Airline retailing: A guided tour of the future traveler experience with Amadeus Nevio
A major change program (known in the industry as the ‘retailing transformation’) is rapidly moving from discussion to reality as pioneering airlines take initial steps to upgrade to an entirely new generation of more traveler-centric technology and processes.
This transformation begins with airlines replacing traditional standards like Electronic Tickets (eTKT), Electronic Miscellaneous Documents (EMDs) and Passenger Name Records (PNRs) with the new concepts of Offers and Orders.
This means that all digital records relating to the traveler’s entire journey are created and stored within the airline’s own IT system. Indeed, every element of the traveler’s trip is stored in a single order record, rather than across multiple booking records held on external systems.
At moments like this, it’s important to remember why the industry is embarking on this major transformation. We’re moving from a world of flight-centric products with complex partnerships, to one where airlines can commercialize any product or service, from any partner, at scale. A world where airlines can implement change and connect to their ecosystem quickly and easily, to broaden their offer and improve their service. We’re entering an era of traveler-centric travel.
But what does that mean in practice?
To understand what impact the airline retailing transformation can have on the individual traveler, let’s consider my own travel needs briefly to imagine how a trip I frequently make between Nice and Brisbane might soon look.
Relevant and personalized offers
Today, I typically check the airline’s prices and decide if I can stretch to a premium economy seat for my trips from my home in France back to my native Australia. I need to navigate a set of static fare classes, with pre-bundled products and prices that may or may not be relevant for me.
Fast-forward a few years and I’m hoping for this experience to be more user-friendly. With Amadeus Nevio, airlines are already able to offer a combination of flights and services that are specifically tailored to my preferences, travel context and previous flight experiences.
In my case, as a frequent flyer the airline will know that I value speed and convenience, tend to book a window seat and always choose on-board Wi-Fi. As I have explicitly agreed to allow the airline to collect information about my web browsing session , it will also know that I’ve been browsing the web for an internal flight to Melbourne to see friends, and for a replacement suitcase (mine really has seen better days).
With this information, I can receive a personalized offer that includes options for internal travel with one of the airline’s domestic partners, a relevant hotel, and transfer options. The airline will appeal to my frequent flyer instincts by proposing a ‘fast-track’ bundle, including security fast track and speedy boarding. If I book in the next two months for travel before the end of the year, I’ll get a voucher to spend on a new suitcase at the airport. The first piece of luggage is included thanks to my frequent flyer status. My allocated seat is by the window and Wi-Fi is included. The price is competitive too, when I compare it to other offers I’m receiving.
Ok, for me that’s pretty much the perfect trip and I’m going to pay for it using the digital wallet on my mobile in just a few clicks.
What might sound like a straightforward shopping experience masks a huge amount of computing. Amadeus Nevio is considering a number of contextual factors. I’ve consented to share my profile data with the airline, which means the offer can be personalized.
The solution works by:
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Understanding my preferences and preferred travel ancillaries, as well as my booking focus (price/ experience)
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With my explicit agreement, analyzing my relevant browsing history on the airline website for clues on what I value
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Examining the airline’s product catalogue and availability
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Factoring in my frequent flyer status and entitlements
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Considering competitive dynamics and demand in the market
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Establishing my right to fly with the airline and its domestic partner, including visa requirements
It’s doing all of that in an instant to package the right mix of services for a price that encourages me to say ‘yes’.
Flexible orders - connected travel, all in one place
Now that I’ve purchased my ideal trip, let’s talk about how it’s managed. With all elements of my experience stored in a single order, every element of the journey is connected in one dynamic record. This makes it much easier to manage my booking at any touchpoint, and for the different suppliers involved in delivering my order to keep track of my experience.
Before the trip, I may decide it’d be helpful to add lounge access so I can do a little work. No problem, I can add that to my order easily through the airline’s app. I might choose to add a trip to the Melbourne Museum when I visit my friend. I can add that ticket to my order too via a destination partnership the airline has negotiated. When I’m at the airport, I may well use that voucher to buy a new suitcase. When I’m on the aircraft, if I see an empty business class seat and simply can’t resist, then I can choose to upgrade there and then, making the payment on the airline’s app using my digital wallet.
During the trip, my local domestic flight to Melbourne is delayed. Thanks to these underlying innovations, my hotel already knows that I’ll be arriving the next day and has proactively asked if I’d like to adjust the duration of my stay within my order. I click ‘yes’ to the new arrangements through my airline’s app and the order is updated. It’s a similar story for my rental car, which is also rebooked with one click.
This is the power of a complete, connected trip that’s managed in a single record.
Airline retailing is coming to life
Amadeus Nevio is already in use by our launch customer Finnair and major airlines like Air France – KLM, British Airways and Saudia have also selected Nevio. We’re already supporting airlines to dynamically create personalized offers and to price them based on market dynamics. We are already processing millions of orders for airlines behind the scenes, with Finnair having now created the first native order in the world.
Just 18 months ago the industry was asking ‘if’ airline retailing would happen. We are now turning vision into reality.
About a 'Native Order'
According to IATA's ONE Order initiative, an "order" is a single, unified record that consolidates all information related to a passenger's travel booking, including flight details, ancillary services and ticketing information. The word ‘native’ refers to an order that has been created from scratch on an airline website using a new generation of technology called an ‘Order Management System’.
An order records all the different travel services you’ve purchased throughout your entire trip in a single digital record.
This single record of your travel entitlements is made available to all travel companies involved in delivering your trip and can be easily updated as you add or remove services, and when services are delivered to you.
For travelers, an order means you will no longer need to deal with multiple documents like a ticket and email confirmations. You can more easily manage your trip in one place and the different travel companies involved in your journey can work together more easily to provide the best possible journey experience.
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