Latin AmericaSales Management

June 2009

LATAM: 379 MILLIONS HABITANTS EMERGING MARKET

Population 2008 (Millions of habitants)

GDP 2008 USD per capita

Growth GDP 2008 (in % )

Inflation 2008 (in %)

191,99.7005,00%4,0%

29,17.6008,00%4,00%

45,07.2007,00%5,10%

40,613.0009,00%9,00%

16,414.4005,00%7,00%

109,912.5003,00%4,00%

Source: indexmundi.com / 2008

– Comission: 10%

– Form of payment: Invoicing for most countries

• Credit Card 50% / Invoicing 45% / Cash 5% (Midscale Brazil)

– TMC’s: Only in Brazil they are formally organized. Competition

still practices Travel Agencies Rates (AGV). Quite few are

developing SBT.

– Travel Managers: Well organized in Brazil (NBTA basis) and

Argentina. Pushing for 2 years contract and flat rates.

– DMC’s: Due to dollar devaluation, started to sell to Corporate.

Flat Rates in dollar hard to negotiate. Quite few are online.

– Tour Operators: Dominate small hotel chains pushing prices

down. Pushing on flat rates. Offer better commission than

suppliers.

– OLTA: Biggest are HOTELDO and E-HTL. Online connection via

CM Net project still in development.

Market Overview – HOTEL BUSINESS

Payment / Remuneration

ACCOR LATIN AMERICA SCENARIO

Outbound from BR

– Lack of defined KPI ‘s for Regional and International

– Oil, construction, mining, automotive and agro business

– Use of DMC’s as reservation channel

Other countries

– Difficulties to measure and manage

• Definition of database / portfolio management

– Booking channel: 70% of bookings directly in hotel– Payment: 45% invoicing

• 10 days after check-out for Corporate (pushin to 45 days)• 20 days after check-out for TMCs group

– New Reporting System (info per portfolio/channel/intermediate)– ASA in Central Sales /Implementation in Hotel Sales Started in

July

Domestic BR (Midscale)

SALES STRUCTURE – ACCOR HOSPITALITY LAT.AMERICA 2009

Central Sales

Hotel Sales

KAM’S DUTIES

• Pricing• Contracting• Loading• Animation / training• “Pass-through”

CENTRAL SALES x HOTEL SALES DINAMICS

CLIENTE – Key Account

CENTRAL SALES

LATIN AMERICA HOTELS

HOTEL SALES

• RFP (ACQ)• MICE Leads• Long stay /• Relationship

SALES PERFORMANCE per BRANS - YTD 08/08

Resultados YTD May 2009

Total (Equipes) Room Revenue Sales (R$) Total Room Revenue Accor (R$) Sales Portfólio (%)

Sofitel 12.631.098 42.439.915 30%

Mercure Apartments 37.691.525 77.286.424 49%

Mercure 19.250.760 40.532.007 47%

Novotel 10.859.391 24.057.707 45%

Total Bandeira 80.432.774 184.316.053 44%

Obs.: Sofitel Florianópolis e Salvador estão sendo considerados na bandeira Sofitel.

Total (Equipes) Sales Portfolio Room Nights Total Room Nights Accor Sales Portfólio (%)

Sofitel 30.564 92.209 0

Mercure Apartments 233.215 454.971 1

Mercure 110.153 205.337 1

Novotel 58.246 124.452 0

Total Bandeira 432.178 876.969 49%

Obs.: Sofitel Florianópolis e Salvador estão sendo considerados na bandeira Sofitel.

SALES PORTFOLIO PERFORMANCE

SALES PERFORMANCE PER SALES TEAM YTD MAY 08 x 09

2008 2009 2008 2009 2008 2009 Var %

Hotel Sales 259.015 201.737 - 22,1 44.432.393 37.499.078 - 15,6 171,54 185,88 8,4

Agencies 91.191 65.337 - 28,4 16.270.771 12.401.839 - 23,8 178,43 189,81 6,4

Corporate 178.829 136.850 - 23,5 28.642.881 23.002.829 - 19,7 160,17 168,09 4,9

Turismo 37.990 22.848 - 40 6.614.516 6.449.926 - 2,5 174,11 282,30 62,1

TOTAL 574.616 432.183 - 25 97.470.387 80.433.389 - 17,5 169,63 186,11 9,7

DM REALRH REALRN REAL

Var %Var %

Figures Jan Fev Mar (07 x 08). Source Cognos.

FIGURES – TOP 20 CLIENTS

PERFORMANCE vs COMPETITION - TMC’s

Favecc

TMC Brasil

TRENDS LATAM

– Market started to react after May (mostly Groups)– Battle for Revenue focused in Distributors (Travel

Agencies, TMC’s, MICE organizers and Tour Operators)– Pressure from Corporate Clients to include Breackfast

and Internet in RFP rates– New Competitors to be in country after 2011 (Economic

and Midscale)– TMCs to threat suppliers with production suspension if

we don’t pay overcomissions or Entrance Fees– Most TOP clients are not accepting rates raises over

inflation– Panic Management from competition leading to rate war

in some areas

MIDSCALE

– Mostly same trends, but competition is applying Midscale rates for Upscale brands

– Usage of Trade Marketing to sustain brand knowledge and share of mind

UPSCALE

AgenteAccor.com.br

Travel agencies website

AWP – Agencies Web Program

Online Multi brands Guide

Travel Agencies Campaign

13% comission campaignLaunch of loyalty program

Tradeshows & Events

Budget Trade Marketing

Dependency on Brands

Official calendar = 15 tradeshows

Travel Agencies Day

Sales Training

TRADE MARKETING