Airline RFPs For the 21st Century

NBTA Aviation Committee

July 28, 2008

Copies of the RFP

• Copies of the RFP documents will be available at NBTA Kiosks. Use the flash drive provided in your registration bag to download….

Margaret Kelly – Airline Reporting Corporation (ARC)Paul G. Clements – AirTran AirwaysMitch Cwanger – American Express Advisory ServicesDoug DeBaltzo – AstraZeneca Pharmaceuticals, LP *Neda Nazem – BCD TravelJack Lever – Booz, Allen, HamiltonFred Ruggiero – Cathay PacificCyndi Hunter – Continental AirlinesJohn Pavlesek – EDSSusan Mays – FedEx*Hobbs DeWitt – IBM

2007- 2008 Aviation Committee

* denotes committee co-chairs

Cathy Picone – Market AmericaChristopher T. Magulski – Midwest AirlinesShane Downey – NBTAMark A. Dropsey – NetJetsPeter Dorow – Northwest AirlinesDeborah Ostreicher – Phoenix Sky Harbor Int’l AirportBarry McCaleb – Price Waterhouse CoopersJames Sisco – Reed ElsevierJudy Mercel – Wilmorite Management GroupWendy Blaney – Wyndham Worldwide

2007- 2008 Aviation Committee(continued)

* denotes committee co-chairs

Introduction

• Current Business Need– Existing RFP outdated– No current industry standard– Buyer and Airline frustration– NBTA Members receiving inconsistent Aviation assistance– Gap between RFP logistics and true value added services

• Future – Ongoing Global industry resource– Future aviation committee updates and enhancements– Becomes industry standard?

Agenda

• Process– Existing RFP Review– Interview Corporate Travel Buyers– Interview Airline Representatives– Interview Consultants

• Deliverables– RFP Timeline– RFP Document– Airline Qualitative Response– Airline Pricing Template

Process

• Existing RFP Document– Reviewed NBTA RFP

– Reviewed 15+ TCG client RFP documents

• Extracted and organized common elements• Formed basic RFP outline and structure

Process

• Interview Corporate Travel Buyers– AstraZeneca – Booz Allen Hamilton – Chrysler

– EDS – Macy’s – Reed Elsevier

• Focused on– Scope of efforts

– Types of questions

– Relevance of questions

– Timeline

Process

• Interview Airline Representatives– Air France – American – Cathay Pacific – Continental

– Lufthansa / Star Alliance – Midwest – Singapore

• Focused on– Pricing requirements

– Types of questions

– Timeline

– Drivers of response• Number of countries – Number of airlines – Alliances

Process

• Interview Consultants– Advito – American Express Advisory Services

– CWT Solutions

• Focused on– Types of questions

– Relevance of questions

– Timeline

Audience Question #1

TIMELINES

We can do a global RFP in 2

months…

I don’t really have a clue how long this will take

40 countries, 10 data sources, alliance bid, 10 day

turnaround … no problem

It should just take a few days to load the fares

It won’t take long for the lawyers to review

the contracts

I’m sure our favorite carrier can get us a

European proposal by the end of August

No of countries (n) 3

No of bids (n) 6

Alliance bid(s) (y/n) y

First time alliance bid(s) (y/n) n

New data hand-off required (y/n) n

Project Start Date 7/28/2008

(weeks)

Notify potential bidders of impending RFP Monday July 28, 2008

Airline required NDAs 3 days Thursday July 31, 2008Request Formal Alliance bid N/AIssue DRA * N/AIssue RFP 2 weeks Monday August 11, 2008

Intent to bid 3 days Thursday August 14, 2008Questions 1 week Monday August 18, 2008Responses to questions 1 week 2 days Wednesday August 20, 2008Proposals due 4 weeks 1 day Tuesday September 9, 2008

Initial legal review 1 week 1 day Wednesday September 10, 2008 Thursday September 18, 2008Review bids 3 weeks 4 days Wednesday September 10, 2008 Tuesday October 7, 2008Round 1 meetings 1 week Wednesday October 8, 2008 Wednesday October 15, 2008Round 1 responses 2 weeks Thursday October 16, 2008 Thursday October 30, 2008Round 2 meetings 1 week Friday October 31, 2008 Friday November 7, 2008Round 2 responses 2 weeks Monday November 10, 2008 Monday November 24, 2008Finalize negotiations 1 week 2 days Tuesday November 25, 2008 Thursday December 4, 2008

