FLYR Keynote: Presentation Transitioning to offer & order simplifying change management through the power of AI

Transcript

JP:Good afternoon. Thanks everyone for your time. Thanks, CAPA, for allowing us a few minutes to talk about what we're doing on the FLYR side. I'll speak quickly about what we're doing on FLYR, transition from legacy systems, and how we are helping the airline industry on the change management. Thank you, JP. using some of our technology. We'll have a provider view now. It's not so much from the airline side, but from the provider. How do we see the industry evolving? And so with that, I'm gonna— sorry— quickly introduce myself. JP Gonzalez, Juan Pablo Gonzalez. I do business development for the Americas for FLYR. I've been in the industry for more than 25 years. I'll share a little anecdote here. I'm originally from Uruguay, Montevideo. I'm based in Dallas. And with that, I always go back to my first experience in the industry, in the travel industry. So I remember when I went working at a travel agency and I had to sit in front of a computer and they had Amadeus, I had Sabre, I had to learn all the— how do you make a reservation? How do you look for availability? And that wasn't easy. You had to learn the green screen, then you had to go back to the passenger and give them, here's the different options that we have for your flight. After that, you would have to go to your desk again and start writing the ticket manually. You would have to put the name of the passenger, you had to origin destination. It wasn't easy at the time. It was a very manual process. Since then, That's almost 18— 25 years ago. I've been passionate about the industry. So I've stayed in the provider side for over 25 years. I spend a lot of time with many of you in the room talking about the industry challenges and so on. So passionate about what we do. So what's the problem we're trying to solve or what's the challenge? I think Peter and the panel were talking a little bit about it. The traveler has changed. The traveler demands has changed. It's no longer the traveler from 30 years ago. Now they expect everything in their fingertip. They expect everything to be personalized for them, and they wanted it quick, right? So the airline needs to start thinking, okay, how do I become a better retailer? How do I make the right offer for the right customer at the right time? And the segmentation of of our traveler changes as well, right? We've always talked about business traveler, leisure traveler. We've always kind of divided in those two. Is it really— that's the way? Is that the real way to divide or segment the travelers? When you start applying some of the technology on top of it, there's many, many, many more options on the type of travelers that you'll see or that you'll And so yeah, we have that historical way of doing it, but that doesn't mean that that's how we should be thinking to the future. So yeah, historical data helps us in the process of understanding our traveler, but that doesn't mean that's the way we should continue to do it as we look forward. So we spend a lot of time with the technology that we use, with the airlines, trying to see how do we help the airline industry start to be a better retailer, right? Our travelers aren't comparing ourselves, our industry, to other industries, and they want us to see us at the similar level, right? We're behind, and if we're not catching up with that, that's a problem for all of us. So get ahead of the traveler, try to be smarter than them, use technology, use the knowledge of your analysts to better capture a little bit more of the revenue from each of your travelers. and make those profits a little bit higher for the airlines. I think you've heard about this, dynamic offer or customer focus. That's the key here, right? Let's take advantage of the technology. Let's take advantage of the knowledge of your analysts at the airlines, and let's improve that revenue that we can get from each customer as we do this. Some of you are doing dynamic pricing today. Some of you are doing dynamic bundling today. That transition, it's gonna be slow, right? You have some systems that are not so flexible. So we're working with all the different airlines to help through that process. At the end, we want you to be able to quickly have a strong, faster time to market, capture more revenue, capture more travelers in each platform that you guys have as an airline. Why AI? It's interesting. I come from— I worked almost 20 years at a legacy provider, and the question on that side was, how can we take advantage of the latest technologies? When I moved to FLYR, FLYR is built out of the latest technologies. It's cloud-native. It's using all the cloud features. And it's interesting because on this side of the house, you find that too much technology sometimes is scary for the airline. And we're in that process of, okay, how do we transition from legacy solutions to the new world? And people in general, we are all— all of us are a little bit afraid of change. And change is not easy. And that's what I spend a lot of time, me talking to the airlines on. How can we help as you build your strategy, as you build your plan? Yeah. How can we partner together, work together to get to your end goal? So AI will support machine learning, deep learning will support your expertise by optimizing processes, by optimizing decisions, by a lot of data being processed at the machine level that is not doable at the human being level. Not sure if you guys know, but McKinsey did a little bit of a study a few years back and They said with technological advancements, there's going to be an opportunity about $40 billion by 2030. That's where IATA is talking about doing NDC and one order and all those pieces. So the opportunities out there, the airlines that are getting ahead and trying to plan and be smart about how do they get there ahead are going to be the ones that are going to be more successful in the long run. In my opinion at least. Why FLYR? We are, since I started here, customer-first approach. We look at things from customer eyes. We spend a lot of time, I personally spend a lot of time sitting, and there's some of the airlines here in the room. I go to the airline, I understand the processes, I understand the challenge. We open and we have candid conversations on how can we get there. We don't believe we have all the solutions. We don't believe we have the right answer. We are open to listen. We want to hear and we want to help. We spend a lot of investment on adjusting our systems to what the airline industry needs. So that's a little bit of why us. I think the advantages of technology are clear for— or I hope they're clear for everybody— automation, optimization, lower cost. And then that will drive better customer experience when you are putting the right offer at the right time in the right channel for your passengers or travelers. And this doesn't mean that we haven't been working on how do we connect to the legacy systems, right? So we spend a lot of time with our existing customers working on connecting the legacy solutions to the new world, to the offer order, and that's part of the equation. We help through that transition process and we phase it out to each airline's needs. We don't believe in a big bang approach. We do a phased approach. Some airlines prefer to do dynamic pricing, some airlines prefer to do dynamic bundling, some airlines we're working with prefer to start with the ancillary dynamic Pricing. So each airline has their own strategy. We we follow whatever they are the need, and we hope through that process they ask for our feedback. But that's that's a little bit of of how we look at it. We don't have to get to the end place right now, right away. There's time. Let's let's plan it, and let's work together to get there. So with that, thank you. Muchas gracias. Antonio and myself are here for the rest of today and tomorrow. Anybody that knows me knows that I'm always happy to have a conversation about anything that it's of interest to you guys. So thank you very much. Muchas gracias.

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