Future of Distribution

Jürgen Witte Regional Managing Director Germany & Switzerland Travelport GDS Tenerife, April 08, 2011

Talking about…

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Current GDS performance

Future of Distribution

uAPI, Universal Desktop, Caching

...your questions, ideas, remarks....

Travelport Corporate Background

Travelport Corporate Background

Facts & Figures

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600 airlines, thereof > 60 Low Cost Carrier

90.000 Hotels

30 Car Rental Companies, 30.000 stations

> 70.000 agencies worldwide

5.500 employees in 160 markets

Global Distribution Systems: Evolution of the Big 6

• 1960: American Airlines founded Sabre, 1976 first travel agency terminal

• 1971: United Airlines founded Apollo• 1971: START (LH, DB, TUI) -> 2001-03 Amadeus • 1975: Abacus by JAL, SIA, Qantas etc.• 1986: Initiation of Galileo by British Airways, KLM, Alitalia,

Swissair, US Air, Austrian Airlines, Air Canada...• 2007: Merger Apollo/ Galileo / Worldspan -> 2009 under

Travelport GDS• 2010: Initial Public Offer from Amadeus

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1975

The first digital camera, developed by Steve Sasson,

Kodak

Weight: 3,5 KGPixel: 10.000 (oder 0,01 MP)

Media: Cassette,Black/White,

displayed via TV

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How a GDS customer sees the circumstance…

Travelport ownership overview

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Source: Travelport

70.3%

11.3%

11.3%7.0% Blackstone

Technology Crossover Ven-turesOne Equity PartnersManagement

% of TotalCompany Position Shares Outstanding

Blackstone 818,706,823 70.3

Technology Crossover Ventures 132,049,488 11.3

One Equity Partners 132,049,487 11.3

Management 82,064,177 7.0

Travel industry dynamics

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End-Consumers have multiple ways of buying travel; either through agencies or direct with suppliers. Corporations also have the added benefit of utilizing self-booking tools

Agency and corporate customers

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60,000+ travel agencies worldwide

Online Travel Agencies

Global Corporate Agencies

Corporations

Leisure & Corporate Agencies

Airline customers

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• 430 Airlines including over 70 low cost carriers

• Over 4bn fares available• 46m air searches every day• Over 327m air segments annually

• 40% of our Top 10 customers total bookings are made outside of their country of origin – only possible because of the reach of the GDS

What our customers are telling us...

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“We need a global reach but also support for local requirements”

responsibility“We want help in reducing costs”

“We need strong, robust and flexible technology”

“We need to differentiate ourselves from the competition”

“We need to be able to compete using solutions that grow our business”

“We need analytical Intelligence to maintain vision and control of our business”

“We need online solutions to make it easy for our customers to book travel”

Which translate into these customer needs

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SUBSCRIBERS TRAVEL SUPPLIERS

Access to global & local content

Competitive fares & rates

Tools to save time, money and make processes more efficient

Stand out in the crowd in order to get and keep

customers

Global reach and local expertise

Technologies & services that reduce costs and generate

revenue opportunities

A committed partner positioned to support unique requirements

How Travelport meets these needs

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SUBSCRIBERS TRAVEL SUPPLIERS

VALUE

Access to relevant,rich & diverse content

Comprehensive low prices

Convenience

Reliability

Flexible technology solutions

Efficiency tools

Control

Distribution to 60,000

agents worldwide

Grow revenue streams

Extend brand reach

Merchandising

Pricing flexibility

Travelport value proposition

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Empowering your business

globally through local

focus

Delivering solutions you need

Building valuable

partnerships

Innovation to keep you

competitive

Our global reach

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Travelport has the size, scale and scope to shop, price, book and aggregate content from multiple suppliers on behalf of multiple travel agencies on behalf of millions of travellers in one place, seamlessly

5,700 employees worldwide

Over 4bn stored fares

65 mm daily searches for pricing and availability

Dynamic connection build

1 billion messages per day

160 countries

Real time booking

Comprehensive low fares and rates

Travel intelligence services

Mission critical IT services and software

600 airlines

Over 87,000 hotel properties

30 car rental companies

Over 400 cruise and tour operators

13 major rail networks

60,000+ travelagencies

Travel management companies

Corporations

Tour Operators

Metasearch

Multiple Suppliers Size & Scale Multiple Agencies & Travellers

Empowering your business globally through local focus

Our local focus

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Our local account, development and technical teams are positioned close to our customers to support local needs.

