e-Travel The Channel to Success

amadeus solutions online

© copyright 2002 - AMADEUS Global Travel Distribution S.A. / all rights reserved / unauthorized use and disclosure strictly forbidden

e-TravelThe Channel to Success

Ian Wheeler

April, 2003



Agenda

Global online trends Is online travel important for offline agencies About e-Travel Working in partnership



Global Trends - Online



ShrinkingVolumes

NewEntrants

Margin Pressure

The global picture



Online trends - general

1. Online champions1. Low cost carriers2. National airlines3. Online Agents

2. Online leisure growth fueling B2B growth3. Fare structure changes – Air4. Technology & Content combined – making

shopping easier1. Hotels2. Air

5. Consumer experience and perception



Example UK: Onlinechampions invest

in educatingThe market



B2C growth encourages B2B

Nov 2001 Jan 2002 Apr 2002 … Germany UK France

Example: As Consumers useB2C sites for

Leisure Corporate Demand grows



Example:One way pricing,Air New Zealand



Example: TaxesStripped out

Of initial priceSearch and

Added later, BA



Example: Displaying200 possible

Available faresFor the shopper

To search through



Expedia shot

Example: Choice,Information, Maps,

Visuals, PriceHotel Booking

: Expedia



User View from the US

Most check 2-4 sites before booking Half shop online and book offline Mosts shoppers convert to bookers over time Users rate online agents

Better choice Simpler to use Offering lower prices

While rate offline as better service and reliability

Source: PhocusWright Consumer Travel Trends Survey 2003Source: PhocusWright Consumer Travel Trends Survey 2003



Source: PhocusWright 2003

Tradional Agency Online

Agency

Supplier

Best service 48% 19% 23%

Most reliable 36% 25% 26%

Best choice 29% 46% 12%

Simplest Use 29% 42% 25%

Lowest Price 14% 59% 14%



The Right Environment

Large point to point market Technology readiness Clear value in moving online Self service culture Proactive players



Market Evolution

Top 50

Large

SME

Consumers

Top 50

Large

SME

Consumers



Market Evolution Predictions

In each market consumers check 3-4 web sites 30% of online leisure traffic goes to airline sites 30% of online leisure traffic goes to hotel sites 70% of online leisure traffic goes to 2-3 online agencies 3-4 leading players per market serve the mass of the

corporate market place from agency branded portal sites How many are traditional How many are new online players

3-4 leading players serve the top 50 companies with tailoured individual service including technology, integration and service

How much traffic goes online? 25-50%?



Is Online Important – for an offline Agency?



Why move online - Motivation

Direct relationship with travelers Retention & Growth

Taking service cost out of the business Providing choice Servicing the lowest margin business at the

lowest cost



“We estimate that a corporate agent makes an average of ten bookings a day … when that agent uses a web based booking tool

they can complete ten bookings in only ten minutes”





About e-Travel



3 key strategic focuses:

Traditional Travel Distribution

GDS

e-Commerce

e-Travel

Airline IT

IT Services

Amadeus Positioning



e-Travel Mission

e-Travel is an Amadeus business unit dedicated to delivering the most successful online travel solutions to corporations, airlines and travel agencies, worldwide.

Highest return on investment Rapid adoption and conversion rates Peace of mind (scalability, reliability & security)



Travel AgencySolutions

Suppliers

Centralsystems

ConsumersCorporations

Business Model



Global Presence

- 250 employees in 6 Global Distribution Centers

- 70 National Marketing Companies

- 200 countries

Global business unit of Amadeus for online travel solutions (B2B and B2C)



Reference Customers

...Across 90 countries

...In over 20 languages

200+ corporate sites200+ corporate sites

2200 agency sites2200 agency sites

16 Hotel sites16 Hotel sites123 airline sites123 airline sites



Primary Product Portfolio

e-Travel Aergo

e-Travel Planitgo

Checkmytrip



Evolution

Aergo V6 Improved usability for users and administrators Improved air and hotel shopping experience Improved functionality for corporate portal sites Setup speed – dramatically improved Maintaining local functionality Ability to deploy globally – more quickly Access to non GDS content



Working in Partnership



Working in Partnership

A portfolio of technology services Online serviving for offline bookings Corporations Consumers

Pay as you go pricing A travel agency certification program Reseller agreements Local support – sales, marketing, implementation,

support



But….

A successful online business means change Processes Pricing Staffing and training Marketing & selling

Successful players have created new business units or divisions within companies or radically transformed the entire business



e-Travel means

Proven return on investmentRapid adoption rates Peace of mind

Documents

e-Travel The Channel to Success