WHAT TRAVEL PAYMENT IS ALL ABOUT. Welcome to the 2011 AirPlus Annual Press Conference Schiphol, April 5 th 2011 Patrick W. Diemer, Chairman of the Executive Board Lian Wolfs, Director AirPlus International BeNeLux

WHAT TRAVEL PAYMENT IS ALL ABOUT. Increased travel under growing cost pressure – travel managers are gearing up to negotiate pricing 2011 AirPlus Annual Press Talks p AirPlus Annual Press Talks

Agenda AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. The 2010 AirPlus Global Review 1.An Outstanding Year More Mobility – Increasing Cost Pressure 2.Trends in Travel Management 10 Years of savings on corporate travel costs, Outlook for In Focus: AirPlus The Netherlands The Key to Successful Cost Management 4. Negotiating with Travel Service Providers 2011 AirPlus Annual Press Talks p. 3

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. AirPlus Overview  Number 1 in Germany, Austria and Switzerland, Number 2 in Europe, Number 3 worldwide  Products and solutions in 59 countries on five continents  896 staff members  More than 125 million transactions per year  Registered financial-services provider  Shareholders: Deutsche Lufthansa AG and Bayerische Landesbank  Member of MasterCard, VISA, UATP and DinersClub (Austria, Spain)  Headquartered in Neu-Isenburg, Germany BeNeLux headquarters at Schiphol AirPlus is a leading international provider of solutions for daily business-travel management. p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. AirPlus empowers companies to monitor, manage and reduce their travel costs  Cost transparency with supplementary data  Analysis in the Management Information System  Optimal control and basis for negotiation MIS for Travel Management p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. 2010: the economic upswing stimulates mobility worldwide  Settlement turnover was 21 billion € (+23%*)  BTM volume up globally 22 %, NL up 50 %  Increase in business travel turnover due to:  the acquisition of more than 2000 new customers resulting in more than 35,000 customers worldwide  a 12% rise in flight volumes  existing customers booking 5% more trips  Prices for train tickets, hotels and rental cars also escalated * AirPlus Austria consolidated as of 2010 p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Record highs for settlement turnover, profit and loss proceeds and results p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. AirPlus issuing volume in billion € AirPlus is Back on the Growth Track Issuing volume =  Company Account  Corporate Card  Road Account  billinx p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT Milestones  Successful business in China: turnover increased by 84 m € to 108 m € for the Air China AirPlus Company Account, the first central solution in China for settling business travel expenses  Very positive development of turnover in AirPlus’ European core markets also  AirPlus Corporate Cards: successful reduction of credit card abuse thanks to the development and use of state-of- the-art security technologies (Card Control, Chip, Fraud Prevention System)  Five innovations for products, data quality and service p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. AirPlus’ innovations in 2010: new tools for professional business travel management  Car Rental Excess Waiver  Card Control Country Change  TX Stop & Balance  Green Reports  A.I.D.A. for Germany p AirPlus Annual Press Talks

