corporate travel technology

Technology & Cost Management in Corporate Travel

Our Partners :

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Good Afternoon

I’m Desmond

DesmondChong @ Twitter

Doraimon1 @ Facebook

Kauai, Hawaii

Avid traveler

Love surfing

Starbucks Addict

Weekend Job!

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Our partners include Sabre Holdings, a leading provider of technology, distribution and marketing services for the travel industry as well as 11 of the world’s leading airlines in Asia.

Our Partners

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Asia’s Leading Corporate Travel Solutions Provider

Lead In Service Quality And Value

Global Reach With Local Knowledge

Drive Growth And Profitability

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Lead In Service Quality And Value




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Lead In Service Quality and Value



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GLOCAL: Global + Local

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Abacus in Asia Pacific

More than1,200 employees in region

More than 20,000 agencies in 24 markets with more than 120 sales and marketing offices with local support.

Leader in Corporate Travel (>64% segment share across key mkts)

Customers include:

HK: Farrington AMEX, Jebsen BCD, Westminster HRG, Swire Travel, HK Four Seas

ID: Smailing AMEX, Panorama CWT, Bayu Buana BCD, Vaya Anta HRG, Dwidaya

MY: Holiday Tours CWT, Mayflower AMEX, PST BCD, TravelBiz HRG

SG: AMEX, BCD, Global Travel, Safe2Travel, Diners, Prime Travel

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Sabre Worldwide

>9,000 employees in 59 countries, speaking >70 languages

58,000 agencies in 113 markets

39% market share globally

All Global TMC’s process more than 60% of their bookings through the Sabre GDS

Over 50 % Share of Global Corporate TMCs

Winning significant new business in

Europe, Middle East and Africa

Over 60 % of Fortune 200 and nearly 70% of BTN 100

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Additional productivity savings from loading and managing Negotiated air fares

Hotel rates

Traveler Profiles

Improved servicing of international travelers Pre / In-Trip / Post

Security, easier tracking of travelers

End to end reporting capabilities

Optimal platform for booking tool integration

Global companies prefer our network

2010 Corporate Travel Landscape

Our Partners :

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Economic Outlook by Region

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Sustained Regional GDP Growth Outlook

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The Asian Economy: Good News

• First to emerge from crisis, recovering better than expected, business travel reviving

• Recovery in Asia & major economies driven by massive fiscal & monetary stimulus

• Businesses no longer cutting inventory, cargo traffic up

• Balance sheets still vulnerable, liabilities merely shifted from private to public

• Fundamental weakness will resurface as stimulus fades

4.9%

7.1%

6.3%

2009 2010 2011

Source: EIU

• Short-term growth outlook in Asia looks promising @ more sustainable rate and less heady

• China’s Q1 GDP, 11.9%

• Singapore’s Q1 GDP, 32.1%

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14.2M Increase (16.2% YoY) in Passengers Transported, Feb

• Passenger growth (RPK) continues for Asian Carriers for 7 straight months

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Load factor Up, Capacity Up

• 7 straight months of improvement in load factor for Asian carriers, averaging 79.2%

• First capacity growth (2.4%, YoY) for first time in 12 mths

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Bookings & Load Factor Up across Asian Carriers

Int’l Pax: 1.4M, +9.5%Int’l Load: 80.8% (+11.4%)

Singapore Airlines

Int’l: 456k, +26% DOM: 3.7M (+1.7%)Load: 81.3% (+12%) Load: 70% (+3.7%)

All Nippon Air

Int’l: 6.3M, +21.2% Load: 80.3% (+4.8%)

CN Southern

Source: CAPA

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Year Ago, 25% Drop in Premium Traffic

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Asia Leads Recovery in Business Travel

• Improving regional economy lifting demand for premium travel

• Fares & Yields improving due to capacity cuts & high load factor

Source: IATA

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Corporate Hotel Bookings, 2010

-2%

-1%

0%

1%

2%

3%

4%

5%

GDS Bookings GDS Net Rev ADR on GDS

Jan10 vs Jan09 Feb10 vs Feb09 Source: Pegasus Solutions

• 2.9M availability requests in Feb10

• GDS ADR continues to trend higher from Dec09

• Booking volumes continue to outpace 2007, 2008

• Avg LOS continues to trend higher, apart from NA

• ADR over last 14 mths trended 15 – 21% higher than North America.

• Growing confidence in leisure & corporate bookings thru June2010, with lead times rising

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Corporate Travel to Continue Growth

• Total gross booking in 2008 – US$24.5 billion• In financially tighter times, increased role for Corporate Travel agent’s as ‘value

champions’ - helping corporations manage travel efficiently

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Total leisure/unmanaged business travel is expected to reach US$203billion by 2011 for APAC

The total leisure /unmanaged online market is expected to grow at 22% from 2009 to 2010 and 26% from 2010 to 2011.

