New airline ancillary products and the technology and processes behind them are a fascinating and vital part of how the travel industry is evolving. Three innovative travel brands share insights about recently released capabilities and the best practices for integrating these services into a managed travel program. On this 60-minute webinar, you’ll hear how airlines are enhancing their products and learn from industry practitioners about what it takes to actually bring them to market. Technology providers, travel suppliers, travel agencies, and travel buyers should bring their questions and comments for this interactive sessions with our panel of experts. Featured presenters: Shelly Terry, Vice President, Sabre Travel Network Aldo Ponticelli, Vice President Distribution, Alitalia Liz Mandarino, President, World Travel Inc Kevin May, Editor & Moderator, Tnooz Gene Quinn, CEO & Producer, Tnooz

1. Airline Ancillaries:
What’s Working Today?
Webinar
February 27, 2013

2. Kevin May
Tnooz
Editor & Moderator
Gene Quinn
Tnooz
CEO & Producer

3. Shelly Terry
Sabre Travel Network
Vice President
Panelists
Aldo Ponticelli
Alitalia
VP, Distribution
Liz Mandarino
World Travel, Inc.
President

4. Poll no. 1

5. Poll no. 2

6. Enabling Airline Merchandising
Shelly Terry
Vice President, Supplier Merchandising
Confidential - Not for redistribution without Sabre's prior
consent.

7. mer·chan·dis·ing: n. or v.
the planning and promotion of sales by presenting the right product
to the right market at the right time….using attractive displays
[mur-chuhn-dahy-zing]
PRODUCT PLACE PRICE RIGHT CUSTOMER
7

8. Evolution of Airline Merchandising
8
Published
Fares
Qualified
Discounts
Private
Fares
Targeted
Offers
Promo
Fares
Unbundled – Air Extras Bundled – Branded Fares
Buyers:
Efficiently Shop,
Book & Manage
Suppliers:
Grow Revenue &
Differentiate Brand
Attractive Displays

9. 9
Classic View – Alitalia Lounge Passes

10. 10
Classic View – Alitalia Lounge Passes

11. 11
Graphical View – Shopping with Air Extras

12. 12
Graphical View – Shopping with Air Extras

13. 13
Graphical View – Shopping with Air Extras

14. Graphical Seat Map – US ChoiceSeats
14

15. 15
Branded Fares – Qantas Fare Matrix

16. Customer
Requirements
Desired Content,
Comparison
Shopping, Total
Price
Corp Travel
Policy &
Negotiated Rates
Service Model
Operational
Requirements
Front, Mid and
Back Office
Agent Training
Scripts,
Automation
Business
Model
Airline Contracts
Client Service
Fees
Technology
Implications
Agent POS
Customer POS
(OTA, CBT)
Automation,
Back Office,
Reporting
Buyers Evolving Technology & Processes
Agencies & technology developers are making necessary adjustments
16

17. Airline Tariff
Publishing Company
(ATPCO) Optional
Services (OC) data
standard enables
significant flexibility
and customization.
Standards developed through collaboration with airlines,
travel agencies, and technology providers.
International Air
Transport Association
(IATA) Electronic
Miscellaneous
Document (EMD)
delivers efficient,
accurate fulfillment.
Dynamic in nature to meet the evolving needs of
the marketplace.
17
Leveraging Industry Technology Standards
Enabling broad and rapid deployment of new products & services
Open Travel Alliance
(OTA) XML Message
Standards provide
structure and
interoperability in
electronic messaging
between all industry
constituents.

18. ACCOUNTING
DELIVERY
SELL
CONTENT
AIR EXTRAS
BRANDED FARES
AVAILABILITY | SHOP | PRICE
BOOK
FULFILL
ITINERARY | INVOICE
BACK OFFICE
BUSINESS INTELLIGENCE
AGENT
POINT-OF-
SALE (POS)
CORPORATE
ONLINE
ONLINE
AGENCY
MOBILE
THIRD
PARTIES
ENABLED BY
WEB SERVICES
18
Fully Integrated Into ANY Workflow

19. Tnooz Webinar
Airline Ancillaries: What’s Working in Today’s Marketplace
Presented by:
Aldo Ponticelli
Vice President Distribution, Alitalia
February 27, 2013

20. 20
Ancillary distribution through trade decision Check List
BUSINESS
MODEL
Full Service Hybrid LCC
TECHNICAL
COMPETENCE
AND
READYNESS High LowAverage
COMMERCIAL
STRATEGY
Unbundling Hybrid Bundling
DIRECT
CHANNEL
PENETRATION 20% 50% > 80%
-+
DISTRIBUTION
MODEL
Full Content
NO
Commitment

21. 2121
Regulatory and technological scenario
SCENARIO
and
PLAYERS
• IATA:
− V-MPD target phase out by end of 2013 (IATA StB The road to 100% EMD in BSP);
− service booking process definition open to different interpretations (SSR+ASVC or
ASVC) while stricter EMD standard is available (RESO 725G+AIRIMP).
• ATPCO:
− detailed standard optional services list available (IATA RP1790);
− service codes proliferation.
• PSS / CARRIERS:
− Main PSS perform standard protocol ancillary sales on direct and indirect channels:
• different approach for services booking process (Teletype);
• standard EMD product (Edifact).
− Some PSS developed API/web services to selectively distribute ancillary contents;
• GDS SSR:
− some GDS support SSR ASVC stand alone only;
− some other support IATA STANDARD SSR or BILATERAL SSR + ASVC only;
− some developed API content feed.
• GDS EMD: some support associated EMD only, others both associated and stand-alone.
• BSP/ARC: support EMD standards (not all Markets have been implemented).
• Unique standard service booking process;
• Not all DCS ready to fully support EMD;
• Interline EMD very complex.
STILL
MISSING

