ENHANCING AIRLINE’S ECONOMICS

COMARCH TRAVEL CRM AIRLINE SUITE

2

Comarch Travel CRM Airline Suite

The processes of deregulation and liberalization of international air transport and the changing business of the airline industry is resulting

in more frequent migration of passengers between competing airlines than has ever been previously observed. One key for retaining

customers is to gain knowledge on passengers’ travelling patterns and making use of this knowledge in the relationship strategy with

customers. Comarch has designed and developed software that gathers and analyses demographic, communication and transactional

data regarding an airline’s clients in order to segment existing clients and prepare a program of marketing interventions aimed at client

retention and the maximization of profit.

Gather

Analyze

} Comarch Loyalty Management

} Comarch Contact Center

} Comarch Feedback Management } Comarch Smart Analytics } Comarch Campaign Managament

} Comarch Travel Assistant

Execute

Comarch has designed and developed a suite of software meeting the most sophisticated CRM needs of an airline. Comarch Travel CRM

Airline Suite consists of seven applications integrated with each other.

Passengers Service Systems

Kiosks/SMS/E-mail/Social Media

Web Portals

Contact Centers

Ticket Offices

Service Desks

VIP Lounges

Baggage Services

Flights/Sales/Transactional data

Passengers complaints

Personal data

Flight preferences

Marketing data / loyalty data

Customer value

Advanced segmentation

Dedicated/personalized actions

Analysis/reporting

Optimized campaigns

Professional passengers services

CRM

TOUCHPOINTS GATHER - GATHERING DATA ANALYZE - DATAMINING EXECUTE - OPTYMALIZATION OF ACTIONS

3

Gather information

For over three decades airline loyalty programs have been gathering information on client purchasing habits. Comarch Loyalty Management

(CLM) is a new generation of an enterprise-class application that supports airline loyalty programs. The comprehensive suite of modules

enables smooth management of loyalty programs of all kinds, for any type of airline, be it legacy, regional, low cost or a hybrid carrier.

This modular application enables the accrual of loyalty points and their redemption for awards. It makes smooth management of promotions

possible. The scalable architecture of the system follows growth of an airline’s sales and subscriptions of new loyalty program members.

A set of interfaces complying with the enterprise architecture enhances the smooth integration with other software environments. Its

modular structure and extended parameterization mechanism facilitates customization and development of dedicated solutions.

Reservation System

WWW

Departure ControlSystem

Internet BookingEngine

PNR Database

Revenue AccountingSystem

Business Admini-stration

ContactCenter

CustomerWeb Portal

LogisticModule

B2P

Core

File Processor Report EngineTransactionProcessor

Content Distribution ModuleE-MAIL

SMS

Flexibility

The scalable architecture of Comarch

Loyalty Management enables continuous

expansion of the loyalty program along

with an airline’s growth, including

introduction of new program partners

and system functionalities. Due to its

modular structure and a wide range of

parameter options, the application can be

designed to meet the precise business

requirements of an airline.

Adaptability

The application can be easily implemented

for any airline, be it a legacy, regional,

low cost or hybrid carrier. Multipartner

programs can benefit from Comarch’s

experience across various markets,

including retail and finance among

others. Comarch’s vast experience and

the program adaptability make Comarch

Loyalty Management a perfect multi-

program solution.

Compatibility

The platform applies state-of-the-art

technologies enabling integration with

many other external systems which

operate alongside the Comarch Loyalty

Management such as:

} Reservation systems

} Departure control systems

} Internet booking engines

} Revenue accounting systems

} PNR databases

ExecuteAnalyzeGather

4

ExecuteAnalyze

APPLICATION COMPONENTS

The core component of the system - the Business Administration module - is augmented with the Customer Web Portal, Business-to-

Partner module, Logistics module as well as other Comarch Travel CRM Airline Suite products. The modular structure allows customers

the optimal choice of functionalities, thus making Comarch Loyalty Management an excellent choice for the management system of an

airline’s loyalty schemes.

