HP ES Travel Edition

Industry Edge Travel Edition
HP Enterprise Services /// Issue 002 /// Spring 2012
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Industry Edge
Travel Edition
Feature story:
Empowering the travel industry how to reach your destination with minimal turbulence Safeguard the future of your airline with a PSS flight plan Introducing a fast track to cruising altitude via the cloud Big data begets even bigger opportunities
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perspective
from HP Enterprise Services
High-altitude
Its an exciting time for consumer travel. The industry is poised to harness both the structured data aggregated by passenger service and flight operations solutions and the unstructured data found on social media sites such as Twitter and Facebook to create more personalized experiences for todays consumers. Were on the verge of a dramatic shift in consumer expectations, in access to business intelligence, and in the very nature of travel itself. Within this issue of the Industry Edge, youll learn how to accommodate the alwaysconnected traveler, as well as how to take advantage of that ubiquitous connectivity to
develop a better customer travel experience. Discover how big data, cloud, and mobility enable greater opportunities to develop travel options that fit consumer wants and needs. Find out what travel providers can do now to ensure their financial health in the future, through structural cost savings realized by using a modular data architecture that can supply a 360-degree view of operations. Modern travel organizations have access to a wealth of actionable data that puts better, more informed decisions within reach. Flip the pages for insights into the adventures in store for the consumer travel industry.
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In this issue
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Feature story: Empowering consumer travel: identifying opportunity in a transitional market Big data begets even bigger opportunities Flexible distribution helps airlines cut costs and capture customers Introducing a fast track to cruising altitude via the cloud Safeguard the future of your airline with a PSS flight plan The electronic era takes flight
40. 44. 47.
Flight operations, a powerfully profitable numbers game Adding value with an integrated approach News release Sabre Holdings selects HP for $800 million infrastructure and applications service agreement Case study Lufthansa manages the multicarrier journey with HP airline SOA Why HP?
12. 18. 22. 28. 34.
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50.
Consumer travel
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Empowering consumer travel

Identifying opportunity in a transitional market
By Brian Cook
Todays consumer travel industry is characterized by rapidly changing demands such as price transparency, service commoditization, self-service channels, and high distribution costs. To ensure the future viability of the industry, travel providers need to control the costs they can, optimize fleet and crew rosters, and secure long-term sustainability by selling ancillary services whenever possible. In addition, they must strive to understand and accommodate the always-connected traveler, expand the use of new online distribution platforms, and continue to prioritize safety and security.
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The silver lining? These business demands inspire providers to streamline and optimize their operations and embrace creative marketing efforts to find better ways to meet and exceed consumer expectations. For those in the travel industry who are willing to step back and ask what the consumer wants, the future offers abundant opportunity. Deliver a better customer experience The very nature of how people travel is changing. Today, consumers who book their trips months in advance are the exception not the norm. Business and leisure travelers alike expect to go online, search for a fare and schedule that fit their needs, and book the trip from wherever they happen tobe whether thats home, the office, a hotel room, or a crowded coffee shop. Alwaysconnected travelers want to be able to make arrangements whenever they have the time and device to do so, regardless of location.
Anytime, anywhere access to smart devices such as tablet computers and smartphones opens up significant opportunities for travel providers to interact with their customers. Airlines can proactively notify customers of flight delays or gate changes via text messages. In addition, airlines can monitor social media sites such as Twitter or Facebook to offer weather-delayed passengers a oneday pass to their lounges or other perks designed to deliver a travel experience thats memorable for all the right reasons.
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Foster greater enterprise agility Travel providers have made both significant and long-term investments in the IT that supports their operations. As these organizations continue to enhance the customer experience, they must keep in mind the following key considerations:
> How to leverage what exists to protect
and budget should be focused on adopting new technologies that seamlessly integrate into the current technology stack and deliver the flexibility and agility required to meet the business needs. Develop new distribution channels Another route to improved industry profitability involves expanding direct distribution channels online, which would drive new revenue sources. However, as the providers direct distribution grows, its IT investment does as well. To maximize profits and reduce operational expenditures, travel providers now have the option to procure as-a-service business models such as application maintenance and development via the cloud. Moving business functions and storage to the cloud enables travel providers to leverage economies of scale and attain greater flexibility and efficiency, which will help them deliver new services to market faster than their competitors. Expanded distribution channels will allow travel providers to capture merchandising revenue with offers customized to business and leisure travelers. For example, business travelers might be willing to pay more for seat upgrades, early boarding opportunities, and complimentary cocktails. Leisure travelers, on the other hand, might prefer to check additional bags for free or enjoy complimentary in-flight movies or Wi-Fi.
the IT investment whenever possible and therefore reduce total cost of ownership.
> How to determine what to create and
how to maintain direct control over those strategic offerings.

