At the Heart of Simplified Operations - NIIT Technologies

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At the Heart of Simplified Operations - NIIT Technologies
At the Heart of
                                                        Simplified Operations

                                                            Embrace the New, Transform Processes,
                                                                  and Enrich Passenger Experience

                                                         ONE Order to deliver exceptional passenger experience
                                                                      and effectively manage travel operations
                                                                                                      Kriti Pant

Abstract

IATA’s ONE Order initiative ensures gradual disappearance of multiple reference IDs in favor of one single order number.
The passengers no longer will have to juggle between different reference numbers and documents in their journey. A
common order number will enhance passenger experience and take away the hassles of travel. Additionally, airlines will be
able to refine operations and collaborate effectively with their partners. With ONE Order implementation, there will be easier
exchange of information and revenue reconciliations.

                                                                                                      www.niit-tech.com
At the Heart of Simplified Operations - NIIT Technologies
Seamless Experience: Dream of a                           After successful implementation, air passengers can
                                                          look forward to an enjoyable travelling experience
Traveler and Aspiration of an Airline
                                                          and airlines can simplify operations.
PNR, e-ticket, Electronic Miscellaneous Document
(EMD), cab confirmation ID, hotel booking and so on,       ONE Order to End Travel Woes
sounds like a maze of reference IDs. Hassled
                                                          Steep rise in prices of jet fuel (in year 2008) created
passengers and inconvenienced airline staff is a
                                                          margin pressures on various airlines. Sale of ancillaries
common sight. Over and above, there are challenges
                                                          became an important source of airline revenue. In
with exchange of information and reconciliation of
                                                          fact, airlines could book profits only through the sale
revenue. Any change or disruption in travel plans may
                                                          of ancillaries. Consequently, today, each element of a
leave the systems (of airlines and their associates)
                                                          travel experience is sold independently.
topsy-turvy. Eventually, there goes the thought of
seamless delivery of services to passengers.
                                                          Observing the change in trend, in 2012, IATA
                                                          announced introduction of resolution 787 supporting
Imagine a world of no confusion—faster check in,
                                                          the NDC program. With NDC, airlines can innovatively
seamless alterations in bookings, availability of right
                                                          market, distribute, and sell their products.
meals, quick baggage tracking, on-time cab pick-up
                                                          Introduction of NDC led to a realization that airlines
and drop exactly to the hotel where you are booked.
                                                          need to transform their order management system
                                                          to derive full benefits. Therefore, ONE Order
This imagination is soon to turn into reality. Airport
                                                          standards were introduced in year 2015.
check-in personnel, finance and accounting systems,
cab driver and the hotel receptionist—all will
                                                          IATA defines ONE Order as “An initiative to replace
recognize the passenger by a common reference
                                                          the multiple and rigid booking, ticketing, delivery, and
number. There will be quick and easy exchange of
                                                          accounting methods with one single and flexible
information and no more extensive revenue
                                                          order management process. It leverages the data
reconciliations. Delighted passenger, seamless
                                                          communications advances made possible by
collaboration with alliance partners and simplified
                                                          implementation of the New Distribution Capability.”
process will be the order of the day.

Sounds unbelievable? IATA’s resolution 797
introducing ONE Order is to accomplish just that.
                                                                                     1
                                                                                    PNR
Extensive collaboration of airline domain experts,
technology experts, and travel management
stakeholders would be required to implement ONE
Order. It will allow airlines to replace redundant and
age-old processes with advanced and efficient ones.
                                                               5
                                                             Hotel
                                                                                                              2
                                                                                                            E-ticket
                                                           Booking ID

                                                                                 ONE Order

                                                                        4
                                                                      Cab
                                                                                                   3
                                                                   Confirmation                    EMD

