It\u2019s now a case of when not if airlines embrace the modern retailing revolution, delegates at the Amadeus Alititude25 conference heard.<\/p>\n
Meg O\u2019Keefe, senior vice president of airline product management, told the GDS and tech giant’s conference in Lisbon last week that carriers can drive at least a 35% increase to their bottom line.<\/p>\n
She said there are many paths to transformation but added all the evolutions and enhancements that airlines make to their retailing abilities must be future proofed to \u201coptimise potential going forward\u201d.<\/p>\n
O\u2019Keefe said Amadeus itself is embracing a strategy of complete transformation with its Nevio modern retailing platform to maximise the advantages in the long term.<\/p>\n
\u201cWe think it\u2019s worth it,\u201d she said adding that the legacy Altea PSS [Passenger Service System] is capable of delivering retail value to full-service airlines.<\/p>\n
But she said: \u201cAt the same time we have been spending some time buildings new capabilities to be able to extract additional value from our systems.<\/p>\n
\u201cUnless we make that next big leap across the chasm into the new world it will be difficult to stretch the systems of today to unlock that new value.\u201d<\/p>\n
There are two separate parts of the transformation that aviation is facing, the first being Order, Offer, which is a current focus, and then Settle, Deliver.<\/p>\n
O\u2019Keefe said the pace and scale of this digital transformation depends on a number of factors including appetite for change, the starting point and ecosystem they operate in.<\/p>\n
Airlines will be able to drive \u201csavings through cost efficiencies\u201d as well as \u201csustainable revenue growth\u201d by \u201cdelivering best-in-class travel experiences\u201d.<\/p>\n
Airlines have been asking Amadeus to make sure the solutions of the future offer \u201cthe flexibility to make the choices that fit your business\u201d and to be \u201cready to adopt on the fly\u201d, said O\u2019Keefe.<\/p>\n
\u201cNevio is hinged on travel centricity. If you are going to be a very good travel retailer you are going to need to have travel experiences at the heart of the system.<\/p>\n
\u201cIt will be possible to commercialise any new product. It will be able to stretch your commercial product in the market. More range, more reach. And it will be able to implement these things very quickly.<\/p>\n
The shift will see a move away from traditional filed fares to something more dynamic and open, to less complex systems and will optimise pricing based on conversions.<\/p>\n
\u201cSince this is designed for conversion, it will be able to create a modern user record which is created as the contract that is then cascaded across the ecosystem.<\/p>\n
\u201cIt becomes a single source of truth to link systems together to provide a single experience. Simplicity, automation of your business. It will allow that step towards 100% self-servicing.\u201d<\/p>\n
The 35% value to the bottom line can be realised in the next two years with 30% coming from cost savings and 70 from revenue growth, claimed O\u2019Keefe.<\/p>\n
\u201cWe are focussed on scaling that because there is a lot to do in a short amount of time. Our systems are live today.<\/p>\n
\u201cNot all of them, but we have order management, dynamic air and ancillaries, we have transition capabilities line and in production.<\/p>\n
\u201cWe have the ability to have digital channel offer order ready and enabled to activate.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
It\u2019s now a case of when not if airlines embrace the modern retailing revolution, delegates at the Amadeus Alititude25 conference heard.<\/p>\n","protected":false},"author":120,"featured_media":181836,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,1131,35,39],"tags":[],"class_list":["post-181835","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-airlines-airports","category-industry-news","category-low-cost","category-technology"],"yoast_head":"\n