Changing the game for dynamic offers, one innovation at a time

29 July 2022

 

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Dear industry colleagues,

We’re always looking forward to tomorrow, and while the industry is still in a state of recovery, the pace of innovation has continued to increase.

ATPCO is focused on leading efforts to advance capabilities that support modern retailing for airlines. In fact, according to the IATA’s 2022 Chair’s Report, the board discussed continued industry progress toward true airline retailing, focusing on travelers’ ability to see the value of complete airline offers, beyond the base fare. Routehappy has been our answer to this need for years, and the benefits are clear for the airlines taking full advantage. Whether it’s customized offers or presenting each offer with compelling visuals and attribute-based shopping, modern retailing isn’t just about getting the offer right, it’s also about getting the how, when, and why right, too.

 

2022 hints at exponential distribution volumes

At the center of global flight shopping, ATPCO hosts more than 306 million fares for over 400 airlines, and the volume of fare updates has been exponentially increasing. In fact, ATPCO recorded its highest fare and rule volumes ever this year, with over 5 billion updates in a single day!

As new methods for creating dynamic offers increase, ATPCO is leading the efforts to reduce the complexity for airlines managing these high data volumes, while facilitating the distribution of the fare data for channels. Consider 20 times the volume of data flowing through our systems; how will this slow down or affect processing? This is what ATPCO is working to solve through industry collaboration, led by the ATPCO Councils and Design Teams, while at the same time improving retailing for airlines with our existing solutions. We welcome the industry to learn more and get involved in ATPCO’s collaborative initiatives.

The offer is only good if it’s easy to book

Processing all this data is only half the battle. It’s worthless unless we simultaneously support airlines’ and channels’ ability to make it easier for consumers to find the flights and options they want, which is part of the impetus for dynamic offers in the first place. Simply put, dynamic offers can provide both the seller and the traveler with more value than the “static status quo” can today. 

Dynamic offers will elevate our industry to the next level of innovation and will change how consumers shop for flights. The logic is simple; travelers who are presented with customized offers will have a better experience, book more often, and possibly choose to purchase a higher yielding product that more closely meets their needs. Airlines and channels can learn from traveler habits to refine offers and create displays that reinforce traveler preferences for a further customized shopping experience. The end result? A win-win for sellers and travelers.

It’s important to note that this isn’t something that will happen overnight. Just as the IATA’s 2022 Chair’s Report mentions, “true airline retailing is a major business change that requires a cohesive program across many, varied business domains.” However, ATPCO will be at the forefront of building the framework, leveraging the data airlines trust us with and innovative technology to help them create offers in real time.

 

We feel the urgency, and we’re acting on it

Now more than ever, consumers expect their specific and unique needs to be met during airline shopping because they experience this level of retailing in other industries. The pandemic created a unique lens for reevaluating how we present offers to travelers, starting with the immense pressure for flexibility, and moving now to a baseline of customized offers. We’re committed to building the framework required to get a majority of airline offers being dynamically generated in the next five years—an ATPCO goal that has been approved by our board of directors, and now a promise we are making to the industry.

 

Join ATPCO in changing the game

ATPCO is not alone in building dynamic offer capabilities. We work with hundreds of airlines, channels, and technology companies to develop the standards and technology required. We will bring this discussion to all of you at our annual conference, Elevate.

Join Elevate 2022 from 10-13 October for the can’t-miss airline industry conference of the year and learn more about our industry commitments on offers, distribution, merchandising, and settlement. We’ll be covering these topics in-depth, plus so many more. Don’t miss your chance to connect with colleagues across every level of the industry at this in-person event.

I look forward to seeing everyone there, as we innovate airline retailing together!

Alex Zoghlin


Register for Elevate

 

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By Alex Zoghlin

A lifelong entrepreneur and innovator, Alex brings more than 25 years of knowledge and experience in technology, airline distribution, and travel to ATPCO. He founded six startups, including Orbitz and G2Switchworks, before serving as Executive Vice President, Global Head of Strategy, Innovation, and Technology at Hyatt Hotels Corporation. He brings his business acumen and experiences from the hospitality world to concepts the airline industry can use, such as addressing digital booking flows, digital display, unstructured datasets, and dynamic pricing. When not working, Alex enjoys spending time with his wife and four daughters, making music, building rockets, and learning new things.