Farelogix Inc.

Farelogix Inc.

April 01, 2009 08:01 ET

Farelogix to Deliver E-FLX, the Travel Industry's First EMD Hub

New Solution Enables Airlines to Rapidly Implement and Drive Revenue from "Comprehensive Merchandising"

MIAMI, FLORIDA--(Marketwire - April 1, 2009) - Farelogix today announced E-FLX™, the travel industry's first "EMD Hub" designed for issuing, storing, managing, and reporting Electronic Miscellaneous Documents (EMDs). E-FLX is currently under development and is expected to be released to market later this summer.

The EMD, as defined through IATA standards and working groups, is gaining general industry acceptance as the most efficient way to document, report, and settle the new category of ancillary services offered by airlines and ultimately other travel suppliers. The function of an EMD is very similar to that of a ticket coupon, but is used for the sale of optional services rather than an actual airline ticket. Optional or ancillary services are often associated with certain flight segments and therefore must be communicated, tracked, documented, and reported accordingly.

Farelogix is under agreement with two US airlines to complete the pilot development phase of the E-FLX EMD Hub. "Having airlines fully engaged in the pilot phase is critical, and we are fortunate to have airlines that are contributing both ideas and resources," says Jim Davidson, CEO of Farelogix.

The EMD capabilities enabled by E-FLX are a natural extension of Farelogix's existing robust e-ticketing facility - which has been in production for over two years, is certified by ARC and BSP, and issues thousands of e-tickets daily in over 30 countries. The ability to fully address EMDs represents the final deliverable in a full suite of Farelogix products designed to comprehensively address the need for full service merchandising capabilities desired by a growing number of airlines.

According to Michael Premo, ARC Vice President of Marketing, Sales and Customer Care, "EMDs will revolutionize the sale and servicing of ancillary revenues in our industry. Farelogix's leadership in bringing a solution forward in an easy-to-implement fashion will help carriers, agencies and their clients make ancillary products available faster, at lower costs, with improved ease-of-use and with better information."

"To fully manage merchandising through multiple distribution channels, a variety of processes must be managed and coordinated," says Davidson. "The concept of fully managing flight merchandising began over one year ago within the walls of Farelogix, shortly after we started talking with a number of airlines about their desires and challenges around merchandising. From these early conversations, it was clear that airlines are looking to merchandise their product to improve customer loyalty, differentiate their offering and generate significant new revenues."

The opportunities discussed during these initial conversations with airlines were re-confirmed during a Flight Merchandising Symposium hosted by Farelogix in January 2009. In a survey issued by Farelogix, 14 of the 15 airlines in attendance indicated that Flight Merchandising was expected to generate in excess of $100 million in new annual revenues once their programs were fully implemented.

The Genesis of Flight Merchandising Solutions from Farelogix

"We heard loud and clear from our customers that effective flight merchandising would require a series of solutions that address the challenges of unbundled selling at multiple points in the supply chain - from defining the fares, to selling them at the agent desktop, to ticketing and reporting," explains Davidson. "So about one year ago, we began building three essential industry deliverables for flight merchandising. With the introduction of E-FLX, we believe Farelogix is now well poised to help our airline clients quickly and effectively implement creative merchandising solutions and capture that needed revenue."

The first deliverable in the Farelogix suite of merchandising products was FMS2, a highly flexible fares and pricing engine which was announced just one year ago today. By providing airlines with the ability to create, manage, and present for display "unbundled" and ancillary products, FMS2 delivers to airlines a new and highly desired degree of control over how their product is branded and sold. Airlines using FMS2 are able to define the attributes by which specific fares or other unbundled product offerings are made available to the traveler, and then automatically bring these fares/offerings into the shopping booking process.

The second deliverable in a full merchandising solution was to ensure that agents across multiple distribution channels could access, display and sell the variety merchandising options that airlines seek to sell. Since most existing point of sale applications did not support this needed flexibility and customization, Farelogix recently announced two of its own point of sale applications to address the problem. Project Hawkeye™ and FLX Commando™ are both point of sale applications that are capable of supporting multiple selling capabilities, including various merchandising, in highly flexible displays based on how the carrier wants its products to be sold.

The third deliverable for comprehensive merchandising will be provided by E-FLX - a solution that ensures that ancillary/unbundled products may be easily documented, managed and settled at both airline and agency levels. E-FLX offers a low-cost option for airlines to create, store, and manage EMDs utilizing existing legacy systems and processes already in place, as well as adopting any new developments already made by the airline around specific EMD developments. The EMD Hub enables any airline to connect to the Hub through technology they already have in place, such as EDIFACT, XML or other proprietary interfaces. The EMD Hub will manage the transformation of EMD transactions into any existing format currently supported by the airline, thereby reducing the requirement for new development and technology investment.

"The last thing anyone needs right now is to make significant investments in technology to support new revenue generation," says Davidson. "Our objective with E-FLX is to make this vital piece of 'comprehensive merchandising' available to airlines at the lowest possible cost, with the highest possible degree of flexibility, and rapid speed to market."

About Farelogix

Farelogix is a leading provider of lower-cost, high value distribution and optimization technology to the global travel industry. Farelogix counts among its customers some of the largest travel companies in the world. Farelogix is a privately held company with offices in Toronto, Canada and Miami, Florida. For additional information, visit www.farelogix.com.

Contact Information

  • Press Contact
    Jodi Echakowitz
    Echo Communications (for Farelogix)
    (905) 709-9600
    Email: press@farelogix.com