New Sales Model · 3. Sabre 10 3.1 Fare using WPNI 10 3.2 Direct fare without using WPNI 12 3.3...

New Sales Model

Q U ICK R EF ER EN CE B R A N D ED FA R ESL ATA M A I R L I N ES S . A .

Content1. Branded Fares 3 1.1 Attributes 3 1.2 Structure 4 1.3 Farebasis 5 1.4 Ancillary Products 5 1.5 FFP [frequent flyer program] passenger benefits 62. Issuance process 83. Sabre 10 3.1 Fare using WPNI 10 3.2 Direct fare without using WPNI 12 3.3 Price Quote (PQ) 134. Amadeus 15 4.1 Fare Quote 15 4.2 Pricing + Upsell 17 4.3 Pricing por Bundle 195. Travelport 216. latam.com 24 6.1 Step 1: Entry from LATAM Trade 25 6.2 Step 2: Reservation verification 26 6.3 Step 3: Ancillaries Selection - Seat and Baggage 26 6.4 Step 4: Cashier 28 6.5 Step 5: Summary of your purchase: 297. Frequently Asked Questions 30Glossary 31

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This manual includes the most important characteristics of the new LATAM business model and the purchasing process in this new Branded Fares fare structure for travel agencies in the various systems.


1. Branded Fares

Today we are in a highly competitive scenario which has led us to rethink our business model, focusing on the passengers and allowing them to select the services they want and to only pay for those.

This new business model implies a major change in our fare structure to a simpler one where the passenger can choose the family or bundle (as we will call it from now on) that best suits their needs. Each of these bundles will have various attributes included. Additionally, the passenger will have the opportunity to add products to the selected. These added products will be called Ancillaries.

1.1 Attributes

The bundles and attributes depend on the route. It is important that at the time of quoting / buying, you review what the fare of each route includes:

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*Depending on the route, the fare may or may not include checked baggage. If it does not include checked baggage, it may be acquired for an additional cost.

**Depending on the route, the fare may or may not allow changes, with or without a penalty, but the fare difference must always be paid.

Promo

Depends on route*

Carry-on baggage1 piece of 8 kg

Economy Cabin

Earning LATAM Pass Miles

5 miles per US$

Right to requestcabin upgrade

with cupons

Checked baggagePiece of 23 kg

Seat Selection

LATAM+ seat

Changes

Refund

Extra charge

Extra charge

Depends on route* Depends on route* 2 pieces

Extra charge

Extra charge Extra charge

X Depends on route**

X Depends on route**

Depends on route**

Depends on route**

X

X X

Light Plus Top

3 pieces 3 pieces

Depends on route**

Depends on route**

Plus Top

$21.987 $24.987 $38.987 $80.487 $240.550 $394.180

Premium/Business Cabin


1.2 Structure

The new fare structure will allow flexibility when issuing and will provide more options to the passenger when buying their tickets.

In this new structure, the classes will go from being staggered by fare families to overlapping various bundles. In addition, it will vary by route in terms of the classes that each bundle will include. An example of a structure follows:

The fare codes of these new families or bundles will be the following:

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Example of structure which may vary by market.


FARE BASIS

V H W SE 1

Type of reservation

(may be combined with Light, Plus or Top bundles)*

Brand Indicator(Plus)

3 digit numeric rule

1.3 Farebasis

Los Farebasis de las cabinas Economy en este nuevo modelo también cambian y tendrán la siguiente estructura. Por ejemplo el Farebasis VHWSE1, tendrá el código del Brand en el 4to y 5to caracter tal como se ve en la imagen.

1.4 Ancillary Products

Additional products purchased outside the bundle are called ancillaries. We currently offer luggage ancillaries and seats, which will have the following characteristics:

Baggage

● Price varies with advanced purchase (less expensive more than 6 hours prior to flight departure)

● The baggage product is paid to the final destination separately for the first leg and the return trip, and does not

include stopovers, only connections.●

Voluntary date changes are allowed before departure of the flight, subject to the regulation of the ticket●

Involuntary returns are allowed, voluntary returns are NOT allowed●

Each piece of luggage that is paid may still be up to 23 kg in weight●

If a piece of luggage weighs more than 23 kg it is considered excess luggage calculating the amount with the current method used (charges).Seats

● Changes are subject to the regulation of the ticket ● Involuntary returns are allowed, voluntary returns are NOT allowed● There will be 2 seat products which will have different prices:

LATAM+ seat: Seats with special characteristics (first rows, more space, priority boarding and exclusive baggage compartment), that can be selected ahead of time for a fee or that may be included in the fare, depending on the fare purchased by the passenger.

