STRICTLY PRIVATE AND CONFIDENTIAL Frequent Travelers Study Total Sample June 19, 2014

STRICTLY PRIVATE AND CONFIDENTIAL 2 DETAILED FINDINGS TOTAL SAMPLE

STRICTLY PRIVATE AND CONFIDENTIAL 3 About eight in ten frequent travelers belong to a travel loyalty program, and there is significant overlap between airline and hotel program membership. One in three claim they’ve achieved elite status in at least one program each for air and hotel programs. Airlines are much more likely than hotels to be cited as these consumers’ primary travel loyalty program. About eight in ten frequent travelers belong to a travel loyalty program, and there is significant overlap between airline and hotel program membership. One in three claim they’ve achieved elite status in at least one program each for air and hotel programs. Airlines are much more likely than hotels to be cited as these consumers’ primary travel loyalty program. Travel Loyalty Program Profile Among Total Frequent Travelers BELONG TO ANY TYPE PROGRAM AIRLINE HOTEL CAR RENTAL MEMBERS WITH ELITE STATUS % of AIRLINE members % of HOTEL members Continued… TOTAL SAMPLE – Travel Loyalty Program Behavior & Attitudes TYPE of Program that is Primary Program * 77% of ALL frequent travelers belong to an airline program; 52% of ALL frequent travelers say that their primary loyalty program in an airline program. * Loyalty Programs Membership Q2abd

STRICTLY PRIVATE AND CONFIDENTIAL 4 Among these “frequent” travelers with $75K+ incomes, United and Delta are the airline programs with somewhat larger memberships, while Hilton and Marriott are the clear favorites among hotel programs. Travel Loyalty Program Profile (Cont’d) Among Total Frequent Travelers United Delta American/US Air Southwest/Air Tran Hilton Marriott Starwood IHG Hyatt PRIMARY AIRLINE PROGRAM PRIMARY HOTEL PROGRAM Continued… TOTAL SAMPLE – Travel Loyalty Program Behavior & Attitudes Q2afg

STRICTLY PRIVATE AND CONFIDENTIAL 5 Perceptions of Relative Value -- Hotel Points Versus Airline Miles Among Travel Loyalty Program Members Airline miles are seen as a better value than hotel points. (Note that this perception holds true for all groups explored.) Q2h Hotel Points Are Better Airline Miles Are Better Both the Same TOTAL SAMPLE – Travel Loyalty Program Behavior & Attitudes Total (821)

STRICTLY PRIVATE AND CONFIDENTIAL 6 Overall Satisfaction with Key Travel Loyalty Programs (Rate 9,10) Among Members of Each Program About one in three travel loyalty program members express high satisfaction with their respective program overall. Satisfaction with hotel programs tends to be slightly higher than with airline programs. US Air tends to stand out for having the lowest member satisfaction. Q3b Airline Programs Delta SkyMiles (254) Southwest Rapid Rewards (237) United Mileage Plus (382) American Aadvantage (186) US Air Dividend Miles (68) Hotel Programs Starwood (59) Marriott Rewards (252) Hilton Hhonors (253) IHG Rewards (69) TOTAL SAMPLE – Travel Loyalty Program Behavior & Attitudes

STRICTLY PRIVATE AND CONFIDENTIAL 7 STATED IMPORTANCE LOW HIGH DERIVED IMPORTANCE Travel Loyalty Programs Derived vs. Stated Importance Among Total Travel Loyalty Program Members A regression analysis was conducted to determine key drivers of overall satisfaction with travel loyalty programs. This measure of “derived importance” is then compared to “stated importance” to yield benefits that are stratified as shown below. TOTAL SAMPLE – Travel Loyalty Program Behavior & Attitudes

