Good afternoon, my name is Lee Horgan, Head of Hospitality IT. Iwould like to thank you for attending today and the opportunity todiscuss Amadeus Hospitality with you. Since 1994 my career has beenfocused on technology for the hospitality industry with NewmarketInternational. Most of my 20+ years in hospitality has been focused onthe commercial side; with an emphasis on product strategy andenterprise accounts.

1

2

Let’s begin by looking at some of the macro trends in the overallhospitality marketplace.

3

It all comes down to one word: the consumer.

What’s driving big change in the hospitality sector is the consumer.Consumers are more educated, more connected and demand moretransparency than ever before. Easy looking, booking and travelmanagement with the mobile is now a customer ‘expectation’. Forhotel workers that same mobile connectivity is critical, as data drivendecisions change the way hotels are operated. Guests use social mediaon a massive scale for information and guidance on their buyingdecisions and also for sharing opinions. For hotels this presents hugeopportunities and of course risks.

Mega mergers are happening on the supply side, for example(Marriott/Starwood, Accor/Fairmont), and also on the demand side(Expedia / Orbitz). There is an ongoing clash over who “owns” thecustomer. OTA’s are vigorously marketing and adding rewardsprograms to their offerings and large partnerships such as Trip Advisorand Priceline are blurring the landscape as to who is truly interactingwith the guests. In this new environment, hotels can simply becomethe fulfillment of the ‘sale’ made by a company with no physicalassets.

4

Of course, the major hotel chains and hotels are not standing still facedwith this disruptive new business context. Many are looking to investheavily in order to capture and improve guest loyalty and ensure theirshare of guest revenues.

Everyone has an eye on Google and Alibaba (Alitrip in China) to seehow they will disrupt the market.

Each week, if not each day has an article on airbnb and how they arechanging the travel patterns of many people. Well, we now see hotelstaking bold steps of their own. IHG, one of the world’s largest hotelgroups (and I’ll be talking more about them later) has recentlyannounced a deal with Uber, enabling guests to request a ride fromwithin the IHG® App through the Uber API. And meanwhile, with IHG‘Ride Reminders’, guests will get an automated email notification on theday of travel to seamlessly request an Uber ride to their hotel.

4

Despite all of this change, the industry is in fact enjoying record hoteloccupancy in many regions. However, looking to the future, hotelcompany executives and managers know that they have challenges toface if they are to increase revenue, reduce costs, improve efficiency,and reduce risk. So what are the key issues that hospitality executivesface? Let’s review the six that are top of mind for many hoteliers.

Reduce IT investment and synchronise multiple platformsHotel chains have previously had few options at the enterprise level,causing many companies to build large internal IT teams and developportions of their solutions in-house. Hotels generally work with severalvendors and rely on technology that does not share data well and hasexpensive independent upgrade cycles.

Social media reviewsReviews are a huge concern for hoteliers. According to a report byPhoCusWright1 on behalf of TripAdvisor, more than 80 percent say thatthe site’s reviews make them feel more confident in their traveldecisions and help them have a better trip. When researching places tostay on TripAdvisor, 80 percent of respondents read at least 6-12reviews before making their decision. They are most interested in

5

recent reviews that will give them the most recent feedback.

Guest loyaltyCreating loyalty with guests may be the most important job forhoteliers. Once a Millennial business traveller establishes allegiance toone brand loyalty program, he or she will pay up to USD 41 more pernight and drive up to 15 minutes out of his or her way to stay with thatbrand. Consumers are flooded with choices and options today. Makingthem brand loyal is a constant challenge.

Control of distributionHotels are focused on making the customer loyal, and are seeking tooptimise the management of their distribution channels for thispurpose. Direct selling channels are generally used to increase loyaltyamongst loyalty programme members. In turn, online travel agenciesgenerate demand and increase customer reach, in most of the cases athigher rates. We see more and more hotels thinking about OTAs as leadchannels whilst the hotel role is converting these leads into returningand loyal guests.

Value for franchise communityThe ‘asset light’ model requires a strong value proposition from chainsto property owners in order to secure franchise agreements. The feesfrom franchisees are the key source of revenue for most chains. Ingeneral, most of the franchise fees paid by a hotel are based on roomsrevenue and are highly variable. The median franchise cost is 11.8% ofrooms revenue2. With an owner’s ability to ‘switch flags’, chains need toadd continuous value and keep their fees in line with market rates; atough balancing act.