Logistics Module

Business to Partner Web Portal

Business Administration

Customer Web Portal

CLM modulesCLM modules

The Business Administration module consists of straightforward tools for the management and administration of the application. Available

through a user-friendly web interface, they allows for the flexible definition of business rules in terms of: tenders (points, miles), accrual,

redemption, promotion and elite tiers.

The Logistics Module is dedicated to the control of award inventory as well as the coordination of the distribution of promotional materials

and membership cards. The application provides logistic partners with access to relevant data such as inventory levels, supply forecasts,

delivery orders and updates. This web application also supports gift ordering processes, reward reports, invoicing and settlements as

well as cooperation with external logistic partners.

The Customer Web Portal, the portal, specifically designed for members of the program, provides the airline’s clients with access to

online account management, where passengers can view their account balance and transaction history, order rewards (tickets, upgrades

and more) and view current promotions. In addition, the portal incorporates options related to interaction between a program’s operator

and its participants including enrolment features, automatic retro claims and a mileage calculator. The portal can be integrated with an

existing corporate website or developed as an entirely separate Internet site.

The Business to Partner Web Portal has been designed in order to meet the needs of the program’s multi-partner environment and to

provide both airline and non-airline program partners with relevant data and tools for program parameterization through a B2P portal.

In addition, the module delivers advanced reporting features including multi-party clearing and invoicing mechanisms. Access to the

application is provided from any location via a secure web interface.

Comarch Loyalty Management is an innovative yet reliable solution powering frequent flyer programs of airlines all over the world. Visit

our webpage and read references and case studies applying to Comarch Loyalty Management.

Gather

5

Comarch Contact Center (CCC) is the application designed for servicing airline clients via a call center. The application supports the

management of inbound and outbound interactions with all customers by designated operators. It also enables studying passengers’

sensitivity to promotions, advertisements or special initiatives. The Internet browser interface enables use of the application from any

location via a secure Internet access.

The application provides an agent with immediate access to basic functionalities such as passenger searching within all available data

in the client’s context:

} current contact

} case types

} agent activities per passenger

} SLA for solving problems

} realization status

} passenger activity history

} tier levels assigned

} marketing activities per passenger

} personalized promotions

} communication generated

} searching for a reply templates through specific criteria like: keywords, case, creation date, last use etc.

The module includes a compound communication solution. All messages are targeted and

sent through predefined message channels, specified for a particular passenger group, which

may include: SMS, e-mail, web, sales office, etc. These channels are monitored and allow for

review of communication history as well as gathering information on passenger response.

Once a CC Agent picks up the phone, a new contact is created within the system. The contact

is described by some system data, like: phone number, date, time, CC Agents ID, and in case

of IVR authentication and pre-selection – the member’s data and the contact subject. The

Contact Center Agent can also perform manual authentication and description of the contact

by selecting the case type (the optimal workflow and shortcut list may be defined for each

case type, ex. data edition or reward ordering) or adding a note. Agents may add a new

activity and send an email using an email template, a modified email template or a custom

email to the current contact customer. Agents may also browse history of phone contacts in

the given account context. On the contact details screen, all contact attributes, all its notes

as well as a list of related activities is presented.

One goal of the system is to solve as many of the passenger’s problems as possible during the first contact. For real-time viewing of

all pending calls/requests, priorities, their status, answer deadlines, etc, Comarch Contact Center enables setting thresholds for those

measures that are critical to the selected area within the call center. Immediate notification allows supervisors to take quick action, such

as reassigning agents to a particular skill. Furthermore, the system enables day-to-day customer contact management, for the work

plans of the operator as well as subordinates. This feature is particularly crucial in advertisement plans, contact with clients who have

called earlier, and Call Center consultant’s area of specialization.

