MIDT and BSP - Jordan Kayloe

Session 2:
Ticketing Data
Jordan Kayloe
Vice President
Diio
17th ACI-LAC Assembly, Conference and Exhibition

22 November 2008
Panama City, Panama
Air Service Data and Planning Seminar
Company Info
►Diio is Data in, Information out
►Diio specializes in projects taking massive amounts of DATA IN,

processing and refining that data, and producing highly
pertinent, easily actionable INFORMATION OUT.
►Diio’s roots lie in the aviation sector, where it has produced

industry-leading tools like apgDat, SRS Analyser, and AirportIS
►Diio webtools have over 200 subscribers around the world,

including 17 of the Top 20 airlines in North America
►Diio is Technology that bridges the gap between data and

information—between information and action
►Visit www.diio.net for more info
1
Biography
►Jordan Kayloe is a Vice President at Diio, where he runs the sales

efforts for the Diio aviation data webtools
►Previously, he worked as a consultant in Seabury APG’s

consulting practice, specializing in airport air service development
►From 2001-2005, Jordan held various positions at US Airways

►Senior Analyst, Financial Analysis
►Manager, International Planning
►Served ten years as an officer in the U.S. Air Force
►Education
►MBA, Harvard Business School
►BS, Computer Science, Stanford University
Overview
►Objectives
►The Ticketing Process
►Three Types of Ticketing Data

►MIDT
►BSP
►ARC
►Examples of Ticket Data Analyses
►Summary
2
Objectives
►Understand the ticketing process
►Discuss the origins of MIDT, BSP, and ARC data
►Learn what comprises each data source
►Understand the pros and cons of each data source
►Discuss some uses of the data sources for airports
►Understand how the data can support your efforts
The Ticketing Process
3
The Travel Data Life Cycle
►The traditional ticketing process progresses according to

the life cycle steps from the reservation to the actual flight
Time
Booked Ticketed Settled Flown
MIDT TCN BSP/ARC Gov’t
Booking is the First Travel Life Cycle Step
►Airline passengers can make a reservation in many ways

►If they go through a Global Distribution System (GDS), the
system can capture these booking records
Time
4
Ticketing is the Second Step
►When the reservation is purchased, a ticket is issued using

an assigned fare
►Ticketing is sometimes done with booking, but not always
►Travel agents can issue tickets, as can airlines themselves
Time
Tickets Contain Many Useful Data Points

Itinerary Detail Travel by Day-of-Week
Sales trends over time,
Reports, Passenger True O&D or and Time of Day
Purchases by lead time
volumes by carrier Segment O&D Booking Sales by
Reports Class Point of Origin Agent
Sales reports Sales Country
Reports
MALAYSIA AIRLINES
20300394
*AJF/FLEXSAVER‐MH OP FLT/MH9000 OW‐NO‐SHW OB/CHNG FEE PEN/PEN HOLIDAY TOURS & TRAVEL
30 OCT 2008 1B/MBEEUF KUALA LUMPUR
SAMPLE TRAVELER MALAYSIA 50450 MY
X PENANG PEN MH 1167 Y 31OCT 2145 OK QL3MMYF

O KUALA LUMPUR KUL MH 2355 Q 31OCT 2355 OK QL3MMYF
X LONDON HEATHROW LHR MH 1050 Q 16NOV 1050 OK QL3MMYF
KUALA LUMPUR KUL MH 1138 Y 17NOV 0915 OK QL3MMYF
PENANG INTL PEN
MYR 3102 30OCT08 PEN MH LHR MH PEN 3102.00 COAM 0.00 SPAM 0.00 END ROE 1.000000
MYR 3102
MY 51
GB 225 Payment method (including exchanges)
XT 1875 CASH 7766/ABAC MYAXON08
MYR 5253
A 0 0 0 0 2 5 9 8 6 3 6 4 4 4 E
232 2598636444
Single Ticket Lookup Query sales

Fare Detail Reports: Ticketing Carrier
• Net Fare by specific
Performance Reports fares and
• Commissions Sales by
• Taxes and Fees GDS/CRS agency tours
• Total Amount Paid
5
Settling is the Third Travel Life Cycle Step
►Clearinghouses exist to pass funds collected at the travel

agencies to the airlines providing the tickets
►The clearinghouses also handle refunds and exchanges
Time
Flying is the Final Travel Life Cycle Step
►Flight coupons can be collected from actual travelers

►This process is becoming more and more electronic
►Airports and governments often require airlines to submit
their flown ticket data
Time
6
This Presentation Covers Steps 1 and 3
►MIDT comes from Bookings data