STRICTLY PRIVATE AND CONFIDENTIAL 8 Reflecting the overall patterns, hotel programs elicit higher satisfaction on all benefits/features than do airline programs. Yet within their spheres, the same benefits emerge as the most highly rated, all of which have to do with points/miles – ease of redemption, never expire, no caps, and flights/hotels where want to redeem. Q3c * Hotel minus Airline Green box indicates significant difference TRULY IMPORTANT – High Derived AND High Stated Importance PRICE OF ENTRY – High Stated BUT NOT High Derived Importance HIDDEN MOTIVATOR – High Derived BUT NOT High Stated Importance TOTAL SAMPLE – Travel Loyalty Program Behavior & Attitudes Ratings of Travel Loyalty Programs on Specific Characteristics (Satisfaction Rated 9, 10) Among Members Rating Program In Order of Derived Importance

STRICTLY PRIVATE AND CONFIDENTIAL 9 Compared to airlines overall, United generates weaker scores on nearly every attribute that is important to frequent travelers. Both Marriott’s and Hilton’s attribute scores are in line with those of hotels overall except on “earning free nights quickly” where Marriott has a clear edge over Hilton. Compared to airlines overall, United generates weaker scores on nearly every attribute that is important to frequent travelers. Both Marriott’s and Hilton’s attribute scores are in line with those of hotels overall except on “earning free nights quickly” where Marriott has a clear edge over Hilton. Q3c Green/Red box indicates significantly higher/lower than rating for total airline programs combined Black box indicates total hotel programs rating is significantly higher than total airline programs rating TOTAL SAMPLE – Travel Loyalty Program Behavior & Attitudes Ratings of Travel Loyalty Programs on Specific Characteristics (Satisfaction Rated 9, 10) Among Members Rating Program (Important Characteristics) In Order of Derived Importance

STRICTLY PRIVATE AND CONFIDENTIAL Total (1,012) 10 Beliefs About Travel Loyalty Programs (Rate 9, 10) Among Total Frequent Travelers Frequent travelers are expressing strong feelings that loyalty programs are not what they had been in the past. The only other characteristic emerging as widespread is a recognition that credit cards are the easiest way to accrue points. Q4 The value of miles/points have been shrinking Programs credit card is easiest way to accrue points/miles Rules have been revised/only biggest spenders enjoy perks Loyalty programs keep changing rules/harder to redeem It's become more difficult to reach Elite status It's difficult to move up 'tiers' -- qualifications too high I like redeeming for things other than hotel stays/flights Elite membership don’t guarantee perks like they used to You have to 'game' the system to get most value from programs Redemptions for groceries/gas/etc is helpful during tough times Membership affords preferential treatment when you travel Programs offer personalized rewards that are relevant to me We travel more often because we can use our rewards Applied for several cards for bonuses w/ diff. loyalty programs Rewards are unachievable in most loyalty programs I look for programs that have low requirements for Elite status I spend more on travel than I would in order to get points/miles It's easy to transfer points between hotel and airline programs TOTAL SAMPLE – Travel Loyalty Program Behavior & Attitudes

STRICTLY PRIVATE AND CONFIDENTIAL Total Members (821) Beliefs About Travel Loyalty Programs Rate 9, 10 Concern about the value of points/miles is evident regardless of loyalty program membership and irrespective of members’ elite status. Not surprisingly, elite members maintain stronger beliefs about their programs than do non-elites. Concern about the value of points/miles is evident regardless of loyalty program membership and irrespective of members’ elite status. Not surprisingly, elite members maintain stronger beliefs about their programs than do non-elites. Q4 The value of mile/points has been shrinking Program credit card is easiest way to accrue reward points/miles Rules have been revised/only the biggest spenders enjoy perks It's become more difficult to reach Elite status Loyalty programs keep changing the rules/harder to redeem It's difficult to move up 'tiers' -- qualifications too high Elite membership doesn't guarantee perks like they used to You have to 'game' the system to get most value from programs I like redeeming for things other than hotel stays/flights Membership affords preferential treatment when you travel Redemptions for groceries/gas/merchandise helpful in tough times Programs offer personalized rewards that are relevant to me We travel more often because we can use our rewards Applied for several cards for bonuses with diff. loyalty programs I look for programs that have low requirements for Elite status Rewards are unachievable in most loyalty programs I spend more on travel than I would to accrue points/miles It's easy to transfer points between hotel and airline programs EliteNon-EliteTotal Members Non-Members (479)(342)(191) %% Black box indicates significantly higher than Non-Members Green box indicates significantly higher than Non-Elite Members TOTAL SAMPLE – Travel Loyalty Program Behavior & Attitudes 12

