Prezentare Travelport Online Conference. 13 Aprilie 2011. Marcin Pilarski

1. 13 Apr 2011, Bucharest

2. Agenda
10.00 – 10.45 Welcome coffee
10.45 – 11.10 Global online market overview
With Marcin Pilarski, Travelport Managing Director Eastern Europe
11.10 – 11.30 Romania online market overview
Vlad Dobrutchi, Travelport Romania
11.30 – 12.15 Live demo Travel Manager
12.15 – 13.00 Live demo eTrip
13.00 – 13.45 Lunch break
13.45 – 14.30 Live demo Netbook
14.30 – 15.15 Live demo Q Travel Online
15.15 – 15.25 Summary

4. Internet? Tamed!
Marcin Pilarski
Managing Director Eastern Europe
Bucharest, 13 April 2011

5. Agenda
• Online Travel Market Overview
– Global
– European
– Direct and Indirect
• Building blocks of your online success
• Trends in the Online Market
– Evolving Business Models
– Increased Complexity
– New Competitors
Travelport confidential 5

6. Few words about your presenter
• Internet and OTA business
model fan
• Active in Polish and EE
GDS / OTA space since
2003
• Currently managing all
Eastern European markets
• Likes to win & challenges ☺
most recent 10 km run in
Warsaw beating up my 13
year old daughter!

7. Global Travel Market
Travel Market Retail Value
3500.0
3000.0 2,873
2,749
2,648
2,576 2,541 2,571
2,489
2500.0 2,349
2,203
2,067
2000.0 1,937 1,922
$Bn
1500.0
1000.0
500.0
0.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Travel and Tourism: Euromonitor International 2009
Travelport confidential 7

8. World Travel Market by Region
2008 Travel Market By Region
RoW 11%
APAC 27% Value in $ B
APAC 700.8
NAM 616.0
Europe 982.8
Europe 38%
RoW 273.5
NAM 24%
Source: Travel and Tourism: Euromonitor International 2009
Travelport confidential 8

9. E-commerce impact on travel
37%
21%
Share of total European leisure travel industry 2006 - 2011
Travelport confidential 9

10. Online Travel Agents (OTA)
are gaining ground within the online market
80%
70%
60%
50%
40%
30%
20%
10%
0%
2006 2007 2008 2009 2010 2011
Supplier.com OTA
Travelport confidential 10

11. More than 75% of Leisure travellers spend is
on non-air related product and services
Thinking about the trips you have taken in the last 12 months,
approximately how much do you think you spent on each of the following
Survey average
areas?
$197
$87
Air travel
$110 $658
Hotel or other accommodation
$126 Average spend
Food and drink / trip
Entertainment $132
Car (rental) $524
Sea travel
Rail travel
Bus / Coach travel
$425 Av. Number
Other
$589 of trips / annum
5.4
$520
Base: 12,757 Leisure Travellers
Source: The Futures Company/Lightspeed Research-Travelport Consumer Segmentation survey Nov 2009 – Jan 2010

12. Who doesn’t plan travel online these days?
Just 6% of French travelers, 9% of German travelers and 5% of
U.K travelers plan and book their trips completely offline
Source: Euromonitor, PhoCusWright, Company Reports, Travelport Market Strategy assumptions

13. Clear correlation between internet penetration
and leisure online travel penetration
North America leads developed world in Internet penetration; Greatest growth seen
in the Middle East.
Growth
10 20 30 40 50 60 70 80 90 100 2000-2009
North America 74% 134%
Oceania / Australia 60% 175%
Europe 52% 298%
Latin America /
31% 891%
Caribbean
Middle East 28% 1648%
Asia 19% 546%
Africa 7% 1392%
Global Average 26% 380%
Source: Internet World Stats

14. Europe and US lead credit card global
penetration
Share of credit Number of cards*
card transactions (millions, 2008)
United States 50% 1,174
Europe 23% 697 (↑11%)
Asia 15% 2,059 (↑17%)
Latin America 7% 461(↑6%)
Canada 3% 107
Middle East &
2% 90 (↑24%)
Africa
Global 99 billion transactions (2008)
Source: Nilson Report, November 2009), Euromonitor International
* Credit, debit and pre paid cards

15. Defining success criteria is key
• Success does not have to be high booking volume
• Key to determine what success is and how to measure it
• Going online does not have to mean choosing only one
way
So let’s have a look at some of the building blocks
Travelport confidential 15