ExecuteAnalyzeGather

 

6

To prevent airline travel from becoming a commodity, though improving the quality of service, the voice of airline passengers should

be considered. Comarch Feedback Management (CFM) offers the capability to collect, manage and act on all forms of airline feedback

in a unified, efficient and timely manner.

Feedback Storage

Taking Action andPassenger Notification

Feedback Gathering

Feedback Processingand Analysis

CLM modulesCFM

FEEDBACK GATHERING

Comarch Feedback Management supports feedback management by providing tools for creating and distributing surveys. Questionnaires

can be defined through the flexible and easy-to-use survey builder or using predefined templates. Next, surveys are transferred for further

verification (by supervisors or other departments) or directly assigned to the outgoing survey campaign and distributed to customers

through the appropriate channel for each survey. The number of channels through which feedback can be collected can include interactive

voice response (IVR), hard copy surveys, Web, e-mail, Short Message Service (SMS) and computer-aided telephone interviews.

FEEDBACK STORAGE

All the feedback gathered from customers is processed and the data is stored in a central repository so that it can be accessed by all

the required departments in the organization. Customer feedback data is further embedded into customers’ profiles enriching the current

customer information and providing a more accurate and complete understanding of customer preferences, motivations, and intentions.

Additionally the whole history of customer interactions/feedbacks is stored with all the attached documents and files associated with

the given case.

FEEDBACK PROCESSING AND ANALYSIS

For feedback that requires immediate action, like complaints and problems, requests are prioritized and assigned to the appropriate group

of agents, depending on the type of request and communication channel. In case of the web or email channel, automatic notification can

be sent to the customer informing them about the case in progress. Next, an individual agent takes over the case with the highest priority

(the first one in the queue) and analyzes it with the help of an action list assigned to each case type. Through a predefined workflow,

agents can transfer the case to other agents or departments and forward it for the approval of supervisors. Supervisors can monitor

statuses of customer requests and get notifications about cases with threatened or exceeded deadlines.

TAKING ACTION AND PASSENGER NOTIFICATION

The final step in the cycle is to act upon the results of the feedback analysis and communicate it to the customer. Actions may vary

depending on the type of the feedback and may include product or services improvements or compensation for the customer. The

compensation can take a form of money, FFP points/miles (through manual adjustments) or free services. Once the action is taken, CRM

can be used to apologize or thank the customer and communicate the actions taken.

ExecuteAnalyzeGather

7

Analyze data

Once airlines have implemented the operational modules of the CRM architecture, they seek out opportunities to gain answers to the

questions that are now possible to ask. Comarch Smart Analytics (CSA) is a business intelligence class application that analyzes the

data gathered by a loyalty program, contact center or feedback management application.

CSA links various sources of data with a wide portfolio of analytical methods to carry out a sophisticated analysis of a target group

regarding the information requirements of an airline. The application can use raw data like demographics, psychographics or a transactional

picture of the targeted customers. Although the bulk of raw data is usually acquired from loyalty programs, it can also be gathered from

other software like booking engines, feedback management systems, customer classification solutions, exchange rate providers, etc.

DATA MINING

Data mining processes are delivered by Comarch Smart Analytics in terms of segmentation, cluster analysis, marketing scoring, market

basket and sequence analysis of purchases, churn analysis, RFM analysis and customer lifetime value.

Data Mining

Segmentation Marketing scoring

Churn rate

RFM

Customer lifetime value

Market basket & sequence analysisCluster analysis

Segmentation for Comarch Smart Analytics means identification of groups of customers similar to each other. In particular, those ones

who respond to marketing instruments in a similar way. The application divides customers in two ways:

} During the data analysis, a segment is understood as a list of customers who share common attributes and a common transaction

history

} Segments are a result of clustering alghorithms

The purpose of cluster analysis is to identify a set of objects that are similar to each other. They are then divided into groups. As a result,

from a single heterogeneous data set, groups of homogeneous subsets can be acquired. Segments of the CSA (regardless of their source

of creation) can be used in the following ways:

} Sending a message to a segment of a loyalty system,

} Adding a segment to an analytical system to perform further data analysis.

