Why Be Average?

Smart Spend DataCan Help You ExcelBeyond Your Peers

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The World of Travel is Changing

Low Cost Carriers have turned air travel into a commodity

Meta sites and OTAs are dominating mobile booking channel

Expectation of personalization increasing but still in early days in the Travel Industry

Ancillary services driving huge revenues but disruptive new entrants creeping in

The sharing economy is estimated to grow from $14B in ‘14 to $335B by ‘25

Price and increased convenience alone is not enough to create real brand loyalty.Personalization is nowa must have.

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l.The key to unlocking this is Smart Data

Travel Leaders of the future will customize brands and their marketing strategy in accordance with the target architypes. They will understand their customers and offer personalized, excellent service that creates a new wave of loyalty.

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Only 30%of executives found more than half of their collated

analytics data was useful for

decision-makingEconsultancy 2017 Report

Email data 57.1%

CRM data 54.8%

Search Engine data 50.8%

Social media profile data 49.0%

Proprietary transaction data 40.3%Digital ad tracking 39.5%

Third-party transactional data 36.2%Loyalty program data 35.5%

Ratings data 34.7%

Geospatial/location data 30.9%

Mobile app data 30.6%

Cookie and pixel tracking 29.3%

Free text data from chat systems and reviews 15.1%

Internet of things 14.8%

Imagery and video analysis 8.4%

Other 5.4%

Don’t gather data on customers 7.4%

EyeforTravel, “The State of Data and Analytics in Travel Report 2017”

Types of Customer Data Used by Travel Professionals Worldwide to Generate Insight into Their Customers,% of respondents

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5 Key Insights onFuture Travel Leaders

Artificial intelligencewill revolutionize traveler personalization throughout the journey

Service, value and personalization will be the new loyalty

New, customer-centric approaches during the booking process will bethe sustainable, long-term revenue model

Insightful knowledge, powered by data, will revolutionize theability to deliver relevant customer experience pre, during and after sale

Service revenue modelswill be reclaimed by travel leaders successfully focused on providing a seamless end-to-end experience

1 2 3 4 5

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Innovations across multiple modes of transport are creating better customer experiences and therefore options for travellers

Insight 1

In the future . . . Travel Leaders will use data insights to take a much broader, contextual view of the traveller need and will focus on ways to make the end to end journey as easy as possible

New, customer-centric approaches during the booking process will be the sustainable, long-term revenue model

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PARTNER VIEW

Customer (825k)

Worth $715M

Top 3 - SoW > 56%

Retention Strategy$27M headroom for growth

Bottom 3 - SoW < 36%

Development Strategy$1B headroom for growth

Customer(SoW by decile)

Customer(825k)

Worth $2B

MASTERCARD SMART SPEND DATA

20% exclusive to our partner

Share Of Wallet 36%

Case Study – Partner among Top 5 Largest Hotel Groups in the WorldEnrich Our Hotel Partner Customer Knowledge With Smart Spend Data

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Now… Start Ups are using A.I. to replace the need for travellers to ‘D.I.Y. online’, making the process easier

In the future . . . mass segmentation models will be replaced with tailored recommendations at opportune moments, dramatically increasing the likelihood of deeper engagement and purchase

PERSONALIZATION

up to 8x ROI

on marketing spend

Insight 2

Artificial intelligence will revolutionize traveller personalization throughout their journey

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Illustrative – Travel Partners

Transform Insights Into Actionable Targeted Marketing Plans

CUSTOMER SPEND WITH PARTNERP A R T N E R V I E W

HIG

H

Retain Increase Share of Wallet

Primary Target –Increase Share of

TransactionsPrimary Acquisition

Target

MED

IUM

Build Category Consumption Build Loyalty

Secondary Target –Increase Share of

TransactionsSecondary

Acquisition Target

LOW Increase Average

Basket SizeIncrease Average

Basket Size & Increase Loyalty

Low Investment Priority Low Priority

HIGH MEDIUM LOW NON BUYER

CUSTOMER SPEND IN INDUSTRY

M A S T E R C A R D V I E W

Reduce level of marketing investment

Low Investment

Priority

Drive awareness among high spender in luxury segment most likely to travel to the destination

Primary Acquisition

Target

Test & Learn from content strategy optimization

Build Category

Consumption

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Insight 3

Insightful knowledge, powered by data, will revolutionize the ability to deliver relevant customer experience pre, during and after sale

In the future . . . Travel Leaders will liaise with relevant partners that can provide actionable insights for all concerned key markets

The challenge for most airlines is not related to the amount of data they sit on, but rather the data available across geographies. Traditionally the home market is well catered for but where they suffer is in away markets.

