Presentation given to Airline Amadeus-eCommerce meeting in Cannes France 2011

1. The Always-Connected Traveller:
How Mobile Will Transform the Future of Air Travel
June 16, 2011
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3. Connecting anywhere, anytime from any device
The Era of the Always Connected Traveler Has Arrived
At Home
On the Plane
Wi-Fi Home
Wi-FI Connectivity
Networks
In the Office
Corporate booking
At the Airport and Expense
In The Hotel
Wi-Fi and
Wired
Networks
On the Road Full feature phones, Smartphones & Tablets

4. Mobile’s Impact Across the Travel Life Cycle
The new mobile devices facilitate continuous engagement .
Dream, inspire,
Share, plan & book
Feedback.
Dream
At Check-In, Buy
Airport Ancillary &
Merchandise
Explore,
Connect and Plan,
Share On Board Entertain, and
Explore
Source: Travel Tech Consulting Inc.

5. Smartphone Usage
Frequent & Younger Travelers Have Greater Smartphone Usage
• One third of frequent
flyers and one
quarter of 18-34 year
olds utilize
smartphones and
tablets for booking
compared to 16% for
total travelers

6. Innovative Features / Services
Proactive Communication is the Key
• Real time updates on flight status and baggage information are clearly innovative features
desired by passengers.
• Passengers are also anxious to receive directions on mobile devices and are ready to
embrace mobile check-in and self luggage tagging.
Q25. Which of the following innovative features or services would you use?
6 Source: J.D Power

7. Overall Airline Experience: Importance of Every Step
Pr-Flight Communication is a Major Opportunity
Respondent rate the
Pre-Flight and In-Flight
stages of their trip as
being the most
important
Helping the passenger
to choose, book and
board the flight without
inconvenience is key to
delivering satisfaction
Sample: Total, 2,978, WTD.
Q19. When flying how important are the following 6 steps for your overall airline travel experience?
7 Source: J.D Power

8. Aspects of Travel For Improvement
Disruption Management is the Key
Q21. Which of the following aspects of your airlines travel experience do you think could be improved?
The improved management
of disruptions is key to
passenger satisfaction.
Please Note:
Top 3 selections are combined
A multiple response set
Sample: Total, 2,978, WTD.
8 Source: J.D Power

9. Check-In Method
Mobile Check-In is Still at an Early Stage of Adoption
Last Check-In Method Preferred
Method
Diff.* Preferred Method
59.4% (+9.4%)
Latin Middle North
Asia Europe
19.3% (-13.2%) America East America
Online with PC 55.7% 60.9% 45.4% 59.7% 62.7%
13.7% (+1.0%)
Check-In Desk 20.5% 25.2% 40.3% 26.5% 10.8%
5.6% (+2.2%) Self-Serve Kiosk 11.7% 7.2% 8.4% 5.5% 20.2%
Mobile/Smartphone 7.5% 5.0% 4.3% 3.2% 5.6%
1.8% (+1%) SMS/Text 4.5% 1.7% 1.6% 4.8% 0.3%
Other 0.0% 0.0% 0.0% 0.5% 0.4%
0.2% (-0.3%)
Preference for a Mobile/smartphone
check-in method is still niche, though
Asia seems the best expansion point
Sample: Total, 2,978, WTD.
Q10. How did you check-in for your flight?
Q12. What is your preferred check-in method? *Variance between Preferred and Actual Purchase Channel
9 Source: J.D Power

10. Pre-Purchase Additional Services
Few Airlines Offer Mobile Pre-Purchase of Ancillary Services
Additional Service Channel
Please Note:
A multiple response set
Sample: Total, 2,978, WTD.
10 Q15. Which additional airline services, if any, did you pre-purchase?
Source: J.D Power
Q16. How did you purchase your additional airline services?

11. Social Media
Social Media is Impacting Markets Worldwide
Q28. Which social media sites do you use for travel related purposes?
% of Respondents Using Social Media Travel Related Sites
Total Asia Europe LA ME NA
Sample: Asia 700, Europe 574, Latin America 700, Middle East 403, North America 601 & Total, 2,978, WTD.
11 Source: J.D Power

12. Standard Functionality Matrix
AF APAC APAC EU JP * LA ME NA SC
Booking
Schedules
Check-in
BCBP
Itinerary
Mgmt
Disruption
Mgmt
Loyalty
Access
Loyalty
Enroll
Book Loyalty
Seats
Flight Status
Airport Info
= Today APAC = Asia / Pacific JP = Japan
= 6 mos. AF = Africa ME = Middle East
EU = European NA = North America
= 12 mos. LA = Latin America SC = Scandinavian
= > 12 Mos. or No Plans
* Domestic Japan only Source: Travel Tech Consulting Inc.

13. Ancillaries on Mobile
AF APAC APAC EU LA JP * ME NA SC
Baggage
Premium
Seating
Premium
Boarding
Pre-purchase
meal
Club Access
On board
Wi-FI
Deals and
Offers
Other Cars & FF – use pts NP but Travel Wheel- Hotels &
Hotels at merchants looking at Insurance chair Cars (end
cars & of 2011)
hotels
= Today APAC = Asia / Pacific JP = Japan
= 6 mos. AF = Africa ME = Middle East
EU = European NA = North America
= 12 mos. LA = Latin America SC = Scandinavian
=>12 mos. - no current plans
* Domestic Japan only
Source: Travel Tech Consulting Inc.