Finalize legal review 1 week Friday December 5, 2008 Friday December 12, 2008Obtain signatures 1 week Monday December 15, 2008 Monday December 22, 2008Provide ARC/IATA/GDS/PCC/Corp code list 1 day Tuesday December 23, 2008Load and implement fares 2 weeks 2 days Wednesday December 24, 2008 Friday January 9, 2009New contract 1 day Monday January 12, 2009

NBTA Airline RFP Timeline Worksheet

TaskDuration

Start Finish

Working forward from July 28Working forward from July 28

No of countries (n) 3

No of bids (n) 6

Alliance bid(s) (y/n) y

First time alliance bid(s) (y/n) y

New data hand-off required (y/n) y

Project Start Date 7/28/2008

(weeks)

Notify potential bidders of impending RFP Monday July 28, 2008

Airline required NDAs 3 days Thursday July 31, 2008Request Formal Alliance bid 1 week Monday August 4, 2008Issue DRA * 1 week Monday August 4, 2008Issue RFP 4 weeks Monday August 25, 2008

Intent to bid 3 days Thursday August 28, 2008Questions 1 week Monday September 1, 2008Responses to questions 1 week 2 days Wednesday September 3, 2008Proposals due 4 weeks 1 day Tuesday September 23, 2008

Initial legal review 1 week 1 day Wednesday September 24, 2008 Thursday October 2, 2008Review bids 3 weeks 4 days Wednesday September 24, 2008 Tuesday October 21, 2008Round 1 meetings 1 week Wednesday October 22, 2008 Wednesday October 29, 2008Round 1 responses 2 weeks Thursday October 30, 2008 Thursday November 13, 2008Round 2 meetings 1 week Friday November 14, 2008 Friday November 21, 2008Round 2 responses 2 weeks Monday November 24, 2008 Monday December 8, 2008Finalize negotiations 1 week 2 days Tuesday December 9, 2008 Thursday December 18, 2008

Finalize legal review 1 week Friday December 19, 2008 Friday December 26, 2008Obtain signatures 1 week Monday December 29, 2008 Monday January 5, 2009Provide ARC/IATA/GDS/PCC/Corp code list 1 day Tuesday January 6, 2009Load and implement fares 2 weeks 2 days Wednesday January 7, 2009 Friday January 23, 2009New contract 1 day Monday January 26, 2009

NBTA Airline RFP Timeline Worksheet

TaskDuration

Start Finish

The impact of alliances and newdata hand-off requestsThe impact of alliances and newdata hand-off requests

No of countries (n) 3

No of bids (n) 6

Alliance bid(s) (y/n) y

First time alliance bid(s) (y/n) y

New data hand-off required (y/n) y

Target date for new contracts (m/d/y) 1/1/2009

(weeks)

Notify potential bidders of impending RFP Thursday July 3, 2008

Airline required NDAs 3 days Tuesday July 8, 2008Request Formal Alliance bid 1 week Thursday July 10, 2008Issue DRA * 1 week Thursday July 10, 2008Issue RFP 4 weeks Thursday July 31, 2008

Intent to bid 3 days Tuesday August 5, 2008Questions 1 week Thursday August 7, 2008Responses to questions 1 week 2 days Monday August 11, 2008Proposals due 4 weeks 1 day Friday August 29, 2008

Initial legal review 1 week 1 day Monday September 1, 2008 Tuesday September 9, 2008Review bids 3 weeks 4 days Monday September 1, 2008 Friday September 26, 2008Round 1 meetings 1 week Monday September 29, 2008 Monday October 6, 2008Round 1 responses 2 weeks Tuesday October 7, 2008 Tuesday October 21, 2008Round 2 meetings 1 week Wednesday October 22, 2008 Wednesday October 29, 2008Round 2 responses 2 weeks Thursday October 30, 2008 Thursday November 13, 2008Finalize negotiations 1 week 2 days Friday November 14, 2008 Tuesday November 25, 2008

Finalize legal review 1 week Wednesday November 26, 2008 Wednesday December 3, 2008Obtain signatures 1 week Thursday December 4, 2008 Thursday December 11, 2008Provide ARC/IATA/GDS/PCC/Corp code list 1 day Friday December 12, 2008Load and implement fares 2 weeks 2 days Monday December 15, 2008 Wednesday December 31, 2008New contract 1 day Thursday January 1, 2009

