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Cendant TDS Day. Understanding Cendant Travel Distribution Services & How GTA Fits Into The Bigger Picture – Sales Focus. Joanna Catalano : Senior Director Sales Planning and Development Werner Tschiesche : Sales Operations Manager. 23 rd September 2005. Objectives. - PowerPoint PPT Presentation
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Cendant TDS Day
Understanding Cendant Travel Distribution Services & How GTA Fits Into The Bigger Picture – Sales Focus
Joanna Catalano : Senior Director Sales Planning and Development Werner Tschiesche : Sales Operations Manager
23rd September 2005
Objectives
• To give you an overview of Cendant and the TDS businesses
• To give you an overview of the Galileo business
• To explain how we can work together on joint customer propositions
+
Established in 2001 – employs nearly 8,950 people
Over 30 business languages in 100+ countries
Operates across two global regions Americas (HQ in Parsippany, USA) International Markets
Europe, Middle East & Africa (HQ in Langley, GB) - EMEA Asia, (HQ in Hong Kong, SAR China) South Pacific (HQ in Sydney, AUS) - APAC
• Occupies a top10 position in the Travel Weekly Power List
Cendant Travel Distribution Services (TDS)
Cendant Corporate - Key Figures
New York Stock exchange listed: ‘CD’
Net Revenue = $19.8 bn
Free Cash Flow = $2.2 bn
Market Capitalisation = $23.5 bn
Employees = 80,000
Represented in 100+ countries
How much we made in 2004 = $19.8 bn
How much we have in the bank = $2.2 bn
How much we are worth = $23.5 bn
Travel distribution industry model
Business
TravelersSuppliers
Airlines
Hotels
Car Rental
Vacation Rental
Tours
Rail
Cruises
ConnectivitySystems
GlobalDistribution
Systems
Travel Agencies
Offline
Tour Wholesaler
OnlineDirect Connect
1 Based on research from PhoCusWright, Thomas Weisel and Cendant Estimates
$873 Billion1
Leisure
PROVIDING A
COMPETITIVE
ADVANTAGE
PHASE 4
Innovation
PROVING
CUSTOMER
VALUE
PHASE 3
Delivery
PROVING
CUSTOMER
VALUE
2001 2002 - 2003 2004 - 2005 2006 onward
INTEGRATION
OF THE
BUSINESSES
PHASE 2
Alignment
TDS: A brief history
PHASE 1
Construction
TDS Provides All Pieces of the Jigsaw
Business
TravelersSuppliers
Airlines
Hotels
Car Rental
Vacation Rental
Tours
Rail
Cruises
ConnectivitySystems
GlobalDistribution
Systems
Travel Agencies
Offline
Tour Wholesaler
OnlineDirect Connect
1 Based on research from PhoCusWright, Thomas Weisel and Cendant Estimates
$873 Billion1
Leisure
ConnectivitySystems Travel
Agencies
Offline
Tour Wholesaler
Online
GlobalDistribution
Systems
Deep Dive into the B2B Business
Client Segmentation – Who We Sell To
Online Travel AgenciesTravel Suppliers
Travel Agents (Leisure & Corporate) Government & Industry
Key EMEA Markets – Where We Do Business
North West Europe: UKIreland
Southern Europe: ItalySE Sub markets
Western Cont'l Europe: PortugalFranceNetherlandsBeluxSpainTurkey
Scandinavia: SwedenFinlandDenmarkNorwayPoland
Emerging Markets: GreeceCyprusLatviaLithuaniaEstoniaRussiaGeorgiaAzerbaijanUkraineMoldovaBelarusKazakhstanBalkansCameroonSenegal Ivory Coast
Central Europe:SwitzerlandGermanySlovakiaCzech RepublicHungaryAustria
Middle East: Saudi ArabiaUAEOmanQatarBahrainKuwaitIraqEgyptJordanLebanonSyriaYemenPakistanSri Lanka
Africa: South AfricaBotswanaNamibiaKenyaTanzaniaEthiopiaZimbabweZambiaNigeriaGhanaRwandaCape VerdeMalawiAngolaMauritaniaMozambiqueEritreaUgandaBurundi
Key markets shown in red
Galileo International, our International & EMEA operations, our UK & Ireland Regional Office, and UK operations are based in Langley in the UK, close to London Heathrow Airport.
In addition to local helpdesks in each SMO / NDC London also houses the EMEA Regional Service Desk.