Agenda AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. The 2010 AirPlus Global Review 1.An Outstanding Year More Mobility – Increasing Cost Pressure 2.Trends in Travel Management 3.Focus On: The Netherlands The Key to Successful Cost Management 4. Negotiating with Travel Service Providers 10 Years of savings on corporate travel costs, Outlook for 2011 p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. The AirPlus Database More than 125 million bookings for business travel per year including flights, train tickets, rental cars and hotel accommodations. p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Development in business travel: prices increase with the growing number of travel bookings Source: AirPlus Customers Global 2009/2011 Prices and business travel bookings increase analogously from Q2 / 2010 on p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Prices for Flight Tickets are Going Back up February 2008February 2009February 2010February €522 €499 €523 € Source: AirPlus Customers Global 2008/2011 Average flight ticket price p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Service Classes: Savings Policies Were Eased in First1% Business43%12%8%14% Eco56%87%91%85% Source: AirPlus Customers Global 2001/2010 Allocation of service classes p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Back to Business: Corporate Staff Travels Again  Customers in 31 countries use the AirPlus solution  Progression in the number of business trips: 2010 total: +32% start in 2011: +18%  Progression in travel expenses: 2010 total: +28% start in 2011: +33%  Progression in service classes: 2009: Eco 88%, Business 11% 2010: Eco 87%, Business 12% 2011: Eco 85%, Business 14% Example: global customers’ travel behavior p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.  In the first quarter of 2011, the number of business trips rose significantly – up by 9% worldwide  The need for global tools for effective cost management remains strong : 77% of travel managers worldwide will continue to press for savings despite the economic upswing  AirPlus will remain on the growth track and will continue winning new customers and market shares  Goals: tap further core markets, extend acceptance to include more merchants, extend global offerings for large customers, enhance product and service quality 2011: Another Record Year Expected p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. The AirPlus Solution – Outlook for 2011  Generation 3 Bring international Corporate Card offering to next level  Extend card acceptance to include more car rental and railway companies, e.g., the Avis Global Contract  Improve the portfolio of international AirPlus Corporate Cards  Offer reports for negotiations in the AirPlus Information Manager p AirPlus Annual Press Talks  Tap the MICE markets in all of AirPlus’ European core markets  Increase activities in APAC: Australia will become new AirPlus core market

Agenda AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. The 2010 AirPlus Global Review 1.An Outstanding Year More Mobility – Increasing Cost Pressure 2.Trends in Travel Management 10 Years of savings on corporate travel costs, Outlook for In Focus: AirPlus The Netherlands The Key to Successful Cost Management 4. Negotiating with Travel Service Providers p AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. June 1st 2001 – June 1st year in The Netherlands

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT AirPlus Annual Press Talks AirPlus in the Netherlands: 10 Years successfully delivering savings to customers! p. 21

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. AirPlus in the Netherlands: 10 Years successfully delivering savings to customers!  2010 Purchased volume 15% above plan and +50% above previous year  Investment in addition team members and new positions to facilitate further successful growth (Business Development, Marketing Communication, Customer Service, SME Management, Sales Support)  From 5 employees in 2006 to over 20 today  Number of accounts:  AirPlus E-Academy Webinar Program 2011 AirPlus Annual Press Talks p. 22

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Flight spend: Back to the future NL Volume trend 2009 – 2011 Source: AirPlus global customer data Flight expenses 2011 AirPlus Annual Press Talks p. 23

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Dutch Companies‘ Flight Spendings 2010/2011 Air Volume+ 9% # Tickets+ 7% Source: AirPlus Customers Netherlands 2011 against previous year 2010 Air Volume+ 2% Jan/Feb # Tickets- 2% Jan/Feb AirPlus Annual Press Talks p. 24

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Prices for Flight Tickets Are Going Back up P. 25 February 2008February 2009February 2010February €571 €556 €597 € Source: AirPlus Customers Netherlands 2008/2011 Average flight ticket price 2011 AirPlus Annual Press Talks

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Service Classes: Business Class Comeback after the Recession * First1% 0% Business9%18%15% Eco90%81%85% Source: AirPlus Customers Netherlands 2009/2011 * January AirPlus Annual Press Talks p. 26

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Outlook MICE!  Meeting Management and MICE is a widely- recognized concept in the Netherlands  MICE volumes getting more in focus within companies  Corporates have difficulties estimating MICE expenses  Billing process mostly by traditional paper invoicing  Partnerships with TMCs, intermediairs, event planners, booking platforms and hotels 2011 AirPlus Annual Press Talks AirPlus in the Netherlands first market to launch MICE product outside of Germany p. 27

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Outlook MICE!  Meetingselect offer corporations reservation and consultancy services for the booking and purchasing of hotels and meeting facilities.  AirPlus solution fully integrated into Meetingselect booking tool  Central billing including DBIs e.g. cost centre, project number  Event related data e.g. event name, event type, event data, room nights, # participants 2011 AirPlus Annual Press Talks New: First partnership in place for meeting management with Meetingselect p. 28