ExecuteAnalyzeGather

8

Marketing scoring models are used each time an identification process of a client is made. Such identification is usually limited to binary

value: a profitable customer vs. an unprofitable one, an existing customer vs. a historical one. Models usually analyze:

} Tendency of customers to abandon the service (churn)

} Tendency of customers to buy a specific product

} Overall customer performance based on RFM analysis, reduced to a numerical index

The models allow cost reduction by limiting communication to a group of customers potentially interested in the offer. In addition, they

increase customer satisfaction as clients appreciate individual treatment and presentation of dedicated offers. Finally, fast classification

of a customer is possible for the requirements of call center applications.

Market basket analysis and sequence analysis of purchases provide airlines with information on products that are often bought together

or within certain time intervals. They make the purchasing rationale of customers known. The benefits of these analyses are:

} Detection of association rules (rules determining which products are often bought together)

} Development of sequence analysis (a study in what order events occur in a row)

Churn analysis enables cessation of purchases by the customer by their walking away to rival programmes. In order to build a model

analyzing the churn pattern, Comarch Smart Analytics uses:

} Purchase frequency (arithmetic mean or median) indicating customer loyalty

} The time elapsed between purchases (interpurchase rate, abbreviated IPT)

RFM analysis is a basic marketing analysis. The assumptions this method are based on are as follows:

} Customers who have made a recent purchase are more likely to make another than those who have not made purchase for a long

time

} The most profitable current clients are forecasted to be the most profitable ones in the future.

Components of RFM analysis are behavioral. Due to this advantage, the required data is always available. Prediction of clients’ behavior

is easy. Finally, prediction of behavior with the use of historical behavior is more accurate than such a prediction based on other known

factors. Comarch Smart Analytics uses the RFM analisis as an input to modeling the customer lifetime value.

Customer Lifetime Value analysis powers construction of predictive models of the customer life cycle. The fundamental assumption the

model uses in Comarch Smart Analytics is that the amount of money spent per transaction is independent of the sole transaction process.

This means that the model of traveler behavior can be divided into two sub-models: a flow model of a transaction, and a model of the

revenue gathered from a transaction. Both models allow for estimation of discounted expected transactions (DET).

ARCHITECTURE AND VISUALIZATION

The structure of Comarch Smart Analytics consists of the following elements of logical architecture:

} Source systems

} Area of extraction procedures, processing and loading data (ETL element)

} Thematic analytical areas consisting of the relational and multidimensional layer

} System supporting visualization of results

ExecuteAnalyzeGather

9

Execute well-planned actions

Having information gathered and analysed, there comes a proper time for communication. However, this process has to be planned

and conducted in an adequate manner. Comarch Campaign Management (CCM) is software that supports creation and conduction of

multi-channel marketing campaigns.

The effectiveness of marketing campaigns, especially their profitability, depends primarily on the appropriate selection of an offer to

customers’ specific needs. That’s why suitable tools are required to conduct marketing activities. Comarch Campaign Management is

a cutting-edge system used to create and conduct marketing campaigns. CCM optimizes the preparation process, simplifies the management

of campaigns, automates their execution and enables studying their results. It constitutes a highly flexible solution that can be easily

adapted to the specific needs of airlines. The solution enables execution of cross-channel campaigns promoting a new flight timetable,

new meals offered on board, partner travel services or new outlets as well as special discounts to clearly defined groups of customers.