►BSP and ARC data come from Settlement data
►The previous presentation covered Flown data
Time
MIDT Data
Time
7
What is MIDT Data?
►MIDT stands for Marketing Information Data Transfer
►MIDT are the bookings made in the major GDSs including:

►Sabre
►Amadeus
►Worldspan
►Galileo
►Abacus
►TravelSky
►Many others
►A booking is a reservation of a passenger’s intent to fly

►A booking occurs before a ticket is sold
►Booking can be held, changed, or cancelled
What Does MIDT Cover?
►MIDT GDS sources capture nearly 60% of global bookings
►Both IATA and non-IATA travel agencies are included
►While internet booking engines are generally included, some

airlines have “direct connect” relationships with online sites
that MIDT does not capture
►Bookings made directly through airlines do NOT hit MIDT:

►City or airport ticket offices
►Airline websites
►Airline telephone reservation centers
8
MIDT Data Availability
►These MIDT data elements are available to airports:

►True itineraries: origin, destination, and connect points
►Booking and travel month—future data available
►Marketing and operating airlines
►Passenger count
►Booking class of service
►Point of origin airport
►Travel agency postal code
►MIDT is available from many vendors

►Some vendors also estimate fare data based on classes
►These vendors also calibrate the data to estimate the
missing pieces and reflect the true market size
►Historical data availability varies by vendor
►Data is available a few weeks after close of the month
MIDT Strengths
►Available from several vendors
►Near GLOBAL coverage
►Publishes data within weeks of the close of each month
►Breaks tickets down by travel month
►Future travel data is available
►Classifies bookings into different fare class categories
9
MIDT Weaknesses
►Costs can be high, depending on needs
►Fare data is not actual, and limited to fare class estimates
►Actual MIDT data does not reflect true market size

►Tickets sold directly by airlines do not flow through GDSs
►Additionally, bookings data contains “phantom” tickets
that are never purchased or flown
►Different vendors’ products are sourced from different GDSs

►Vendors do offer estimates to account for missing data
►However, these vendors generally do not show the
percentage of reported versus estimated data
MIDT Uses
►Assessment of Market Demand

►Market Shares
►Itinerary Shares
►Seasonality
►Premium Traffic Splits
►Point of Sale Splits
►Analysis of Leakage
►Analysis of Travel Agency Sales
10
BSP Data
Time
What is BSP Data?
►BSP stands for Billing and Settlement Plan
►BSP is run by IATA, the International Air Transport Association
►BSP is a system designed to facilitate and simplify the selling,

reporting, and remitting procedures of IATA Accredited
Passenger Sales Agents
►BSP is a clearing house system through which data and
funds flow between travel agents and airlines
►Agents remit a single payment to BSP, covering sales
made on all BSP airlines
►BSP makes a single payment to each airline, covering
sales made by all agents within a country/region
11
What Does BSP Cover?
►BSP operates in more than 160 countries, including:

►Over 65,000 travel agencies
►Almost 400 airlines, and IATA membership is not required
►Tickets issued through 30 CRSs
►Tickets sold directly by airlines do NOT flow through BSP

►City or airport ticket offices
►Airline websites
►Airline telephone reservation centers
►A vast majority of worldwide airline revenues are ticketed via

IATA travel agencies in the BSP system
BSP Data Availability
►These BSP data elements are available to airports*:

►Travel month
►Marketing and operating airline
►Passenger count, both reported and estimated
►Fare class categories, using standard IATA mappings
►Average fare information, subject to IATA masking rules
►Point of sale data down to city name and postal code level
►BSP data is updated monthly, about 5 weeks after the month
►IATA maintains BSP data back to January 2005
*Member Airlines have access to more detailed data, including travel agency names, month of ticket sale, and more frequent data updates
12
BSP Strengths
►Includes tickets SOLD, not just booked
►Contains ACTUAL fare information, lifted from sold ticket

►Lack of competition on a route may require fare masking
►Classifies fares into different class categories
►Publishes data within weeks of the close of each month
►Breaks tickets down by travel month
►Offers standard file specification for merging with ARC data
BSP Weaknesses
►Only available from IATA
►Actual BSP data does not reflect true market size

►Tickets sold directly by airlines do not flow through BSP
►IATA does offer adjusted data, however, and clearly
states the reported versus estimated amounts
►Biggest hole is world’s largest market: United States

►IATA does offer adjusted data, however
►ARC and IATA working together to combine data
13
BSP Uses

►Market Shares
►Itinerary Shares
►Seasonality
►Analysis of Fare Trends
ARC Data
Time
14
What is ARC Data?
►ARC stands for Airline Reporting Corporation

►ARC began as part of the Air Transport Association (ATA)
►Since deregulation, the U.S. airlines have owned ARC
►ARC performs tasks similar to IATA’s BSP, but in the U.S.

