3 Travelport Corporate Background This section focuses on Travelport GDS, our role in how the world travels and how we bring value to customers.In particular, we call out the Travelport Value Proposition and give tangible examples, through quotes, case studies and quantifiable results, to support each of the 4 pillars;Empowering businesses globally through local focusDelivering solutions our customers needBuilding valuable partnerships, and:Innovation
5 Global Distribution Systems: Evolution of the Big 6 1960: American Airlines founded Sabre, 1976 first travel agency terminal1971: United Airlines founded Apollo1971: START (LH, DB, TUI) -> Amadeus1975: Abacus by JAL, SIA, Qantas etc.1986: Initiation of Galileo by British Airways, KLM, Alitalia, Swissair, US Air, Austrian Airlines, Air Canada...2007: Merger Apollo/ Galileo / Worldspan -> 2009 under Travelport GDS2010: Initial Public Offer from Amadeus
6 How a GDS customer sees the circumstance… 1975The first digital camera,developed by Steve Sasson, KodakWeight: 3,5 KGPixel: (oder 0,01 MP) Media: Cassette,Black/White,displayed via TV6
7 Travelport ownership overview % of TotalCompany Position Shares OutstandingBlackstone 818,706,Technology Crossover Ventures 132,049,One Equity Partners 132,049,Management 82,064,Travelport is a private company owned by The Blackstone Group, One Equity Partners, Technology Crossover Ventures and Travelport management.Blackstone was founded in 1985 and is a leading global alternative asset manager and provider of financial advisory services ( listed on NYSE as ‘BX’). Blackstone has total fee-earnings assets under their management of $91.0 billion (Dec ‘08)Their business is organised into four business segments:Corporate Private EquityReal EstateMarketable Alternative Asset Management (such as hedge funds)Financial AdvisoryBlackstone’s portfolio includes controlling stakes in, for example, Hilton Hotels, Nielsen, Universal Orlando and Center Parcs and equity stakes in Deutsche Telekom, amongst many othersSource:Rochelle Jennifer Boas, Group Vice President, Legal & Corporate Secretary andSource: Travelport
8 Travelport Global Reach #2#2#1#1 or #2 in All Major Markets
9 Travel industry dynamics End-Consumers have multiple ways of buying travel; either through agencies or direct with suppliers. Corporations also have the added benefit of utilizing self-booking toolsLet’s look at how the travel industry works. On the left we see the sellers; that includes airlines, rental cars, hotels, cruise lines, and so on. Sellers are called suppliers in the industry, since they supply their inventory of available seats, rooms, and other services. On the right are the buyers; the people who are traveling. There are two types of intermediaries that connect suppliers and travelers.Supplier content is provided to the GDS. Content includes the schedules, availabilities, fares, rules for travel, etc… all the information needed to book travel. Suppliers also deal with end-consumers directly through their supplier.com sites, via metasearch engines and through corporate self-booking toolsThe second intermediary in the travel industry, traditionally speaking, is the travel agent. Travelers contact the agents who are able to find and book suitable travel arrangements for them.Over time, the linkage between buyer and seller has been enhanced by the advent of online travel agencies. Corporations too have set up in-house agencies to manage employee travel, often delivered by travel management companies.
10 Agency and corporate customers 60,000+ travel agencies worldwideGlobal Corporate AgenciesLeisure & Corporate AgenciesOnline Travel AgenciesCorporationsWe serve over 60,000+ travel agents across the globe who depend on us to provide travelinformation, booking and ticketing capabilities travel purchases and management tools for travelinformation and travel agency operations. Access to our GDSs enables travel agencies to electronicallysearch travel-related data such as schedules, availability, services and prices offered by travel suppliers.
