Newmarket Confidential and Proprietary Information

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Customer obsession is the new competitive advantage

Only companies that are customer obsessed and adapt to changing behaviors in real-time will succeed.

- Forrester Research

Source: Forrester Research Newmarket Confidential and Proprietary Information

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‣ Changing demographics and consumer behaviors

‣ Desire for information, transparency, personalization and trust

‣ Technology enablers

‣ Big data, mobility, social

‣ Decreasing cost of transactions

‣ New entrants and consolidation/M&A

‣ Customer obsession and innovation

‣ Travel providers’ response

‣ Major investment in infrastructure to connect to venues where customers interact

What’s driving disruption today?

Innovation and opportunity

Reference: Amadeus, From Chaos to Collaboration 2012 Newmarket Confidential and Proprietary Information

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How do they want to buy and experience travel?

‣ Authentic holidays

‣ Multi-generational experiences

‣ Customizable

‣ Trust expert support

Boomers: The ‘Senior Active’ Travelers

70% of disposable income in USA

Young Boomers

Age: 49 – 57 years

Total in US: 44.2 MM

Median Income: $64K

Many Still Have Kids at Home

More Tech Savvy than Older Boomers

Age: 58 – 67 years

Total in US: 38.9 MM

Median Income: $59K

Many Retired

Empty Nesters

Older Boomers

Disruption Opportunity

_ Enable trusted experts with more

information access to satisfy this

segment’s needs

Sources: Amadeus: The Senior Active Traveler 2014; Nielsen 2013. Newmarket Confidential and Proprietary Information

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How do they want to buy and experience travel?

‣ Seamless online/offline travel journey

‣ Heavy reliance on peer recommendations

‣ Co-created unique travel plans

Millennials: The NEXT GEN travelers

Young Millennials

Age: 19 – 27 years

Total in US: 31.3 MM

Median Income: $25K

Still in School

Living with Parents

Earliest Adopters

Age: 28 – 36 years

Total in US: 41.2 MM

Median Income: $48K

Establishing Careers

Starting Families

Older Millennials

Nielsen 2013

Amadeus: The Next Gen Traveler 2013

Disruption Opportunity

_ Even more need to connect, react, acquire, manage and distribute more information faster

_ Even more need for mobility and access at all points in the travel chain

Sources: Amadeus: The Next Gen Traveler 2013; Nielsen 2013. Newmarket Confidential and Proprietary Information

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Common Themes

Customer segments require the travel industry to…

1. Acquire, connect and manage more complete information

2. Provide customers with more control throughout all touch points

3. Be agile to cover end-to-end needs

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The big three innovations converging in the technology space.

= valuable customer experiences and process efficiencies

Amadeus: From Chaos to Collaboration 2012 Reference: Amadeus: From Chaos to Collaboration 2012.

Social Mobility

Big data

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Mass personalization

‣ Mobility - Self service, Big data - Customer knowledge, Social – Virtual assistance -

connecting to places where customers are

Intelligent pricing & merchandizing

‣ Big data – Customer knowledge - Deeper analysis capabilities

Intelligent recommendation

‣ Social - Experience and expertise sharing - Greater quality control - More personalized

2020: Tenets of technology convergence

Amadeus: From Chaos to Collaboration 2012 Reference: Amadeus: From Chaos to Collaboration 2012. Newmarket Confidential and Proprietary Information

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‣ A new era of greater information sharing and exchange,

facilitated by technology innovations, between

communities of travel providers and travelers.

‣ New ecosystem where information is freely exchanged and

the idea of one-way transactions becomes obsolete.

‣ Qualitative shift where service-users become partners

rather than customers. Context is as important as the

transaction.

2020: The collaborative travel arena

Open systems and collaboration pave the way for:

Envision a one-stop co-

creation travel shop, from

planning to post trip to

create the perfect journey

with a single door to door

combined ticket.

Amadeus: From Chaos to Collaboration 2012 Reference: Amadeus: From Chaos to Collaboration 2012. Newmarket Confidential and Proprietary Information

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‣ The use of information for enhanced customer knowledge, personalization, and merchandizing

across the customer lifecycle

‣ Travel companies will have invested to provide for more complete information and greater

customer control

‣ The ability for travel providers to plug into a more holistic ecosystem

‣ Transaction based systems will be come a standards based utility

‣ Reduced transactional cost will fund additional investment in value added customer services

Conclusion: You will have disruption

Customer obsession = Investment

Reference: Amadeus: From Chaos to Collaboration 2012. Newmarket Confidential and Proprietary Information

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1. Focus on Customer Satisfaction/Retention over acquisition

2. Align Brand Strategy with the Customer Experience

3. Nimble and Connected

4. Multiple Data Sources Enabling Predictive Analytics

5. Customer Insights to Develop New Products & Services

6. Real-Time 360 View of the Customer

7. Invest in the Customer Experience

8. Connect with Consumer Post Transaction

9. Invest in Content Over Advertising

10. Agile in Meeting Customer Needs

Customer obsessed companies…

Source: Parature from Microsoft Newmarket Confidential and Proprietary Information