> How to increase speed-to-market
(with new product revenues, for example).

> How to become agile enough to
adapt at the rate the market and business environment changes. Fortunately, both new and legacy infrastructures house a substantial amount of structured and unstructured data, the type of information that helps travel providers tailor offerings to better fit consumer preferences. Travel providers should consider preserving systems and processes that dont need to change because they are stable, heavily regulated, or simply will not drive incremental business return. Instead, time
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Reduce costs Every time the price of a barrel of oil increases by $1, the airline industry must absorb an additional $1 billion in cost. To offset these uncontrollable costs, its critical that providers optimize aircraft loads and flight routes. Doing so requires full visibility into the entire airline solution so that real-time adjustments can be made when needed. Both airlines and railways can also work to streamline processes, integrating the ticketing and revenue system or introducing an enterprise cloud to permit the organization to scale up or down as needed, immediately and with very little capital expense. Cloud functionality eliminates the costs associated with just in case IT, which often leads to overprovisioning and the unnecessarily higher energy and personnel costs required to maintain those resources.
But technology savings alone is not the only benefit. Modern technological advances provide greater insight to the business, allowing travel providers to develop more effective business strategies related to distribution, payment, hedging, real estate, or human resources, thereby reducing structural costs. Explore the possibilities Now more than ever, knowledge is power, and data holds the key to converting information into a competitive advantage. Tomorrows travel organizations must have systems in place to provide visibility into the real-time location, operating state, and condition of every asset within their
$1billion
Every time the price of a barrel of oil increases by $1, the airline industry must absorb an additional $1 billion in cost.
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networks. When operational and financial information is available, travel providers can optimize the use of the travel fleet, better mitigate difficult-to-control expenses such as fuel and labor costs, and develop personalized business products and services that give consumers what they want, when they want it, in the way they want to receive it. The biggest opportunities that technology and effective data mining make possible today include the chance to: Gain real-time intelligence through social media tools Travel organizations can leverage social media to understand how consumers perceive their brands and to immediately respond to irregular operations such as delays by giving customers perks (e.g., meal discounts or complimentary lounge passes).
Proactively create personal and tailored offers for travelers By aggregating information from various data sources such as frequent flyer, flight information, and flight operation systems, providers can upsell or cross-sell tailored value-added services. Promote high-margin services through travelers preferred purchase channels By understanding customer buying preferences, travel organizations can more effectively market services via e-commerce, mobile-to-mobile, or call centers, further increasing the likelihood of purchase. With modular, open architectures that allow travel organizations to choose best-of-breed resources, we can make the application and infrastructure systems as smart and capable as the devices used to access them.
>
Review the presentation
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Why travel providers have to act now