11 Airline customers 430 Airlines including over 70 low cost carriers Over 4bn fares available46m air searches every dayOver 327m air segments annually40% of our Top 10 customers total bookings are made outside of their country of origin – only possible because of the reach of the GDS
12 What our customers are telling us... “We need a global reach but also support for local requirements”responsibility“We want help in reducing costs”“We need strong, robust and flexible technology”“We need to differentiate ourselves from the competition”“We need online solutions to make it easy for our customers to book travel”What our customers are telling us...Research, customer insights and requirements gathering are a major part of our development process and drive our initiatives. Your feedback is important to us to ensure that we continue to deliver products and services that keep you relevant and competitive.By capturing your perspectives at every point we touch your business, we are able to understand the whole breadth of your operational and commercial needs and typically, the messages we are getting back include the following ...“We need analytical Intelligence to maintain vision and control of our business”“We need to be able to compete using solutions that grow our business”
13 Which translate into these customer needs SUBSCRIBERSTRAVEL SUPPLIERSAccess to global & local contentCompetitive fares & ratesTools to save time, money and make processes more efficientStand out in the crowd in order to get and keep customersGlobal reach and local expertiseTechnologies & services that reduce costs and generate revenue opportunitiesA committed partner positioned to support unique requirementsWhich translate into these customer needs ….From our agency subscriber customers’ perspective they need a combination of global content, to take their travellers anywhere in the world, mixed with deep local supplier content – particularly airlines and hotels. They also want the reassurance of booking at the best possible prices. As margins come increasingly under pressure, they need our expertise to increase efficiencies and reduce cost giving them more time to focus on serving their customers. And finally, they need innovative ways to differentiate themselves so as to retain and win new customers.Our supplier customers are looking for our help to give them the broadest market reach and practical local support. They are continuously seeking new ways to generate revenue and increase yield, such as merchandising to agents and consumers, whilst also making operational efficiencies. And critically, they need a partner committed to understanding their unique needs.
14 How Travelport meets these needs TRAVEL SUPPLIERSSUBSCRIBERSVALUEAccess to relevant, rich & diverse contentComprehensive low pricesConvenienceReliabilityFlexible technology solutionsEfficiency toolsControlDistribution to 60,000 agents worldwideGrow revenue streamsExtend brand reachMerchandisingPricing flexibilityHow Travelport meets these needsFor our subscribers, we provide access to a wealth of value-added, aggregated travel inventory. Travelport is committed to providing the right content our customers want to buy, continually searching out new content sources to ensure that we provide both the breadth of global content and the depth of local inventory. Our customers want the most comprehensive selection of fares available together with the assurance of the lowest available prices. In the recent international study, it was shown that Travelport e-Pricing returns lowest fares most frequently, generates the greatest average savings per ticket and delivers the lowest average ticket price beating the competition hands down.Our Atlanta and Denver data centers are amongst the world’s largest non-military data facilities delivering uptime of 99.98% to ensure reliability and robustness.Travelport is a the forefront of innovative technologies, developing solution that deliver convenience and efficiency savings; no more so than our forthcoming Travelport Universal Desktop that enables customer-driven workflow Management and provides a collaborative user experience.For our suppliers, we provide them with connectivity to approx. 60,000 agents worldwide and millions of end-users via metasearch companies. But connectivity is not all we do; we provide solutions to help maximise their presence and to help them grow incremental revenue streams. Our forthcoming Travelport Retailing Solutions will allow suppliers to sell their products and services the way they sell them, enabling them to differentiate their products, and to provide them with the ability to generate highly targeted advertising and promotional offers.