Employee productivityIn 2013, 44.8% of all dollars spent on operating a hotel in the UnitedStates went to pay for labour-related costs, making it the single largestexpense item for operators. Labour costs measured as a percentage oftotal operating costs in 2013 ranged from roughly 35% at limited-service and extended-stay properties to 48% at convention hotels andresorts3. Hoteliers need to expand on ways that increase productivityper employee and efficiency, while not negatively impacting guestsatisfaction. Employee interactions with guests has a direct correlationto improved Guest Satisfaction metrics.

1. According to PhoCusWright’s “Custom Survey ResearchEngagement,” prepared for TripAdvisor. December 2013.

2. 2014 U.S. Hotel Franchise Fee Guide, HVS.3. Trends in the Hotel Industry Report; Robert Mandelbaum; director of

research information services for PKF-HR, a CBRE company.

5

The simple fact is that technology in hospitality has not kept pace withother industries.

Due to the high total cost of ownership associated with the currentsystems, point to point interfaces and siloed legacy systems built onclosed architecture, existing technology has proven to be a majorobstacle to scalability, reliability, localisation, simplicity, and speed tomarket.

Current technology handicaps are:

_ Duplication of data.

_ Fragmentation of inventory.

_ Complex synchronisation.

_ Limited functional evolution.

_ Lack of central perspective.

_ Difficulty in personalisation.

The world is moving quickly with regards to technology. Operationalexcellence is no longer the only differentiator. Brand recognition canonly come from offering your guest a unique and personalised

6

experience, which is extremely difficult using the old, fragmentedsystems that most hotels currently have. To overcome this challenge,hotels will need to accelerate their IT strategies if they are tosuccessfully reach and engage the next generation guest - a guest whois mobile, informed, always connected, and more demanding than ever.

6

So in the face of this changing industry what is the landscape in termsof Hospitality IT?

The Hospitality IT panorama remains very fragmented. There continueto be a large number of point solutions from small vendors andpockets where outsourcing services have been used to facilitatesolutions; Accenture for finance being an example. There is no realsingle vendor that provides enterprise solutions in the key functionalareas for a chain.

As you can also see, there has been a lot of consolidation within the ITHospitality Specialists sector over the past 24 months.

7

We believe Amadeus is uniquely positioned to help hoteliers acceleratetheir business goals. This is why:

CloudAmadeus’ understanding of high volume transaction systems. We arebuilding all of our solutions on the cloud to guarantee “always on” andsecure computing. Upgrades are seamless and our flexible technologyallows hotels to work the way they want to work.

Component-based solutionOur solution is modular. It is built via components that workseamlessly together or as part of an existing solution as legacysystems are gradually replaced. We understand replacement cycles inhospitality IT. Not everything at the hotel level can change overnight.Our solution leverages the industry’s best products in four keyfunctional areas: Central Reservation System (CRS), PropertyManagement System (PMS), Sales and Catering, and ServiceOptimisation. With Amadeus, hoteliers will truly have the “Best ofBreed” and the ability to standardise as one unified solution.

Of course, hoteliers will really unlock the total value that our platform

8

brings by leveraging our single inventory solution. The fact that all thekey inventory attributes are centralised in one system will allow forhigher level of personalisation. In addition, this is delivered via ourUltra High Availability platform, which allows for a faster delivery of theoffers and packages based on the guests needs. For example, acustomer will be able to make a search for a room, choosing it to be ina low floor, away from the elevator, with spa access and an early check-in. Our solution will provide the options that matches those attributesand will price them accordingly.

Community ModelOur new hotel community model will be based on the successful bestpractices of our Airline IT Altéa platform. This will deliver higheconomies of scale, customisation capability, functional richness andseamless integration with partners.

Low Risk MigrationWe have the expertise and proven methodologies at both the enterpriseand hotel level when it comes to migrations. Our capabilities includeexpert services for change management, data migrations and on-sitedeployments to assure limited interruptions during a replacement cycle.This is backed by our excellent, award winning customer support(which has delivered an average Net Promoter Score of 84 in a scalefrom -100 to +100 so far this year).

Financial ValueOur financial strength allows us to be a true partner with a hotel. Ourpricing model scales with the success of the hotel business and meansthat we are working together for revenue growth. Hotels can moveaway from heavy CAPEX to a ‘pay-as-you-go’ model.

We estimate our addressable market in hospitality IT to be €3.5 billionin 2018.

8

9

Let’s look at our strategy.

As I mentioned earlier, our solution is modular in nature so that ourcustomers can assemble components based on their business needs.The solution is also designed to accommodate a gradual transitionfrom legacy systems as part of an overall change managementexercise. In certain circumstances, we will partner with existingsolutions.