Modern travel providers need an experienced and agile IT partner to help them navigate the industrys uncharted waters. Providers that are constantly on the lookout for new revenue sources, ways to control costs and optimize system performance, and opportunities to deliver personalized benefits to customers will ensure the long-term health of the industry. The good news is that the data exists, and its readily available if you know where to look for it. To use it to gain a competitive advantage, you need an intuitive, reliable dashboard to get the right information in the right format to the people who need it at the exact time they need it. Your rate of success frequently hinges on whether you can find an IT partner who can deliver exactly that. Tips for finding the best IT partner include:
> You need an IT provider with years of > You need a partner with the bandwidth and
expertise to advise you on everything from the market analysis necessary to adjust pricing to comprehensive brand perception monitoring to help you respond to irregular events quickly.
> And to get the most out of your technological
investment, you need an IT industry leader that can offer you flexible, adaptable systems that will grow with you. A modular system lets you continue to realize value from your legacy applications and infrastructure while also allowing you to add best-of-breed functionality as it becomes available. Wondering where to begin your search for such a partner? Turn to page 50 for guidance.
industry-specific experience, ideally one thats not involved in the value chain itself.
Brian Cook Vice President and General Manager for the Travel and Transportation Group, HP Enterprise Services
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Big data
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bigger
By Ed Silva
1. http://en.wikipedia.org/wiki/Zettabyte#cite_note-6
Big data begets even
opportunities
Big data, a term coined by Gartner back in 2001 to describe digital datas exponential rate of growth, is the IT organizations elephant in the room. Data from social media sites, videos, audio files, images, emails, text messages, mobile transactions, and more have put us on pace to see a total of 35 zettabytes of data by 2020. (For scale, consider that in 2009 the entire Internet was home to 500 exabytes of information1. Thats half a zettabyte.) To sample some mind-blowing statistics surrounding big data today, watch the video.
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An endless world of informational opportunity Unfortunately, information is power only if you know how to use it. As information grows in volume, variety, and velocity, it contributes to increased complexity, which puts big pressure on the business and IT as they work to achieve a 360-degree view of whats going on in the organization, with their suppliers and partners, and in the surrounding ecosystem. One independent phone survey of senior enterprise business executives2 uncovered the following:
Almost 50%
of executives believe that they do not have an effective information strategy in place.
98% 34% 35%
report that they cant deliver the right information at the right time to support the enterprise business outcome 100 percent of the time.
of respondents indicated that half of the information within their organization remains unconnected, undiscovered, and unused. of respondents indicated they are not effective at accessing business information as needed for compliance or operational needs.
2. Coleman Parkes study (commissioned by HP), October 2011
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To put this seemingly endless supply of information to work, the enterprise must convert it into practical and actionable facts and figures that can be strategically applied across the ecosystem and to all of the businesses and stakeholders involved. The travel industry, in particular, is inundated with train and plane operational data, which can be used in numerous ways: to maintain and manage sensors and devices, better predict energy and fuel usage, and help companies comply with the regulatory requirements that govern consumer travel.
The consumer travel industry is perfectly positioned to use this information to its benefit, and at HP, we have both the experience and the product portfolio to help clients use the insight, intuition, and ideas found in their data to drive better enterprise decisions. The HP Information Optimization Solution framework supported by a comprehensive suite of hardware, software, services, and solutions offers a next-generation information platform that redefines how information can be used.
HP empowers travel providers by leveraging structured information about weather, traffic, crew rosters, and rail and aircraft scheduling, Big data leads to better service as well as unstructured human data posted to In addition, customer intelligence data can be Twitter, Facebook, blogs, and more. Air, rail, and mined to improve the passenger experience automobile rental companies can work together by developing better loyalty programs and to respond to market events in real-time, giving responding to irregular incidents such as aircraft them the opportunity to significantly improve delays or cancellations with real-time, targeted the customer experience. marketing efforts that strengthen customer And by doing so, the industry can get relationships. For example, say youre on back on the path to making consumer a business trip and just discovered the first leg travel enjoyable again and to realizing of your journey has been canceled a business model thats better equipped due to bad weather. Would you rather a) wait to weather whatever turbulence the in line at the ticket counter to evaluate your future holds. chances of rebooking a later flight or b) relax in the lounge, where youre enjoying a substantial dinner discount courtesy of your carrier, which texted you five minutes ago to let you know that theyve already rebooked your flight and made hotel arrangements to accommodate your layover?
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Eds tips for handling big data

Prepare your organization for the world of big data.
Move cautiously. Pay close attention to changing technology, standards, regulations, etc.
Proceed with strong use cases that are supported by business cases and ROI evidence.
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Use proof of concepts and pilot programs to manage risk.
Build and execute the Apply a strong dose of information processes that will move the governance over the entire new insight into real actions. information landscape.
Ed Silva
Director of Integrated Information Solutions Practice, HP
Flexible distribution
Flexible distribution
helps airlines cut costs and capture customers
By Michael Ihle
New technologies are clearing the way for airlines to rethink their business models and go-to-market strategies. They provide the opportunity to address some of the challenges the industry is facing on both the top and bottom lines of their business by developing new sources of revenue and improving their cost structure.
A new white paper from HP identifies service distribution as a critical area where airlines can make improvements that will help with both the revenue and cost challenges. The key is greater flexibility. Currently, airline service distribution is a mix of direct sales by airlines (e.g., airline.com and call centers), Global Distribution Systems (GDS) providers that book and sell tickets for multiple airlines, and Online Travel Agencies (OTAs). Airlines often incur significant fees for thirdparty distribution as well as the transaction overhead of the system, and that makes them prime areas for cutting costs.
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Moreover, the technical standards and mainframe-based IT environments of the current distribution system often lag behind those used by modern retailers, which makes it difficult for airlines to implement similar flexible go-to-market strategies. Airlines cant access or analyze the information they need on diverse and changing customer preferences to be able to create highly personalized offers for them. And without being able to differentiate their offerings, airlines are reduced to being commoditized sellers of aircraft seats.
Fortunately, IT innovations that enable the gathering, dissemination, and analysis of customer and flight data provide airlines with the distribution flexibility they need to both reduce costs and make more targeted and personalized offers to customers. Flexible distribution can help the airline generate more profitable revenue.
HP has identified several ways to help airlines build a more flexible distribution system, cut costs, and deliver more personalized services to customers:
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Modern Passenger Service Systems (PSSs) can manage the customers travel experience with the airline from end to end. A service-oriented architecture-based PSS solution provides flexibility, modularity, and configurability, allowing the airline to respond rapidly to changes in the business environment. Open APIs make it easy to interface with the full range of distribution systems. They also allow the airline to access best-in-class functionality from thirdparty solution providers to further enhance distribution capabilities. Business Intelligence systems access and analyze real-time and complete lifetime customer information to offer dynamically priced packages of ancillary services to customers. Analyzing unstructured customer
data across all passenger experiences provides a high degree of customer insight at every touch point. Airlines can then provide highly personalized travel experiences that go far beyond standard frequent flyer programs in building customer loyalty. Social Intelligence innovations lead to a deeper understanding of consumer preferences by combining insights into what customers are saying on social media with other data. This information enables airlines to manage near real-time conversations with travelers, listen to their points of view, and deliver contextual, relevant, and engaging communications. To read more about how airlines can build a flexible distribution system, download the white paper.
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Michael Ihle
Director of Product Management, HP Transportation Products
Cloud
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via the cloud