Agenda AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. The 2010 AirPlus Global Review 1.An Outstanding Year More Mobility – Increasing Cost Pressure 2.Trends in Travel Management 10 Years of savings on corporate travel costs, Outlook for In Focus: AirPlus The Netherlands The Key to Successful Cost Management 4. Negotiating with Travel Service Providers 2011 AirPlus Annual Press Talks p. 29

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Key Issue in 2011: Negotiating with Travel Service Providers  The AirPlus solution delivers extraordinary data quality  The AirPlus Information Manager is the analysis tool for successful price negotiations  AirPlus knows the needs when it comes to price negotiations – both of companies and of travel service providers AirPlus supports corporate customers with their price negotiations 2011 AirPlus Annual Press Talks p. 30

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Key Issue Cost Management – as Important as Ever  Travel managers will continue to implement measures for cost reduction  Mobility is increasing despite higher prices  In 2010, cost reduction was more important than in 2009 Source: AirPlus International Travel Management Study 2010 More mobility despite cuts in travel budgets 2011 AirPlus Annual Press Talks p. 31

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Most Travel Managers Negotiate Corporate Rates... Quelle: AirPlus Travel Management Study AirPlus Annual Press Talks p. 32

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.... but Obtain very Diverse Savings Quelle: AirPlus Travel Management Study to 50 % 5 to 40 % 3 to 35 % 2 to 40 % Total 100% What percentage did your company save through negotiating with travel service providers last year? 2011 AirPlus Annual Press Talks p. 33

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Negotiate Special Corporate Rates Successfully – with the Good Information  A complete and clearly structured overview of their companies’ business travel expenses  Clear identification of all providers  Figures to prioritize negotiation partners  Automated reports for fast and easy control of ongoing negotiations with service providers  A transparent overview of travel services supplied by specific providers to compare them by means of clear figures What information do travel managers need for successful negotiations? 2011 AirPlus Annual Press Talks p. 34

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Example: Hotels – Prerequisites for Successful Price Negotiations  better control of hotel expenses  a reliable information base to decide which hotels or hotel chains are worth negotiating with  to negotiate better hotel prices What companies need: What hotels demand from companies:  a reliable information base to plan their room occupancy – “Room Nights” are therefore the the optimal solution 2011 AirPlus Annual Press Talks p. 35

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Step 1: Overview of Hotel Volumes by Country and City  Expenses by country and city  Top hotels and hotel chains  Further options: e.g., top hotels in a specific country or city AirPlus Dashboard Hotel 2011 AirPlus Annual Press Talks The travel manager decides to concentrate on the sales country Germany to identify top hotels and hotel chains. p. 36

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Step 2: Analysis of the Development of Hotel volumes in a Specific Country...  Overview of the hotel volume in a specific country  Its development over two time periods  Starting point for negotiations within a specific country  Options:  Hotel chain or individual hotel  Negotiate hotel deals in a specific city AirPlus ‘One click’ Report: Hotels by Country 2011 AirPlus Annual Press Talks The better part of hotel volume is apportionated to Germany. Choice of cities, hotel chains or individual hotels p. 37

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. AirPlus Offers Encompassing Data for Negotiations The AirPlus Information Manager offers excellent analysis tools when negotiating pricing with travel service providers, including  Hotel Report “Top Hotels”  Travel Agency Report “TMC fees”  Flight Report “Top airlines/ Top routes”  Flight Report “Booking class”  Flight Report “Cost per mile” ... and many more Top reports in the AirPlus Information Manager – the key to successful negotiations 2011 AirPlus Annual Press Talks p. 38

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. AirPlus Lab: Customised Analyzes of the Business Travel Processes of Companies  Offer for customers, prospects and cooperation partners  On basis of the AirPlus Information Manager, AirPlus experts analyse the expense structure and payment processes within the visitor´s company  This offer goes with the initiative for successful price negotiations 2011 AirPlus Annual Press Talks p. 39

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. Thank you for your attention! We are happy to answer your questions. WHAT TRAVEL PAYMENT IS ALL ABOUT AirPlus Annual Press Talks p. 40