Most hotels suffer that the data is out at property level and not consolidated systematically centrally. Hence a consolidate customer centric approach is difficult to manage.

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Case Study – World-Class Airlines Partner

Share shift activity with an Airline in a strategic away market

M A S T E R C A R D S M A RT S P E N D D ATA

We know you master overall macro data rather well.However by applying your overall market overview data with Mastercard data we will be able to identify on zip-code level your performance.The ability to benchmark your performance will indicate areas of focus.This will maximize your ROI and enable a more targeted approach.

INSIGHTS

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Case Study – World-Class Airlines Partner

Share shift activity with an Airline in a strategic away market

M A S T E R C A R D S M A RT S P E N D D ATA

We can evaluate areas of underperformance and suggest service class/booking class focus in the offering.By either using Mastercard Issuer contacts or by “digital footprint” campaigns we drive your direct sales to the relevant target groups.Applying control groups and predictive capabilities we help you maximize ROI.

ACTION

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A perfect storm is brewing, creating opportunities for disruption; new entrants have already emerged

In the future . . . Travel Leaders will develop an ecosystem of providers who can deliver a superior end to end service, further affirming their position as the travel lifestyle brand of choice

10%AIRLINE REVENUE

CONSIST OF ANCILLARY REVENUE AND IT IS GROWING RAPIDLY

Insight 4

Service revenue models will be reclaimed by travel leaders successfully focused on providing a seamless end-to-end experience

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Case Study – World-Class Airlines Partner

Ancillary: assess your position on market thanks to Smart Spend Data

M A S T E R C A R D S M A RT S P E N D D ATA

INSIGHTS

High Value Segment

Leisure Segment

Airline Comp setAvg Spend at Destination $1,153 $1,517

Avg Trx Size $210 $249Nr of Transactions 5.1 6.3

Airline Comp set

Avg Spend at Destination $1,254 $1,347Avg Trx Size $224 $215Nr of Transactions 5.6 6.3

10%

90%

Airline Comp

9%

91%

Ancillary Revenue Share

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Case Study – World-Class Airlines Partner

Ancillary: assess your position on market thanks to Smart Spend Data

M A S T E R C A R D S M A RT S P E N D D ATA

ACTION

By analyzing specific airline customers spend we identified opportunities to target proactive offers. We identified where the segments highest affinity is….and what triggers consumers to buy and in what channels we should offer our promotion.Ancillary is not only during flight but importantly pre- and post flight.Mastercard analyzed down to merchant name where target segments had the highest interest and willingness to buy. Mastercard assisted travel partner in the execution and reach.

High Value Segment

Airline Comp setAvg Spend at Destination $1,165 $1,496

Avg Trx Size $217 $244Nr of Transactions 5.4 6.1

8%

92%

Airline Comp

Ancillary Revenue Share

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*Phocuswright 2017

Some providers are looking at new ways to invigorate loyalty

In the future . . . Travel Leaders will enshrine their status as lifestyle brands through subscription models that have application and benefits beyond the journey, and with personalized offers that consumers can redeem easily

80%AIRLINE AND HOTEL LOYALTY PROGRAM

MEMBERS ARE UNENGAGED*Service, value and

personalization are the new loyalty

Insight 5

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.latinedifno Cdn ay rtaeirp oPr.drac rtes aM7102©

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Travel Leaders of tomorrow will use data to redefine discovery,revolutionize the customer experience and reimagine loyalty

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18DECEMBER 19, 2017

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A C T I O N

M E A S U R E

I N F O R M Gain market and customer insights through BI platforms & data-driven consulting

Acquire and retain the right customers with personalized content

Execute marketing campaignsOptimize the traveler journey

Measure efficiency of actionsTest & Learn software

TA R G E T

Unlock Smart Spend Data with Mastercard Advisors and Grow Your Business

210+ countries around the world

2.3B Mastercard cardholders transacting

6M times every hour across

All spending categories in

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20

CREATING THE FUTURE TOGETHER

Smart Datapowered by Mastercard

LEARN MORE ATgo.mastercardadvisors.com/EFT