By Mark Scriffiny
cruising altitude
Businesses everywhere are benefiting from the clouds ability to deliver secure, seamless, context-aware experiences in a connected world, and the transportation industry is no different. Storing and using applications and systems in the cloud relieves IT organizations of the burden of IT deployment and maintenance, allowing travel providers to respond to continuous opportunities and competition anywhere, anytime, and any way possible.
Introducing a fast track to
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>
Cloud-based solutions enable access to applications and system data from virtually any location, accommodating a range of devices from PC to smartphone. And because the software and applications are hosted in the cloud, businesses can focus on innovative tasks that align with overarching business goals instead of spending time and money on managing the IT that makes it all possible. Businesses that consume software-as-a-service are not only costeffective but favorably positioned to right-size their IT footprint, varying IT services on demand based on how critical each application is at the time.
For the travel industry and others that have to comply with extensive regulations, the cloud also lets carriers stop worrying about deployments, hardware refreshes, compliance changes, and industry updates. Travel providers can create their own intellectual property and deploy it on a standardized platform to achieve network benefits and greater reliability in far less time than whats possible in comparable onpremise circumstances.
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Platforms deployed in the cloud are built to aggregate common data that all carriers need information on weather, fuel, flight schedules, and more and make that data readily available and easily accessed via services or events so that it can be integrated with the passenger service solution and other systems. Designed to be customizable and extensible, the collaborative solution lets customers make sound business decisions based on actionable data.
Handle peak demand

One of the inarguable selling points of the cloud is that it is a solid choice for businesses that peak during certain times of the year, making it well-suited for the travel industry. Providers that previously would have needed to add capacity to accommodate spikes during holiday travel can now rapidly provision servers shortly before they need them. Doing so eliminates the unnecessary (and costly) overprovisioning of technology, as well as the resultant increases in energy use. Enable mobility HP enables enterprise mobility by delivering applications, content, and services in a scalable, secure, and reliable way allowing organizations to reach their customers wherever they happen to be, and on whatever device they happen to be using. Applications are designed to be built once and then deployed anywhere throughout Enterprise App Stores. Clients thinking about creating mobile applications can benefit from an HP Mobile Opportunity Workshop, a structured faceto-face mobile application analysis process, during which they can discover which processes or ideas will bring the greatest business value and ease of implementation. In the travel industry in particular, mobile opportunities could be used to supply flight crews with information such as an electronic flight manual, schedules or bids, passenger
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manifests, and geofencing, as well as give the ground crew automatic notification of arriving flights, detailed intelligent warnings, and interactive training. For travelers, mobile could be leveraged to let them check in for flights, produce mobile boarding passes, find security wait times, and locate travel companions. Secure the data For all of the benefits associated with enterprise cloud, carriers still have valid concerns about data security. As more and more data centers move to the cloud, IT organizations want to trust that their data is completely secure, regardless of the application, access point, and device being used to do so. At HP, were uniquely positioned to leverage the management tools from our Enterprise Cloud Services environment. Clients appreciate being able to access applications and systems hosted by HP and accessed over a network managed to stringent HP security standards. HP Security Information Event Management, for example, offers greater visibility into an organizations security status. It also validates the organizations compliance with government regulations and industry guidelines around security standards.
The proactive approach processes numerous events from many sources to look for patterns that indicate when something is amiss. The Cyber Center then triages the automated assessments to add the voice of experience and engage incident response teams early to quickly resolve the situation, thereby preventing or minimizing real damage to client data or application services. In short Writing and integrating secure applications can be time-consuming and costly. For greater peace of mind, make sure that the applications and systems you want to host in the cloud are entrusted to someone with vast experience in the field and the security expertise to safeguard the data your customers have entrusted you with.
For more information: Watch the Enterprise Cloud Services demo, read the Enabling Enterprise Mobility white paper, or visit the Enterprise Mobile Application Services website.
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Mark Scriffiny
Distinguished Technologist in the Americas Transportation Industry, HP Enterprise Services
PSS
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PSS flight plan