Standard Seat/Seat Selection: Seats that can be selected ahead of time for a fee or that may be included in the fare, depending on the fare purchased by the passenger. If the passenger chooses not to pay the fee, the system will assign a random seat during the check-in process.

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(*) Online to the structure example from the previous page


1.5 FFP Passenger benefits

LATAM Pass and LATAM Fidelidade passengers will have the following benefits:

For the Black and Black Signature passenger seat product, the passenger should call their preferred contact center directly.

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Domestic

International

Domestic

International

Domestic

International

Platinum

+1 piece of baggage (23 kg)

Seat selection

Priority seatLATAM+ seat

Black Black Signature


Passenger example in Branded Fares + FFPIn this example the passenger wants to carry 2 pieces of luggage.

First Leg (SCL-LIM): Because the passenger travels with a Promo bundle which does not include a piece of luggage and has a PLATINUM partner category that includes it, the passenger must pay only the second piece of luggage.

Return (LIM-SCL): In this case, the passenger travels with a Plus bundle, which includes a piece of luggage and has the PLATINUM member category which also does, the passenger then will not have to pay for any luggage.

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Route Brand FFP Passenger carries1 2 3

Passenger must payLuggageyes / no

SCL / LIM (SN) PROMO PLATINUM $

LIM / SCL (SE) PLUS PLATINUM


2. Issuance process

The process of issuing the new Branded Fares model for travel agencies will be through the different GDS and latam.com

Next in this manual is the process to broadcast in the different channels.

● Sabre

● Amadeus

● Travelport

● latam.com

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Sabre


3. Sabre

3.1 Fare using WPNI

The process of flights taking off and taking a particular flight stays the same as always.

Example using WPNI

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1SCLPUQ‡LA: The same as always to deploy flights LA for an OD where you can enter specific dates.

01Y1: Take flight for 1 PAX in class Y, option 1.

WPNI: Show cheaper options for the flight, with options on alternative flights. Flights are not restricted to a particular carrier.

WPNCB: The command used to reserve the cheapest fare.

WPNI‡BRALL: With Bargain Finder the alternative flight options are priced in all the Brands, showing more alternatives per flight.

WC‡1-BR1: The command is used to take one of the indicated itineraries.


Example using WPNI + RQ

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WPNI‡BRALL‡RQ: If the agent adds ‡RQ to the transaction, a PQ with the correct Brand will be added to the transaction.

Example with added RQ

Immediately a PQ is recorded with the Brand indicated.

Now the agent can add ‡PQ to his issuance command to respect the Brand selected.


3.2 Direct fare without using WPNI

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WPNCB‡BRSL: If the agent knows our Brands, he can directly use the command.

BR + Brand Code to charge the fare in the appropriate Brand, and then record the PQ.

Using WPNCB is recommended to ensure a class that can be combined with the Brand, although it is not strictly necessary.

WPNCB‡S01*BRSL‡S02*BRSE

Additionally, you can specify which segments you want for the first leg and for the return trip.


3.3 Price Quote (PQ)

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W‡PQ‡FCA‡ALA: Finally, for issuance it is recommended that the agent use a PQ previously entered with Brands. To issue, simply add PQ to the transaction.

W‡FCA‡BRFL‡ALA: If a PQ was NOT generated in any of the previous steps, it must be Charged and issued with one of the Brands, indicating BR (Code). Otherwise, the ET will be issued with the cheapest available in any Brand.


Amadeus


4. Amadeus

4.1 Fare Quote

For example:

FQDSCLPMC/ALA/FF/IL/D02SEP

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Fare description #1:

FQF1

Fare description #15:

FQF15

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4.2 Pricing + Upsell

Standard PNR creation:

Pricing and description:

• FXP

• Price description # 1: FQF1

Description of proposed upsell:

FQF/TS

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View all available bundles:

FXY

Rebooking for proposed upsell:

FXU/TS

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Rebooking for option #3:

FXU3

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4.3 Pricing by Bundle

Standard creation of PNR and pricing per bundle (in this example SE)

• RP/SCLQ12147

• FXB/FF-SE


Travelport


5. Travelport

On the Travelport platform, a domestic route can be charged as the following example:

On the left you can see the upsells to the different bundles available with the price differentials, in this case we have 3 bundles called Light, Plus and Top Base, Access, Control, Flex

In the center and on the right are the regulations and attributes that include the selected bundle.

Below you can see the base rate plus the cost of the bundle, then you can see the final price. (Reference prices only to examine the Travelport example)

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In addition you can visualize the bundles and benefits matrix

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latam.com


6. latam.com

Ancillary purchase and selection of seats is available at latam.com, even when the passenger has purchased a Plus or Top bundle that includes a preferred seat or seat selection. You may access latam.com via the LATAM Trade portal.

