Innovation Roadshow | FLYR

Transcript

Clayton:Great, thank you. Good afternoon, everybody. Thanks to CAPA for allowing me the opportunity to speak today. I'll be taking you through very quickly— I have a couple of minutes to talk to you a little bit about how airlines can use technology to minimize the efforts to transition to an offer and order world by FLYR. So before I start, I just want to give some personal comments if I can. This is a fantastic industry. I love being involved in it. Brisbane is my hometown. And as I was preparing to speak today, I realised it's also where I started my career here in Brisbane. So a few years ago, I won't say too many, how many it was, but I started a small airline at that time called Virgin Blue. So Tim and Steven, in fact, were there as well. I'm very thankful for the opportunities that aviation has provided me and importantly for the people that I've met through this time. Many of you are here today, so I hope I get a chance to catch up with you all. I'm as passionate about the industry today, if not more, than I was when I just started off. So I see a very real, very tangible momentum from airlines to really transition their business and their capabilities with offer and order. So I want to spend just the next few minutes talking about how we at FLYR see that transition. Now, COVID did a lot of things to our industry. I'm not up here to talk about that. We hear it enough. You guys all absolutely know it. From a customer standpoint, what it did create, and I heard Greg mention as well, it really created a high expectation consumer behavior from the many forms of online e-commerce that everybody consumed through lockdowns and so on. Now, consumers want to transact and buy through that omnichannel, modern, frictionless experience. Whether that's to buy groceries for the week or to buy a seat on a plane with their preferred ancillaries personalised to them in particular. And they want that fast. They want it completed within a few clicks. Now airlines must become better retailers. Again with the COVID reference— this is my last one, I swear— but not only has historical data become somewhat irrelevant in understanding future demand patterns, airline technology stacks are unsuitable also to satisfy this desired consumer buying experience too. So there's a big opportunity here. Seat revenue management's now more about optimising and capturing the initial customer acquisition, that right to fly. It's no longer the final step of revenue optimisation or in fact revenue offer. By placing the customer at the centre of everything we do, we can then utilise technology to create personal, dynamic, and flexible bundles or offers, which also includes from third-party providers. This is what will increase your total customer revenue but importantly increase customer satisfaction and retention by offering the 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. Now this isn't just me standing up here or FLYR sort of saying this is the opportunity. The 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 latest standards, we can make this transition to offer and order world much easier, but significantly unlock major revenue opportunities. Now, how big is this opportunity? So McKinsey did a study on the benefits of deploying AI technology in airline retailing, something we're all very familiar with. That estimates the opportunity at $40 billion by 2030. Across the airline industry. This is why we think airline IT and business leaders need to look to disruptive technology to change the status quo of legacy systems and their operating model. So currently in the middle of an airline's ability to present prices to customers, fares and combined offers and so on, and to fulfill those offers and convert them to an actual order is a stack of federated point solutions that were designed, to be honest, back in the paper ticket era for those of us that remember that. And this hasn't really changed while the rest of the world has changed to that Amazon-like e-commerce model. So how can FLYR help? Firstly, we take a customer-first approach. That's important to remember. We're not just another IT or technology vendor. We engage as true partners to airlines, helping to unlock commercial-wide opportunities with deep learning artificial intelligence technology. Then with our partner-first foundation built, 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 Commerce Engine 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. This importantly allows you to stay connected to partners who haven't yet made the switch. And everything's built natively in the cloud, ensuring scalability and connectivity to your existing technology. We have several customers in Europe using our technology and offer and order platform leveraging artificial intelligence and machine learning. We'd love to also hear from anyone in the audience how we can help overcome those challenges together. With that said, I'm done. Thank you again for CAPA for allowing me the time today to present. Please come and see myself or my team members, Maddie or Troy. We'd love to chat further with you. Thank you. Thank you, Clayton.

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