22. 22
Alitalia ancillary services - strategy and roadmap -
TRADE
CHANNEL
• August 2012: First Market/GDS (ExBag/Lounge)
• October 2012: Second GDS (ExBag/Lounge/Fast track/Insurance)
• March 2013: Third GDS
• 1H 2013: Deployment new services (Seats, Meals)
INTERLINE
EMD • Deployment after migration to Industry PSS
• Full service carriers are modifying their business model to compete with LCC
and with High Speed train
− unbundling services included in basic fares to better compete on pricing;
− offering new services “on demand”;
− selling them as “optional”.
COMPETITIVE
SCENARIO
ALITALIA
STRATEGY
• Pursuing a multi-channel distribution strategy to maximize revenue and
availability of ancillary services in all channels.
• Distribution of Ancillary services through Indirect Channel (Trade/GDS), addressed a
multitude of users, in low demand market, with current direct sales penetration is
considered as more convenient than an alternative policy of content
differentiation through channels.
DIRECT
CHANNELS
• November 2010: EMD-S and EMD-A for Direct sales
• December 2011: Fare quote for ancillary services on direct sales.
• February 2012: EMD for WEB extra baggage and comfort seat
350K
EMD
2011/12

23. 23
Ancillary Services (EMD) Trade - Services deployment 2012 /13 -
Third or additional extra piece
Second extra piece
Excess weight
Excess size
First extra piece
Standard sport equipment
Trip insurance
Fast track (FCO/NAP)
Lounge access (FCO/LIN/TRN/VCE/PMO/CTA/NAP/JFK)
Pre-reserved seat assignment
Meal (celebration & premium)
Phase 2
.
Implemented
Jul Aug Sep Oct Nov Dec Jan Feb MarPhases AprProducts
Implemented
Implemented
Implemented
Implemented
Implemented
Implemented
Implemented
Implemented
Status
23
Phase 3
May Jun
Phase 1
Implementation for first GDS
Alitalia, first adopter
of new process
developed with
Insurance Partner

24. 24
Markets
Ancillary Services (EMD) Trade - Markets deployment 2012/13 -
Status
Spain
Greece
UK
Belgium
Italy
Israel
Poland
Romania
Argentina
Brazil
Venezuela
Canada
Egypt
USA
Turkey
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
GDS 2GDS 124
May Jun
Alitalia
2nd adopter
worldwide with
GDS 1
Alitalia
3rd adopter
worldwide with
GDS 3
Alitalia
2nd adopter
worldwide (*)
with GDS 2
TBD
TBD
TBD
(*) Between NOT GDS System users GDS 3

25. 25
Ancillary services “Plus”: a win-win-win solution
• Buy in advance.
 avoid time loss at the airport; .
 have a larger choice (“first-in: best served”)
• Service follows ticket evolution (changes, refunds,…)
• Pay with all forms of payment (cash / credit card / Invoice).
CLIENT
• Agency becomes “one shop stop”.
• Channel parity.
• Use one system (only GDS iso GDS + BSP Link + side platforms).
• Paperless.
• Integrated in current settlement system (BSP/ARC).
• Integrated back office accounting.
AGENT
• Access to a wider customer market.
• Fast growing Service Portfolio enlargement enabled.
• Shift effort from Airport to sales process (i.e. excess baggage,…).
• Open to all Form of Payment (in the average cheaper than credit card).
• Money collection secured in current settlement system (BSP/ARC).
• Timely and reliable Revenue Accounting.
• Reduced fraud risk.
CARRIER

26. 26
“Soft” Critical Success Factors
COMPETENCES Functional and IT Teams must rely on deep process and system knowledge.
PARTNERSHIP “It takes two to tango”:GDS/Airline teams must reach high level of trust/harmonization.
PACE & FOCUS Small teams must work at constant and never-stopping pace.
PROJECT
MANAGEMENT
Constant and focused project management activity must be assured.
MANAGEMENT Management focus to escalate on possible open issues.
INNOVATION Continuous workarounds needed for a successful deployment.

27. 27
And now we focus on Customer & Sales…

28. Poll no. 3

29. Tnooz PANEL WEBINAR
Presented by:
Liz Mandarino
President, World Travel, Inc.
Presented on: February 27, 2013

30. 30
How our company has supported this effort:
 Advocates for public consumers and corporate clients
 Attended two DOT meetings along with several clients
 Only TMC representing travel community
 WTI customers only consumers present
 Panel member with Open Allies at the Press Club
along with our valued customer Darla Montalto, the
Travel Manager from MLB
WORLD TRAVEL ACCOMPLISHMENTS

31. World Travel awareness initiatives for transparency:
 Corporate bulletins
 Newsletters
 Customer reviews
 Client symposiums
31
AWARENESS & EDUCATION

32. Transparency is key for corporate travel managers
 Identifying total cost of travel
 All opportunities displayed regardless of distribution
channel
Continue to stress importance with airlines and
government agencies
32
CONTINUED SUPPORT
32

33. Q & A

34. Thank you!

35. Send questions to Kevin May,
kevin@tnooz.com
Webinar replay and slide presentation available
at www.tnooz.com