip the for the legacy carriers. By adding basic searches for fares based on price alone. base fares anyway. The so-called “wine- economy fares, American and United can By offering basic economy fares for some list effect” actually puts people’s attention compete directly with Spirit and its peers seats, American and United can, like Delta on higher priced fares (regular economy on price while still offering full fares on does now, still appeal to this segment of or even premium economy) because they the same flight. the market without having to put the same think these tickets offers better value rock-bottom price tag on every seat on the overall. So adding basic economy fares For the legacy carriers, defeating entire plane. could actually help American and United Frontier and Spirit on competitive routes fill more regular and premium economy is a necessity. During the first quarter of Neither American or United have seats. 2016, American’s passenger revenue per provided too much information about what

May 2016 3 Raises EarlyBird Check-In Fees

By Donald Wood

The EarlyBird Check-In feature offered by Southwest Airlines has become popular with travelers, but the company has increased the price of the option by 20 percent.

According to FoxNews.com, Southwest Airlines has increased the cost of the EarlyBird Check-In feature from $12.50 to $15 for a one-way trip. When the program was originally introduced, Southwest charged only $10.

In a statement, Southwest officials said, “Every few years, we review the price of our services in order to align with market EarlyBird Check-In feature, passengers Check-In feature extremely valuable to and operational conditions as well as can start checking in up to 24 hours ahead frequent fliers. uphold the quality of our offerings.” of their flight’s scheduled departure. While the price increase is bad news Southwest Airlines has an open The earlier customers check in, the for travelers, Southwest Airlines is still the seating policy which puts passengers into better the chance that they’ll be assigned only major U.S. carrier that doesn’t charge boarding groups — A, B or C — instead to Group A and get first selection of their additional fees for the first two checked of assigning specific seats. Using the seats on the plane, making the EarlyBird bags.

Survey: Senior- Employees Still Most Frequent Expense Fraud Offenders

By JoAnn DeLuna

Executives and upper "The correlation between survey is "not intended to gauge management account for authority and loss most likely occurs the absolute trends in overall more incidents of expense because high-level fraudsters tend occurrence of fraud," explained reimbursement fraud than any to have greater access to their ACFE director of research Andi other type of employee, according organizations' assets than lower- McNeal. Instead, it is designed to to a new study from the Association level employees, as well as a examine "the details of a sample of Certified Fraud Examiners. better ability to evade or override of fraud cases during a particular anti-fraud controls," according to period." Top executives account for about the report. 24 percent of reimbursement Global expense reimbursement fraud, according to the survey of Accounting department fraud accounted for 14 percent of certified fraud examiners from 114 employees were the second-most all cases of "occupational fraud" different countries who submitted likely category to commit expense reviewed by ACFE, and represented to ACFE details of 2,410 cases reimbursement fraud, as they a median loss of $40,000 per case. that they investigated between account for about 16 percent of ACFE defined occupational fraud January 2014 and October 2015. incidents, according to the report. as "the use of one's occupation The finding is similar to that of for personal enrichment through ACFE's 2014 Global Fraud Study. As in past years, the biennial deliberate misuse or misapplication

4 INFocus Newsletter companies "not only incur losses [men] to commit a larger portion of SURVEY CONTINUED as large as bigger organizations, occupational frauds," according to they typically have fewer resources the report—but it did not account for with which to combat this threat," the entire difference. Loss amount, according to the report. "The fraud type, behavioral indicators of the employing organization's combination of these factors leaves and position of power also played resources or assets." In the United small businesses particularly roles. States, expense reimbursement vulnerable to occupational fraud." fraud accounted for about 16 Men also were responsible for percent of the 1,038 U.S. fraud Expense reimbursement fraud causing larger average fraud losses cases. lasted a median of two years before ($187,000) than women ($100,000). it was detected, according to the Expense reimbursement fraud survey, which noted that "the longer According to the report, the older was most common in the technology an occupational fraud scheme goes the fraudster, the more expensive sector, where it occurred in 27 undetected, the greater losses tend the fraud amount tended to be. percent of cases examined. to be." "Fewer than 3 percent of frauds Reimbursement fraud appeared on were committed by people over the 25 percent of cases in the religious Offender Profile age of 60, but these cases had a charities and social services sector, median loss of $360,000, which while manufacturing (22.9 percent), was much higher than any other Globally, men committed 69 construction (20.9 percent), and age range." percent of occupational fraud health care (20.1 percent) each incidences, while in the United experienced more than a 20 percent States, men accounted for about incidence of such fraud. 56 percent and women about 44 percent. Small businesses, those with less than 100 employees, had The gender gap in fraud incidence a higher incidence of expense might reflect the male-dominated reimbursement fraud (16.7 percent) workforce—"we might expect than other firms (13.9 percent). Small

May 2016 5 Delta to Deploy New Baggage-Scanning Technology

By Michael B Baker

Delta Air Lines has announced that process show that bags are tracked at Tim Mapes, Delta’s Chief Marketing it is investing $50 million to deploy a 99.9% success rate. Officer, added: “In the same way that Radio Frequency Identification (RFID) customers want information at their baggage tracking technology at 344 The likes of McCarran International fingertips about flight changes, we stations around the world. Airport and Hong Kong International know our customers want clear visibility Airport have previously invested in to their checked bags. Delta’s industry- Instead of using barcode hand RFID technology, but Delta’s outlay first baggage tracking app was a good scanners, RFID scanners will capture marks the biggest single investment in first step. RFID will allow us to set a data stored on an RFID chip embedded the technology by an airline to date. new standard for more transparent, in the bag tag. The carrier says this will interactive tracking on the Fly Delta deliver superior tracking and increased “With a $50 million investment in mobile app.” transparency. RFID at 344 stations around the globe, we aim to reliably deliver every bag Thanks to the rollout of RFID on every flight,” said Bill Lentsch, technology, from Q4 2016 passengers Delta’s Senior Vice President – will be able to receive push notifications Airport Customer Service and Cargo via the Fly Delta mobile app informing Operations. “This innovative application them when their bag has been loaded of technology gives us greater data and and unloaded from the aircraft. Delta more precise information throughout says that initial deployments of RFID the bag’s journey.” integrated throughout the baggage

6 INFocus Newsletter ’s airlines set to benefit from in-flight connectivity advancements

By Ryan Ghee

Lufthansa will be the first European airline to offer onboard broadband connectivity powered by Inmarsat’s Global Xpress service, and has also signed up to trial the European Aviation Network.