                                                          Single Reference ID for Airlines and Associates
At the Heart of Simplified Operations - NIIT Technologies
ONE Order is a project running under Simplifying the     System (BHS) is updated and upon Flight Close (FC), a
Business (StB) program of IATA. It is conceptualized     passenger reconciliation list is prepared.
to drive service delivery and accounting with order
items and fulfillment control status across the travel    After introduction of ONE Order, a common unique
cycle. The project shall facilitate improved customer    Order ID would be generated and shared with all the
servicing with simpler interactions between the Offer     stakeholders: airline, ground handling staff, airline
Responsible Airline (ORA), Participating Offer Airlines   caterer, cab services provider, hotel reservation desk,
(POA), passenger(s), service providers, with a           and so on. With ONE Order, airlines will be able to
common reference.                                        consolidate multiple references into a common
                                                         reference. It will help airlines to streamline their
ONE Order Impact                                         reservation management and financial processes
                                                         while allowing faster processing and better
Airline systems                                          management of operations.
Multiple unique IDs such as PNR, EMD, and e-Ticket
number are generated within airline systems for          Revenue Integrity
every element of an itinerary. Alternations in data      Offers are created on a real-time basis, therefore,
ideally should trigger an update in the system of the    maintaining bilateral agreement (in cases wherein each
associated service providers. Unique IDs in one          segment of passenger’s journey is served by different
system need to be mapped with identifier of the           airlines) with details of charges for each segment will not
alliance partners’ systems. For example, check-in        be needed. Based on the current scenario, supporting
information with details of special meals must be        airline will generate and quote a ticket price for its
shared with the airline caterer. Similarly, no show      respective segment. Hotel and cab services will provide
information has to be shared with the cab service        their own fare quote. The Offer Responsible Airline,
providers. After check-in, passenger status gets         along with a quote for its own segment, will be
updated as checked-in and passenger’s baggage is         responsible for collection. ONE Order will ensure transfer
accepted. Correspondingly, Baggage Handling              of revenue share of each entity upon delivery of service.
At the Heart of Simplified Operations - NIIT Technologies
Exchange of Data across Systems                          Passenger Experience
Exchange of information with relevant entities is        Studies indicate that travelers undergo positive and
important on any refreshed data in Order IDs.            negative emotional extremes during the course of
Cancellation of flight will lead to cancellation of       their journey. Emotional extremes are due to varied
passenger booking in the system. Correspondingly,        reasons. These include check-in scenarios involving
the flight caterer, cab service providers, hotel          assignment of appropriate seat with extra leg space,
reservation desk will be notified. The available slots    extra baggage allowance or during flight flyers are
with cab services, room inventory at hotels would be     anxious about the delivery of requested meal and
utilized accordingly. With common Order IDs              other services. On arrival, passengers are anxious
appearing in the systems of all the partners,            about baggage collection and availability of cab to
exchange of information will be accurate and faster.     reach their destination on time.

Collaboration of LCCs with network carriers              With ONE Order, services would be delivered as
All airlines (whether a network carrier or LCC) will     requested due to efficient exchange of information
follow a common booking process. Currently, LCCs         amongst airline crew, caterers, cab services, hotels,
generate a PNR number that acts as a proof of            and so on. Travel agents will be able to follow
booking, payment, and eligibility to fly. However, in     singular process to service passengers for different
case of network carriers PNR as well as e-ticket         products from various airlines and other agencies,
number are generated. Since revenue reconciliation       thereby improving the efficiency of reservation staff.
happens based on e-ticket, therefore, LCC, and           Juggling between multiple reference numbers and
network carriers are unable to collaborate and offer      documents would be eliminated. The negative
a complete travel solution.                              emotional extremes that passengers undergo during
                                                         travel will also be handled better.
After implementation of ONE Order, collaboration
amongst LCCs and network carriers will become            Challenges in Adoption of ONE Order
easier due to implementation of a common standard
                                                         Standards
process for LCCs as well as network carriers. Order ID
will serve as a proof of booking, payment, and           Adoption of ONE Order will require extensive
entitlement to travel. Airlines will deliver services    overhauling of systems. Currently, IATA is in a stage
effectively and passenger will receive an end-to-end      of setting up ONE Order standards. It is believed that
solution for their travel requests.                      airlines would be able to adopt ONE Order post year
                                                         2019. Following are a set of challenges identified
                                                         before carrying out ONE Order implementation:
                                                         1. Cooperation from all stakeholders to adopt,
                                                            appropriately execute, and benefit from ONE
                                                            Order.
                                                         2. Mechanism to manage group bookings,
                                                            multi-passenger booking, cancellation, and
                                                            alteration in itinerary.
                                                         3. Management of bulk ticket sales to travel agents.
                                                         4. Mechanism for management of split booking.
At the Heart of Simplified Operations - NIIT Technologies
Implementing ONE Order                                            would be mapped to Super PNRs.
                                                                  During Phase III, Super PNR will replace e-tickets in
A structured approach to adopt ONE Order can bring                the ticketing system. Airline systems will generate a
about a positive transformation in the airline                    single unique ID for booking tickets, confirmation of
operations. Although the core concept was in use by               payments, and eligibility to fly. On-hold PNR status at
many airlines, the involvement of IATA will ensure                the system level would be handled with an internal
standardization across the industry.                              flagging mechanism. Passenger with on-hold status
                                                                  would not be allowed to fly. Simultaneously, EMD is
The implementation process is likely to be executed               going to be replaced with a Super PNR.
in phases, involving participation from airlines as well
as associates.                                                    Upon three-phased implementation, a single, unique
                                                                  ID (Super PNR) would be generated in the airline
In Phase I, airline reservation system would be                   systems that would be shared across all alliances.
upgraded to generate Super PNRs. For ease of
replacement, format of Super PNR will be the same                 In the final phase, Super PNRs would be replaced with
as the format for ONE Order. Alliance partners can, in            ONE Order. IATA could possibly allocate a range of
turn, fetch Super PNR from airline database and data              Order IDs to each airline adopting ONE Order. At the
within the systems of alliance partners will be                   time of booking, reservation system will fetch the ID
mapped to Super PNR. Any communication between                    from the range of IDs allocated for a specific airline.
airlines and alliance partners will happen in the                 Replacement of data will ensure a single source of
context of Super PNR.                                             Order IDs for all airlines compliant with ONE Order.
                                                                  The Order ID will be shared across travel agents,
Phase II will be dedicated to replacement of airline              airlines, cabs, hotels, caterers, ground handlers, and
PNRs with Super PNRs. The internal PNR generation                 so on. On implementing the final phase, airlines would
process of airlines will cease to exist. All booking data         be considered ONE Order compliant.

