Electronic Ticketing-now 45%PERCENT ET

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%

2/23

/97

4/27

/97

6/29

/97

8/31

/97

11/2

/97

1/4/

98

3/8/

98

5/10

/98

7/12

/98

9/13

/98

11/1

5/98

1/17

/99

3/21

/99

5/23

/99

7/25

/99

PED DATE

PERC

ENTA

GE

PERCENT ET

NBTA Survey on E-Tickets

Presented toAirlines Reporting Corporation

September 29, 1999

Results NBTA E-Ticket Survey

◆ Fax Survey to 500 Travel Managers

◆ Response data from 330 Travel Managers

◆ Goal: To identify systemic challenges tointegration of e-tickets in corporate travelprograms

Current use of e-tickets amongsurvey respondents

◆ Domestic Travel use equals 44%

◆ International Travel use equals 4%

◆ Overall total percentage of use 42%

Question 1:What inhibits your use of

e-tickets

(respondents selected on responsefrom 11 categories)

What inhibits your use of e-tickets

◆ 80% Travelers feel uncomfortable withoutpaper

◆ 80% Difficulties in changing fromoriginally booked airline in case ofcancellation

◆ 56% Code share carriers not accepting orfacilitating e-ticket use

What inhibits your use of e-tickets

◆ 50% Inability to track and recapture unusede-tickets

◆ 40% Confusion travelers experience atairports when e-ticketed

◆ 20% Not realizing cost savings on airlinefares using e-tickets

◆ 10% E-ticket travelers treated differently◆ 10% Confusion by travel agents in

executing e-tickets.

Question 2:What is the single most important

reason you do not usemore e-tickets

What is the single most important reasonyou do not use more e-tickets

◆ 26% Travelers uncomfortable with e-tickets

◆ 25% Difficulties in changing fromoriginally booked flights

◆ 13% In ability to track or recapture unusede-tickets

Will your company evermandate e-tickets

◆ 41% Could mandate e-tickets if all issuesresolved

◆ 55% No, would not ever mandate e-tickets

If the current problems were resolvedwould you increase your use of e-tickets

◆ 90% would increase their use of e-tickets ifcurrent problems were addressed

If the airline offered lower air fares fore-tickets versus regular tickets would you

use more e-ticketing

◆ 90% of respondents answered Yes

Recommendations from NBTA

◆ Increase implementation of interliningagreements with other carriers

◆ Create incentives and enhanced services fore-ticket passengers

◆ Move toward the sharing of cost-savingwith travel programs

NEW ELECTRONIC OFFICE (EO)

◆ Board approved June 99◆ A fully approved ARC location that is not

permitted to order or possess ARCaccountable traffic documents

◆ IAR and ET are the enablers◆ Reduce security requirements◆ Reduced theft opportunities◆ ARC in front of demand on EO◆ Application out this fall

Electronic Office

Configuration #1: EO is an Independent, a Home, ora Branch standing alone

EO Location

Carlson Travel

◆ E-tickets only

◆ IAR required

◆ Print all non-accountable necessary documents

Electronic Office

Configuration #2: EO is a Home or a Branchsupported by a single non-EO branch or a Home of

the same legal entity

EO Location

Carlson Travel- (A)

◆ Sell E-tickets

Non-electronic office

Carlson Travel- (B)

◆ Print all accountable docs for EO

New Ticket Fulfillm ent Location(TFL)

◆ Board approved June 99◆ Non-selling ticket printing/packaging site only◆ Multiple entities may have own branch at one

site◆ Code number of the driving location, not TFL,

prints on all coupons◆ Options for more fulfillment activity, such as

IAR reporting, being requested

◆ Print passenger coupons◆ ACN of the driving location is only ACN on tkt◆ Tkt packaging/fulfillment

ACN: 11111111

American Express(AX)

ACN: 23456789

Carlson Travel

ACN: 31694273

Republic NationalBank (RNB)

AX only

Carlson only

RNB only

TF BRANCHES AT ONE OR DIFFERENTPHYSICAL LOCATION(S)REMOTE SELLING/DRIVING LOCATIONS

ACN: 12345678

(AX TF Branch)

ACN: 20987654

(Carlson TF Branch)

ACN: 32109876

(RNB TF Branch)

ARC Approved TF (High Level):Multiple Entities Printing to Its Own Unique TF Branch

◆ ACN of the location driving thetransaction

◆ Print agent /auditor coupons◆ ARC sales reports

ARC Approved TF (Detail):Multiple Remote ACNs of One Entity Printing to One TF Branch

◆ ACN of the location driving the transaction◆ Print agent/auditor coupons◆ ARC sales report

◆ Print passenger coupons◆ ACN of the driving location is only ACN on tkt◆ Tkt packaging /fulfillment

CWT TF Branch

ACN: 12345678

ACN: 11111111

CWT #1 - TX

ACN: 12222222

CWT #2 - NY

ACN: 13333333

CWT #3 - CA

ACN: 14444444

CWT #4 - FL

CWT papertkts only

CWT TF BRANCH (SINGLE LOCATION)CWT REMOTE SELLING/DRIVING LOCATIONS

(Showing Paper Ticket only)

Electronic Office Supported by TF Configuration #3: EO is a Home or a Branch

supported by TF branch of the same legal entity

EO Location

Carlson Travel

ACN: 1234578

◆ Sell E-tickets

Print accountable docs

TF Branch

Carlson Travel

ACN: 20987654

◆ Print passenger coupons.

