LANYON’S CONVERGE 2011 Presented by Mai Meyaart VP and Managing Director

Consortia Value Maximizing ROI Future Trends

Travel Agent Business  Rebounding +24.6% Yr/Yr  Higher rated +40%  Repeat business  82% of GDS transactions come from Travel Agents

Travel Agencies – Why the Turn Around?  Time is more valuable than $$  Arrangements are too complex  Consequences of making a mistake are too dire  Too much chaos – too many choices  Hotels are more savvy in discounting through OTA’s

Consortia value  Agency groups joined in a common venture  Multiplier for TA distribution  Rate compliance and squatter audit  Monitor and motivate program usage  Effective marketing channels and intel

Consortia Differences TRAVEL MANAGEMENT COMPANIES VS CONSORTIA THE TRAVELER THE TRAVEL AGENT DECISION MAKER In the TMC world, the travel manager is the decision maker, and has the greatest point of influence on where the traveler stays In the consortia world, where there are fewer managed travel accounts, the use of a travel agent is voluntary and travelers use them for their expertise

Consortia Differences Corporate Leisure MARKET MIX BRICK AND MORTARHOME BASED Be selective – look for the program that offers you corporate and leisure business – weekday and weekend occupancy!

Filling your properties S M T W T F S MARKET MIX Corporate programs fill your hotels midweek, leaving weekends suffering

Filling your properties S M T W T F S MARKET MIX Hotel programs that offer the right mix of corporate and leisure business help fill your property all week long.

Consortia Differences ADDITIONAL SERVICES Call Center Booking Engine Training and Support Different consortia offer agencies different services – this directly impact which consortia agencies use

Consortia Crossover Consortia A Consortia B DUPLICATE IATAs Often agencies choose to work with more than one consortia – this is why their IATA number appears on more than one list

Why Travel Agencies Choose Multiple Consortium ?  Differences in hotel content o Market mix o Geographic mix  Access to ancillary services o Strong block space program o Strong 24/7 support o Commission collection support MORE THAN ONE PROGRAM … MORE THAN ONE LIST Most Corporate Most Hotels Japan Best Ancillary Programs Best Reach Some examples of these different services

Marketing Tools  Use those tools available to you  Run promos that support consortia rates  Take advantage of market intel  Create FAM opportunities  Act on rate audit results

Rate Loading - Incorrect

Rate Loading - Correct

Communicate Successes  Share the message down to property level and repeat  Develop relationships at leadership level  Engage other departments  Look at total volume by consortia

Program Evolution  Increased value on “better than BAR”  Parity challenge  More value adds  More consortia intel

Agent Behavior  Increase in on-line tool usage  More At Home agents  Social network savvy

Consortia Evolution  Going Global  Survival of the Fittest  Mobile Strategy  ROE – Return On Experience

Consortia Value Travel Agent biz is good 40% higher ADR Repeat customers Critical distribution Right Market Mix Maximize ROI Right market mix Targeted marketing opps Attention to rate loading Use market intel Future Trends Better than BAR rates Value Ads Globalization Survival of Fittest

???