14. Advanced Functionality
AF APAC APAC EU LA JP * ME NA SC
LBS
Merchandising
Advanced
Disruption
Social Media
Movement
Tracking
Push
Notifications
Voice
Recognition
Video
Payments
NFC
Augmented
Reality
= Today.
JP = Japan
= 6 mos. APAC = Asia / Pacific
ME = Middle East
= 12 mos. AF = Africa
NA = North America
= 12-24 mos. EU = European
SC = Scandinavian
LA = Latin America
= < 24 mos. or under consideration
= No Plans
* Domestic Japan only Source: Travel Tech Consulting Inc.

15. NFC at the Airport

16. Native App Development
Does an Airline Need a Downloadable App?
AF APAC APAC EU LA JP ME NA SC
IOS
Android
RIM
Nokia
Windows 7
HP WebOS
= Today
APAC = Asia / Pacific JP = Japan
= 6 mos. AF = Africa ME = Middle East
EU = European NA = North America
= 12 mos.
LA = Latin America SC = Scandinavian
= < 24 mos. or under consideration
=>24mos. Or No Plans
• Most airlines interviewed have invested in native app development with the Apple
iPhone as the primary platform of choice, followed closely by Google’s Android OS.
• This does not diminish the need to redesign and optimize for the mobile web, as
viewing a normal website on even the most advanced smartphone can be a
frustrating experience.
Source: Travel Tech Consulting Inc.

17. Use of 3rd Party Developers
What is the Role of 3rd Party Developers?
AF APAC APAC EU LA JP ME NA SC
Small – Midsized
Mobile Generalists
Travel Mobile
Specialists
Large System
Integrators
PSS/DCS/GDS
providers
In House
= Used Today and Tomorrow APAC = Asia / Pacific JP = Japan
AF = Africa ME = Middle East
= Considering
EU = European NA = North America
= Not Used LA = Latin America SC = Scandinavian
• Many airlines use small to midsized mobile generalists who are based locally for their
mobile web and app development.
• Many airlines rely on PSS/DCS/GDS providers to develop mobile solutions that are
tightly integrated with their internal systems.
• The most common response from the airlines interviewed was the use of three out of
four of these types of third parties all performing different functions.
Source: Travel Tech Consulting Inc.

18. Strategy for Full Feature Phones
Full Feature Downloadable Apps are an Option to Consider
LinkedIn for Full Feature Phone Java App Facebook for Feature Phone Java App
• No airlines interviewed considered the creation of an application for full feature
phones.
• Full Feature phones still dominate much of the world and Web browsing on a full
feature phone can be a frustrating experience.
• Social media sites such as Linked-In and Facebook have recognized the fact that a
vast majority of the world is still using full feature phones and have created Java
applications
Source: LinkedIn and Facebook

19. What is Mobile Innovation?
Real Time Information is Essential
• Innovation should be simply
measured on how
successfully technology is
deployed and how it
impacts the passenger
experience.
• Emerging tends such as
augmented reality and RFID
bag tags are innovative only
if their value is perceived as
improving the passenger
experience

20. Critical Functionality Issues
• Ability to operate multi-channels
• Full range of solutions covering all aspects of cycle
• Integration with airline IT
• Consistency across channels
• Common business logic
• Robust architecture

21. Defining an ROI for Mobile Development
• Efficiencies
– Reduction in staffing
– Reduction in kiosk hardware needed
– More efficient use of staff time Curbside Carry on Fee Flight Alerts
• New revenue opportunities
Check-in
Baggage Club Access
Premium Seating
– Ancillary sales
Premium Wine
Baggage Premium Boarding
Delivery
Wi-Fi
Pre-Purchase of Meals
– Impulse buying Airline Logo
Jacket
Noise-Cancelling
3D Glasses
Earphones
– Last minute bookings
• Maintaining or improving loyalty among frequent
travelers
– Mobile web and apps development are as an extension of
overall marketing expenses and brand management.
– How your brand is perceived on various platforms needs
to be consistently managed.

22. Airline Mobile Travel Timeline
Available Now or within 12 months Widespread 1- 2 Years Widespread 3- 5 Years
Mobile
Functionality
Book Loyalty Enroll in Loyalty
Booking Schedules Flt Status Immersive Tablet
Interactive Voice
Apps
Commands
Immediate Social Augmented Interactive Videos
Check Loyalty
Itinerary Mgmt Seat maps Media Response Reality
Balance
Mobile Electronic
Airport Passenger Airline Voucher NFC mobile Mobile Ground
Mobile
Roaming Tracking boarding payments Operations
Airport SMS Disruption
Mobile boarding Agent
Information Mgmt
pass and BCBP
Curbside Carry on Fee Flight Alerts
Check-in
Baggage Club Access
Premium Seating
Premium Wine
Baggage Premium Boarding
Delivery
Ancillary Pre-Purchase of Meals Wi-Fi
3D Glasses
Services and Airline Logo
Jacket
Noise-Cancelling
Earphones
Merchandising Deals & Offers Airport Coupon Location Based Ancillary
Offers Offers Services Personalized Ancillary and
Source: Travel Tech Consulting Inc. Merchandizing Offers

23. Summary
Challenges
• All airlines are struggling to keep up with the
increasing fragmentation of platforms and the rapid
acceleration of mobile innovation.
Opportunity
• Airlines must find ways to exploit mobile capabilities to
drive new revenue and enhance customer loyalty.
• Airlines will use more advanced mobile computing to
– Drive greater self-service capabilities
– Create more immersive mobile experiences
– Drive greater airport efficiencies
– Deploy greater personalised marketing for merchandising
of products and services.

24. Thank You!
norm@traveltechnology.com
Twitter: NormTravelTech
.
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