                                               Phase 2                                           Phase 4
          Generate Super PNR                                   Super PNR to replace
                                                                 E-tickets
          Super PNR—common            Super PNR to replace                              ONE Order ID to
           reference for all                                    Super PNR to replace      replace Super PNR
                                         PNR
           partners                                              EMD
                                                                                          Common source of
                                                                                           Order ID for all travel
                                                                                           stakeholders
                 Phase I                                              Phase 3

                                      Four-Step ONE Order Implementation
At the Heart of Simplified Operations - NIIT Technologies
The NIIT Technologies Thought Board:
Embrace the new, Transform Processes, and Enrich Passenger Experience

What do we understand by IATA’s ONE Order Initiative?

ONE Order initiative replaces multiple and rigid booking, ticketing, delivery, and accounting methods
with one single and flexible order management process. It leverages data communication advances
made possible by the implementation of the New Distribution Capability.

Why is ONE Order required?

     Seamless and             Effective          Quick exchange of      Appropriate delivery        Enhanced
  standardized order    collaboration with        information              of services             passenger
 management process      alliance partners                                                         experience

Which areas does ONE Order Initiative affect?

   Airline systems         Revenue               Information          Collaboration of        Passenger
                                                  exchange           LCCs with network        experience
                                                                          carriers

What challenges airlines will face in adopting ONE Order standards?

                             Mechanisms to manage
    Cooperation among        bookings, cancellations,          Management of ticket      Mechanisms to manage
       stakeholders         and alterations in itinerary         sales to agents             split bookings

What steps airlines must follow to implement ONE Order?
Airlines can follow a four-step process to implement this initiative:

Generate Super PNR        Replace PNR with Super           Replace e-tickets and      Replace Super PNR with
                                   PNR                     EMD with Super PNR         ONE Order ID to be used
                                                                                      by all travel stakeholders
At the Heart of Simplified Operations - NIIT Technologies
Stepping up to Finer Processes                                    IDs. Passengers will be booked for as many segments
                                                                  as required (as opposed to the current cap of sixteen
Multiple entities collaborate to deliver desired travel           coupons). Alternations in details of passenger data
experiences to passengers. This leads to complexities in          will be convenient.
providing services as assured. Every entity has its own
process to identify the traveler and diversity in processes       Current day reconciliation processes for revenue
often leads to error in delivery. Other native challenges         settlement will no longer be relevant. Order ID
are interlining settlement of revenue, exchange of                shared amongst all those involved in the travel offer
information on alterations in travel plans, and so on.            will ensure revenue integrity. After delivery of
                                                                  services by an interline partner, a common order ID
ONE Order resolution will resolve current day industry            will allow for quick and easy transfer of revenue to
challenges. Systems and processes will be standardized            the respective service provider.
and simplified to establish a better connect with
passengers, collaborate effectively with partners, and             There is no alternate way of achieving passenger
set up efficient technology systems. It is an attempt to            loyalty than by fulfilling their dream of a hassle-free
overcome airline industry challenges from all possible            journey. NIIT Technologies is focused on aligning itself
aspects—Systems, People, Processes, and Partners.                 with IATA’s vision for airline industry. Our partnership
                                                                  with IATA enables us to obtain reliable information
Exchange of information will be smooth and free                   first-hand and remain updated by attending meet-
from manual interventions. Legacy formats and                     ings, trainings, and exhibitions at worldwide events.
corresponding messages will evolve into flexible XML               Our two-decade-long domain experience of working
standards and JSON messaging. The systems will                    with multiple airlines can help align airline processes
interact and exchange information based on Order                  as envisioned and proposed by IATA.

About the Author
Kriti Pant is a part of Travel and Transportation vertical. She has close to nine years of work experience. During these
years, she has worked in diverse roles with technology and outsourcing companies. Her experience includes working
in customer facing roles such as Business Analyst in project delivery to pre-sales, which involves supporting the sales
team during the client acquisition process. Kriti is a graduate from University of Delhi and has a MBA degree from
ICFAI Business School, Hyderabad.
For more information, contact marketing@niit-tech.com

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focused on helping businesses design sustainable, optimizable and winning digital operating models, enabling them to become agile, scalable, and flexible.
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