By Cindy Falschlehner
Safeguard the future of your airline with a
In our era of instant gratification, consumer shopping behavior continues to evolve. Travelers are accustomed to getting exactly what they want when they want it, which is a significant departure from how airlines have sold services in the past. For example, carriers today mostly offer a finite product catalog, with a limited number of value-added services that travelers want to purchase.
While one of the overarching industry goals is to personalize the traveler experience, there are constraints on the ability to do so. Business travelers on domestic flights typically desire early boarding so they can ensure room for their luggage in the overhead bin, preferred seating in a spot such as the exit row thats conducive to working, and perhaps a complimentary cocktail even if theyre seated in coach. Those on vacation or traveling with family, however, are likely to be more interested in checking additional bags at no added cost, accessing in-flight entertainment, or getting free kids meals.
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What they want is different, but both are looking for purchases that match their needs and fit their price points. As the single largest potential revenue driver for airlines in the near future, merchandising allows carriers to offer products and services at all customer touch points through various channels. To make this possible, HP is investing in passenger service solution (PSS) merchandising applications that generate these purchase options. A robust merchandising framework enables carriers to monetize more services in the future, creating opportunities for revenue expansion.
Flexible, modular components for big and small carriers

To guarantee long-term ROI for travel providers who invest in technology, HP has developed a technology stack that accommodates the needs of carriers of all sizes and can adapt to evolving business models and strategies. The HP PSS offering provides enhanced functionality for existing systems as well as a low-risk path toward adoption of the nextgeneration PSS platform. For example, a smaller carrier is less likely to have the technology footprint and the financial ability to make a more substantive financial investment. Therefore, the small carrier is more likely to purchase an entire technology stack to deliver services travelers want. Conversely, a large carrier might want to own
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> Todays consumers are

connected, travel-savvy, and demanding
or retain certain components of the technology stack to complement existing investments in technology or to retain strategic control of the system, so the larger provider would be more likely to purchase components.
leveraging the reliability and cost advantages of a common component framework.
Traditionally, PSSs forced carriers to adapt their business processes and models to what the system could support. The new An architecture thats open to possibilities modular systems turn that idea on its head, allowing airlines to determine what products HPs adaptable PSS is based on an architectural and services they want to offer and then strategy that merges an open database configuring a PSS that accommodates those framework with modular components to decisions. The flexible PSS can shift direction make it easier to adopt new functionality as to adapt to whatever business models and it becomes available. This approach permits practices the industry (and specific carriers) carriers to create distinguishable services while move toward.
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Gone are the days of the traditional PSS, the large, monolithic systems that dont exactly make it easy to customize or extend functionality.
The modern PSS the one with the power to carry airlines into a secure future is a set of modular components that can be
used to create a full-feature PSS suite or can be consumed la carte to allow airlines to add functionality to their existing PSS without incurring the cost to replace the entire PSS solution. Todays consumers are connected, travelsavvy, and demanding. Is your PSS ready for whats in store?
Cindy Falschlehner Director of Consumer Travel, HP Enterprise Services
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>
EMD
35.
The electronic
flight
By Daniel Friedli
era takes
One of the hottest topics in modern air travel is ancillary services, the means of assigning la carte fees to unbundled airline services. Ancillary services that passengers now pay for separately include excess baggage, in-flight Wi-Fi and movies, and fees associated with unaccompanied minors.
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The opportunity
To say ancillary services represent significant revenue for the industry would be an understatement. According to the International Air Transport Association (IATA), the segment brought in more than $21 billion in revenue in 2010 (with 47 airlines disclosing)1. Previously, these fees have been recorded and sold by the airlines via paper documents or internal services that dont follow industry-standard formats, which add unnecessary cost and complexity. (With costs associated with accounting for purchasing, printing, and controlling, paper documents are expensive to maintain and service.) In addition, because some of these ancillary services are sold using internally developed systems that unfortunately impede sales by global distribution systems and alliance partners, airlines are unable to capitalize on the full sales opportunity. Revenue is left on the table, and the customer experience stops short of its full potential.
The roadmap to increased revenue To capitalize on the opportunities that unbundled services offer, the industry needs an interline billing and settlement program (BSP) that helps the airlines collect for baggage, preferred seating, and other services. Enter the EMD, or electronic miscellaneous document, a global industry standard for the issuance and fulfillment of ancillary services. EMDs are designed to replace all types of standard traffic miscellaneous documents for agency sales and airline direct sales.
1. Source: IATA e-services Project Update PDF, page 3 http://www.iata.org/whatwedo/stb/e-services/Documents/e-services-project-march12.pdf
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The EMD is part of IATAs Simplifying the Business initiative, which includes identifying industry opportunities, reducing costs, and improving customer service. All told, Simplifying the Business is projected to help airlines save $9 per paper document and offers substantial benefits for airlines, passengers, and travel agents (see Table 1).
EMD benets2 (Table 1)
For airlines For passengers

