Navitaire – DistributionNew Skies clients live with 100+ interline carriers, 15+ codeshares, 10 GDSs today

Many New Skies clients have broadened their regional and global reach through interline sales, codeshares, GDS connections and e-ticketing over the last several years. New Skies has kept pace with this trend, by steadily adding new integration and features to support the full spectrum of traditional distribution channels. These capabilities allow New Skies clients to meet the e-ticketing requirements of their partners while retaining their own highly efficient ticketless distribution model to keep costs in check.

Advanced Distribution Providing Greater Choice and Flexibility
The distribution solutions available through New Skies provide clients with the flexibility to choose the distribution channels and the connection levels to suit their business strategies. As a result, clients can reach new travelers and support specific customer segment practices while providing greater control over costs. This flexibility is vital to help clients optimize their distribution channel mix to help enhance revenue generation without incurring additional cost and complexity across the entire base of airline bookings.

Hundreds of Interline, Codeshare, GDS and E-Ticketing Connections in Place Today
The New Skies distribution suite allows carriers to build on strong online and direct-channel bookings to add traditional and alternative distribution channel sales via GDS, OTA, codeshare, and interline partnerships. See how well-connected New Skies clients are with partner airlines, including leading members of oneworld, Star and SkyTeam alliances, and GDS industry platforms.

Navitaire New Skies Reservation Clients are Well Connected


GDS
  • Connect to any of ten global and regional GDS platforms
  • 70% of reservation clients connect to one or more GDSs today
  • Options include EDIFACT (Type A), TTY (Type B) or XML (API/Web Services)
   

Interline
  • 16 clients have 170+ interline agreements to more than 100 different airlines in 60 countries
  • 45% of interline carriers are global alliance members
  • Connections use Interline E-Ticket
  • Ticketless Navitaire Advantage Interline available between Navitaire-hosted carriers
   

Codeshare
  • 11 clients have 20 operating or marketing codeshares
  • 75% of codeshare agreements are with global alliance members
  • 6 clients have 15 Inter Airline Through Check-In (IATCI) links
  • Codeshare Options 1, 2 and 4 available, use e-ticket Interline E-ticket (IET) or ticketless
   

E-Ticketing
  • More than 28 million e-ticket coupons lifted in 2013
  • More than 140 e-ticketing links in place today
  • Supports e-ticket acceptance for inbound GDS and airline partner sales, and e-ticket issuance for outbound sales to airline partners
  • Integrate with virtually any third-party e-ticket database provider

GDS: Tailoring Distribution Channels, Expanding Reach through 10 GDS Platforms
Today, 70% of Navitaire reservation clients choose to distribute through a GDS channel and have established more than 160 GDS connections.

Their GDS distribution strategies vary with their business plans, ranging from attracting large corporate business travel accounts to using GDS platforms for sales outside of their home sales territory to help generate incremental revenue. To help keep distribution costs low, many clients opt for GDS Type B connections for some of their GDS connections or use Application Programming Interface (API) communication protocols in place of the traditional Type B messaging.

More than 70% of Navitaire reservations carriers that use Type B GDS links have also adopted Type A/ EDIFACT connectivity to one or more of the following GDS platforms of Abacus, Amadeus, Apollo, Galileo, Infini, Sabre, Topas and Worldspan to better serve some market segments. Through these links, clients can provide real-time access to availability, booking confirmation and seat maps for market segments that rely on the GDS channels.

From Zero to 160+: Achieving Phenomenal Growth in Industry Interline Connections
New Skies clients have established an impressive industry connection footprint of more than 160 interline connections to more than 100 airlines in 60 countries in just a few short years. The remarkable expansion has allowed them to rapidly connect with partner airlines, including global alliance members and those that are currently unaligned, to help them tap new sources of potential revenue.