For Ancillary sales, the flow is as follows:

• Step 1: Access through LATAM Trade

• Step 2: Reservation verification

• Step 3: Selection of seat and baggage

• Step 4: Payment

• Step 5: Summary of your purchase

For the selection of seats in bundles that include seat products, the flow is the same but skipping step 4

Some important considerations about the use of the platform:

• In order to issue the ancillary or make the seat selection, the reservation must be issued in your preferred GDS.

• In order for the platform to recognize the level of the LATAM Pass frequent flyer member number and so that all the benefits can be delivered, the member’s frequent flyer number must be included in the issuance of the reservation in the GDS. If this is not included, the benefits will not be recognized.

• When a bundle that includes a seat product is purchased, the selection, in case the GDS presents technical limitations, can be done through latam.com.

• FFP Black and Black Signature members have the benefit of delivering a free seat product to a companion. In order to deliver this product at cost of $0, it is necessary for the passenger to call the Contact Center.

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6.1 Step 1: Entry from MundoLATAM

Access to LATAM Trade can be found at the footer of www.latam.com:

-Once in LATAM Trade, you must click on “Other” Services

Within Services “Other” you may access the purchase of Seats and Baggage

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6.2 Step 2: Reservation verification

You must enter the reservation code to which you wish to issue an ancillary.

6.3 Step 3: Ancillary Selection - Seat and Baggage

This will be the first window and where you will enter all of the ancillary options, it is separated into 3 blocks. The first is the selection of seats, the second the baggage module and the third is the total to be paid for the included ancillaries.

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Seat Selection: The seat selection module will display the seat map with the available seats, showing the details of each of the products and what their costs are. It also includes the passenger’s LATAM member information.

In this case you can see the 3 products offered:

-More space-First rows

-Standard (selection of seats)

Baggage selection: The baggage selection module will allow you to add the luggage that is desired for each of the passengers in the reservation and for the segments that are required (for example, round trip). The passenger member level will appear and the suitcase will cost $0 when applicable.

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6.4 Step 4: Payment

Once you have selected the seats and suitcases that you want to add, you can see the detail of the total to be paid and go to payment.

When going to payment, they will be able to enter the Cashier. In this cashier, they will have the corresponding payment option. Once this has been defined, the card data and the customer’s billing information must be entered.

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Also, if it is a company that buys the ancillary for one of its employees and needs an invoice, it will be possible to send the information so that it is issued and sent directly to the passenger within 24 hours. For this you must press “Do you need an invoice as proof of your purchase (VAT exempt)” and a form with the following information will be opened (Each POS should check whether this applies)

6.5 Step 5: Summary of your purchase:

Finally, once the payment is done, you can see the summary of the purchase.

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7. Frequently Asked Questions

What are the means of payment of the agencies for Ancillary issuance?GDS: The means of payment available in your GDS of preferencelatam.com Credit card or debit card in CL,PE, BR, CO y EC

Are Ancillaries refundable?Voluntary return is not allowed so they are not refundable. In cases of contingency, it accepts the passenger protection policy and applies involuntary return.

When buying the ancillaries via latam.com, does the agency lose control of the reservation?No, LATAM does not take control of the reservation when issuing an ancillary service (seats/luggage). The agency can continue all its processes through its traditional channels.

What about the tickets sold before the launch of the new business model?All reservations created prior to the implementation of the Branded Fares model will maintain their regulations and attributes.

How does the combination of fares with Branded model work (when they are Round Trip)?The baggage allowance is per segment, which means that if a passenger decides to go to PROMO and return to TOP, PROMO will apply to the first leg and TOP to the return. In the same segment, all the sections must be from the same bundle.

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Glossary

BRANDED FARESNew business model that LATAM will implement in domestic businesses.

BUNDLEIt is a grouping of classes with attributes. Today we have 4 bundles, PROMO-LIGHT-PLUS-TOP. Each of these has different attributes.

ATTRIBUTEProduct and/or service included in the bundle. For example, luggage, preferred seating, returns and exchanges.

ANCILLARYProduct and/or service that is not included in the bundle and that can be purchased separately.

UPSELLIt is the jump from one bundle to another, this jump will have fixed prices per market.

EMDElectronic Miscellaneous Ticket - It is an electronic standardized IATA document that replaces the MSR for the issuance of additional services attached to the ticket.

USER MANUAL

New Sales Model · 3. Sabre 10 3.1 Fare using WPNI 10 3.2 Direct fare without using WPNI 12 3.3...

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