1. CBTA Allied Square Table: Travel Management Trends and 2013 Hotel RFP Preview Mary Ann McNulty Executive Editor The BTN Group CBTA Allied Square Table: Travel Management Trends and 2013 Hotel RFP Preview

2. |2 AGENDA  It’s Still The Economy  …But Now Global Impact  Corporate Travel Demand, Supply  Corporate Travel Contracting  Policies, Mandates and More  Hot Topics: Open Booking, Mobile, ?  RFP Season Preview

3. |3 FEDS: TRAVEL STRONG US Federal Reserve: travel and tourism activity "strong" across many reporting districts, with hotel and convention bookings continuing to "exceed last year's pace.“ “Overall economic activity continued to expand at a modest to moderate pace in June and early July. The Atlanta, St. Louis and San Francisco districts reported modest growth, while Boston, Chicago, Minneapolis, Kansas City and Dallas described economic activity as advancing moderately.”

4. |4 ECONOMIC INDICATORS  Fed Says: Deceleration  Amadeus CEO: “Next 6-12 Months Tough”  Low Job Growth  Election Wait-and-See  Oil prices and impact  Will Corps Slow Travel Spending??

5. |5 ECONOMIC INDICATORS  Up: AirPlus, Marriott, UK Guild of TMCs  Amex corporate travel spending down 4%, 2 nd quarter in a row  HRG: TRX down 3%, spending down 7%  ARC: mega TRX in June -6.5%, largest drop in 32 months

6. |6 AMEX TRAVEL SALES SLOW

7. |7 ARC: DECLINING AIR SALES

8. |8 HEADLINES: Booking Volume  Pegasus: Hotel reservations booked via GDS in June declined 10.6% worldwide, by 13.9% in North America.  Why? Cycles  Average rates paid for hotels through GDS up 3% globally year-over-year, by 6% in NA  Outside NA, average rate down by 1.7% as June GDS bookings fell 5.9%

9. |9 GBTA: Impact of Uncertainty

10. |10 AT TRAVELER LEVEL

11. |11 Mandates & Policy Compliance  Policy compliance focus last 18 months  Non-reimbursement, partial reimbursement  Pre-trip approvals, audits, communications  Is 50% good enough?

12. |12 Managed vs. Unmanaged  Open Booking concepts  Supplier site bookings, but…  At negotiated rates  Data collected  Concur, ProcureApp, GDSX

13. |13 Mobile and More  Mobile growth adoption skyrocketing  Surpassing other adoption  Booking, expense reporting, messaging  Still, numbers low

14. |14 2013 Hotel RFP Preview  Hotels: Corporate rate hikes 7%  Buyers: Expect increases closer to 3.5%  ~ Bjorn Hanson, NYU Tisch Center for Hospitality divisional dean

15. |15 RFP Considerations  Are negotiated rates way to go?  Best way to secure, load, audit rates?  Which RFP tool to use?  Benefits of negotiated rates?

16. |16 HEADLINES: Marriott  Marriott CEO: Rate increases in high single- digit percentages in upcoming negotiations.  Corp. rates remain “meaningfully lower than in 2007.”  Rates +4.3% in June quarter vs. March

17. |17 HEADLINES: Starwood  Starwood CEO: 2013 Corp. Rate Hikes To Outpace Last Year’s  Starwood ADR Last Quarter: + 3.8% in North America + 1.1% in Latin America - 7% in Europe - 4.5% in Africa and Middle East Flat in Asia-Pac

18. |18 INTL. BIZ TRAVEL FORECAST

19. |19 CWT 2013 COST FORECAST