STRICTLY PRIVATE AND CONFIDENTIAL 12 Travel Profile Among Total Frequent Travelers Frequent travelers have taken, on average, 8 trips which required a hotel stay in the last 12 months. Most of the trips were domestic and made by air, most commonly via United and Delta airlines. They tend to be more for leisure than business purposes. Hilton and Marriott account for nearly half of the hotel stays on those trips. Frequent travelers have taken, on average, 8 trips which required a hotel stay in the last 12 months. Most of the trips were domestic and made by air, most commonly via United and Delta airlines. They tend to be more for leisure than business purposes. Hilton and Marriott account for nearly half of the hotel stays on those trips. CARD OWNERS – Travel Profile Q1d, 5abc, 6ac

STRICTLY PRIVATE AND CONFIDENTIAL 13 Frequent travelers own about 3 general purpose credit cards, and they are spread across general travel, cash back and airline cards and to a lesser extent hotel cards. More than two in five use at least one card for business purposes. A fairly large proportion own cards that maintain fees and nearly everyone has at least one card that carries no fee. Monthly charges amount to over $3,000, with twice as much charged for non-business as business expenses. Only one-third of frequent travelers claim to revolve on their credit card payments. Frequent travelers own about 3 general purpose credit cards, and they are spread across general travel, cash back and airline cards and to a lesser extent hotel cards. More than two in five use at least one card for business purposes. A fairly large proportion own cards that maintain fees and nearly everyone has at least one card that carries no fee. Monthly charges amount to over $3,000, with twice as much charged for non-business as business expenses. Only one-third of frequent travelers claim to revolve on their credit card payments. Credit Card Ownership Profile Among Total Frequent Travelers Q1ef, 7ab, 7c1-2, 7e TOTAL SAMPLE – Credit Card Ownership & Attitudes

STRICTLY PRIVATE AND CONFIDENTIAL 14 General Purpose Credit Cards Owned/Primary Card Among Total Frequent Travelers General travel, cash back and airline cards are each considered the “primary” credit card by one in four frequent travelers. Within general travel cards, Bank cards are more likely to be cited than are American Express cards. Q7a n=1012 ANY GENERAL TRAVEL CARD BANK GENERAL TRAVEL Capital One Venture Rewards Total Chase Sapphire Chase Sapphire Citi Card Citi Thank You Barclay Card AMERICAN EXPRESS GENERAL TRAVEL Amex Gold/Platinum American Express Gold American Express Platinum Blue from American Express ANY CASH BACK CARD Discover Chase Freedom BankAmericard Cash Rewards True Earnings Card from Costco and Amex ANY AIRLINE CARD United United Mileage Plus Visa United Mileage Plus Explorer American Airlines Citi AAdvantage American Express Delta SkyMiles Southwest Southwest Airlines Rapid Rewards Plus Visa ANY HOTEL CARDS Marriott Marriott Rewards Visa Signature Citi Hilton American Express Hilton Honors ALL OTHER CARDS Other Bank Chase Slate Citi Card Store Cards (any) Gas Cards (any) Primary Card Total Own TOTAL SAMPLE – Credit Card Ownership & Attitudes

STRICTLY PRIVATE AND CONFIDENTIAL 15 Given their dominance as frequent travelers’ primary travel programs, it is not surprising that airline programs have elicited a higher level of associated credit card acquisition from their members than have hotel programs. United has been much more successful than other programs in generating card acquisition among its membership. Given their dominance as frequent travelers’ primary travel programs, it is not surprising that airline programs have elicited a higher level of associated credit card acquisition from their members than have hotel programs. United has been much more successful than other programs in generating card acquisition among its membership. Penetration of Loyalty Program Credit Cards Among Program Members United (42%)* (426) American/US Air (45%) (452) Delta (45%) (458) Southwest/Air Tran (37%) (373) Hilton (48%) (490) Marriott (43%) (440) IHG (20%) (201) Starwood (23%) (235) Hyatt (23%) (232) * % of respondents claiming to belong to program TOTAL SAMPLE – Travel Loyalty Program Behavior & Attitudes Q7a

