This document summarizes trends in the airline industry from 2004 to 2014 based on a lecture by Timothy O'Neil-Dunne. It discusses the rise of dynamic pricing and retailing models, the growth of low-cost carriers, and how the industry is adapting to changing consumer demographics and preferences. Key points include the increasing personalization of travel experiences, the transition from traditional business to more leisure travelers, and low-cost carriers adding amenities to compete with full-service carriers.

1. “Little Big 10”
WIT Middle East Lecture #1:
Trends Changing Airline
Distribution
Timothy O’Neil-Dunne
Managing Partner T2Impact/Co-Founder
VaultPAD Ventures

2. 2004
• Janet Jackson had a wardrobe
malfunction
• The Tsunami hit
• Britney was the Bride of the year
• Airlines were bleeding
• Esp in USA
• Dynamic Packaging was the hot
topic
• EC enacted Regulation 261
• Reagan & Arafat died
• Oil broke $50/pbb barrier (Oct)

3. WIRED 2004
And in Singapore..
• A former journalist
and writer started a
small meeting on the
topic of electronic
travel commerce.

4. 2004 VS 2014 Competition?

5. Timothy’s Global Top 5
• Retailing.
• NDC and Dynamic Pricing
• Personalization
• Bye Bye Boomers
• LCCs Mature, FSCs become profitable

6. Retailing
• Travel is not so special any more – retailing is a
mind set that has been alien to supply side but
the consumer (Amazon trained) expects to have
a conventional experience
• Warning Mobile Commerce for Travel is very
very different. Profile, behaviour etc
• Social does not exert as much influence as
people think.

7. Mobile
Payments
in EU-5
Airline tickets WAY down the list 

8. Is Travel eCommerce Topping Out?

9. NDC and Dynamic Pricing
• True Dynamic Pricing – real time direct
pricing unique
• NDC – a realistic bridge too far or….
• …Not enough and too late?
• Why unconstrained Cache is hurting
everything

10. Traditional vs Dynamic Pricing

11. Today’s Pricing Models
Traditional Direct Holistic Including Indirect

12. Next Generation
Personalization
• Personalization and tools to
help from ideation to
selection – it is all about
ME!
• Contexualization
understanding the context
and situation to create
relevance for consumers
• Taking personalization to
the next level...It’s really all
about me now

13. Bye Bye Boomers
• The changing of the guard
– Boomers exit
– Millenials enter
• Changing Characteristics of the consumer
• The issue of Trust

14. Who is the Consumer?
• Millenials will be the
majority of air travellers
• A fundamental shift from
traditional business/leisure
to leisure and only
important business.
• Their characteristics are
very different
• #NOgreyhairedwhitedudes

15. LCCs vs FSCs
• Different models
• Airlines want differentiation
• Low Cost Carriers and Full Service Carriers
come closer together and mix.
• LCCs add back frills (A kinder gentler Ryanair –
now back in the GDS – but what a deal)
• FSCs make profits
• Can the two meet?

16. The Evolving Airline Model
Economics
• ROCI 7%+ (DL’s15%!)
• Higher Density
• Segmentation
• A return to Robert Ayling’s
British Airways?
• Maxing out the LCC model
• Why First Class is uneconomic
Passenger/Brand
Experience
• Selling a broad brand in a
differentiated market
• De-commoditizing a commodity
product
• True Personalization/Retailing
• Understanding the purpose of
connections
• A la carte products tailored to
each individual customer

17. 17
THANK YOU
Timothy O’Neil-Dunne
T: +1 425 785 4457
T:+44 7770 33 81 75
E: timothyo@t2impact.com
E: timothyo@vaultpad.com
TW: @ProfessorSabena