Operational benefits

} An increase in productivity and quality of a marketing department

} Support in effective decision making and task distribution

by business users

} Constant access to information and a history of operations

regarding the effects the activities have

} Effective management of marketing activities

} Sending offers tailored to a customer’s needs at the most

appropriate time

Financial benefits

} Control and optimization of marketing expenditures

} Increased campaign efficiency and profit maximization

} Minimization of business risk thanks to multidimensional

data analysis

} Increased customer loyalty and satisfaction

} Growth in the frequency of client transactions

} Increased partner sales thanks to cross-selling actions

The main functionalities of Comarch Campaign Management include:

} Marketing campaign planning with interactive calendars

} Campaign stage creation and management

} Advanced customer segmentation possibilities

} Support for different communication channels (SMS/MMS,

e-mail, call center, Web, direct mailing)

} Action monitoring

} Configurable analytical panels

} Cost effectiveness analysis

} Conflict resolution

} Event-triggered actions

} CLM and Contact Center integration

} Team work support and task management

ExecuteAnalyzeGather

10

The gathered and analysed data requires the preparation of an optimal offer and its subsequent promotion. Comarch Sales Force

Automation (CSFA) is a solution that automates the sales process. The module is an outstanding solution providing many possibilities

in terms of planning and implementation of sales strategies as well as passenger service. This means that the system allows you to

manage the structure and plan of sales and service departments.

SALES MANAGEMENT APPLICATION

Comarch Sales Force Automation includes developed back office functionalities dedicated to the management level. Planning, monitoring,

reporting, analysing and employee management tools help an airline develop its business, increase revenue, maximize profit and maintain

a competitive position in the airline industry.

Passengers life cycle

management

Standardization of processes

TeamworkSales structure

and process management

Leads management

Management of sales

knowledge

PLANNING AND FORECASTING

} Coordinated planning for all distribution channels increases sales efficiency – ability to set separate targets for different partners,

agents and employees

} Short and long term forecasting – creating sales budgets for a designated area or distribution channel – ability to compare plans with

historical data

} Market targeting and customer segmentation – ability to compose a simulation according to the most valuable customers in order

to maximize profit in defined areas

} Creating forecasts of sales in relation to profitability according to various dimensions (cost and fares, number of flights and passengers,

etc.) enables the selection of the most advantageous scenario

} Market share planning

EMPLOYEE AND REGION MANAGEMENT

} Easy access to comprehensible information about partners, agents and employees –budgets, sales results, price policy, cooperation

agreements

} Creating new distribution channels and regions and allocating essential resources in order to amplify market share and sales – ability

to adding new partners, agents and sales units

} Modifying partners, agents, sales unit profiles

} Setting sales targets to an entire distribution in a designated region or distribution channel according to a sales strategy

} Defining regions and market segments by selected criteria – number of flights and operated airports, sales, number of passengers,

profitability, etc.

The application that effectively supports the sales process should also enable immediate access to all comprehensive information about

contact history with the passenger, which can help in preparation of a sales offer, as well as planning, implementation and monitoring of

activities across an organizational structure.

User friendly and intuitive Web portal thanks to (SSO) Single Sign On application enables access to all functions, internal systems and

databases. Data presentation and access to designated functionalities are granted accordingly to user profile and authority.

ExecuteAnalyzeGather

11

The globalized and digitalized world has made a new type of competitive advantage possible: access to information from any place

at any time. Smartphones and mobile applications have made this requirement possible. Comarch Travel Assistant (CTA) is a mobile

application developed with special attention paid to the informative requirements of airline clients, including demand for localization

and navigation services.

Comarch Travel Assistant is a tool designed to aid travellers in managing their journeys. It is a modern, modular and easy to use application

that can virtually guide passengers. Up-to-date and personalized travel information is delivered directly to passengers’ mobile devices,

like mobile phones, digital books readers and tablets. Each user can access their itineraries, flight details, weather forecasts, gate

information and baggage locations.

AlertingServices

Travel Community Net

Travel Info

Airport Info

CLM modulesCTA

US

ER IN

TER

FACE

Mobile phoneDepartureControlSystem

Smart phone

Notebook

Tablet

Other devices

LocalizationSystem

ReservationSystem

ExecuteAnalyzeGather

Travel info

This module is designed to aid controlling passengers’ itineraries:

} A constantly up-to-date flight itinerary

} Gate numbers and boarding directions

} Aircraft & Seat Info

} Information on rebooked flights with details on how to proceed

} Airport weather reports

} Baggage location

} Travel Planning – the fastest and easiest way to plan the trip

} Destination Guide

Alerting services

Informs passengers on facts/events affecting the journey.