A clear example is Loyalty or Customer Relationship Management. Oursolutions have been developed following a guest centric approach,which enables guest recognition and personalisation, driving loyalty.Many global hotel chains have invested heavily in loyalty programs andwill want to leverage their components with ours. We canaccommodate that.

Now let’s take a closer look at our key functional areas.

10

The Guest Reservation System (GRS, our next-gen, on the cloudCentral Reservation System) is the cornerstone of our solution.Developed as a revolutionary cloud solution, it is purpose built for thefuture. That future means true guest personalisation. Think of howsuccessful the airlines have been with offering ‘ancillary items’ for sale.Hotels are evaluating the potential of the itemisation of the value theyoffer (note my previous example of room choice) and how our singleinventory solution can support it.

Modern, flexible architecture allows us to respond to the changingneeds of guests and be highly responsive to the marketplace of thefuture. Our deployment model leverages auto-scaling principles torespond to classic seasonal fluctuations in hotel booking cycles.

We know that the future will be about the ‘Internet of Things’ and thatconnected devices will generate more data than keyboard entry. Weare preparing for this and have data scientists working with machinelearning to expand the benefits of our solutions. The guest of thefuture will expect truly personalised engagements. An example wouldbe the ability to see availability need periods and match offers forcertain guests based on their profiles.

11

The GRS follows our transaction-based pricing model making it anattractive solution for hotels looking to avoid upfront financial outlay.The GRS will be sold on a SaaS basis. Hotels are keen to move to a‘utility model’ where they pay for use and value provided, convertingCAPEX into OPEX. We believe this creates strong bonds with ourcustomers as we are heavily invested in their continued success.

11

I mentioned earlier that I would return to IHG. IHG is one of thelargest hotel groups in the world.

As many of you will know, IHG has signed with Amadeus to work onthe design, functionality and evolution of an IT system, which willultimately replace HOLIDEX, IHG's proprietary reservation system.This follows the completion of a successful engineering study by IHGand Amadeus to scope out potential technologies and solutions todrive innovation in the industry for the long-term benefit of ownersand guests. The GRS can be operated alongside HOLIDEX. Thetransition will be rolled out globally in 2017 and will be undertaken inphases to minimise risks.

We are delighted to have signed with IHG. What makes them the ideallaunch partner? IHG is a brand and consumer driven company with aclear focus on guest engagement. They have a long track record oftechnology investment and innovation. They have more than 5thousand hotels of all profiles worldwide – from Holiday Inn Express toInterContinental. They also have a clear vision of what a next-generation GRS should look like. These are just a few of thecompelling reasons why we believe IHG is such a unique launch

12

partner.

12

IHG could not be here today, but Keith Barr, Chief Commercial Officer at IHG, kindly accepted to film a few words for you to help to explain what we are doing together.

13

Our Property Management System (PMS) is an integral part of ourstrategy. It is our second core product for any hotel chain (after theCRS). We plan to leverage the investment made in our CRS, by havinga PMS that can be sold either as a module or tightly integrated withour CRS.

To do that, we acquired Itesso in July 2015. Itesso brings us a highlyexperienced team of 100 hospitality IT professionals deliveringinnovative, category defining products and services that have beenenabling each customer’s brand promise for over 20 years. A companyfocused on customer success: committed to close to 1,800 propertiesas customers in more than 40 countries.

Itesso brings critical PMS development knowledge and know-how tothe overall team. The cloud-native Itesso Enterprise Lodging System(ELS), which we are now calling Amadeus Property ManagementSystem, is one of the most exciting developments in the hospitality ITmarket today.

The Itesso system is component-based and may be used as a smallpart of a large and complex central system or in its entirety with a

14

PMS, CRS and GDS/OTA Switch solution. A ‘Single Source of Truth’design approach makes integrating third party systems, such asCustomer Relationship Management, seamless, guaranteeing that datais exactly the same among all systems. Layered and modular designfollows a similar architectural pattern adopted by Amadeus’ GRS.

The PMS is sold through a SaaS business model, based on the usage ofrooms.

Our envisioned CRS and PMS represent the core of a common platformto optimise the current distribution environment. The two systems arecombined as one and supported through the cloud. The key elementsare:

_ Central Inventory: CRS and PMS remain always in sync, sinceinventory is stored in a single repository.

_ Availability: available rooms kept in a single location, to be shownthrough any channel in real-time.

_ Rates: to be stored in the cloud and to be accessed directly by theCRS or PMS. One single copy of the rate plans to be used by CRS /PMS regardless of the point of sale.

_ Customer / guest profiles: profiles are centrally stored. Guestexperience is significantly improved, preferences easily consolidatedand then used for outbound marketing and guest interaction.