◆ ACN of the driving location is only ACN of tkt◆ Tkt packaging/fulfillment

Proposed Changes to the TFLAgreement for EnhancedFulfillment Functionality"

Kyle Perry -WorldTravel PartnersKyle Perry -WorldTravel Partners

Kathy Kelly -Travelocity.comKathy Kelly -Travelocity.com

Demme Wiggins -Demme Wiggins - OFS Online Fulfillment OFS Online Fulfillment ServicesServices

What is Enhanced Fulfillment?Builds on Approved TFL Agreement :

•Quality Assurance - Automated and Manual

• Ticketing

•Packaging & Distribution

and then adds:

•Purchase Confirmations & Shipping Notices

•Incident Resolution

•ARC Processing: Audit & agent coupon printing,IAR sales reporting, debit memo processing, void &refund processing, exchange processing

Fulfillment Location vs. Full Service Location

•No sales activity

•No signage or advertising

•No public access or walk-in traffic

•No cash activity

Challenges?•Multiple Printers

•Stock Separation Management

•Architectural Build-out

•Storage Facilities

•Staff Utilization

•Security

◆ Print passenger coupons◆ ACN of the driving location is only ACN on tkt◆ Tkt packaging/fulfillment◆ ARC sales reports◆ Print Agent/Auditor coupons◆ Customer Service◆ Minimal Handwrites

TF BRANCHES (AT ONE PHYSICAL LOCATION)REMOTE SELLING/DRIVING LOCATIONS

ACN: 12345678

(AX TF Branch)

ACN: 32109876

(RNB TF Branch)

ACN: 12345678

( AX EO Branch)

ACN: 20987654

(AX #2 EO Branch)

ACN: 32109876

(RNB EO Branch)

◆ ACN of the location driving the transaction.

PROPOSED Enhanced Fulfillment Location (High Level):Multiple EOs of the Same or Different Entity Printing to Its Own

Unique TF Branch

•• Must already be an ARC approved Travel Must already be an ARC approved Travel Agent to operate Agent to operate

• Enhanced CAS staffing at location

•• Electronic Ticketing must equal 50% or Electronic Ticketing must equal 50% or more of all ticketing done at the site more of all ticketing done at the site

•• IAR processing for all A C N entities IAR processing for all A C N entities

Proposed ChangesProposed Changes

◆ Print passenger coupons◆ ACN of the driving location is only ACN on tkt◆ Tkt packaging/fulfillment◆ ARC sales reports◆ Print Agent/Auditor coupons◆ Customer Service◆ Minimal Handwrites

TF BRANCHES (AT ONE PHYSICAL LOCATION)REMOTE SELLING/DRIVING LOCATIONS

ACN: 12345678

(AX TF Branch)

ACN: 32109876

(RNB TF Branch)

ACN: 12345678

( AX EO Branch)

ACN: 20987654

(AX #2 EO Branch)

ACN: 32109876

(RNB EO Branch)

◆ ACN of the location driving the transaction.

◆ Multiple EOs of the same or different legalentity at one of different physical location(s).

PROPOSED Enhanced Fulfillment Location (High Level):Multiple EOs of the Same or Different Entity in a Single Location

Printing to Its Own Unique TF Branch

••Electronic Solution for matching TicketElectronic Solution for matching TicketStock to A C NStock to A C N

••Cross Utilization of StockCross Utilization of Stock

Long Term ProposalLong Term Proposal

Non-Accredited Subscriberor an Electronic Booking O ffice

◆ 4000 non-ARC # issued by CRS◆ Have CRS access to inventory with no

accreditation, stock or reporting◆ Carriers have concerns about inventory

access given to unknown entities◆ Agents concerned about relaxing ARC

standards

Revised Proposal for anElectronic Booking Office (EBO)

◆ Have CRS access to inventory with no ARCaccreditation, stock or reporting.

◆ Must be associated with an ARC approvedentity, either an agent, CTD or carrier.

◆ The entity would apply at a carrier’s request &the EBO would be assigned a unique nbr.

◆ The EBO number would only identify thesource of reservation, but never ticketing.