Airline Outsourcing Services—Navitaire: Services Overview

In fast-changing times, for example, it is more critical than ever to streamline operations without compromising service quality. Seeking new economies of scale is equally critical, as is capturing customer mindshare to cultivate loyalty.

All of the above goals speak to the potential value of Navitaire, a wholly owned Accenture subsidiary that for the last 15 years has provided industry-leading technology services to more than 70 of the world’s airlines. Our technology also has been instrumental in helping nine highly successful airlines launch initial public offerings.

Using innovative, flexible technology, Navitaire can help airlines heighten performance, increase differentiation, strengthen relationships with customers and improve their profitability and competitive position. Becoming a Navitaire customer also means rapid access to leading scale and technology, as well as enhanced productivity and higher profits.

A summary of benefits frequently enjoyed by Navitaire clients includes:

• Increased ancillary revenue generation.
• Expanded distribution channels with reduced distribution costs.
• Real-time business intelligence.
• Decreased operating costs.
• Better customer service.
• Improved resource deployment.
• Support for rapid growth.

Leveraging more than 700 employees in six global offices and three regional data centers, Navitaire has a proven track record of helping airlines pursue high performance. For example, our reservation system allows airlines to capitalize on low-cost distribution channels using the most extensive distribution suite available.

Consider that, in 2011, our reservation services customers booked more than 355 million passengers, including more than 250 million in direct Internet bookings; and that more than 70 percent of our reservation clients receive GDS channel bookings.

Our airline solutions have helped our customers to:

• Improve profitability—A majority of the world’s 25 largest low-cost airlines use Navitaire services.
  
  
• Lower operational and distribution costs—Many Navitaire reservations customers book over 90 percent of their seats via the Internet.
  
  
• Generate significant ancillary revenues—In recent reporting periods, more than 20 percent of Ryanair’s annual revenue, and 7 percent of AirAsia’s, comes from ancillary sales.
  
  
• Enhance customer service—Several clients have received the coveted SkyTrax and Freddie awards for exemplary customer service and innovative market strategies.

The Navitaire suite of hosted services helps airlines find new revenue opportunities, increase operational efficiency, enhance customer service and optimize profits. Navitaire's services span the entire spectrum of the airline industry, including:

Reservations, Internet and Direct Distribution
Our exclusive reservations system creates a consolidated account of passengers' purchasing and travel activity, thus helping airlines develop closer customer relationships and even discover ancillary revenue opportunities.

Navitaire also encompasses the industry’s most extensive suite of direct and traditional sales channels for airlines, including:

• Direct Web sales.
  
  
• Industry standard distribution channel for travel agencies and codeshare and interline sales partnerships.
  
  
• Direct access to key distributors and day-of-departure service partners.
  
  
• Dynamic and bundled ancillary-service packaging.

Revenue Management and Price Optimization
Navitaire has an advanced revenue management software product called SkyPrice, to help carriers with unrestricted fare structures and those that compete with them, optimize revenue.

Flight Operations and Operations Recovery

• Our exclusive SkySolverOperations Recovery Suite generates multiple recovery possibilities, including rapid access to projected costs and impact on aircraft, crew and passengers.
  
  
• The Geneva Operations Management Suite helps airlines optimize daily crew and aircraft usage, and supports our clients’ regulatory compliance efforts.

Back Office: Navitaire's Revenue Accounting Systems

• SkyLedger equips airlines with the controls and information to manage financial and revenue-reporting activity for companies using the New Skies reservation system's ticketless reservation environment. SkyLedger also supports interline settlement with traditional carriers using e-tickets.
  
  
• Navitaire's PRA revenue accounting system reports on the complete scope of revenue accounting events—from proration to interline settlement to journal entries.
  
  
• PRA System Sales Audit performs comprehensive ticket distribution validation audits, thereby helping our clients’ airline tariff compliance efforts.

For more information, visit the Navitaire website.