►Every major U.S. carrier and railroad process tickets
through ARC, with about 170 participating carriers in all
►Nearly 20,000 travel agencies in the U.S. use ARC
►As do over 150 corporate travel departments
►Tickets sold directly by airlines do NOT flow through ARC
►ARC processes over 50% of airline tickets in the U.S.

►This amount equates to 20% of tickets worldwide
►Per year, this represents about $80 billion in tickets
ARC Data Availability
►These ARC data elements are available to airports:

►Ticket issue and travel date
►Marketing airline
►Passenger count
►Fare class categories, using standard IATA mappings
►Average fare information, if three carriers are in a market
►Point of sale data down to city name and postal code level
►ARC data is updated daily, and contains 39 months of data

►Complete months are available three weeks after month
►Future data is also available, subject to restrictions
15
ARC Strengths
►Publishes data within quickly after the close of each month
►Includes tickets SOLD, not just booked
►Breaks tickets down by travel DAY
►Contains ACTUAL fare information, assuming three carriers
►Classifies fares into different class categories
►Offers standard file specification for merging with BSP data
ARC Weaknesses
►Only available from ARC

►Partnership deals are in the works with IATA
►Only includes data sold in the United States

►ARC and IATA working together to provide global data
►Actual ARC data does not reflect true market size

►Tickets sold directly by airlines do not flow through ARC
►Together, ARC and IATA will offer adjusted data, which
will clearly state the reported versus estimated amounts
16
ARC Uses

►Market Shares
►Itinerary Shares
►Seasonality
►Analysis of Fare Trends
Example analyses
17
Analysis of Market Share
►Looking at passenger numbers over time can help an airport

follow competition among airlines on a route
►Below, TACA is grabbing share from COPA
Market Share, Panama City to San Salvador
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08
COPA TACA LACSA

Source: AirportIS internet-based aviation data portal
Analysis of Itinerary Share
►Determining current passenger routings can determine if your

airport should pursue a new route
►If Copa served London, they would get most of this traffic
Itinerary Share, Panama City to London

Year-Ending August 2008
American-Miami 29%
Continental-Newark 28%
Delta-Atlanta 14%
Iberia-Madrid 12%
Continental-Houston 5%
KLM-Amsterdam 3%
Delta-New York 3%
American-Dallas 3%
Other 3%
Total 100%
18
Analysis of Seasonality
►Looking at traffic figures by month shows market seasonality

►While traffic between PTY and Miami (MIA) has grown over
the last few years, it slows in the fall and rises in the spring
Passengers per Day Each Way

450 Panama City to Miami
400
350
300
250
200
150
100
50
0
Aug-05 Feb-06 Aug-06 Feb-07 Aug-07 Feb-08 Aug-08
Analysis of Premium Traffic
►Ticketing data allows an airport to calculate the premium mix

of traffic, which is important to airlines
►PTY’s premium percentage is less than SAL and SJO
Percentage of Business Class Traffic to Miami

Year-Ending August 2006
30%
25%
20%
15%
10%
5%
0%
San Salvador Panama City San Jose
19
Analysis of Fare Trends—Example
►Fare trends can give a picture of the state of a market

►American and COPA have operated in PTY-MIA for years
►What happened in 2008?
Average One-Way Fare

350 Panama City to Miami
300
250
200
150
100
50
0
Aug-05 Feb-06 Aug-06 Feb-07 Aug-07 Feb-08 Aug-08
Analysis of Leakage—Overview
►“Leakage” occurs when travelers do not use their local airport
►Leakage can be caused by lower fares or more service at a

neighboring airports
►Low-cost carriers often attract passengers from far away
►In a city where the airport is not a hub, passengers from
nearby cities can drive or train to get non-stop service
►Smaller airports work hard to keep passengers from their

catchment areas from “leaking” to nearby airports
►Leakage analyses can be used to persuade airlines to add

service to recapture these leaking passengers
►Airports succeed using leakage analysis results to target
airlines that compete with the nearby hub carrier
20
Analysis of Leakage—Example
►Portland (PWM) loses local passengers to Manchester (MHT)

due to fare and Boston (BOS) due to greater service options
PWM Area Divided into Catchment Areas
5) Other North
4) Other
1) PWM Natural
NW
2) PWM/MHT PWM
Battle
120
-km
ra d i
3) MHT us
Natural
MHT
BOS
Source: apgDat internet-based aviation data portal
Analysis of Leakage—Example
►Analysis of MIDT data by postal code near PWM shows that

more than 30% of PWM’s natural catchment area leaks
►PWM used this data to attract JetBlue and AirTran service
PWM Natural Catchment Area Bookings By Airport