16. Building blocks of online success
IBE GRAPHICAL PARTNER’S
TECHNOLOGY INTERFACE PROGRAMMES
User Experience
USABILITY SEM & SEO
ANALYTICAL
in Online Travel
TOOLS
SALES
CALL CENTER
BENCHMARKING PROCESSES
PROCEDURES
EFFECTIVNESS
Travelport confidential 16

17. Building blocks of online success
• The 7 Habits of Highly Effective People®
by Stephen R. Covey
1. Be Proactive
2. Begin with the End in Mind
3. Put First Things First
4. Think Win-Win
5. Seek First to Understand, Then to Be Understood
6. Synergize
7. Sharpen the Saw
Travelport confidential 17

18. IBE technology
• Technology providers
• Contracting third party
for customized project
• In-house development
Travelport confidential 18

19. Usability / don’t make me think!
• Where should I click now?
• Is it available?
• How can I search for a hotel?
• Where am I?
• How to start?
• Where did they put_______?
• What’s important here ?
Let me use it!
Travelport confidential 19

20. Usability / don’t make me think!
Travelport confidential 20

22. Road with accent
on USABILITY
Road with accent
on USER
EXPERIENCE
22

23. UX model in online travel
START – HOME PAGE
1. Home page
brand uptime B/OS support trust Accessibility
stability design speed
filtering Features and functionality comparison
2. Search results
sorting search breadcrumbs
navigation browsing Findability
SOFT PRODUCT
rich media
3. Hotel information Guest reviews
maps
descriptions
images
HARD PRODUCT
4. Rooms and guests Loyalty program
basket safety
Booking path
Privacy policy Bookability
5. Booking screens
cancellations
Payment methods
currencies
6. Payment
FINISH - PAYMENT 23

24. Trust to
Market maturity buying online
So what influences
Price shopping
conversion?
Crisis / cycles
Source vs target
Usability
Trends/
context
Product
Loyalty Program PAP
Availability
User quality
Price
Competition Platform
efficiency
Brand /
online Design
offline
speed uptime
Meta search engines trust 24
awareness

25. Travelport confidential 25

26. Search Engine Optimization – SEO
Travelport confidential 26

27. Search Engine Optimization – SEO
Travelport confidential 27

28. Search Engine Optimization – SEO
Travelport confidential 28

29. Search Engine Optimization – SEO
Travelport confidential 29

30. What’s next?

31. Booking fee models will soon become dinosaurs…
Travelport confidential 31

32. Non transactional websites will become more important
You said you researched your trip using the internet, specifically what type of websites did you use?
Search engine 66%
59%
Airline website 40%
40%
A third of traveller s
Hotel website 36%
36% using the internet to
Websites of the destination 40% research used a
visiting 32%
Travel websites (eg TripAdvisor, travel website which
31%
Lonely Planet, Rough Guide) 29% may have an
Online travel agency 25% element of social
26% Leisure
Website of a high street travel 15% networking e.g.
agent 16% Business
TripAdvisor
Car rental website 11%
14%
Social networking website 10%
11%
Travelport confidential 32
Base: 59,499 Leisure traveller s and 3,064 Business traveller s

33. The distinction between Suppliers, Tour Operators
and OTA’s will continue to blur
Online Travel Tour Operators Suppliers
Agencies
Travelport confidential 33

34. Air Transactions will become much more complex
Travelport confidential 34

35. Social media & smartphones have created new
opportunities for travel companies to provide services
but how can this be monetised?
Facebook Places,
Foursquare and Google
Places provide users with Augmented reality
local content (offers, check- makes it
in) most useful on the
mobile web possible to overlay
82% of travellers data on the real life
using Priceline’s experience
mobile app booked
within 24 hours of
arrival compared with
45% of desktop bookers
Apple
iTravel
Does it have
potential to
change the
industry?
35
Produced by Market Strategy and Pricing, CMO

36. Key take aways
• Online sales channels are becoming more and more important
• Online is not offline on the Internet
• Define your model and what success is
• Many building blocks
• Coming next
– Pure Play Booking Fee Models will be dinosaurs
– Non Transactional Websites will increase in importance
– Co-opetition will be the model
– How to monetise new opportunities social media & smartphones
have created?
Travelport confidential 36