Innovation Roadshow - FLYR

Transcript

Clayton:Good afternoon, everybody. Thanks to CAPA for allowing me the opportunity to speak today. I'll be talking about how we can take advantage of the latest technology to minimize the efforts of airlines to transition to offer and order with FLYR. This is a great industry that we're a part of. I'm very thankful for the opportunities that aviation has given me. and for the people that I've met and worked with. I'm as passionate about the industry today as, if not more than, when I first started because there's a real change coming. There's a real transformation for airlines to evolve their businesses and capabilities with offer and order. So I want to just spend the next few minutes talking about how we at FLYR see the transition to offer and order. Now before I start, a quick show of hands. Who has heard of offer and order management or the IATA one-order mandate? I better see my team put some hands up. Very good. Only a few, so lots of opportunity for us to talk to you more about it. A little bit about FLYR. So we're investing in deep learning, which is the most advanced form of artificial intelligence, to power our built-for-purpose platform and cloud-native solutions. So with this foundation, we're able to clear the path for travel and transportation companies to overcome those hurdles and take their company to the next level. So let's kick this off. COVID did a lot of things to our industry. I'm not here to talk to you about that. I'm sure you all know from being in aviation. But from a customer standpoint, it created a very high expectation consumer behavior from the many forms of online e-commerce people consumed throughout that time due to lockdowns and so on. Now consumers want to transact and buy through an omnichannel, modern, frictionless experience, whether that's to buy groceries for their week or buy a seat on a plane offered with their preferred personalized ancillaries. And they want that fast, and they want that completed within a few clicks. Airlines must become better retailers. Offer and Order provides this. Now again, with the COVID reference, and I promise this is the last one, but not only has historical data become somewhat irrelevant in understanding future demand patterns, airline technology stacks are unsuitable also to satisfy this desired customer buying experience Now there's a big opportunity here. So seat revenue management is now more about optimizing and capturing that initial customer acquisition, that right to fly. It's no longer the final step of revenue optimization. So by placing the customer at the center of everything we do, we can then utilize technology to create personal, dynamic, and flexible bundles or offers, including those from third-party providers. This is what will increase your total customer revenue, but importantly, increase customer satisfaction and retention by offering this superior experience. The ability for airlines to transition to this not just quickly but to do it well will be the big differentiator between airlines. This transition won't be simple, so using technology to support your teams will become critical. By taking advantage of artificial intelligence and machine learning technology and the latest standards, we can make the transition to an offer and order world much easier But also unlock significant revenue opportunities. So how big is this opportunity? This isn't just me standing up here saying it's a big opportunity or FLYR. McKinsey did a study on the benefits of deploying artificial intelligence technology in airline retailing that estimates the opportunity at $40 billion by 2030 across the airline industry. I think if anyone wants to fact-check me, I think this study was actually updated within the last couple of weeks to now be at around $45 billion. So this is why airline IT and business leaders, many of you in this room today, need to look to disruptive technology to change the status quo of the legacy systems and operating models. So currently in the middle of airlines' ability to present prices to customers and fares and combined offers and to fulfill those offers and convert them into actual orders, there's this stack of federated point solutions that were designed in the paper ticket era. This has not changed while the rest of the world has changed to an Amazon-like e-commerce model. So how can FLYR help? So firstly, we take a customer-first approach. We're not just another IT or technology vendor. We engage as a true partner to airlines, helping to unlock commercial-wide opportunities with deep learning AI technology. With our partner-first foundation, FLYR uses artificial intelligence to comprehensively understand customer data, translating this into automated intelligent offers. This model is continually retrained as new data is added, constantly updating and optimizing offers to your customers while also allowing you to respond to market changes. Now, we understand the complexity of this adoption. Our legacy proxy is backwards compatible with legacy systems, vendors, GDSs, interline, and codeshare partners, and provides a phased approach to transition to the offer and order world. So this allows you to stay connected to partners who haven't yet made the switch. And everything, of course, is built natively in the cloud, ensuring scalability and connectivity to your existing technology. We've got several customers in Europe using our technology and offer and order platform, leveraging artificial intelligence and machine learning. We would love to also hear from this audience, what are your challenges and how we can work together to overcome them? Thank you for your time today, and again, CAPA, for allowing us to present. Please come and see myself or one of my team members, Troy, Maddie, or Lawrence. We'd love to chat some more with you. Thanks, Clayton.

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