NBTA Airline RFP Timeline Worksheet

DurationTask Start Finish

Working backward from January 1Working backward from January 1

Audience Question #2

DOCUMENTS

Introduction and explanation ofthe RFP documentIntroduction and explanation ofthe RFP document

Overview of the company, objective,scope and description of travel management

Overview of the company, objective,scope and description of travel management

RFP Proposal Guidelines and Evaluation CriteriaRFP Proposal Guidelines and Evaluation Criteria

InstructionsInstructions

AttachmentsAttachments

Appendix AIntent to Bid FormAppendix AIntent to Bid Form

Appendix BConfidential Disclosure AgreementAppendix BConfidential Disclosure Agreement

Appendix CSignature Authorization FormAppendix CSignature Authorization Form

Appendix DSubsidiaries and CorporateEntities

Appendix DSubsidiaries and CorporateEntities

Appendix EHistorical Travel Statistics•Spend by Country•Spend by Market•Spend by Cabin- Not bidder specific

Appendix EHistorical Travel Statistics•Spend by Country•Spend by Market•Spend by Cabin- Not bidder specific

Appendix FTravel PolicyAppendix FTravel Policy

Appendix GCover Sheet for QuestionsAppendix GCover Sheet for Questions

Appendix HFixed Fare MarketsAppendix HFixed Fare Markets

EXHIBITS

Deliverables – Exhibit AO&D Segments Fare Paid O&D Segments Fare Paid

US 9513 12093137 38052 48372548

POS Country Bidder TotalO&D Segments Fare Paid O&D Segments Fare Paid

US 9513 12093137 38052 48372548

POS Country Bidder Total

O&D Segments Fare Paid O&D Segments Fare PaidDomestic 6,342 1,902,600 25,368 7,610,400Transatlantic 1,586 5,073,600 6,342 20,294,400Transpacific 1,057 4,756,500 4,228 19,026,000Other 529 360,437 2,114 1,441,748

Bidder TotalMarket O&D Segments Fare Paid O&D Segments Fare PaidDomestic 6,342 1,902,600 25,368 7,610,400Transatlantic 1,586 5,073,600 6,342 20,294,400Transpacific 1,057 4,756,500 4,228 19,026,000Other 529 360,437 2,114 1,441,748

Bidder TotalMarket

POS Country Code

POO Country Code Market

O&D City Pair Airline Code Fare Type

O&D Segments Fare Paid

US US Domestic DFW-ORD AA F 23 19780US US Domestic DFW-ORD XX First 3 2091US US Transatlantic LHR-ORD XX Business 47 220900

POS Country Code

POO Country Code Market

O&D City Pair Airline Code Fare Type

O&D Segments Fare Paid

US US Domestic DFW-ORD AA F 23 19780US US Domestic DFW-ORD XX First 3 2091US US Transatlantic LHR-ORD XX Business 47 220900

Qualitative Response•Bidder profileQualitative Response•Bidder profile

Qualitative Response•Pricing requirements•Marketing Support-“Agree” / “Disagree” and

Explanation form

Qualitative Response•Pricing requirements•Marketing Support-“Agree” / “Disagree” and

Explanation form

Supplementary Information•Account Management•Traveler Rights•Environmental Statement- Free form responses

Supplementary Information•Account Management•Traveler Rights•Environmental Statement- Free form responses

Pricing Template - Cover sheet

Item Bidder's ResponseBidder's Name: Airline NameContact Name: Sales contact namePhone: 312-555-1212Email address: sales.contact@airline.comDate of proposal: July 28, 2008Date of revision:

Item Bidder's ResponseBidder's Name: Airline NameContact Name: Sales contact namePhone: 312-555-1212Email address: sales.contact@airline.comDate of proposal: July 28, 2008Date of revision:

Pricing Template – POSBetween and

US CLE/EWR/IAH US50 Y Y Y Y YUS CLE/EWR/IAH US50 Y Y Y Y YUS CLE/EWR/IAH US50 Y Y Y Y Y

Point of Origin Restrictions

For travelOne Way

Bi-directional travel

Open JawRound Trip AllBetween and

US CLE/EWR/IAH US50 Y Y Y Y YUS CLE/EWR/IAH US50 Y Y Y Y YUS CLE/EWR/IAH US50 Y Y Y Y Y

Point of Origin Restrictions

For travelOne Way

Bi-directional travel

Open JawRound Trip All

Fixed FarePercentage

discountN/A CO DLNW N/A XN/A CO DLNW N/A XN/A CO DLNW N/A X

Codeshare Partner(s)