15 Travelport value proposition Empowering your business globally through local focusDelivering solutions you needBuilding valuable partnershipsInnovation to keep you competitiveWhat drives your success is providing travellers what they want: Informed travel choices at the right price. Our success is driven by enabling you to excel. Your needs are the reason Travelport exists and why we must continue to lead the industry – together.Our unique proposition to you is based on 4 key tenants that we consistently hear from our customers, as the key ingredients for our joint success:1. Leveraging our global reach to provide extraordinary value at the local market level.2. Responding to your needs by to providing customer-centric solutions that lower your costs whilst enhancing your business efficiencies and increasing your revenues3. Travelport’s success as a business partner and technology innovator is founded on how we regard our customers – as true partners4. From our earliest times, Travelport is an enduring innovator and no organisation is more experienced, capable or flexible in providing technologies to keep to relevant and competitive
16 Empowering your business globally through local focus Our global reachTravelport has the size, scale and scope to shop, price, book and aggregate content from multiple suppliers on behalf of multiple travel agencies on behalf of millions of travellers in one place, seamlesslyMultiple SuppliersSize & ScaleMultiple Agencies & Travellers600 airlinesOver 87,000 hotel properties30 car rental companiesOver 400 cruise and tour operators13 major rail networks5,700 employees worldwideOver 4bn stored fares65 mm daily searches for pricing and availabilityDynamic connection build1 billion messages per day160 countriesReal time bookingComprehensive low fares and ratesTravel intelligence servicesMission critical IT services and software60,000+ travelagenciesTravel managementcompaniesCorporationsTourOperatorsMetasearchGlobal ReachThe GDS remains the largest conduit for travel distribution and transaction processing worldwide. Whilst the industry becomes more populated with niche and fragmented sources of content, Travelport ensures buyers in every market have reliable, aggregated content through our GDSs and the major travel Web sites we support.As a result, we process more than 1 billion unique travel-related messages daily for customers around the world. We respond in real time to 65 million daily searches for pricing and availability on flights, hotels and car rentals alone. Our core systems scalability and reliability deliver 99.9 percent uptime so that we don’t let our customers down.More than 5,700 employees worldwide who are proactive in answering local market needs60,000+ travel agency subscribers425 airlines>87,000 hotel properties from 280 chains25 car rental companiesAll major domestic and international rail networks400+ cruise and tour operators7,500 tourist attractions29 languagesLocal market currenciesSource: 10-K
17 Empowering your business globally through local focus Our local focusOur local account, development and technical teams are positioned close to our customers to support local needs.Areas we invest in locallyAccount managementProduct managementHelpdesk support – including ASK TravelportPartner marketing with our customersLocal technology partnershipsTrainingLocalised product & marketing materialMore than 40 local websitesBusiness conducted in 29 languagesTo keep your business on track you need a partner that can support you with whatever your issue at whatever the time of day. At Travelport we take customer support seriously. Our vision is to deliver the most efficient, effective, and innovative support solutions enabling Travelport and Travelport customers to reach and surpass their goalsWe get closer to our customers at a local market level by facilitating a more nimble and flexible approach to customer needs and solutions by investing in experienced and knowledgeable account managers and investing in local product management.We have 25 Helpdesk centres around the globe with over 348 service agents in our first-level Helpdesk support handling more than 900,000 calls every year. If the issue cannot be resolved at this level it is then passed on to our regional Global Service Operations team. This team ‘follows the sun’ ensuring coverage and support wherever you are, whatever time of day.We also are committed to deliver comprehensive online help resources to all customers. ASK Travelport, available in 8 languages (and more to come) now has over 56,000 registered users and since its inception we have received over 1,785,000 enquiries.