68% 68% 68% 69% 68%
67% 66%
59% 59% 60%

57% 56% 57%
34%
31% 30% 30% 31%
29%
24% 25% 24% 25% 25%
23% 23%
12% 11% 11% 12% 11%

9% 8% 8% 8% 9% 9% 8%
7%
M ay-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 De c-06 Jan-07 Feb-07 M ar-07 Apr-07 M ay-07
PWM BOS MHT

Source: MIDT and Seabury APG analysis
21
Summary
Summary
MIDT BSP ARC

Contents Bookings Ticket Settlement Ticket Settlement
GDS Coverage By Vendor 35 GDSs U.S. GDSs
Direct Sales? No No No
Coverage Worldwide All but USA USA Only
Data Delay 3 Weeks 5 Weeks 3 Weeks
Traffic Estimates Base not Shown Base Shown Soon, with BSP
Future/Daily Data? Yes For Airlines Yes
Fare Categories? Yes Yes Yes
Estimated by Yes, with Yes, with
Fare Detail
Fare Category Masking Rules Masking Rules
22
Summary
►ARC, BSP, and MIDT all come with limitations

►Each source excludes tickets sold directly by airlines
►ARC and BSP alone exclude the other’s region
►These data sources are extremely valuable, however

►All are used by airlines, and widely accepted by them
►All are valuable in helping to analyze trends
►Airlines are persuaded by facts, not anecdotes
►Using ARC, BSP, and MIDT data allows airports to build

strong business cases to persuade airlines to act, using the
same data sources as the airlines themselves
23

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Session 2:

17th ACI-LAC Assembly, Conference and Exhibition

Air Service Data and Planning Seminar

►Diio is Data in, Information out

►Diio specializes in projects taking massive amounts of DATA IN,

►Diio’s roots lie in the aviation sector, where it has produced

►Diio webtools have over 200 subscribers around the world,

►Diio is Technology that bridges the gap between data and

►Visit www.diio.net for more info

Air Service Data and Planning Seminar

►Jordan Kayloe is a Vice President at Diio, where he runs the sales

►Previously, he worked as a consultant in Seabury APG’s

►From 2001-2005, Jordan held various positions at US Airways

►Served ten years as an officer in the U.S. Air Force

Air Service Data and Planning Seminar

►The Ticketing Process

►Three Types of Ticketing Data

►Examples of Ticket Data Analyses

Air Service Data and Planning Seminar

►Understand the ticketing process

►Discuss the origins of MIDT, BSP, and ARC data

►Learn what comprises each data source

►Understand the pros and cons of each data source

►Discuss some uses of the data sources for airports

►Understand how the data can support your efforts

Air Service Data and Planning Seminar

The Ticketing Process

Air Service Data and Planning Seminar

►The traditional ticketing process progresses according to

Booked Ticketed Settled Flown

MIDT TCN BSP/ARC Gov’t

Air Service Data and Planning Seminar

Booking is the First Travel Life Cycle Step

►Airline passengers can make a reservation in many ways

Booked Ticketed Settled Flown

MIDT TCN BSP/ARC Gov’t

Air Service Data and Planning Seminar

►When the reservation is purchased, a ticket is issued using

Booked Ticketed Settled Flown

MIDT TCN BSP/ARC Gov’t

Air Service Data and Planning Seminar

Tickets Contain Many Useful Data Points

X PENANG PEN MH 1167 Y 31OCT 2145 OK QL3MMYF

Single Ticket Lookup Query sales

Air Service Data and Planning Seminar

►Clearinghouses exist to pass funds collected at the travel

Booked Ticketed Settled Flown

MIDT TCN BSP/ARC Gov’t

Air Service Data and Planning Seminar

Flying is the Final Travel Life Cycle Step

►Flight coupons can be collected from actual travelers

Booked Ticketed Settled Flown

MIDT TCN BSP/ARC Gov’t

Air Service Data and Planning Seminar

►MIDT comes from Bookings data

Booked Ticketed Settled Flown

MIDT TCN BSP/ARC Gov’t

Air Service Data and Planning Seminar

Booked Ticketed Settled Flown

MIDT TCN BSP/ARC Gov’t

Air Service Data and Planning Seminar

►MIDT stands for Marketing Information Data Transfer

►MIDT are the bookings made in the major GDSs including: