Intelligence

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• Intelligence Technology to Drive Profitability

Presented by Idan Velleman Director of
Sales Nordic, Baltic, The Netherlands, Israel
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Agenda

• Introduction
• General on line market trends
• Hotels distribution channels
• GDS figures
• How to grow your GDS business
• Negotiated vs Non Negotiated
• Industry trend suppliers websites
• Revenue Mgt tools -Channel Direct Rate View

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Who is TravelCLICK? History

• 1987 Evolved from a revenue management
  consultancy started by our founders
• Richard Gray Hertz, Pan Am, etc. Ray Cohen
  United Airlines
• 1990s Created GDS competitive data market,
  travel agent media and preference products
• Relationships with Sabre, Travelport, Amadeus,
  Worldspan, Travelocity, Expedia, Orbitz, and 40
  other sources of data
• 2000 Expanded business and adopted the
  TravelCLICK name
• 2004/2005 Acquired and organically grew
  iHotelier reservations and data platform (CRS)
• 65 annual growth
• 2006/2007 Acquired Vantis International and its
  customers
• 2007 December .Ownership Swap
  Genstar/Bain/Blackstone

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TravelCLICKs Total Solution
Compare hotel market positionagainst the
competition

• Market Share
• Rate Shopping
• Consumer Opinion

Book more rooms and distribute inventory across
all channels

• Online Distribution (ODD)
• GDS Connectivity
• Voice Reservations
• Channel Management

Promote hotel to travel agents and online
shoppers

• Travel Agent Advertising
• Website Design
• iStay Booking Engine
• Search Engine Optimization (SEO)
• Pay Per Click Marketing (PPC)
• Rich Media (Viz It)
• Consortia

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US Europe Asia Pacific
Tipping point
Source PhoCusWright Inc. January 2007
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Online Travel Market Growth

• Decreasing growth rate
• US - 79 billion last year and will grow at a 17
  annual rate before reaching 146 billion in 2010.
  
• Europe 38.3 billion last year and will grow at
  17 in 2008 before reaching almost 60 billion
  Euro in 2008
• The tighter market will exacerbate the fierce
  competition between online travel agencies and
  travel suppliers in a commoditized market.
• Hotels will be the fastest growing segment
  online, surpassing air travel, which until 2006
  had long been the fastest growing product
  segment. PhoCusWright press release, December
  2006

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Fragmented E-Distribution Landscape
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E-Distribution Landscape Simplified
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Electronic Channels Simple
consumers
Travel Agent
GDSs
3rd Party Web Sites
Direct Distribution
Local Property Site
Amadeus Galileo Sabre Worldspan
Hotels.com Hotwire Opodo Orbitz Travelocity Yahoo
Travel
AOL travel Airline Sites Booking Chain
Sites eBookers Expedia
hotel
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Electronic Channels Net Revenue Implications
consumers
Travel Agent
Expedia / Bookings
Chain / Rep. Co.
Priceline
Travel Web Site
Chain / Rep. Co.
Switch Co. GDSs
GDSs
Direct Distribution
Switch Co. Pegasus
Chain / Rep. Co.
Chain / Rep. Co.
hotel
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2007 Electronic Channels Over 31 Billion in
Revenue
Web Direct to Property/Chain Sites
Travel Agent GDS
Retail/Net Rate/Opaque Third Party Websites
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Source TravelCLICK eTrak eMonitor, 2007
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2008 Forecast Over 33 Billion in Revenue
Web Direct to Property/Chain Sites
Travel Agent GDS
Retail/Net Rate/Opaque Third Party Websites
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Source TravelCLICK internal analysis, 2007
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GDS Channel is still the 1 electronic channel
for high ADR bookings and continues its growth
trend into 2008!
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Source TravelCLICK eMonitor, 2007
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Trends U.S. Leads in Bookings, New Markets
Emerging
Top Countries by GDS Performance
Source TravelCLICK eMonitor, 2007
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Top 20 EMEA Increase in Revenue
Jan April / 2007 2008
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2007 vs. 2006 Tel Aviv GDS Performance
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Tel Aviv First 100 days 2008
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Negotiated Business vs. Non-Negotiated Revenue
Tel Aviv

• Negotiated includes all negotiated rates,
  consortia rates, AAA, SR, GOV, MIL, and any other
  forms of qualified rates.
• Non-negotiated includes ONLY publicly available
  rates including the BAR rates

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2007 vs. 2006 Jerusalem GDS Performance
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Jerusalem First 100 days 2008
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Negotiated Business vs. Non-Negotiated Revenue
Jerusalem

• Negotiated includes all negotiated rates,
  consortia rates, AAA, SR, GOV, MIL, and any other
  forms of qualified rates.
• Non-negotiated includes ONLY publicly available
  rates including the BAR rates

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2007 vs. 2006 Haifa GDS Performance
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2007 vs. 2006 Haifa First 100 days 2008
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Negotiated Business vs. Non-Negotiated Revenue
Haifa

• Negotiated includes all negotiated rates,
  consortia rates, AAA, SR, GOV, MIL, and any other
  forms of qualified rates.
• Non-negotiated includes ONLY publicly available
  rates including the BAR rates

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Why Hotelligence?

• Identifies your markets top-producing travel
  agencies, key feeder markets and opportunities
  for deploying sales and marketing resources to
  improve revenue performance

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How Do People View Search Results?
PPC placement
Organic placement
Actual results from the eye tracking study
performed by Enquiro and Did-it. Known as Golden
Triangle
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Why Travel Agent Media Advertising ?
Amadeus Instant Marketing
Amadeus Instant Preference
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GDS - Travel Agent Targeted Advertising
One-to-One Real Time Targeting while Agents are
shopping for hotels in your market

• Targets
• Ad Period
• Promotional Period
• Point-of-sale Option

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Campaign Design Best Practices
Opportunities to Influence Decisions
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77 Percent of Time Client / Travel Agent Select
/ Recommend Hotel for both 1-3 nights stays and
4 night stays
Global Travel Agent GDS Study Results
Source Nov 2007 Global Travel Agent GDS Study
by Phoenix Marketing International
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Global Travel Agent GDS Study Results
Over 52 of agents that recall messages made a
booking because of the promotional offering in
the past three months
Source Nov 2007 Global Travel Agent GDS Study
by Phoenix Marketing International
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The Online Travel Market
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What Influences the Purchase?
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Industry Trends
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Industry Trends
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Why Channel Direct ?

• Manage Internet Distribution with the Efficiency
  of a single Interface

Retail.com
Retail.com
Retail.com
Retail.com
Retail.com
Retail.com
Retail.com
Retail.com
Retail.com
Retail.com
Merchant.com
Destination.com
Proprietary Extranet
Proprietary Extranet
Proprietary Extranet
Pricing, Inventoryand Restrictions Updates
Emulation
Emulation
Emulation
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Why RateVIEW?

• A robust online rateshopping tool that provides
  hotels forward looking snapshot of rates and
  availability from more than 130 major travel
  sites, brand sites, and the GDS.

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• Thank you for your attention
• For more detailed information
• please visit our URL
• www.travelclick.net
• Or contact our representative in Israel
• Mr. Roy Raviv rraviv_at_travelclick.net