19 Solutions that save cost – Travelport Rapid RepriceTM Delivering the solutions you needSolutions that save cost – Travelport Rapid RepriceTMTravelport Rapid RepriceTM - The industry’s first and most sophisticated automated re-pricing toolReprices fare in less than 1 minuteQuickly and accurately calculates a new fare reflecting appropriate fare rules, taxes, and other fees in any currency .And by completely automating the ticket exchange and re-price process online, increases customer satisfaction.Travelport Rapid RepriceTM – The first fully automated solution for re-pricing and re-issuing airline tickets when passenger itineraries changeTravelport Rapid RepriceTM was built in conjunction with a major airline customer and is the industry’s first and most sophisticated automated re-pricing tool.Key benefits:Increased customer satisfaction by offering online itinerary change optionQuickly and accurately calculates a new fare reflecting appropriate fare rules, taxes, and other fees in any currency - New accurate price in less than 1 minuteAutomates the ticket exchange and re-price process onlineEvery fully auto-priced itinerary is price guaranteedLowers airline operational costs per re-booking“Our strategy to deploy efficient technologies made Rapid Reprice a good fit for United Airlines. The product has provided financial and operational benefits while improving the overall service we deliver to our customers. We are very pleased with this innovative solution.”United Airlines
20 Innovation - Unprecedented low-fare pricing options worldwide Innovation to keep you competitiveInnovation - Unprecedented low-fare pricing options worldwideAverage savings of $ per ticket , or % over the competitionAccording to the latest International study (Dec 2008), Travelport e-PricingTM:Returns lowest fares most frequentlyFound lower fares most oftenGenerates the greatest average savings per ticketDelivers the lowest average ticket price“We are able to search for a wider selection of low-fare options and flight combinations in seconds, allowing us to maintain a high level of competitiveness in the market.“Antonella Marchesi, Site Manager Easy Market S.pA, part of TUI Travel Italye-Pricing shops across published and negotiated fares, and has the capacity to present from 25 up to 350 of the bestavailable options in one integrated display.• You have the flexibility to shop for low fares prior to booking an itinerary-or for an itinerary that is already booked.• Flex Shopping Options, a subset of e-Pricing, satisfies the demand for low prices by finding even lower fares based on alternative travel dates and airport locations.E-Pricing outperforms competition in latest International studyTopaz International, the world leader in airfare auditing, conducted the annual international low-fare benchmark study in December 2008, and Travelport e-Pricing took the study by storm.Travelport returns lowest fares most frequently:e-Pricing found lower fares 297 timese-Pricing finds the lowest fares 59.4% of timee-Pricing returned the lowest average fare at $644.05Travelport found lower fares most often:Travelport e-Pricing %Sabre Bargain Finder %ITA QPX %Amadeus Value Pricer %e-Pricing generates the greatest average savings per ticket:With Travelport e-Pricing, subscribers can save an average of $68.13 per ticket or 9.4 % over the competitionLowest average ticket price:Travelport e-Pricing - $644.05Sabre Bargain Finder - $688.05ITA QPX - $692.93Amadeus Value Pricer - $755.56
21 Delivering high return for today’s airlines Achieving competitive advantage through innovative technologySelected CustomersProtect mission critical operationsCost-efficient hosting utilising common architecture infrastructureCapture lost revenueSolutions to improve profitability and maintain revenue integrityA suite of messaging hubs allowing easy connection to partnersConnectivity to the worldHosting: airline community model - Lower cost by utilizing common architecture infrastructure,Cooperation within the hosting community lowers development, maintenance, support and production costsLeverages common booking tools – Shop, Price, Book, re-price, TicketFaster communication between GDS and Airline, as they are co-located263 MM passengers boarded annuallyInternal reservation system servicesFlight operations technology servicesSoftware development and technology servicesPrimary hosting customers: Delta/Northwest and United AirlinesOther hosted carriers include Icaro SA, Daallo, Surinam Airways, Air Turks and CaicosFare VerifiedTM: Pre-ticketing audit tool, eliminating under priced tickets and reducing fraudRapid RepriceTM: Automated ticket re-issue tool, eliminates manual processesInterchange Suite: suite of messaging hubs that allows for quick and easy connection to airline partners and provides a rapid deployment methodologyReservation Sales Solution (RSS) - Single link to Travelport GDS with access to over 450 airlines, 265 hotels and 26 car companiesElectronic Miscellaneous Documents (EMDs) - Utilizing ATPCO Optional Service fees, document and track charges not provided for on a passenger ticket (e.g. residual value, miscellaneous charges, excess baggage), in developmentElectronic Credit Vouchers (ECVs) - Create, store and redeem electronic credit vouchers for Travel Credit Vouchers, Reference Documents, MCOs or Gift Certificates, futureHosting: Benefits of hosting in the airline community model - Lower cost by utilizing common architecture infrastructure,Business insights and innovative solutions to grow your businessExpand revenue opportunities
22 Airline hostingWorld class data centres operating at the highest industry standards and compliance requirements“Travelport knows what it takes to support mission critical infrastructure to a global business. Combine that with strong operational staff and you have a recipe for success. Travelport is more of a partner than a vendor.” Douglas Register, Vice President Service Management & Engineering Information Services DivisionTony Thierjung Director of Operations ManagementUnited AirlinesTwo out of the three largest U.S. airlines are clientsSecure, infrastructure –independent site in AtlantaProvides significant cost savings allowing clients to focus on their core businessUnprecedented 10+ year track record of zero data center downtimeLatest airline hosting technologiesCustomisable solutions for managing fares, pricing, e-ticketing airline partner connectivity and revenue integrityFaster, more flexible reservations and passenger managementSeamless functionalities for PNR creationMost cost-efficient fares, pricing, e-ticketing and data support99.9 percent core system uptime over the past five years, based on both scheduled and unscheduled outages263 MM passengers boarded annuallyInternal reservation system servicesFlight operations technology servicesSoftware development and technology servicesPrimary hosting customers: Delta/Northwest and United AirlinesOther hosted carriers include Icaro SA, Daallo, Surinam Airways, Air Turks and Caicos
23 IT solutions Capture Lost Revenue Expand Revenue Opportunities Fare Verified: Pre-ticketing audit tool, eliminating under priced tickets and reducing fraudRapid Reprice: Automated ticket re-issue tool, eliminates manual processesExpand Revenue OpportunitiesReservation Sales Solution (RSS) - Single link to Travelport GDS with access to over airlines, 280 hotel chains and 25 car companiesElectronic Miscellaneous Documents (EMDs) - Utilizing ATPCO Optional Service fees, document and track charges not provided for on a passenger ticket (e.g. residual value, miscellaneous charges, excess baggage), in developmentElectronic Credit Vouchers (ECVs) - Create, store and redeem electronic credit vouchers for Travel Credit Vouchers, Reference Documents, MCOs or Gift CertificatesConnectivity to the Rest of the WorldInterchange Suite: suite of messaging hubs that allows for quick and easy connection to airline partners and provides a rapid deployment methodologyFares, shopping and pricingElectronic ticketing (over 5,000 IET relationships )Automated itinerary repricingReal time fare auditingCustomers include Mexicana, GOL, Lufthansa Systems, COPA, Alma de Mexico, Air India, Air New Zealand, Alitalia, Brussels, KLM, Emirates, Navitaire, Saudi Arabian Airlines, SITA, Swiss, TAP Portugal and TravelSky
24 Competitive industry insights and analysis Providing affordable industry intelligence for smarter, more profitablebusiness decisionsCustomernecessities:Travelport expertise:Custom Solutions for:Market, network & sales planningAirline Business Performance Insights to Market Opportunities SchedulingTravelport AcuityTMTravelport DiscoverTMCompetitive insightCost managementIdentification of new opportunitesMarket strategy developmentMarket share growthIncreased revenueIndustry knowledgeGDS booking & share dataData expertiseAnalytical experienceSolutions to reduce costsAbility to merge multiple data sourcesBusiness Intelligence Provides custimized data analytics to airlines, hotels, car rentals, and travel bureausAcuity : Industry’s first single, multi-dimensional application to analyse multiple sources of business intelligence dataDesigned to easily and efficiently capture a comprehensive view of airline business performanceProvides relevant analysis for each airline functional area or department: Sales and Marketing, Network Planning, Distribution, Revenue Management and