There are a further four regional offices in Europe providing additional support to local market based offices.
SMO (Owned Operation) NDC (Distributor Operation) No Current Operations
Galileo – European Market Structure
Regional Office for Middle East and Africa based in Dubai.
Our extensive NDC structure in the Middle East and Africa offers an unparalleled understanding of these markets.
Galileo holds a 68% market share in Africa and 61% market share in the Middle East*
*Source: YTD Jun 04 MIDT.
SMO (Owned Operation)
NDC (Distributor Operation)
No Current Operations
Galileo – MEA Market Structure
In the Middle East Galileo is distributed by the ARABI group of carriers.
Our AP operations, & our Asia Regional Office, are based in Hong Kong
SMO (Owned Operation) NDC (Distributor Operation) No Current Operations
Galileo – Asia Pacific Market Structure
A further Regional office in Sydney, oversees our operations in the Pacific region.
Major Leisure Customers: Europe
(Galileo) (Travelwire)
Major Leisure Customers: Rest of World
Seekers Travel
B2B Services – What We Sell
Service BrandProduct Name
Global Distribution Service
GALILEO
Wholesale/Tour Operator
gta, WBS, RBS
Merchant Content / Consolidator / Retail
TRAVEL 2 / TRAVEL 4
Hotel Inventory Mgmt, Res & Sales
TRUST INTERNATIONAL
Hotel CRS connectivity & switching
WIZCOM
B2B Services
Service BrandProduct Name
Orbitz Airline Supplier Link
ORBITZ SUPPLIER LINK
Airline/Agency Marketing Intelligence
AGENT FLASH
THOR Offers marketing, distribution and 24 hr emergency services
TRAVEL BOUNDFIT and Group travel to Travel Agencies
Focus on Galileo GDS
How The Global Distribution System Works
Who is Galileo
Part of Cendant Corporation since 2001
UK’s leading GDS with 42% market share
Represented in 107 countries
Operates one of the world’s largest commercial data centres
21 servers in Denver - USA
Handles 175 million requests a day
Why Galileo Is Important
Galileo is the TDS “cash cow”
It contributes 90% of overall EMEA profits or $214m in 2004
EMEA Business Performance % Contribution
Contribution to EBITDA by Region for 2004
North West24%
Africa9%
Western Continent
17%
Southern Europe22%
Central Europe13%
NDC4%
MiddleEast11%
Scandinavia0%
North West Western Continent Central Europe Southern Europe
Scandinavia MiddleEast Africa NDC
What Does Galileo Do?
Global Distribution System (GDS) providing: Computerised reservation systems Internet-based solutions
We connect: 43,000 travel agency locations 480 airlines 26 rental car companies 60,000 hotel properties 430 tour operators
Who Do We Sell To?
Online Travel AgenciesTravel Suppliers
Travel Agents Government & Industry
Galileo Content – What Do We Sell?
Agencies book products in the GDS from the content listed on behalf of vendors
Hotels Car Rental CruisesFlights
Car Ferry CrossingsPackage Holidays Car ParkingRail Tickets
Process – How We Sell To Leisure Agencies
Travel AgentConsumers
Agents Mark Up Brochure
Contract
Galileo
Account
Manager
Travel
agency
revenue
GDS Content
Contract
Travel Agent
Brochure
Financial Assistance
Financial Assistance
How Do We Make Money?