Up to $2.9 billion in industry-wide benets from lower costs and increased revenue Ability to sell more services through more channels (global distribution systems and travel agents) and new channels (web and mobile phone) Simplified revenue accounting and streamlined back-office processing; airlines will be able to track and attribute revenues faster and more accurately Greater flexibility passengers are able to buy only the services they value Easier access travelers can buy services from the web, kiosks, mobile phones, check-in desks, and travel agents Less hassle services can be offered across multi-leg journeys involving multiple airlines Less stress e-services mean no more papers to lose and make trip changes easier
For travel agents

Access to new opportunities to sell services Ability to issue and track EMDs, boosting productivity, and market intelligence, and leading to more efficient billing and control
2. http://www.iata.org/whatwedo/stb/e-services/Documents/e-services-factsheet.pdf
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There are two types of EMDs, the EMD-S and EMD-A. An EMD-S is a standalone record that is not linked to a travel ticket. An EMD-A is associated with a ticket, meaning that it will be used when the passenger uses the ticket. The carriers themselves often determine whether an EMD-S or EMD-A is used, although some have been predetermined by IATA according to how the record is to be handled (baggage, for example, which needs to go with the passenger).
To help the industry achieve 100 percent EMD usage in BSP by the end of 2013, IATA set several interim goals, all of which have been To learn more, view the IATA e-services met. The next checkpoint is to reach 75 percent webinar presentation. industry EMD capability and increase EMD usage in the IATA BSP by the end of 2012, at which time EMD-capable airlines should represent at least 75 percent of passenger volume3.
HP offers a flexible application that allows clients to issue and manage EMDs, whether services are being sold from the clients own catalog or one that HP provides. By embracing an open user interface and technology that facilitates customization, HP has produced an EMD application that aligns with the clients passenger service systems to ensure that the data is visible across the full spectrum of sales and passenger servicing touch points. An added benefit is that the application features a sales reporting tool that tracks EMD sales data and submits the information to the airline revenue accounting system.
3. http://www.iata.org/whatwedo/stb/e-services/Documents/e-services-project-march12.pdf, page 7
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Daniel Friedli
HP Airline Solutions Product Manager, HP Enterprise Services
Flight operations,
a powerfully profitable numbers game
By David Perez
Transportation resources rejoice. Flight operations is one area with the potential to recoup billions in revenue if you have a system thats capable of offering real-time insight into analytics. In the modern travel market, the carrier thats equipped to make strategically informed decisions based on readily accessible operational data gains a definitive financial edge.
Flight ops
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Airlines view flight operations (flight ops) as being composed of four system components:
> Flight dispatch > Load planning > Operations control > Crew management
To most effectively respond to IROPS, airlines need an enterprise view of all of their systems. Without full visibility into what the various system components are doing, decisions are made without the benefit of understanding how each decision will impact the other system elements. The HP solution centralizes data to an operational data store, where its aggregated and converted into decisionable data. For an example of how this vision might play out, consider a situation in which a dispatcher needs to divert a flight from Dallas-Fort Worth. Ideally, he or she needs to be able to check gate availability, determine how many customer service agents are available to help, how many hotel rooms are open, where the crew needs to be tomorrow, and whether fuel trucks are on-hand in Austin, Shreveport, and Oklahoma City. In addition, the decision-maker will also want to be aware of how many frequent flyers are on the flight in question to gain greater insight into the impact the decision will make on the airlines operations long before the decision must be made regarding which city will receive the diverted flight.
By taking into account weather considerations, where aircraft and crew need to stay on schedule, data pertaining to aircraft weight and balance, and the amount of fuel required to get from departure to destination, airlines can optimize flights and minimize costs. And in the event that they need to amend flight schedules, they know which ones they can alter to result in the fewest and least significant number of repercussions. The irregular operations opportunity One of the biggest challenges to streamlining flight ops is irregular operations (IROPS), situations in which the airline must deviate from planned flight schedules. Caused by uncontrollable factors such as inclement weather and air traffic control concerns as well as controllable factors such as delayed crews or plane substitutions, IROPS cost the airlines billions in lost revenue each year.
