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AAnncciillllaarryy sseerrvviicceess:: What does the customer value? Moderator: Sebastien TOURAINE IATA e-services (100% EMD) Singapore – 12 October 2011 Airlines Ancillary Services trend continues… 21.5 billion in 2010 (Source : Ideaworks – posted 47 airlines) IIAATTAA ee-sseerrvviicceess iinniittiiaattiivvee 110000%% EEMMDD VISION: 100% Electronic Miscellaneous Document (EMD) to enable aaiirrlliinneess aanncciillllaarry ggrroowtthh tthhrroougghh aallll ddiissttrriibbuttiioonn cchhaannnneellss  IATA Booaardd oof GGooveernoorss aapppprooveedd tthee laauuncch oof IATA ee-sseervicceess project in 2010  IATA e-services next major IATA StB initiative after 100% ET  DDeeaaddlliinnee:: 110000%% EEMMDD iinn IIAATTAA BBSSPP bbyy eenndd ooff 22001133 Roadmapp to 100% EMD byy end 2013  More than 200 airlines committed to the deadline (representing 84% of passenger volumes)  2288 aaiirrlliinneess aarree EEMMDD ccaappaabbllee ttooddaayy:: 4455 ffoorreeccaasstteedd bbyy eenndd 22001111 End-2012: all committed airlines EMD capable   EMD live* in IATA BSP since Feb-11 EEnndd-22001133:: 110000%% EEMMDD uussaaggee iinn BBSSPP  1st January 2014: end of vMCO/vMPD in IATA BSP 2010 2011 2012 2013 => 100% EMD * A travel agency connected to the GDS has issued one EMD for one airline, reported in IATA BSP AAnncciillllaarryy rreevveennuueess PPaanneell:: What does the customer value? Christian Herzog, SVP Marketing - Air France and KLM JJoohhnn TThhoommaass,, VVPP - LL..EE..KK.. CCoonnssuullttiinngg Jay Sorenson, CEO - Ideaworks Cyril Tetaz, Head, Marketing – Amadeus BBrreennddaann SSoobbiiee,, SSeenniioorr AAnnaallyysstt – CCAAPPAA CCeenntteerr ffoorr AAvviiaattiioonn Panelist views: Ancillaryy trend  Airline view: Air France / KLM Hoow too ccreeaatee aa bbuussineessss mooddeel too reeaacch aa “ win – win” foor ccuusstoomeer  and airlines?  CCoonnssuullttaanntt vviieeww:: IIddeeaawwoorrkkss -- LLEEKK Where the industry is going: is it a cycle?  How much revenue can airlines generate as ancillaries?   System provider / GDS view : Amadeus How are you enabling airline ancillary growth?  8 Ancillary revenues CChhrriissttiiaann HHeerrzzoogg SSVVPP MMaarrkkeettiinngg AAiirr FFrraannccee KKLLMM Airlines need sustainable profitability 9 10 Ancillary revenue is a key enabler for profitability Airlines have different scopes for ancillary revenue AAFFKKLL:: rreevveennuuee bbeeyyoonndd tthhee ssaallee ooff tickets  « àà llaa ccaarrttee » ffeeaatturreess  commission-based products 11 Be different through ancillary products …

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Ancillary services:Ancillary services: What does the customer value? Moderator: Sebastien TOURAINE 100% Electronic Miscellaneous Document (EMD) to enable

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Ancillary services:Ancillary services: What does the customer value? Moderator: Sebastien TOURAINE 100% Electronic Miscellaneous Document (EMD) to enable

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Publication Year:	2011
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