1. “Man cannot live by bread alone”

2. Market Resistance  “Dynamic Packaging is a myth”  “6 nights is not sexy”  “Dynamic Package and Die” However:  “Tour Operators and Travel Agents need to provide products to their target audiences in the most efficient, cost-effective and compelling way”  Enabling customers to be active participants in creating their own trip

3. What’s driving new distribution?  Air commission reductions & GDS Fees have been the primary driver for product adjustment  Emergence of the “merchant model” has changed the pricing model forever 25% vs. 10%  Total transparency has created downward pressure on prices and margins – low cost and hotel only  Rapid growth of 3 rd party online distribution has created a distribution power shift  New technological advancements creating higher traveller expectations  Result = A new leisure marketplace has been created

4. Market Adoption  Mass-market Tour Operators – extending their specialist holiday businesses = Flexible packaging  Independent Specialists – extending their product range to include low cost and hotel- only = Widening the choice for their clients  Online Travel Agencies – actively promoting the widest range of independent travel components = Complete transparency & flexibility – biggest growth  Intermediaries – looking to provide a one-stop dynamic packaging portal for travel agents = Shift in focus to capitalise on new marketplace

5. Package Holidays “The report of my death was an exaggeration.” Mark Twain 1897  Package Holidays sold increased by 30% in 5 years  Slow to take off online and not enjoying the growth curve  Dogged by antiquated technology with lack of consistent standards  Lack of quality consumer driven content that supports the sale  Rigid commercial model of charter flight + hotel commitments  Not enough component flexibility

6. How have Consumer Buying Habits changed?  Dynamic Packaging is 100% consumer driven  Consumers becoming more independent  Shift to late booking  Control, choice, flexibility, competitive prices  Customer expects to search for, price and book all products in real-time  Desire to start self-packaging  Decline of traditional 2 week holiday

7. OTC – Consumer Booking Habits By month 2006 to 2007 Pre-Packaged web sales declined 7% in 2007 Dynamic Packaging has grown to 35% of sales

8. Drivers on Dynamic packaging

9. How do you enable your customers?  Key focus is to present a customer with:  The Right Product  At the Right Price  At the Right Time  And most importantly At the Right Margin  It’s just like selling sweets at a supermarket check-out

10. Future of Dynamic Packaging  Flights + Hotels + Car + Insurance is here today  So what are we waiting for?  Get closer control of inventory  Expansion of the number of suppliers with XML  Broadband will drive greater content and opportunities

11. Advantages of this approach  Customer:  Unprecedented choice of product  Great Deals – Savings passed to customer  Real-time availability  Quality consumer driven content  Tailor-Made itineraries  Company:  Margins are always maintained  Move distressed inventory  Upsell and Cross Sell  Pricing is constantly updated  Avoid incremental costs i.e. brochures