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From unstructured information to decisionable data
technology, thereby preserving the substantive IT investment airlines have made over the past 45 years. Because the HP offering supports By aggregating the granular data into a central multiple operating systems, the technology can location and putting it through predictive better match airlines emerging expectations algorithms, air carriers can work out potential and significantly reduce training costs. When problems hours ahead of time rather than consumed through software-as-a-service immediately after. The proactive approach functionality, the HP Flight Operations solution enables the flight ops data to interface with the managed by HP rather than airlines IT passenger service system data to create a better staffs enables the airlines to shrink their IT customer experience. For example, travelers organization to reach a near-zero IT footprint. who might otherwise miss the first flight of an itinerary due to mechanical issues can be Currently, no carrier has access to an enterpriseautomatically rebooked onto another flight so scale flight ops solution with the ability to that the rest of the itinerary goes as planned. integrate this level of detail. But in the near The HP Flight Operations solution uses the only industry-specific service-oriented architecture that has been designed to gather data from legacy applications and build on existing future, flight ops will involve less guesswork and estimation and more if we do A, it will result in B, C, and D, permitting carriers to make the most financially sound decisions when faced with IROPS.
David Perez
Flight Operations Product Manager, HP Enterprise Services
integrated approach
By Rob Drotar
Adding value with an
Most of us know the expression, The whole is greater than the sum of its parts, and intermodal travel is no exception. Until now, the travel industry has looked at a travelers journey as a collection of smaller discrete trips. The consumer, however, looks at it differently.
Intermodal travel
Todays travelers want a coordinated experience. Currently, the consumer who wants to leave the Los Angeles airport and end up in a town outside Amsterdam will likely need to visit a number of websites to arrange flights, rail reservations, and lodging. Booking the trip online will likely take hours of research, and depending on which rail line the trip ends with, might involve timeconsuming phone calls as well. Thats just the time spent planning the excursion.
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Then, provided no one gets a flat tire on the way to LAX, the weather is perfect, and there are no unforeseen delays to the train, the trip goes off without a hitch. Add a minor hiccup to any leg of the journey, though, and the consumer is left playing travel agent: calling the airline to ask about later flights, arranging other ground transportation, and notifying the hotel that they wont make their estimated check-in time. In an instant, the vacation can introduce more stress than a day at the office. The great potential for seamless travel Fortunately, the volumes of data now available to the travel industry mean that an integrated approach is within reach. HP is working with the industry to facilitate the exchange of relevant data among global travel providers. Shared data, however, must be secure a priority best attained by integrating
information security into every layer of the IT stack. By helping shape how travel suppliers communicate with one another regarding realtime service or network issues, we can help these organizations make better, informed decisions securely when issues arise. Making seamless intermodal travel a reality will require extensive cooperation among the trains, planes, and automobiles accessed during most of todays travel excursions. But with an open service-oriented architecture thats designed to adapt as business models evolve and new sources of data and functionality arise, the future is here. With fully connected, collaborative intermodal travel, a flight cancellation would be a mere schedule anomaly, preventing a profound ripple effect from a trip that was delayed by a day for mechanical issues.
46.
The traveler would be automatically rebooked according to defined business rules and accommodated with dinnerand hotel vouchers. The rail operator and lodging concierge also would be notified, allowing them to release
tickets and accommodations for last-minute purchase. Ultimately, the travelers stress is minimized, the trip is salvaged, and total revenue lost to unused travel services is reduced. Everyone wins.
Rob Drotar Travel and Transportation Portfolio Director, HP Enterprise Services
47.
Sabre Holdings selects HP

