State of the Industry

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State of the Industry Bangalore, 29 September
2005
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Susan Hopley Executive Vice President, Emerging
Market TRX Inc ACTE Welcome
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2005 Global Executive Forum Sponsor
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2005 Asia-Pacific Executive Forum Sponsor
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2005 Executive Forum Local Sponsor
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Distribution Channels Traditional vs. Hightech
Nitin Mittal Procurement Professional, Integrated
Supply Chain IBM Global Services India Pvt Ltd
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Distribution Channels Traditional vs. Hightech
Nitin Mittal Procurement Professional, Integrated
Supply Chain IBM Global Services India Pvt Ltd
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Distribution Channels Traditional vs. Hightech
Nitin Mittal Procurement Professional, Integrated
Supply Chain IBM Global Services India Pvt Ltd
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Why We Are Here ???

• Indias share of total scheduled traffic of World
  1.7 Billion passengers is 36 million.
• Indias corporate travel market - 3 billion
  (15,000 Crore).
• Total travel budget for Indian corporate segment
  is growing at the pace of 15-20.
• Travel costs are significant
• Business travel is the most important segment for
  revenues and profitability for the Indian hotel
  industry.

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Online Ticketing

• Travel is the largest component of U.S. Online
  Consumer sales
• Shopping for travel services on the internet
• Travel sites usage as a channel for travel
  purchase
• Average use of travel sites
• Whats in for the customer
• Average savings potential

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Technology Quotient Vs. Human Intelligence

• Consumer perception and behaviour in India
• Control / Policies monitoring (Traditional travel
  distribution system may lag but it does not
  preclude the offer of a very effective way in
  implementing corporate travel policies)
• Deals with fast and ever changing rules and
  regulations
• Information regarding most updated Rules and
  Regulations pertaining to travel
• Cost benefit through human intervention.

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Wish List

• One comprehensive distribution network
• Technology and the compliance of corporate travel
  policy
• Working with the traditional agents who have
  embraced internet technology and the new
  fully-online agencies
• Three primary characteristics of success
• Blending of technological efficiency and human
  intelligence

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Distribution ChannelsTraditional vs. High Tech

• Vic Pynn
• Chief Operating Officer
• TRX

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Recap

• Travel industry experts are projecting
  unprecedented growth in the Indian travel market
  over the next 3 years
• Compound annual growth rates for Indias airline
  industry is projected at 20 for the next 5
  years. This is four times the growth rate of the
  past 7 years
• The current infrastructure may hinder this growth
• Current processes are high touch and labor
  intensive
• In the past, the cost (or perceived cost) of
  technology has exceeded the cost of labor
  however, the true cost to corporations is going
  to show in the form of efficiencies as volumes
  continue to increase

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Overview

• Based on these projections, the question
  facing the Indian travel marketplace is not
  whether or not it will adopt high tech solutions
  to accommodate this growth, but how quickly these
  solutions can be implemented and introduced to
  users, and at what cost

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Wish List

• One comprehensive distribution network covering
  all the suppliers, Airlines (including web based
  airlines), Hotels Car Rentals.
• Technology which will result in effective cost
  saving and attaining total compliance of
  corporate travel policy.
• Both the traditional agents who have embraced
  Internet technology and the new fully-online
  agencies provide an efficient means to deliver
  the one-stop, accurate, and unbiased comparative
  travel information and advice that the consumer
  (corporate) values.
• Success would be driven by three primary
  characteristics (1) a search engine that is
  unbiased and technologically advanced, (2) a
  technology that allows it to sell at a
  substantially reduced cost when compared to the
  traditional distribution channels that must rely
  on legacy architecture, and (3) an advanced MIS /
  Reporting tool which assist management in
  analysis of travel patterns, enforce policies and
  implementing controls.
• Blending of Technological efficiency and human
  intelligence.

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Transforming the Transaction Lifecycle

• High-volume, complex, and mission-critical
  processing
• Transformation of travel distribution processes

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Key Areas of InnovationBooking
Travel innovators will create a seamless
environment between the online booking engine and
the agent desktop with inventory independence

• Online Booking Engines
• Refunds and Exchanges
• Inventory integration
• Customization
• Autonomy

• Agent Desktop
• Transition to a web-based solution
• Transparent inventory
• Reduced training time
• Increased efficiency
• Reduced errors
• Agent flexibility

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Key Areas of InnovationQuality Control
Ticketing
Travel innovators will enable low cost
competition through maximized automation

• Quality Control
• Complete automation
• Improved efficiency
• Service consistency
• Differentiator
• Unused ticket tracking
• Benchmarking

• Ticketing
• First rate of return
• Low cost enablement
• Reduced debit memos

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Key Areas of InnovationExceptions Settlement
Travel innovators will focus on all aspects of
the agent workflow, improving efficiency and
reducing costs

• Workflow Management
• Automated distribution of queue work
• Time tracking
• Reporting enabling identification of training
  needs and process improvements
• Work distributed by skill set and availability
• Activity benchmarking

• Settlement
• Centralization
• Automation

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Key Areas of InnovationReporting
Travel innovators will recognize that data
integration and reporting offers the greatest
potential for differentiation today

• Data Integration
• Increased data visibility
• Enhanced data
• Improved business integration
• Meeting the needs of procurement officers
• Pre trip reporting
• Third party population
• Transfer of work

• Data Integration (contd)
• Point of sale and mid-office as data sources
• Level 4 dynamic data
• Service consistency
• Benchmarking

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Conclusions

• Automation and the introduction of high-tech
  tools into the Indian travel marketplace would
  enable suppliers and agencies to
• Focus on core competencies
• Control costs by providing tools that ensure
  compliance
• Innovate at a manageable pace
• Reallocate resources to compensate for increased
  volumes
• Differentiate themselves within the market

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Coffee/Tea Break
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Round Table Changing the face of the industry in
travel management programmes -
Taking the Emotion Out Keeping the
Personal Touch In
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• Round Table
• What are the challenges in maintaining
  personalised service at a level that makes good
  financial sense for the corporate client and
  supplier?

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Round Table 2. Which aspects of a travel policy
are most likely to have strong emotional
attachments?
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• Round Table
• 3. Which programmes attract the highest
• emotional attachment and why?
• Air
• Accommodation
• Car hire
• Credit Card
• Other ___________

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Round Table 4. What pressures come from the
traveller and how can a policy be communicated
without causing emotional distress?
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• Round Table
• 5. What are the objective and emotional
• arguments for these issues?
• Car reservations International car rentals vs.
  
• Local car rentals
• TMCs Clients getting ready for no commissions
• Solving accommodation issues in Bangalore with
• out-of-the-box ideas

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Networking Lunch
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Thank you for joining us at our Executive Forum
! Bangalore, 29 September 2005
Have a good day ahead