Orbitz Worldwide at a Glance

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Presentation transcript:

Dean Sivley | COO and General Manager Corporate Travel Solutions Orbitz Worldwide

Orbitz Worldwide at a Glance Key Statistics Brands 1,700 employees, 1,700 contractors/outsourced ~1,000 domestic ~700 international ~1,700 outsourced positions primarily in customer service and technology 3 primary locations Chicago (Global Headquarters) London (ebookers Headquarters) Sydney (Flairview Headquarters) Four owners in four years Airlines, Public, Cendant, Blackstone

US Managed Corporate Travel Market* $’s Bil’s % Online $110.0 $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 60% %50 %40 %30 %20 %10 %0 $105.0 $102.0 $99.0 $94.0 48% US$B’s 42% 37% % Online 3% 2005 2006 2007 2008 * Source: PhoCus Wright

European Corporate Travel Market* $’s Bil’s % Online $110.0 $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 60% %50 %40 %30 %20 %10 %0 $98.1 $94.6 $90.9 $88.2 US$B’s % Online 22% 14% 8% 5% 2005 2006 2007 2008 * Source: PhoCus Wright

APAC Corporate Travel Market* $’s Bil’s % Online $110.0 $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 60% %50 %40 %30 %20 %10 %0 US$B’s % Online $70.0 $67.0 $63.0 11% $60.0 4% 2005 2006 2007 2008 * Source: PhoCus Wright

Consolidated Corporate Travel Market* 2005 vs. 2008 (US$B’s) $273.0 $264.0 $253.0 $242.0 * Source: PhoCus Wright

Impact to Corporate Travel Marketplace With 1-Hour Outage Over $30M per hour in lost revenue Add in Leisure travel and South America and your cost per hour of lost revenue is approximately $75M/hour Don’t potential travelers call back? Contact ratio issues Customer loyalty and satisfaction

Service Level Commitment Orbitz Worldwide Corporate Travel Services Customer Service Center 80% of calls will be answered within 30 seconds Weekly reports verify phone response times attained Site Availability Website will be available 99% of the time If Website unavailable, company will charge online fees for offline transactions

Industry Challenges - experienced agents in a geographically centralized environment Fees have been declining in an environment with elimination of commissions and other incentives This has led to a need to move away from “on-site” travel agents, to consolidated, low-cost centers that house agents How can the industry leverage telecommunications capabilities to provide consolidated benefits without the geographic challenges of finding an experienced workforce?

At-Home Agent Technology IP agent software – works in Internet environment with home-users DSL/modem IP and VPN software gives home agents security, access to programs and applications Emerging technology, trend we expect to see more of, is one we recently implemented with our call center in Denver – at-home agent program. What’s required: There are two different types of technology. IP hard phone – w/ network connection, which is what’s used in a call center (diagram on the right). And IP Agent software – which has all of this within the software on a PC. IP agent software works with home users DSL/modem circuit, makes agent appear as if they’re in a call center. Use this in conjunction with VPN software, and security is imbedded within the VPN to give agents access to the programs and applications needed within the home environment.

Challenges With At-Home Agent Technology Coverage Can wireless help? Quality Second line required for pure voice connection at appx $40/line/month Security Sufficient bandwidth calculated to the volume of forecasted volume

Two Corporate Travel Industry Trends Affecting IEEE As the globalization trend accelerates, partnerships and sharing of data & calls, applications and information will become even more critical and call for global solutions Travel 2.0 – personalization, contextual relevance Planes, Trains and Automobiles came out 20 years ago. Many of the challenges we as travelers face today haven’t changed. But let’s fast forward to 2007: What happens now when you’re in that same situation? The last flight of the day is canceled, in a city far from home? Aside from the fact that few of us in this room would be running to a pay phone, let’s see how much our world has changed… Mobile Access commercial The challenges haven’t changed but it’s amazing to think about how much technology has. Now, we can give you instant access to find a hotel room – real time, last minute with live information sent direct to a web-enabled cell phone or wireless device. Our customers tell us this is a great tool that allows them to control their travel experience. We call this mobile access – it’s part of OrbitzTLC. Our umbrella of services that include proactive traveler notifications – we’ve sent more than 80 million since 2003. -7 out of 10 customers choose a cell phone as their preferred method of communication. But it’s our society, and travelers as a whole that have come to rely on this type of wireless technology in our day-to-day live, and business travels. Travel in 1987 Travel 2.0 in 2007

OrbitzTLC Mobile Access SM OrbitzTLC Mobile Access Implemented on Orbitz for Business in March 2007 Check itineraries, flight status and last-minute hotel availability from any wireless device/Web-enabled cell phone First introduced on Orbitz.com in August 2006 We call this mobile access – it’s part of OrbitzTLC. Our umbrella of services that include proactive traveler notifications – we’ve sent more than 80 million since 2003. -7 out of 10 customers choose a cell phone as their preferred method of communication. Just launched on OfB in 2007. But it’s our society, and travelers as a whole that have come to rely on this type of wireless technology in our day-to-day live, and business travels.

Travel 2.0 - Reliance on Wireless Communications Mobile Technology OrbitzTLC Alerts More than 80 million alerts since 2003 6 out of 10 travelers give us cell phone numbers

The Future of Corporate Travel and Technology At-Home Agent Programs and Virtual Call Centers Globally-enabled solutions in a wired and wireless environment Travel 2.0 and telecommunication-enabled innovation