GalileoGalileo
GDSGDSVendorsVendorsAgentsAgents
Yield $5 (approx, varies)
INFO / DATA
FA / Market Support (varies)
NDCNDC
INFO / DATA
Each time a product e.g. a flight from LHR to LAX is sold:• The vendor e.g. British Airways pays Galileo a fee• Galileo pays the agency e.g. Thomas Cook market support
• If we do not own our local distributor (SMO) the NDC (distributor) receives a % of our booking fee revenue as commission
GDS: Key Customers By Type
Wholesaler (Tour Operator)
End Consumer(Passenger)
Leisure Retailer(Travel Agency)
Business TravelManagement Companies
Galileo Key Competitors
GDSGlobal New EntrantsCRS
TDS – Who You Need To Know
CHRIS VUKELICHMD B2B Services
EMEA
Laurel Baker Personal Assistant
Jason ClarkeRegional MDUK & Ireland
Rob WilliamsVP Business Operations
EMEA
Consuelo CorridoriVP HREMEA
Joanna CatalanoSnr. DirectorTDS Sales
Effectiveness
Head ofGTA Sales &
Services
Julio BrunoRegional MD Western
Continental Europe
Niklas AndreenRegional MD
Nordic Region
Marco BenincasaRegional MD
Southern Europe
Gunther HolzschuhRegional MD Central
Europe
Rabih SaabRegional MD
Middle East & AfricaBased in Dubai,
Pakistan, Sri Lanka
Noriko Ogawa GTA Inbound
Delivery/Integration
Sandra McleodMulti-National
Accounts
Wendy StachowiakCorporate Sales
Kim Jezzard/ Nigel Slock
FIT GTA
Patrick RichardsGroups GTA
Shaun HindsT2/T4
Osama WagdiGTA MEA
TBAVP Finance
Decision Support
Sandro Saccaccio – RBS Italy
Pilar Sanchez – RBS SpainChristoph Vandamme – RBS FranceGustavo Benko – RBS Chile
NoteOperations = Help Desk, Provisioning, Installations, Customer training
Regional MD =Sales, Marketing, Customer Service, Leisure, Corporate & Supplier Clients
Tamaki Mizunoya – BrusselsMariko Hubert – Paris, Geneva, CopenhagenKaren Atkins – RomeInma Moreno – MadridCarmen Decker – ViennaLydia Atias – JerusalemAlison Bucknell - Frankfurt
Rebecca Day – RBS UK
AirwaysSweden
Regional Managing Directors - Contacts
Jason Clarke
UK & Ireland
Tel: +44 (0) 1753 288776
Mob: +44 (0) 7793 696664
Marco Benincasa
Southern Europe
Tel: +39 065 105 5601
Mob: +39 335 579 2157
Rabih Saab
Middle East & Africa
Tel: +97 1430 40380
Mob: +97 1506 455329
Gunther Holzschuh
Central & Alpine Region
Tel: +49 69 22 736711
Mob: +49 17 04 3009
Niklas Andreen
Nordic Region
Tel: +46 8555 23899
Mob: +46 709 520475
Julio Bruno
Western Europe
Tel: +34 91 7430 678
Mob: +34 609 684436
GTA & Galileo – Selling a Future Joint Proposition
What TDS Means For You
Consider What We Had Until Recently
Supply-Driven Distribution
InventorySupply
Distribution
Traveller
Tour Operator/
Wholesaler
Retailer
Consider What We Have Today – Galileo & GTA
Demand-Driven Distribution
Tour Operator/Wholesaler
Singles
Couples
Families
Retailer/Packager
Supplier/Retailer/Packager
Travel Club/Credit Card/
Timeshare, etc
Traveller
Business Travellers
Adventure Travellers
Older Travellers
GTA & Galileo – Selling a Future Joint Proposition
Over 20,000 directly contracted hotel and
self-catering properties in more than 3,000
destinations
Over 1,000,000 land services including, car transfers and
regular sightseeing
The complete package
43,000 travel agency locations
480 airlines
26 rental car companies
60,000 hotel properties
430 tour operators
A Preview Of The Future
How do we work together moving forward?
1.
Customer Approach:How should a GTA
salesperson bring Galileo into customer discussion?
• Take 45 minutes discussing the following 4 categories in your group
Record your thoughts on the handout given
Present back to the larger group
3.
Lead Passing:At which point and in what way do I involve a Galileo salesperson?
2.
Value Proposition:How does an integrated Galileo/GTA purchase benefit the customer?
4.
Product Opportunities:What quick-win opportunities
exist to integrate
GTA/Galileo products?
What next?
Q3 05 Q4 05 Q1 06 Q2 06
Sales Planning and Development (SPD) will support the GTA integration and field adoption in the following ways:
• Development of the Galileo/GTA commercial offering• Implementation of Siebel at GTA• Consolidation of reports and design of an integrated business metrics strategy• Development and communication of value proposition• Development of a sales toolkit to support integrated sales (from pre-sale through close)
• Conduct internalneeds analysis; interview key stakeholders
• Conduct market analysis (integrate customer data) to understand where opportunities lie• Begin Siebel implementation
• Deliver commercial offering (end Sept)
• Release value propositions pairedto customer types/tiers (November)
• Release initial version of toolkit (end Dec)
• Release draft of metrics strategy and sample reports
• Release revised toolkit
• Release final report pack and metrics
• Release revised commercial offering (as needed)
• Complete Siebel implementation
OPERATE and SELL!