for $800 million infrastructure and applications services agreement
HP Enterprise Services announced in March an $800 million, six-year services agreement with Sabre Holdings to enhance Sabres technology infrastructure by implementing HPs networking and flexible storage solutions. The travel industry is highly competitive, demanding that we develop and deliver innovative products for our customers quickly while keeping costs down, said Barry Vandevier, chief information officer, Sabre Holdings. In the past decade, HP has delivered a combination of hardware, software, and services to create the reliable infrastructure we need to stay ahead of the competition.
News release
>
Read the news release
CASE STUDY
48.
A case study
HP Airline SOA
Lufthansa manages the multicarrier journey with
49.
One of the three largest airline companies in the world, Deutsche Lufthansa AG operates a fleet of 500 aircraft to move more than 62 million passengers to 250 destinations worldwide. Lufthansa looked to HP (then EDS) for help integrating a new passenger service system (PSS) into its legacy-system IT environment.
A member of the Star Alliance, an airline group that brings together 21 major international carriers, Lufthansa works with the other carriers to give passengers greater flight availability and the convenience of planning multicarrier travel with a single reservation. Passengers enjoy reciprocal frequent-flyer programs, lounge access, and integrated scheduling and pricing. Making changes to a particular leg of a multicarrier journey, however, proved to be less convenient. Lufthansa decided to migrate to the travel groups future platform: the Amadeus Altea Reservation and Altea Inventory systems. The migration required a middleware solution to integrate the passenger, pricing, and flight data housed in 30 disparate legacy applications. The HP flight plan To help the airline speed transaction processing, improve reliability, and ensure consistent, cost-effective access to the shared systems for Star Alliance members, HP customized and deployed Airline SOA, HPs middleware, messaging, and security platform that allows the airline to interface, interoperate, and integrate with business partners as well as other global airline systems through open standards. The Lufthansa service-oriented architecture (SOA) facilitates effective communication and collaboration among the new reservation and inventory systems and the airlines 30-plus applications. The migration provides customers with a more seamless experience and lets Star Alliance carriers benefit from shared access to best-of-breed industry processes. In addition, the SOA resulted in significant IT cost savings in operations, development, and maintenance. And by giving Star Alliance partners access to continual innovation, the new platform also facilitates the adoption of new technologies.
>
Read the case study
50.
Why HP?
Because a siloed approach is unnecessarily costly. HP helps consumer travel companies take an integrated, holistic approach to addressing their business challenges, while eliminating effort duplication, reducing costs, and bringing new services to market faster. Leveraging 45 years of operational excellence in managing complex IT environments and our 20-year focus on travel and
transportation, HP offers clients a broad set of proven, industry-specific solutions.
HP consumer travel clients include: > Air services > Passenger rail > Rental car companies > Hospitality > Travel distribution
HP by the numbers
9,000
3,500 information management and analytics consulting professionals, averaging 18 years of expertise
4
4 decades of experience delivering managed security services through 3,000 dedicated security and privacy professionals and five global Centers of Excellence
More than 9,000 travel and transportation professionals worldwide and six global Centers of Excellence on four continents
3,500:18 300,000
More than 300,000 global servers managed by HP, spanning all industries and regions
17,000 5&600
certified ITIL professionals
51.
5 global security operations centers and 600 security patents
Want proof?
HP is one of the three major providers for passenger service systems. Today the worlds largest airline relies on the HP Passenger Services Suite.
Only HP offers a transportation industry-specific SOA platform including software, services, and hardware, which processes more than 7 billion transactions per year
500
HP solutions process more than 500 million passengers boarded per year
30-50%
HP reduced IT development, maintenance, and operating costs by 30 to 50 percent for one major airline
50
HP has performed 50 airline industry system migrations and mergers over the last 15 years
52.
Get connected
hp.com/go/getconnected Current HP driver, support, and security alerts delivered directly to your desktop
Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. Microsoft is a registered trademark of Microsoft Corporation. Share with colleagues

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Industry Edge Travel Edition

HP Enterprise Services /// Issue 002 /// Spring 2012

Industry Edge Travel Edition

Industry Edge Travel Edition

40. 44. 47.

12. 18. 22. 28. 34.

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Empowering consumer travel

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Industry Edge Travel Edition

how to maintain direct control over those strategic offerings.

(with new product revenues, for example).

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Industry Edge Travel Edition

Review the presentation

Industry Edge Travel Edition

Why travel providers have to act now

Industry Edge Travel Edition

Industry Edge Travel Edition

Big data begets even

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98% 34% 35%

2. Coleman Parkes study (commissioned by HP), October 2011

Industry Edge Travel Edition

Eds tips for handling big data

Prepare your organization for the world of big data.

Industry Edge Travel Edition

Use proof of concepts and pilot programs to manage risk.

Industry Edge Travel Edition

Industry Edge Travel Edition

Industry Edge Travel Edition

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via the cloud

Introducing a fast track to

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Handle peak demand

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PSS flight plan

Safeguard the future of your airline with a

Industry Edge Travel Edition

Flexible, modular components for big and small carriers

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> Todays consumers are

leveraging the reliability and cost advantages of a common component framework.

Industry Edge Travel Edition

Cindy Falschlehner Director of Consumer Travel, HP Enterprise Services

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Industry Edge Travel Edition

Industry Edge Travel Edition

1. Source: IATA e-services Project Update PDF, page 3 http://www.iata.org/whatwedo/stb/e-services/Documents/e-services-project-march12.pdf

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EMD benets2 (Table 1)

For airlines For passengers

For travel agents

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Industry Edge Travel Edition

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From unstructured information to decisionable data

Adding value with an