STRICTLY PRIVATE AND CONFIDENTIAL 16 A regression analysis was conducted to determine key drivers of overall satisfaction with credit cards. This measure of “derived importance” is then compared to “stated importance” to yield benefits that are stratified as shown below. STATED IMPORTANCE LOW HIGH DERIVED IMPORTANCE Credit Cards Derived vs. Stated Importance Among Total Frequent Travelers HIGH LOW ( ) = % Rank benefit among 3 most important TOTAL SAMPLE – Credit Card Ownership & Attitudes

STRICTLY PRIVATE AND CONFIDENTIAL 17 Ratings of Credit Cards on Specific Characteristics (Satisfaction Rated 9, 10) In Order of Derived Importance Each type of card has its own unique sets of associated benefits vs. the average card as boxed below. Box indicates significantly higher than total cards rating TRULY IMPORTANT – High Derived Importance AND High Stated Importance PRICE OF ENTRY – High Stated Importance BUT NOT High Derived Importance HIDDEN MOTIVATOR – High Derived Importance BUT NOT High Stated Importance TOTAL SAMPLE – Credit Card Ownership & Attitudes Q8bc

STRICTLY PRIVATE AND CONFIDENTIAL 18 TOTAL SAMPLE – Credit Card Ownership & Attitudes: Max Diff Exercise Max-Diff is a technique which measures consumers’ preferences across multiple items. The advantage of Max-Diff, as opposed to having respondents rate the appeal of each item on a standard rating scale, is that its scores demonstrate greater discrimination across the items as well as between respondents on the items. Additionally, the Max-Diff questions are simple to understand, and since respondents are making choices rather than expressing their opinion on a numeric scale, there is little potential for scale use bias. In the current research, 18 unbranded credit card offerings were evaluated. Respondents were shown a subset of four credit card offerings, one subset at a time, and asked which one card they would MOST likely acquire and which one they would LEAST likely acquire. The combinations of offerings were designed so that each one was shown across the different subsets an equal number of times. Results from the exercise are shown as overall preference scores based on a 0 to 100 point scale, as well as by rank order of preference. Max-Diff Concept Evaluation

STRICTLY PRIVATE AND CONFIDENTIAL 19 Continued … TOTAL SAMPLE – Credit Card Ownership & Attitudes: Max Diff Inputs

STRICTLY PRIVATE AND CONFIDENTIAL TOTAL SAMPLE – Credit Card Ownership & Attitudes: Max Diff Inputs

STRICTLY PRIVATE AND CONFIDENTIAL 21 TOTAL SAMPLE – Credit Card Ownership & Attitudes: Max Diff Inputs

STRICTLY PRIVATE AND CONFIDENTIAL 22 Appeal Score/Top 3 Rank/Top Rank of Specific Credit Card Offerings Max-Diff Exercise Overall, results suggest that fee structure is the key driver of overall appeal of the offerings presented --no fee and low fee cards receive the highest appeal scores and top ranks, while high fee cards receive the lowest scores and top ranks. Within this framework, however, the Chase Slate card is LESS appealing than other no fee cards…while the Chase Southwest Premier card is MORE compelling than its pricing would suggest. TOTAL SAMPLE – Credit Card Ownership & Attitudes

STRICTLY PRIVATE AND CONFIDENTIAL 23 TOTAL SAMPLE – Credit Card Ownership & Attitudes Perceptual Map of Appeal of Specific Credit Card Offerings Based on Max-Diff Exercise A map of appeal confirms that the key differentiator in the max-diff exercise is fee structure, with low and no fee cards residing on the right side of the map and higher fee cards on the left. Within each sphere, the cards break down further based on fees, rewards and benefits offered.