With insight and intelligence provided by industry experts Akshay Jain (Ixaris Solutions) and Daniel Greaves (Amadeus Payments), this invaluable free event explores the increasingly complex hotel booking environment and how OTAs of all sizes can enhance revenues, improve profitability and make hotel payments more efficient than ever. The presentation offers insight into: • Why hotel bookings represent one of the greatest growth opportunities – and biggest challenges – to any OTA today • How the transition from historical payment methods to virtual cards has generated a whole new range of issues for OTAs to address • Why a tailor-made approach to hotel payments and fresh thinking could reap dividends for you and your business • Plus: tips, industry insights and more Give your business the edge with this free in-depth resource To find out more contact us at dropusaline@ixaris.com

1. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
12TH NOVEMBER 2015

2. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
Akshay Jain
Head of Product,
IXARIS
Daniel Greaves
Head of Marketing,
AMADEUS PAYMENTS
Hotel Payments Made Smarter 2

3. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
Who are we?
Founded in 2002, Ixaris is a leading provider of prepaid
virtual cards
Ixaris Solutions specialises in processing travel
supplier payments
Fast track 50 business
Ixaris is a privately-held company, funded by leading UK
institutional investors
Hotel Payments Made Smarter 3

4. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
Managing part, post and prepaid
virtual card bookings
Benefits of a one-system solution
Today’s discussion
HOTEL PAYMENTS CHALLENGES
Evolution of hotel payments
Comparison of payment methods
Challenges associated with
prepaid virtual cards
SMARTER PAYMENTS FOR HOTELS
Hotel Payments Made Smarter 4

5. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
A PhocusWright study in 2013 showed that online bookings will continue to increase
total share of all hotel bookings made. Online intermediaries like OTAs, have greatest
potential to expand operations in ‘hotels’ as compared to other markets.
6.3
7.1
7.9
8.8
9.8
16.4
17.8
19.6
21.2
22.7
56.9
56
55.8
55.9
55.8
0 10 20 30 40 50 60
2012
2013
2014
2015
2016
Source: Phocuswright ‘’European Online Travel Overview Tenth Edition”
Current market growth trends
5Hotel Payments Made Smarter
European hotel gross bookings (€B) by channel and online penetration (%), 2012-2016
OnlinePenetration
Total
37% €88.3
35% €85.9
33% €83.2
31% €80.9
29% €79.6
Supplier-Direct OnlineOTAOther

6. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
The evolution of hotel payments
QUESTION: thinking about your hotel bookings, which of the following best describes
your view in the future of the agency (commission) and merchant models (net rate)?
Hotel Payments Made Smarter 6
The agency model for OTA hotel distribution gains mindshare, if not market share. But travel
intermediaries globally continue to book as much hotel volume via the merchant model as
always and expect their merchant volume to grow faster than agency volume.
27
34
21
22
19
22
32
22
0 5 10 15 20 25 30 35 40
Eastern Europe
Western Europe
Not sure
No change
Agency will grow
Merchant will grow
Outlook for hotel booking by contracting model
Source: Phocuswright’s “Payment Unsettled: Cost, Opportunity and Disruprion in Travel’s Complex Payment Landscape”

7. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
A comparison of traditional payment types
ADVANTAGES DISADVANTAGES
Improved cash position Manual reconciliation effort
Exposure to FOREX
Cost of international bank transfers
Improved cash position
Earn additional rebate
Manual reconciliation effort
Exposure to FOREX
Credit card fraud
Cost of credit
Hotel Payments Made Smarter 7
Bank transfers
Physical credit cards

8. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
A better alternative?
Hotel Payments Made Smarter 8
For cash rich travel companies, virtual prepaid
cards offer a flexible payment method that
enables Online Travel Agents to pay a wide
range of suppliers through globally accepted
virtual cards. You maintain complete control
over the card characteristics and you can easily
track and reconcile all purchasing activity.
BENEFITS
STREAMLINE RECONCILIATION
Automate reconciliation and save time and cost
SAVE ON FOREX FEES
Load funds in a range of different currencies
REDUCE FRAUD
Card spend is limited to the cards loading value
CREATE ADDITIONAL INCOME
Earn revenue through card payment interchange

9. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
How do you currently make payments for
your hotel bookings?
Poll 1
a) Virtual card or virtual account number
b) Automated payment without billing
c) Direct billing with automated payment
d) Direct billing with manual payment
e) Credit card
f) All of the above

10. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
QUESTION: What payment method does your company usually use
to settle payments with hotels for merchant (net rate) bookings?
Although a popular means for purchasing flights, the widespread adoption of
virtual cards specifically for the settlement of hotel bookings is yet to happen.
Limited adoption of virtual cards
57
38
31
25
7
38
43
44
25
4
0 10 20 30 40 50 60
Wholesaler
Retailer
16% of larger
agencies ($25m+)
typically use a
virtual card
Hotel Payments Made Smarter 10
Payment methods used to settle merchant hotel booking
Source: Phocuswright’s “Payment Unsettled: Cost, Opportunity and Disruption in Travel’s Complex Payment Landscape”
Virtual card or virtual account
number
Automated payment without
billing
Direct billing with automated
payment
Direct billing with manual
payment
Credit card

11. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
Which of the following challenges do you
face while making payments to hotels
using virtual prepaid cards?
Poll 2
a) Single-cards fail when the hotel tries to
charge the card more than once
b) Difficulty handling virtual prepaid cards for
making future bookings
c) Difficulty in retrieving unspent funds from
cards after final payment is taken from the
hotel
d) Managing cancellations, changes in
bookings, refunds on virtual prepaid cards
e) All of the above

12. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
Challenges of using virtual cards
Hotel Payments Made Smarter 12
PRE-PAID
BOOKINGS
OTA pays the hotel at the time
of booking (non-refundable)
In this scenario, if the hotel pre-authorises a
‘single-use’ card, it will fail at the point when
the main payment is collected.
POST-PAID
BOOKINGS
OTA pays the hotel closer to the
check-out date (refundable)
An inability to schedule the loading of funds
can lead to lost cash flow / difficulties
manually tracking the payment
PART-PAYMENT
BOOKINGS
OTA is required to make a part
payment at time of booking and
rest of the payment at check-out
(refundable)
Multiple purchase are prevented by single
use cards. Even where ‘multiple-use’ card
functionality exists, it can be difficult to delete
the card and retrieve unspent funds.
BOOKING TYPE DESCRIPTION CHALLENGE

13. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
Prepaid bookings (non-refundable)
13Hotel Payments Made Smarter
1. IMMEDIATE PAYMENT:
Select a single-use card and load the full booking amount
Send the card details to the hotel for processing
OR
PRE-AUTHORISED PAYMENT:
Select a multiple-use card
Load booking amount along with additional small amount, and enter a
deletion date

14. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
1. SCHEDULE LOADING OF FUNDS:
• Schedule the initial deposit and remainder of the balance
• Modify settings if booking needs to be extended/cancelled
2. AUTOMATED LOADING OF FUNDS:
• Outstanding balance is loaded automatically
• Hotel processes the remainder of the balance
Post and part paid bookings (refundable)
14Hotel Payments Made Smarter
3. CARD SETTLEMENT:
• Card is settled and deleted
• Remaining funds are returned to the funding account

15. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
Benefits of virtual card payments for hotel bookings
Hotel Payments Made Smarter 15
FEATURES ADVANTAGES BENEFITS
Multiple-use card
Automated schedule load
Automated card deletion
Modify booking payment
Cash flow planning reports
Single-API
Can be used for pre-
authorisation; partial payment
and extended stay
Schedule the loading of funds
when required; no need to
manually track the loading date.
No need to manually delete the
card after check-out; remaining
funds retrieved automatically
Modify loads & payment dates,
if customer changes bookings
Increased visibility for future
card loads; system notifications
to fund account in time
Manage all booking types
through one API
Fool-proof payment; all
transactions for a single booking
remain tied to one card
Improved cash flow; avoid
building business logic into your
systems; no manual tracking of
payments, or missed payments
Increased efficiency with no
manual work involved
Increased flexibility ensuring
minimum disruption to
operations
Improved management of
your cash flow and funds
Eliminate the need to jump
between multiple virtual card
systems or bank transfers

16. Confidential and Proprietary Information | © 2015 Ixaris System Ltd

17. Confidential and Proprietary Information | © 2015 Ixaris System Ltd
Send your questions and comments to dropusaline@ixaris.com
Replay and presentation of the webinar will be available shortly
on www.travolution.co.uk
Hotel Payments Made Smarter 17