Source: PhoCusWright Inc.

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Some Risks in 2010/11

• Potential slowdown in US & EU major economies; impact to trading partners in 2011

• Credit expansion & asset bubbles in China, India, Vietnam pose risks to stability & sustainability

• Investors overly enthusiastic about recovery forgetting drivers of recovery are short-term and imbalances exist

• Anti-inflation measures could cause drops in business investment & asset prices too quickly

• Withdrawal of policy support will also expose substantial volatility

• Cause for OPTIMISM but CONSERVE CASH

Our Partners :

Using Technology to Meet Corporate Travel Goals

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Unit Cost Total Cost

Cost Value Focus

Global goals, Local Needs

Key Corporate Travel Goals

Value

ROI

Service Quality

BALANCE

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Travel Mgmt ProgramEnabler

Can’t Manage & Negotiate without

data

Direct Impact on Experience,

Perception, Value

Achieving Them, Requires…

Data

Technology

Content

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Online Corporate Travel Mgmt Solution

• Greater compliance collaboration across organization & regions

• Lower Total Cost of Travel through process, spend, and admin savings

• Higher chance of meeting corporate objectives

• Optimizing strategic supplier relationship

• Track, measure, and change behavior through data

• Continuous Improvement

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GetThere: Average Client Savings

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

2006 2007 2008 2009

Base Agency Fee Savings Online Airfare Savings Add-on Feature Savings

Average Customer Spend Profile

• Average annual travel spend - $30M

• 2006-2009 Adoption – 47%, 56%, 77%, 82%

Average Customer Results

• 4 year net savings - $13.9M

• 4 year incremental savings - $4.4M

• GetThere 4 year ROI – 2245%

• GetThere 4 year NPV - $8.6M An

nu

al G

etT

he

re S

avi

ng

s ($

)

Average Customer and GetThere ResultsFour Year Annual Savings

Note - 2009 results are six month actuals/six month forecast based on current spend and trending adoption rates

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Fare Content Directly Impacts Business Value & Service Perception

• Access to unique fare content: Strong value differentiator

• Asia Fares complex yet crucial to get right. APAC fares environment is complex (by design)

• Complexity differs dramatically by market & customer segment

• All challenges can be overcome - and differentiating value of content makes it worthwhile to go deep.

• TC1 and TC2 based corporations with branches in TC3 markets do find local fare content critical

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19 Markets64 Airlines/

275 Agency Suppliers

840 FareSources

99 Cities

• 7% fare increase Q1, 2010

• Fares system complex & expensive to build

• ADM’s

• 59 new airlines/agency Y2009

Fare Mgmt: Continues to Be Key Differentiator

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Carriers Continues to Back Abacus FareX

430,000

661,804

1,084,087

1,588,645

2,004,786

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2005 2006 2007 2008 2009 (Projected)

+53%

+64%

+47%

+26%

~40% of corporate fares in HK ticketed through FareX

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More Instability = More Business Risk

Earthquakes

HurricaneTerrorists

Earthquakes

Yr 2008 39 earthquakes



More than 300,000 people kill since yr 2000

Bush fires

EarthquakesEarthquakes

Earthquakes

Earthquakes

TerroristsTerrorists

Terrorists

Terrorism incidents

In year 2000 – 2006

Total terrorism incident 14, 943

Total fatal during terrorism 24, 675

Source: National Earthquake Information Center, Nationmaster

Terrorism incidents

In year 2000 – 2006

Total terrorism incident 14, 943

Total fatal during terrorism 24, 675

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Security Tools Saves Lives + Cost + Risk

Managerisks

Mitigateloss Manage

costs

•Locate travellers at a glance

•Anytime, anywhere access

•Easy to use, minimum training required

•Peace of mind

•Locate travellers at a glance

•Anytime, anywhere access

•Easy to use, minimum training required

•Peace of mind

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TAOperations

PowerSuite Mid OfficeAuto booking cards creation

Centralized Invoices/XOs

Daily sales reports

PowerSuite Front Office•Customer profiles•Availability & Fare Quote•Ticket Issuance

PowerSuite Back OfficeJE, GL transactions

Financial reports

Agency Productivity, QC, Data Consolidation Increasingly Important

• ~50% higher productivity

• Prevention better, cheaper than curing QC issues

• Process savings from automation & consolidation

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Business Intelligence

• Value of data is the Business Insight

• Corporate customers’ need for data will grow in sophistication

− Robust FMBO is central to being able to capture & share such insights with customers (e.g. Lost Savings, Top 10 City Pairs, Agent Productivity…)

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Travel is Mobile

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High Value as Traveler Service Channel

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Connect friends & family with your trip experience

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Smart Devices Get Smarter, Powerful, Context Relevant

BlackberryiPhone Android Windows Phone

Thank You