European-based travellers For International Airlines haul services, it has also signed up have faced a patient wait for in- Group (IAG), patience seems to to a flight trial programme of the flight connectivity to gain traction have paid off. Having refused new Inmarsat/Deutsche Telekom among the region’s airlines – to make an early move in the European Aviation Network S-band largely because the carriers onboard connectivity space, the hybrid satellite/ATG connectivity have been waiting for technology Group, which includes British network, starting in 2017. Carsten to catch up with demand – but Airways, , and Spohr, Lufthansa’s Chairman and they are now starting to invest , has just announced that CEO, aptly highlighted the thinking more readily, and the impact on it has opted to invest in Gogo’s behind the carrier’s determination the customer experience will be 2Ku technology. In total, 118 to be seen as a connectivity pioneer palpable. , four Aer Lingus in Europe. “We continue to strive and up to 15 Iberia aircraft will for excellence when it comes to our While be fitted with 2Ku. Up until this passengers’ flying experience,” he started the rollout of free in-flight month, Virgin Atlantic was the said, “and the provision of reliable, Wi-Fi back in 2011, and Lufthansa only European carrier to have consistent broadband connectivity has offered connectivity on select announced an investment in the aboard our planes, which will match long-haul services for more than 2Ku solution. that of high-speed home broadband half a decade, the emergence in terms of speed and quality, is of of new, high-quality connectivity Elsewhere, Lufthansa is continuing extreme importance to us.” services has encouraged more to take a leadership role. Having airlines to take the plunge in committed to Inmarsat’s Ka-band Another of the major European recent months. Global Xpress (GX) service to bring airline groups, Air -KLM, is connectivity to short- and medium- equally active. A tie-up with Orange

May 2016 7 investment will ultimately have much level of service to customers. In- IN-FLIGHT BENEFIT CONTINUED more wide-reaching benefits. For flight connectivity also creates a instance, the connected cabin, he big retail opportunity, he explained, said, empowers crew to undertake with passengers able to browse real-time service recovery in-flight and purchase items on their own has seen in-flight connectivity and provide a more personalised devices while flying. trialled on two A320s, the AirFi solution has been trialled on two KLM 737-800s, while The wider benefits of onboard connectivity KLM’s Boeing 787 Dreamliners and a Boeing 777-300 aircraft already carry in-flight Wi-Fi.

Speaking at FTE Europe in last month, Peter Verheijde, Air France-KLM’s Head of Research and Development In-flight Entertainment and Connectivity, explained that although the airline group has different ambitions and motivations for its long-haul and short/medium- haul services, full connectivity is being pursued for the entire fleet. While onboard connectivity brings about a number of passenger experience benefits – including the ability to browse the internet and stream content including live TV Air France has partnered with Orange to trial an in-flight entertainment and connectivity service to personal electronic devices – on two of its Airbus A320s. Verheijde stated that the Group’s

8 INFocus Newsletter from in-flight connectivity solutions Labs, John Hurley, recently This is a benefit that IAG while concurrently improving the told FTE that the carrier is taking has also recognised. Upon the passenger experience. Among portable IFEC solutions “seriously”, announcement of its decision these airlines, portable connectivity while easyJet CEO Carolyn McCall to invest in the 2Ku connectivity solutions are proving to be especially has previously recognised the service, it stated in a release: “In popular, partly because of the low fact that onboard connectivity will the future, inflight Wi-Fi will also implementation costs and simple “come eventually, but not until it transform the duty free experience set-up. The likes of , Iberia is consistently good”. With a new allowing travellers to order from their Express, Arkefly and generation of connectivity solutions phones and tablets and arrange have invested in such solutions, now on the horizon, perhaps for items purchased onboard to be and while they don’t offer full blown easyJet will soon review its stance. delivered to their homes.” access to the internet, they do provide a form of entertainment With passenger demand for And this point is crucial. While on services that would otherwise in-flight Wi-Fi continuing to rise, passenger demands and technology offer no form of IFE. Importantly, technology developments making improvements are almost “forcing” portable connectivity solutions high-speed, reliable connectivity major European carriers to invest in also create new revenue streams, services more freely available to in-flight connectivity, more effective with passengers able to buy duty European airlines, and the carriers business cases built on new free items and destination-based themselves starting to identify revenue creation opportunities are activities, for instance, via the new connectivity-centric revenue also proving to be highly convincing portals. generation opportunities, it is factors. becoming increasingly difficult, if Europe’s major low-cost carriers not impossible, for Europe’s airlines Low-cost and leisure carriers are also look poised to make moves to put off investment in onboard also getting in on the act, buoyed in this market. Ryanair’s Chief connectivity. by the prospect of making money Technology Officer and Head of

LCC's and connectivity

Iberia Express and Volotea have partnered with Immfly to offer their passengers access to content and destination-specific products and services.

May 2016 9