Latin America Sales Management June 2009

LATAM: 379 MILLIONS HABITANTS EMERGING MARKET Population 2008 (Millions of habitants) GDP 2008 USD per capita Growth GDP 2008 (in % ) Inflation 2008 (in %) 191, ,00% 4,0% 29, ,00% 4,00% 45, ,00% 5,10% 40, ,00% 16, ,00% 7,00% 109, ,00% 4,00% Source: indexmundi.com / 2008

–Comission: 10% –Form of payment: Invoicing for most countries Credit Card 50% / Invoicing 45% / Cash 5% (Midscale Brazil) –TMC’s: Only in Brazil they are formally organized. Competition still practices Travel Agencies Rates (AGV). Quite few are developing SBT. –Travel Managers: Well organized in Brazil (NBTA basis) and Argentina. Pushing for 2 years contract and flat rates. –DMC’s: Due to dollar devaluation, started to sell to Corporate. Flat Rates in dollar hard to negotiate. Quite few are online. –Tour Operators: Dominate small hotel chains pushing prices down. Pushing on flat rates. Offer better commission than suppliers. –OLTA: Biggest are HOTELDO and E-HTL. Online connection via CM Net project still in development. Market Overview – HOTEL BUSINESS Payment / Remuneration

ACCOR LATIN AMERICA SCENARIO Outbound from BR –Lack of defined KPI ‘s for Regional and International –Oil, construction, mining, automotive and agro business –Use of DMC’s as reservation channel Other countries –Difficulties to measure and manage Definition of database / portfolio management –Booking channel: 70% of bookings directly in hotel –Payment: 45% invoicing 10 days after check-out for Corporate (pushin to 45 days) 20 days after check-out for TMCs group –New Reporting System (info per portfolio/channel/intermediate) –ASA in Central Sales /Implementation in Hotel Sales Started in July Domestic BR (Midscale)

SALES STRUCTURE – ACCOR HOSPITALITY LAT.AMERICA 2009 Central Sales Hotel Sales

KAM’S DUTIES

Pricing Contracting Loading Animation / training “Pass-through” CENTRAL SALES x HOTEL SALES DINAMICS CLIENTE – Key Account CENTRAL SALES LATIN AMERICA HOTELS HOTEL SALES RFP (ACQ) MICE Leads Long stay / Relationship

SALES PERFORMANCE per BRANS - YTD 08/08

SALES PORTFOLIO PERFORMANCE SALES PERFORMANCE PER SALES TEAM YTD MAY 08 x 09

Figures Jan Fev Mar (07 x 08). Source Cognos. FIGURES – TOP 20 CLIENTS

PERFORMANCE vs COMPETITION - TMC’s Favecc TMC Brasil

TRENDS LATAM –Market started to react after May (mostly Groups) –Battle for Revenue focused in Distributors (Travel Agencies, TMC’s, MICE organizers and Tour Operators) –Pressure from Corporate Clients to include Breackfast and Internet in RFP rates –New Competitors to be in country after 2011 (Economic and Midscale) –TMCs to threat suppliers with production suspension if we don’t pay overcomissions or Entrance Fees –Most TOP clients are not accepting rates raises over inflation –Panic Management from competition leading to rate war in some areas MIDSCALE –Mostly same trends, but competition is applying Midscale rates for Upscale brands –Usage of Trade Marketing to sustain brand knowledge and share of mind UPSCALE

AgenteAccor.com.br Travel agencies website AWP – Agencies Web Program Online Multi brands Guide Travel Agencies Campaign 13% comission campaign Launch of loyalty program Tradeshows & Events Budget Trade Marketing Dependency on Brands Official calendar = 15 tradeshows Travel Agencies Day Sales Training TRADE MARKETING