Areas we invest in locally

• Account management

• Product management

• Helpdesk support – including ASK Travelport

• Partner marketing with our customers

• Local technology partnerships

• Training

• Localised product & marketing material

• More than 40 local websites

• Business conducted in 29 languages

Empowering your business globally through local focus

Solutions that save cost – Travelport Rapid RepriceTM

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Travelport Rapid RepriceTM - The industry’s first and most sophisticated automated re-pricing tool

Quickly and accurately calculates a new fare reflecting appropriate fare rules, taxes, and other fees in any currency .

And by completely automating the ticket exchange and re-price process online, increases customer satisfaction.

Reprices fare in

less than 1 minute

“Our strategy to deploy efficient technologies made Rapid Reprice a good fit for United Airlines. The product has provided financial and operational benefits while improving the overall service we deliver to our customers. We are very pleased with this innovative solution.”

United Airlines

Delivering the solutions you need

Innovation - Unprecedented low-fare pricing options worldwide

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“We are able to search for a wider selection of low-fare options and flight combinations in seconds, allowing us to maintain a high level of competitiveness in the market.“

Antonella Marchesi, Site ManagerEasy Market S.pA, part of TUI Travel Italy

According to the latest International study (Dec 2008), Travelport e-PricingTM:

• Returns lowest fares most frequently

• Found lower fares most often

• Generates the greatest average savings per ticket

• Delivers the lowest average ticket price

Average savings of

$68.13 per ticket , or

9.4% over the competition

Innovation to keep you competitive

Delivering high return for today’s airlines

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Achieving competitive advantage through innovative technology

Cost-efficient hosting utilising common architecture infrastructure

Solutions to improve profitability and maintain revenue integrity

A suite of messaging hubs allowing easy connection to partners

Business insights and innovative solutions to grow your business

Protect mission critical operations

Expand revenue opportunities

Capture lost revenue

Connectivity to the world

Selected Customers

Airline hosting

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• Two out of the three largest U.S. airlines are clients

• Secure, infrastructure –independent site in Atlanta

• Provides significant cost savings allowing clients to focus on their core business

• Unprecedented 10+ year track record of zero data center downtime

World class data centres operating at the highest industry standards and compliance requirements

“Travelport knows what it takes to support mission critical infrastructure to a global business. Combine that with strong operational staff and you have a recipe for success. Travelport is more of a partner than a vendor.” 

Douglas Register, Vice President Service Management & Engineering Information Services Division

Tony Thierjung Director of Operations Management

United Airlines

Capture Lost Revenue• Fare Verified: Pre-ticketing audit

tool, eliminating under priced tickets and reducing fraud

• Rapid Reprice: Automated ticket re-issue tool, eliminates manual processes

Connectivity to the Rest of the WorldInterchange Suite: suite of messaging hubs that allows for quick and easy connection to airline partners and provides a rapid deployment methodology

Expand Revenue Opportunities• Reservation Sales Solution (RSS) - Single link

to Travelport GDS with access to over 430 airlines, 280 hotel chains and 25 car companies

• Electronic Miscellaneous Documents (EMDs) - Utilizing ATPCO Optional Service fees, document and track charges not provided for on a passenger ticket (e.g. residual value, miscellaneous charges, excess baggage), in development

• Electronic Credit Vouchers (ECVs) - Create, store and redeem electronic credit vouchers for Travel Credit Vouchers, Reference Documents, MCOs or Gift Certificates

IT solutions

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Competitive industry insights and analysis

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Custom Solutions for:

Market, network & sales planning

Airline Business Performance

Insights to Market Opportunities

Scheduling

Travelport AcuityTM

Travelport DiscoverTM

Competitive insight

Cost management

Identification of new opportunites

Market strategydevelopment

Market sharegrowth

Increased revenue

Industry knowledge

GDS booking & share data

Data expertise

Analytical experience

Solutions to reduce costs

Ability to merge multiple data sources

Customer necessities:

Travelport expertise:

Providing affordable industry intelligence for smarter, more profitable business decisions

The Future of Distribution

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The future: Innovation and Changes

Integrating into the customer, not vice versa!

