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Jean-Sébastien Irigoyen

17 September 2014

• Where we are now

• Trends

• Content

• What matters to OTAs

• Conclusion

Agenda

• The Industry is growing!

• Online is growing quicker than Offline!

– Three times faster!

• Online will reach 50% of the Industry in the next few years

Online trends

– 3

Northern Europe 2% growth

Southern Europe 3% growth

More city breaks = confidence

River cruising increasing

47% increase in city trips since 2009

Over 350 new aircraft will facilitate traffic growth

In Europe, things are getting better…slowly

Source: European Commission Survey ETC 2013, World Travel Trend Report, IPK International & ITB Berlin 2013/2014

The Online Opportunity

Or…

14%

13%

10%

6%

5%

51%

2008

Orbitz

Opodo

Travelocity/lastminute.com

Priceline/Booking.com

Expedia/ venere

Others

31%

15%

11%

4% 3%

40%

2012

Travelocity

Orbitz

eDreams/Odigeo

Expedia

Priceline/Booking.com

European OTA share of Gross Bookings

7 Produced by Market Strategy and Pricing, CMO

25%

15%

12%

4% 3%

41%

2011

Travelocity

Orbitz

eDreams/Odigeo

Expedia

Priceline/Booking.com

48%

64% 60%

Others Others

Consolidation set to continue in Europe - Pan-European brands account for over 60%

• Where we are now

• Trends

• Content

• What matters to OTAs

• Conclusion

Agenda

Customer searches

• For more Choice

• For more Content

• With more Confidence

Source: Google trends – 9

Technology

• Devices

– Shipments of Tables, Desktops and Laptops growth is slowing (+12% in 2014)

– Tablets will outsell laptops by 2015

• Novelties

– Phablets

– Hybrid PCs (Surface)

• Apps

– Drives adoption

– Windows 8

10

11

Search Engines moving down the travel decision process

• Google – Flight Search & Hotel Finder & Local maps

• Microsoft Bing partners with Tripadvisor hotel search and app

Online Travel Agencies moving up the travel

decision process using Metasearch sites

• Booking.com/Priceline + Kayak

• Expedia + Trivago • eDreams Odigeo + Liligo

Inspiration

Research

Validation

Booking

Travel

Tripadvisor -> Metasearch

• Validation site now a metasearch

Industry: Redistribution?

Go Social

12

Better Online and Offline integration

• Amazon example

• Banks

– BNP: Hello Bank

– Société Générale: Boursorama

– ING

• Travel

– FCM

13

• Where we are now

• Trends

• Content

• What matters to OTAs

• Conclusion

Agenda

Air

• LCCs represent 35% of PAX carried by the Top 10 airlines in Europe…

– RyanAir is the biggest EU carrier

– Followed by AF KL (-3.5%)

• Fare unbundling

– Seats

– Luggage

• Traditional Airlines may extend the LCC model

– Cf AF/KL strike regarding Transavia expansion

15

Airlines who distribute extras through Travelport

Accor build further in Europe

• 41% of the new openings are in Europe

• Upscale and midscale hotels are up by 3.3%

• The economy segment also shows revenue up by 4.1%

• All European countries contributed to this growth, particularly in the United Kingdom and Southern Europe, which continues to improve.

Motel One expands in Europe

• 19 hotels in 2007 - now 46 in 2013

• Investment in UK hotel market with 6 hotels in the pipeline

17

Ikea to open budget hotel chain

• Ikea to open a budget chain of 150 hotels in Europe

• Being developed in collaboration with Marriott and to be called Moxy

• The UK expected to be key target market

Budget hotels expand in Europe

In essence

18

We still need to find what we want

19

20

Speed

Relevance Choice

Accuracy

Intelligent Search

Travelport e-Pricing is central to our Intelligent Search proposition

Our advanced fare search algorithms process millions of fares and deliver the best range of accurate itineraries to travelers

More search relevancy

21

Flex Explore A live, real-time inspirational search tool

e-Streaming Valuable ‘big data’ for analysis and cache for search

e-Pricing meta A fast and accurate tool to optimise appearing on meta site results tables

Search Control Console Tailoring search results to control supplier policies and drive relevancy

Travelport’s Online solutions

22

eStreaming

• Where we are now

• Trends

• Content

• What matters to OTAs

• Conclusion

Agenda

What Travelport like not to forget

OTAs become eCommerce that happen to sell Travel

eCommerce follow only one KPI:

Conversion

24

Focus on conversion

Confidential 25

Cause Effect 100 visitors

Bounce Rates

Attracting poor quality traffic

& low relevance for users Homepage 40% 40 people leave

2% = 2 bookings

Search

Results 35% Poor design / usability &

Results 35 people leave

Poor design and unclear

calls to action Booking

Form 15% 15 people leave

Payment 8% Unclear calls to action and

lack of trust 8 people leave

What matters to OTAs

• Drive traffic

• Increase conversion

• Grow margins

• In a cost effective way

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Conclusion

Best content

Best technology to retrieve it

But still up to the Online player to bring their customers onsite!

In essence

28

How will you differentiate from competition?

How will you bring customers on the website?

And more importantly, how will your customer come back onto your website?

So many questions to ask!

– 29

Travelport provide the content, tools and expertise for OTAs to concentrate on bringing the customers onsite!

Travelport is a key partner

TRAVELPORT CONFIDENTIAL

Q&A

– 31

Please ask jean-sebastien.irigoyen@travelport .com for more!

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