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Total kontroll og en

verden av muligheter

Lars Wernblom

Commercial Director

Amadeus Scandinavia

Oslo

October 31, 2011

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Travel trends

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A 70 70 40 40

INTERNET Behaviour

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Direct Channel

Online

In-direct Channel

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THE WRONG QUESTION

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UNDERSTANDING

Introduce and

implement solutions

Identify the reasons

why

Understand the

behaviour

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7

Leisure Travel trends

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The younger, the more they book direct Number of trips

58% 50%

Source: Amadeus Scandinavia’s End Customer Segmentation study

2011

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Digital Natives are the future travelers

Age of personalization: Hear

me, see me, remember me

These future travelers will stay:

1. Mobile and always connected

to everything and everyone

2. Empowered to validate

everything

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Search behavior

Use search at any point in the journey

Start journey with search

Are generic searches

Source: “Analysis of purchasing process in the UK online travel market”,

Nielsen 2010

92%

35%

70%

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The era of personalization

…to customer centric search From traditional air travel search

Source: Forrester Research

Origin airport

Departure date

Departure time preference

Destination airport

Return time preference

Return date

Number adults/children/seniors

Class of service

”How much do I want to

spend?”

”What do I feel like

doing?”

”How long do I

want to stay

away for?”

”What else do I want

included in the trip”?

”How much do I want to

feel when I retun?”

”What do things look

and feel like?”

”Who will be

traveling with

me?”

”What do my friends

think?”

”What do I want included

in the fare?”

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It’s not only about price

Leisure traveller needs:

Fast search

Online guidance

Relevant information/inspiration

Offer targeted to their needs

Best price vs quality

Transparent prices & conditions

Source: Phocuswright

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Trust is in the collectivity

Source: Total Media

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Corporate Travel trends

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Traveler Corporation

Booking channels

What goes online…

Leisure expectations

Mobile and connected

Social Media

The future travelers

Online Bookings

Streamlining travel related

processes

KPI: Satisfaction vs cost

Ancillary Services

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Where did you search for information?

2%

5%

7%

14%

15%

4%

38%

2%

12%

1%

1%

2%

3%

3%

10%

18%

23%

36%

Other

Search engine

Meta search

OTA

LCC website

Travel arranger

Airline direct

Booking tool

Travel Agency

No policy

Have a policy

Source: Amadeus Scandinavia’s End user study (air) 2009

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Where did you book the latest trip?

No travel policy Travel policy

17%

44% 3%

27%

48%

12%

6%

10%

12%

4%

11%

2%

2% 1%

Other

Internet Travel Agency

LCC website

Travel arranger

Airline website/phone

Corporate SBT

Corporate Travel Agency

26%

81%

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Growing Uses of Social Networks

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Peer Influence Matters

Source: Total Media

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Breakthrough of Mobile Techonology

Source: Morgan Stanley

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Source: PhoCusWright

High Penetration Among Business Travelers

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Information…

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My time is ME time

During business trips:

72% research local restaurants and hot spots

63% connect with friends or family living close to the destination

29% use online/social networking sites to connect with or meet

new people

33% have taken their partner, children or friend with them on

business and extended the trip into a holiday

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The Future Business Travelers?

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Traveler Corporation

Booking channels

What goes online…

Leisure expectations

Mobile and connected

Social Media

The future travelers

Online Bookings

Streamlining travel related

processes

KPI: Satisfaction vs cost

Ancillary Services

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Increase adoption of self-booking tools

Online adoption increased +39% (TMCs) and +50% (Business) 2010/2009

-0.2

0

0.2

0.4

0.6

0.8

1

1.2

2008 2009 2010 2011

Corporate Online

Business TA Offline

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Self-booking tools drive Hotel bookings

26% 26%

19%

31%

13%

9% 6%

5%

28% 22%

7% 6%

Travel policy SBT

Other

Hotel website

Hotel Aggregator

Online TA

Travel arranger

Corporate SBT

Corporate TA

66% vs. 58% go to

TA channel to book

their hotel

Source: Amadeus Business Traveller Hotel study 2010 (1049

respondents)

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Streamlining Travel Related Processes

Source: BTN survey of 226 travel buyers

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Source: PhoCusWright

Balancing Cost vs Traveler Satisfaction

Top Challenges

Facing Travel

Programs

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Ancillary Service

Improve Traveller Experience

Secondary

revenue

stream

Augment

Retail

price

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4. Ancillary Services Here to Stay

Source: Study conducted by Forrester Consulting on behalf of Amadeus, Q4 2010

Revenues from ancillary services to grow 50%

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How Can You Meet These Trends?

Traveler Corporation

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Access to Relevant Airline Content

34

389

60

104

Global Total Number of Airlines

100

33

96

Highest Level of Access Full Content

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Low Cost Carriers Airlines booked by Scandinavian Travel Agencies

35

Ticketless Access Custom Fares Net Check

Ticketless Access Direct Connect Net Check

All Fares Custom Fares Net Check

Access Update + Int. Sell Direct Access Direct Acc. + Direct Sell

Full Ticketing

ATLA or Equivalent

SSR Epay

All Fares or Equivalent

Access Update + Int. Sell Direct Connect Net Check

All Fares Custom Fares Net Check

Via LH Custom Fares Net Check

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Forget one-size fits all! A 360-degree, multi-pronged approach

Help ensure 100% bookability and control of hotel

programs + facilitate TA conversions

Rate / content optimization

Hotel Store Multisource prepaid commission guaranteed Unique

search-engine powered comparative shopping

within existing points of sale (Hotels Plus, AetM,

WS)

Aggregator content

6000+ independent hotels commission guaranteed +

private content

Flexible integration of independent small/ medium chains or IT

systems

LinkHotel / private content

5 1 3 4 2

The top 300+ Chains

Continue to add key new chain content and extend content

and best rates

Amadeus GDS Hotel content

5 1 3 4 2

Full Relevant Hotel Content

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Rail travel is growing

In 2009, 30 billion rail pax

1,6 billion travelled long-distance

Coming 15 years, nearly 12 000 km of

high speed track will be built in Europe

The network will connect large

numbers of major cities across Europe

Rail grew market share from 49 to

68% 2010 vs 09 on STO-GOT

90% say they would like to see rail

fares displayed alongside air

Source: Tnooz, SilverRail Technologies

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Conclusion

In order to change the Trend…

70 70 40 40

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Conclusion

…we have to

Understand and meet the expectations of the

New Empowered traveller…

Go Online !

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Takk

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Brighter, Bolder, Better