Connecting Airline(s)

Tier (if applicable)

Discount TypeEligible

Airline(s) Fixed FarePercentage

discountN/A CO DLNW N/A XN/A CO DLNW N/A XN/A CO DLNW N/A X

Codeshare Partner(s)

Connecting Airline(s)

Tier (if applicable)

Discount TypeEligible

Airline(s)

Discount Percentage

Reference Fare Class(es) or Fare Basis

Minimum Segment Fare

Maximum Segment Fare

Booking Class(es)

6% $7494% $399 $7492% $399

For Percentage DiscountsDiscount

PercentageReference Fare Class(es)

or Fare BasisMinimum

Segment FareMaximum

Segment FareBooking Class(es)

6% $7494% $399 $7492% $399

For Percentage Discounts

Various Various 0% NVarious Various 0% NVarious Various 0% N

Published Fare

Published Fare Basis

Standard Commission

Commission Eligible (Y/N)

Various Various 0% NVarious Various 0% NVarious Various 0% N

Published Fare

Published Fare Basis

Standard Commission

Commission Eligible (Y/N)

Routing, flight or other restrictions CommentsRouting, flight or other restrictions Comments

Pricing Template - Back end

1 LH/UA/SK/OS F/C/Y 1% Y2 LH/UA/SK/OS F/C/Y 1% Y3 LH/UA/SK/OS F/C/Y 1% Y

Tier (if applicable)

Eligible Airline(s)

Rebate Percentage

POS EligibleCodeshare Partner(s)

Connecting Airline(s)

Eligible Class of Service

1 LH/UA/SK/OS F/C/Y 1% Y2 LH/UA/SK/OS F/C/Y 1% Y3 LH/UA/SK/OS F/C/Y 1% Y

Tier (if applicable)

Eligible Airline(s)

Rebate Percentage

POS EligibleCodeshare Partner(s)

Connecting Airline(s)

Eligible Class of Service

Routing, flight or other restrictions CommentsRouting, flight or other restrictions Comments

Between andDE Germany Exit Germany Y Y Y Y YDE Germany Exit Germany Y Y Y Y YDE Germany Exit Germany Y Y Y Y Y

Open Jaw AllPoint of Origin

RestrictionsFor travel Bi-directional

travelOne Way Round TripBetween and

DE Germany Exit Germany Y Y Y Y YDE Germany Exit Germany Y Y Y Y YDE Germany Exit Germany Y Y Y Y Y

Open Jaw AllPoint of Origin

RestrictionsFor travel Bi-directional

travelOne Way Round Trip

Pricing Template – Targets / Tiers

Between andDE SYSTEM US50 LH/UA/OS/SK N F/C/YDE SYSTEM US50 LH/UA/OS/SK N F/C/YDE SYSTEM US50 LH/UA/OS/SK N F/C/Y

Point of Origin Restrictions

Bi-directional travel

Qualifying Markets Qualifying Airline(s)

Qualifying Booking Class(es)

Codeshare Partner(s)Between and

DE SYSTEM US50 LH/UA/OS/SK N F/C/YDE SYSTEM US50 LH/UA/OS/SK N F/C/YDE SYSTEM US50 LH/UA/OS/SK N F/C/Y

Point of Origin Restrictions

Bi-directional travel

Qualifying Markets Qualifying Airline(s)

Qualifying Booking Class(es)

Codeshare Partner(s)

1 1,000,000 EUR2 1,250,000 EUR3 1,500,000 EUR

Minimum Revenue Share

Minimum Segments

Minimum Revenue

CurrencyMinimum Market

ShareTier

1 1,000,000 EUR2 1,250,000 EUR3 1,500,000 EUR

Minimum Revenue Share

Minimum Segments

Minimum Revenue

CurrencyMinimum Market

ShareTier

QTRQTRQTR

CommentsServed MarketsMin. QSI for

Served MarketsFrequency of

ReviewQTRQTRQTR

CommentsServed MarketsMin. QSI for

Served MarketsFrequency of

Review

Next Steps

• The NBTA Airline RFP is a work in progress• We want your involvement in taking it forward

– Airlines

– Buyers

– Consultants

• Stop by after the session, or contact anyone on the committee

Audience Question #3

Questions