With channel management controlled centrally, specific marketing plansfor the hotels can be executed on a global, national, region, or locallevel.

14

Today’s Investor Day is in fact a good example of our next key productline, a very important one for hotels: our Sales and Catering solutionsfor Meetings, Incentives, Conferences, Exhibitions (MICE). AmadeusSales and Catering is a leading mission-critical solution for hospitalitycustomers that enables the optimisation, marketing and sale offunction rooms, increasing revenue and improving guest satisfaction.

Many large hotels do +30% of their business with groups or MICE suchas this one here today. With the acquisition of Newmarket at year-end2013, Amadeus has acquired a strong business in this area. We arenow the industry leader in hotel group and event management,servicing close to 23,000 catering venues to the Group meetingsbusiness. Our main presence is in North America but we have installedour solutions in over 150 countries, with a focus on top chains, mid-size management companies and independent hotels. We also have astrong market position in casinos, a segment that requires complexfunctionality.

Hotel SystemsPro, acquired in 2015, focused on the sales and cateringspace, provides a complementary product offering.

15

We are transitioning to a fully SaaS business, where our pricing will bedetermined by the number of users or the size of the hotel. Currently,most of our revenue is based on subscription fees determined by thenumber of users or licenses contracted, depending on the products orservices contracted, and may vary depending on the products orservices and per region.

The vast majority of our contracts have a term of 1 to 3 years, andinclude automatic renewal clauses. We have very limited customerchurn, as our customers are our number one focus. We built thebusiness by being easy to do business with and listening to our clients.Our team has delivered a consistent customer satisfaction rating ofover 4.3 (out of a scale from 1 to 5) and we have won the ConfirmitCustomer Satisfaction “Ace Award” for the last 15 years. Our loyaltyrates are also high: Net promoter score of average 84 out of a scale of-100 to +100 in 2016. Also, our customer concentration is quite low(our top 20 customers represent less than 30% of revenue).

Our strength in MICE is accelerating our broader strategy via a betterintegration between PMS, CRS, Sales and Catering, and ServiceOptimisation. It is complementary to the core Amadeus portfolio withcritical modules for the hoteliers. Newmarket was traditionally strong inthe United States and Amadeus helps expand our reach around theglobe. Additionally, all our new developments are also based on moderncloud architecture.

15

In an age of prolific social feedback, providing great service deliveryand recovery is critical.

Amadeus improves service by making it more efficient. AmadeusService Optimisation is a leading enterprise-enabled solution forautomating and tracking preventive maintenance, service orders andguest requests. Our service optimisation tools help hotel groups toraise quality scores by improving the guest experience across all touchpoints. In addition, it optimises labour utilisation, reduces maintenancecosts and increases assets lives.

Hotel groups from small to large and spanning from a grading of threeto seven stars rely on Amadeus Service Optimisation tools that aretailored to their needs.

What are the benefits from our tool? Let me give you some colour.

A typical hotel client can expect both increased staff productivity, andincreased guest satisfaction through, for instance:

16

_ Housekeeping supervisors are able to rush rooms for early check-inor VIP, modify room priorities, add remarks and adjust assignmentsimmediately to help attendants move through their day moreefficiently without interruption.

_ Management monitors room statuses such as Do Not Disturb,Service Request, and Return Later rooms to ensure prompt andtime-tailored room cleaning service.

Our multi-tenant, cloud platform adapts well to single hotels trying toimprove service all the way to global groups enforcing best practices onservice delivery. An open API approach has encouraged the industry toadopt its standards. The result is over 80 of the top technologyproviders are integrating our hotSOS into their solutions. Its services-based approach has enabled multiple global chains to incorporatehotSOS into their technology ecosystem.

16

In the past 3 years we have progressed along the lines we have justpresented to you.

We have moved ahead by investing in those assets that we think arecritical to the future of our industry: GRS, PMS, Sales and Cateringand Service Optimisation.

We now have a large and growing customer base using our solutions,including IHG as a flagship partner for GRS.

Our aim is to become the end-to-end IT provider of reference for thehospitality industry. Our solutions will help hoteliers to better servetheir guests, through seamless integration, modularity, optimal use ofdata, reliability and scalability. Also, by turning CAPEX into OPEX, witha much more cost effective pay-per-use model.

Our community model approach means that hotels can reduce theirspend and reliance on outside vendors, IT development andoperational running costs. In the emerging world of ‘asset light’companies, we are entering the market at the perfect time to deliver ahuge impact to our clients.

17

Amadeus is uniquely positioned to be the partner hoteliers are lookingfor and help them achieve their business goals.

17

Thank you.

18