Of the more than 100 interline carriers that Navitaire clients connect with, 49 are alliance member carriers. The balance of the interline carriers are unaligned, independent carriers of all sizes, such as Etihad, Emirates, Condor, Pegasus, Jet Airways, Virgin Atlantic and Air Jamaica. Over 90% of these interline partnership agreements are free-sale interline arrangements using Interline E-Ticketing (IET) connections with the other airline partner, which is driving New Skies e-ticket volumes ever higher.

Some Navitaire-hosted carriers have begun using Navitaire Advantage Interline, which allows the hosted reservation clients to book interline travel on other Navitaire carriers without incurring typical industry communication charges. New Skies clients can use Navitaire Advantage Interline to build their own unique interline network to reach new customers using the lower-cost, efficient ticketless model shared by both parties.

Codeshare Connections with Nearly 20% of Alliance Carrier Member Airlines in Place Today
Navitaire clients have also been building codeshare partnerships with carriers around the world and in every global airline alliance.

Today, 11 reservations clients have established 20 marketing and operating codeshare agreements with 15 different airlines. And interestingly, more than 85% of the codeshare agreements are with global alliance member airlines. These existing codeshare partnerships already represent nearly 20% of the total carriers in the three global alliances.

Codeshare Carrier Alliance Share and Connections

Global Alliance Global Seat Share (March 2012) Total Alliance Member Airlines Navitaire Client Codeshares
oneworld 11% 14 5
SkyTeam 15% 15 4
Star Alliance 21% 27 2
Unaligned Carriers 53% 3

Sources: Alliance website member pages, CAPA market share

Navitaire expects this trend to continue, increasing the volume of client codeshare partnerships especially among growing hybrid airlines.

E-Ticketing — 28 Million and Climbing
Navitaire reservations clients are also using e-ticketing to support and foster more industry connections. The ability to accept and generate e-tickets allows Navitaire reservations clients to link with their traditional and network airline codeshare and interline partners that rely on e-ticketing (IET) as the backbone for interline sales. It also allows clients to support large, corporate travel agency chains that require e-ticketing for back-office integration.

Today, more than 40% of Navitaire reservation clients have established 140 e-ticketing links and processed more than 28 million e-ticket coupons to support GDS, codeshare and interline sales with their partners. This number will surely rise with the increase in interline, codeshare and GDS connections underway.

Validating the Blended Hybrid E-Ticket/Ticketless Model
The rapid adoption and expansion of the hybrid ticketing model (ticketless and e-ticketed) is powering a whole new wave of innovative efficiency. It provides Navitaire clients with the option to blend the best of both ticketless and e-ticket models to create a strategic advantage. Navitaire reservation clients have become industry trailblazers by connecting with more than 100 airlines around the globe, yet retain their cost advantage, operational efficiency, and access to rich customer information. With the hybrid ticketless/e-ticketing model, Navitaire clients have the flexibility to limit the more complex e-ticketing process, plus the higher costs associated with e-ticketing for interline and codeshare bookings, to apply only to those bookings and markets which truly require it. This means clients can enjoy the savings delivered through ticketless bookings on the largest volume of sales — often 80% to 90% of their bookings. In a competitive industry that commonly operates on razor-thin margins, this can easily mean the difference between being profitable or incurring a loss.

To help illustrate the power of the combined e-ticket/ticketless model, think of a hybrid car. The blended ticketless/e-ticket model is similar to how some hybrid cars use a combination of battery-powered electric and traditional gas-fueled combustion engines, and alternate between these two power sources to help the engine deliver higher fuel economy and optimized performance. With today’s high fuel prices, this translates into a real cost advantage for owners. Similarly, the blended ticketless and e-ticket model supported through Navitaire’s New Skies reservation solution can help carriers drive improved results and better efficiency by alternating between the ticketless and e-ticket models.

Navitaire and its clients are passionate about the value of the ticketless model, and the cost benefits and processing efficiencies it delivers. Contact us to learn more about the advantages of ticketless and Navitaire’s blended hybrid e-ticketing/ticketless capabilities.