Information offered:

} Check-in alert with check-in desk location

} Boarding alert with gate information

} Personal contact requests

} Gate and boarding time changes

} Flight delays and cancellations with further instructions

} Weather forecast en route to the port of destination

Airport info

Airport Info is designed to supply various types of information

about the airport. The module offers:

} Passenger navigation to the desired airport locations

} Passenger tracking (with their permission) for the sending of

information at the most relevant time

} Delivery of information (ads) on various possibilities: shopping,

dining, exhibitions etc.

} Promotions and offers tailored to meet specific passenger

needs (based on passenger profiles)

} Regional promotions - demonstrate to guests what happens

in and around the airport

Travel Community Net

Travel Community Net was designed to entertain and turn waiting

time into a pleasure. The opportunities:

} Single and multiplayer net gaming

} Mobile messenger, chat, forum with picture exchange option

} Music & video on demand

} IPTV

} Joy and fun

Comarch is a leading Central European IT business solutions provider specializing in forging business relationships that maximize custo-mer profitability while optimizing business and operational processes. Comarch’s primary advantage lies in the vast domain of knowledge accumulated in and applied to our software products. These products incorporate highly sophisticated IT solutions for businesses in all vertical sectors. Comarch has a multinational network of offices employing over 3500 highly-experienced IT specialists in Europe, the Middle East and the Americas.

Comarch Spółka Akcyjna with its registered seat in Krakow at Aleja Jana Pawła II 39A, entered in the National Court Register kept by the District Court for Kraków-Śródmieście in Krakow, the 11th Commercial

Division of the National Court Register under no. KRS 000057567. The share capital amounts to 7,960,596.00 zł. The share capital was fully paid. NIP 677-00-65-406

Copyright © Comarch 2010. All Rights Reserved. No part of this document may be reproduced in any form without the prior written consent of Comarch. Comarch reserves the right to revise this document and

to make changes in the content from time to time without notice. Comarch may make improvements and/or changes to the product(s) and/or programs described in this document any time. The trademarks

and service marks of Comarch are the exclusive property of Comarch, and may not be used without permission. All other marks are the property of their respective owners.

PL-2011

WWW.SERVICES.COMARCH.COM

WWW.COMARCH.COM WWW.COMARCH.FR WWW.COMARCH.DE WWW.COMARCH.RU

Comarch headquarters Al. Jana Pawla II 39 a 31-864 Krakow Poland phone: +48 12 64 61 000 fax: +48 12 64 61 100 e-mail: info@comarch.pl

Comarch Inc. 10 W 35th Street Chicago, IL 60616 United States phone: +1 800 786 4408 fax: +1 800 684 5916 e-mail: info@comarch.com

Comarch OOO Bakhrushina Street 32, bldg 1115054 MoscowRussian Federationphone: +7495 221 89 01

Comarch Software AG Chemnitzer Str. 50 01187 Dresden Germany phone: +49 351 3201 3200 fax: +49 351 438 97 10 e-mail: info@comarch.de

Comarch Software Sarl19 Avenue LeCorbusier59000 LilleFrancephone.: +33 6 59 56 06 84fax: +33 3 59 56 06 01e-mail: lille@comarch.com

Poland Krakow, Gdansk, Katowice, Lublin, Lodz, Poznan, Warsaw, Wroclaw

Austria ViennaBelgium BrusselsChina ShanghaiFinland HelsinkiFrance Lille Germany Dresden, Frankfurt/MainLithuania VilniusPanama Panama City Russia MoscowSlovakia BratislavaUAE DubaiUkraine KievUSA Chicago Vietnam Ho Chi Minh City