Universal API (uAPI)

Travelport Universal API – Architecture

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Supports individual GDS functions as structured messages

Universal API

RailContent

Hub

Multi GDS

AIRCAR HTL

New content

Planned development

“...access to a centralized selling & service platform.”

Future

UniversalDesktop Traversa ViewTrip

AirContent

Hub

Merchandising Hub

Universal Record &

Profile

Supports wrapped processes (similar to Encapsulated Business Logic modules on GWS)

OTA’s & Travel Agents

Software developer &

Supplier

Corporate & Multi

National

Standalone API Offering

Travelport POS Engine

Universal Desktop

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Travelport Company Confidential

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3232

Dashboard/ Activity Panel

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Dashboard• Search• Reports• Data Tracking• InBox

Activity Panel• Links• Messenger• Contacts

33 Travelport Company Confidential

Booking GUI & Workflow

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Workflow

(Runways)Merchandising

(Optional Services)

Profiles

(Traveler Profile)

Policy

(Air Policy)

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GDSAir

Direct Connect

Travelport Company Confidential

Terminal

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Terminal Entry

• Galileo• Worldspan• Apollo• Sabre• Amadeus

(WIP)

35 Travelport Company Confidential

Flightplayer (T‘Cache)

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• Travelport FlightPlayer - T´Cache “Published Fares”

T´Cache Generator

Travelport

Travelport GDS

Galileo

Overall Work-Flow:

Arrow colour legend: fulfillment transaction booking transaction Peakwork transactions content loading transaction

- - - - - - - - - - - -Travelport GDS

GalileoT´Cache

Published FaresMarket Specific

PSE Flight Player

PCC TPTC

Travelport Flight Player

Centralised

Tour Operator

TO3 PeakworkHUB/Dyna

Player

TO 1 PeakworkHUB/Dyna

Player

TO2 PeakworkHUB/Dyna

Player

TO 1 Booking

Front EndPCC TO1B

TO 2 Booking

Front EndPCC TO2B

TO 3 Booking

Front EndPCC TO3B

TravelportTour Operator

TO 1 FulfillmentPCC TO1F

TO 2 FulfillmentPCC TO2F

TO 3 FullfillmentPCC TO3F

LoadingRequest via HUBBooking via GWS / uAPIFulfillment

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• Travelport FlightPlayer - T´Cache “Private Fares”

T´Cache Generator

Travelport

Travelport GDS

Galileo

Overall Work-Flow:

Arrow colour legend: fulfillment transaction booking transaction Peakwork transactions content loading transaction

- - - - - - - - - - - -Travelport GDS

GalileoT´CachePrivateFaresTO Specific

PSE Flight Player

PCC TO1PF

Travelport Flight PlayerTO 1 Specific

Tour Operator

TO3 PeakworkHUB/Dyna

Player

TO 1 PeakworkHUB/Dyna

Player

TO2 PeakworkHUB/Dyna

Player

TO 1 Booking

Front End PCC TO1B

TO 2 Booking

Front End PCC TO2B

TO 3 Booking

Front EndPCC TO3B

TravelportTour Operator

TO 1 FulfillmentPCC TO1F

TO 2 FulfillmentPCC TO2F

TO 3 FullfillmentPCC TO3F

LoadingRequest via HUBBooking via GWS / uAPIFulfillment

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• Travelport FlightPlayer - T´Cache “Published and Private Fares”

T´Cache Generator- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Travelport GDS Galileo

T´CachePrivateFaresTO 1 Specific

PSE Flight Player

PCC TO1PF

Travelport Flight PlayerTO 1 Specific

TO 1Peakwork Hub

Loading

T´CachePublished FaresMarket Specific

PSE Flight Player

PCC TPTC

Travelport Flight Player

Centralised

T´CachePrivateFaresTO 2 Specific

PSE Flight Player

PCC TO2PF

Travelport Flight PlayerTO 2 Specific

TO 2Peakwork Hub

Though this setup can

handle PrivateFares it mutliplicates the requests

by factor x for each city pair! The more TOs having Private

Fares the more

extensive and expensive the data load is.

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Integration