# Distributing Ancillary Products Through GDS Channels

An Efficient and Effective Solution that Benefits All Parties

A Spirit Airlines White Paper

Prepared January 29 , 2014

# Distributing Ancillary Products Through GDS Channels

An Efficient and Effective Solution that Benefits All Parties

INTRODUCTION:

This white paper describes Spirit Airlines’ efficient and effective solution for distributing ancillary products through GDS (Global Distribution Systems) channels that benefits all parties in volved.

Spirit is enthusiastic excited to introduce the ability to purchase its most popular optional products via all of the airline’s channels of distribution, including the GDS channels. Just as importantly, Spirit has implemented an efficient and effe ctive way to enable these purchases that does not require the development of costly new technology upgrades to allow such functionality.

Spirit has expanded the existing functionality currently used by travel agents to communicate options such as e.g. unaccompanied minor travel, special meal requests, pets, and guaranteed payment options to airlines

. This same existing functionality can now also be used to sell additional ancillary products. Travel agent subscribers now have the ability to sell some of Spirit’s most popular ancillary services, including first checked bags and carry

- on bags, using the current booking process as a result of the airline expanding existing GDS teletype functionality.

Effective immediately, all GDSs are now able to provi de this functionality to any and all of their travel agency partners.



### THE NEED: an efficient, cost

- effective way to make ancillaries available via the GDSs

Airlines and the GDSs agree that consumers will benefit from having the most popular ancillary services readily available for distribution via the GDS channels. The question remained, however, how do we cost

- effectively implement such practices to benefit all parties ?

As a pioneer in ultra low cost travel that has given millions the opportunity to travel, Spirit challenged itself to find an efficient, cost

- effective way to achieve this common objective.

Why is finding a cost

- effective solution important to all invol ved? Spirit’s process of unbundling options provides ultra low base fares, and allows consumers to pay for only those products and services they want, for a low total price. This gives even more people the opportunity to fly and allows them to fly more o ften.

Solutions that require costly new technology upgrades would result in higher fares for everyone, curtailing travel for many unable to afford higher fares.



### BACKGROUND:

Spirit supports all initiatives to provide more products and services to passeng ers.

While the U.S. Department of Transportation Advisory Committee (ACACP) called for the views of GDSs, travel agents, airlines and consumers to come up with the best solution for all involved, Spirit has diligently researchedand found a solution that provides travel agents with access to Spirit’s ancillaries via standard GDS transaction functionality.

According to a research paper released by Travelport in January 2012 entitled “ Travel Agencies Worldwide Share Their Views On the New Era of Airline Ancillary and Optional Services ,” GDSs, airlines and travel agency partners are trying to work together “to provide solutions that ena ble agents to successfully adapt through the integration of ancillary products and services into mainstream global travel distribution and sales (outlets).”

Spirit is meeting one of the top desires and needs of the GDSs and travel agents today by introdu cing the ability for travel agents to sell carry

- on and first checked bags via current technology (Teletype Messaging

– TTY).

In addition, by introducing this functionality, Spirit offers a solution to four of the top seven issues noted by travel agencies in the Travelport report , including:

1. Travel agents state they must offer these services in order to maintain a full

- service agency.
2. T ravel agents must offer these services in order to retain customers.
3. It is difficult to integrate payment processes for these optional items into their current systems.
4. It provides more opportunities for travel agencies to charge or increase service fees.

The Travelport report also cites that when discussing fulfillment, payment and settlement preferences, travel agents stated that on a global front, using the customer’s credit card to settle directly with the carrier is the most popular choice, followed by using an agency credit card. Ninety

- one percent of the travel agent respondents stated these options were highest priority.

Spiri t’s introduction of selling a carry

- on bag and/or checked bag functionality meets this travel agent need in full by allowing agents the option to use either the consumer’s credit card or their own credit card to pay for Spirit flights and bags through thei r current GDS functionality and processes.

Spirit has integrated this functionality into the “normal” processes for travel agents, and payment is fulfilled in exactly the same manner as selling a Spirit flight

.



### SOLUTION:

As a leader in transparency and in an effort to offer more flexibility to consumers booking travel, Spirit continues to offer solutions allowing GDSs and travel agents the opportunity to display, offer and sell the most requested optional products should t hey choose to do so using the normal booking processes and procedures already available via existing GDS functionality.

Spirit engaged Amadeus, Apollo, Galileo, Sabre and Worldspan in testing and validating efforts to support this proposed expanded functio nality.

As a result, Spirit is excited to now offer agents the ability to purchase optional products their customer’s need, and encourages all GDSs and travel agents to fully disclose these optional products to all consumers that choose to book flights v ia their systems.

As stated in the ir report , “Travelport is focused on helping travel agencies anticipate, understand and prepare for a changing environment, and to provide solutions that enable agents to successfully adapt through the integration of ancillary products and services into mainstream global travel distribution and sales.”Spirit continues to work with current GDS functio nality to enhance the ability for travel agents using the GDSs to assist consumers with purchasing carry

- on bags and/or first checked bags.

Spirit believes that all GDSs should embrace this integration of ancillary products and services offered via
mains tream global travel distribution and sales by providing information and support for this use of TTY via current outlets, such as GDS help screens, GDS support centers, and direct account management training.

Spirit appreciates the ACACP is tasked with the challenging endeavor of trying to balance needs with wants within the industry, and Spirit appreciates the Committee’s efforts to address third parties regarding ancillaries. By expanding use of existing technology, Spirit endeavors to meet the needs of t ravel agencies to provide services to consumers, AND to meet the needs of GDSs and travel agents to have access to airline ancillary products and services, and for those ancillaries to be able to be sold by travel agents using GDSs.



### TRAVEL AGENT NOTIFICATI ON:

This functionality is currently in place with all GDSs and is live within the Spirit system. Spirit will be announcing this exciting news via an official press release, as well as communications directly to travel agents, during the month of January 2 014

.

Bobby Schroeter Heather Harvey Spirit Airlines 2800 Executive Way Miramar, FL 33025 www.spirit.com