PricingAcuity’s ValueBetter understanding of market dynamicsMore informed decisions throughout the organization as well as individual departmentsEnhanced sales performance monitoring against a range of goals / benchmarksMore effective channel, distribution, and point of sale managementGreater insight into new market / market expansion / code share opportunitiesFlexibility to add other data sources and perspectives as business intelligence needs evolveDiscover - Global network analysis toolModels the impact of changes to any airline’s network on passenger volumes, shares, revenues and profitabilityStrategic / Tactical Network Planning - Scenario / Schedule Analysis - Traffic Flow Segment Contribution Analysis - Code Share Strategy Development - Competitor / Schedule Impact AnalysisNetwork and Route Profitability AnalysisPC-based applicationDiscover Value to AirlinesMore informed scheduling decisionsDirect focus to initiatives with most impactImproved network profitabilityIn-depth analysis at an affordable price
28 Travelport Universal API – Architecture “...access to a centralized selling & service platform.”OTA’s & Travel AgentsSoftware developer & SupplierCorporate & Multi NationalStandalone API OfferingUniversalDesktopTraversaViewTripTravelport POS EngineUniversal APISupports individual GDS functions as structured messagesSupports wrapped processes (similar to Encapsulated Business Logic modules on GWS)Multi GDSAIRCARHTLBottom Layer – changing our architecture to adress current content demand. Not just merging our GDS together, but expanding our contend breadth and depth outwards.HUB concept implemented to manage non GDS content and specific requirements of that content. GDS structures mainly built to manage international air carrier content, even existing hotel and car content difficult to process with the GDS structures. HUB built for each unique content vertical such as rail or non-gds air. HUB connects but also normalizes that content before passing upward to uAPI for aggregation.Middle LayerUAPI is aggregation layer but also built in business logic layer, similar to the approach taken with EBLs on GWS (Encapsulated Business Logic on Galileo Web Services).Top LayeruAPI is not only the new and flagship stand alone API offering from Travelport but truly the “engine” behind all of our future points of sale. The importance of the uAPI to Travelport is obviously of high importance. Our customers will benefit from the high focus on innovation within the uAPI.RailContentHubAirContentHubMerchandising HubUniversal Record &ProfileNew contentPlanned developmentFuture28
37 Travelport GDS Galileo T´Cache Published Fares Travelport FlightPlayer - T´Cache “Published Fares”Overall Work-Flow:FulfillmentBooking via GWS / uAPIRequest via HUBLoadingTravelport GDSGalileoTravelport GDS GalileoTO 1 Fulfillment PCC TO1FTO 1 Booking Front End PCC TO1BTO 1 PeakworkHUB/Dyna PlayerPSE Flight PlayerTravelportFlight Player CentralisedTO 2 Fulfillment PCC TO2FTO 2 Booking Front End PCC TO2BTO2 PeakworkHUB/DynaPlayerT´Cache Published FaresMarket SpecificT´Cache GeneratorPCC TPTCTO 3 Fullfillment PCC TO3FTO 3 Booking Front End PCC TO3BTO3 PeakworkHUB/DynaPlayerTour OperatorTravelportTour OperatorTravelportArrow colour legend: fulfillment transaction booking transaction Peakwork transactions content loading transaction
38 Travelport GDS Galileo Flight Player TO 1 Specific Travelport FlightPlayer - T´Cache “Private Fares”Overall Work-Flow:FulfillmentBooking via GWS / uAPIRequest via HUBLoadingTravelport GDSGalileoTravelport GDS GalileoTO 1 Fulfillment PCC TO1FTO 1 Booking Front End PCC TO1BTO 1 PeakworkHUB/DynaPlayerPSE Flight PlayerTravelportFlight Player TO 1 SpecificTO 2 Fulfillment PCC TO2FTO 2 Booking Front End PCC TO2BTO2 PeakworkHUB/DynaPlayerT´Cache PrivateFaresTO SpecificT´Cache GeneratorPCC TO1PFTO 3 Fullfillment PCC TO3FTO 3 Booking Front End PCC TO3BTO3 PeakworkHUB/DynaPlayerTour OperatorTravelportTour OperatorTravelportArrow colour legend: fulfillment transaction booking transaction Peakwork transactions content loading transaction
39 Travelport FlightPlayer - T´Cache “Published and Private Fares” TO 1Peakwork HubTO 2Peakwork HubT´Cache PrivateFaresTO 1 SpecificPSE Flight PlayerPCC TO1PFTravelportFlight Player TO 1 SpecificT´Cache Published FaresMarket SpecificPSE Flight PlayerPCC TPTCTravelportFlight Player CentralisedT´Cache PrivateFaresTO 2 SpecificPSE Flight PlayerPCC TO2PFTravelportFlight Player TO 2 SpecificThough this setup can handle PrivateFares it mutliplicates the requests by factor x for each city pair! The more TOs having Private Fares the more extensive and expensive the data load is.T´Cache GeneratorLoadingTravelport GDS Galileo