1. © International Road Transport Union (IRU) 2008 Page 1 United we stand… Graham SMITH CEO Heyfordian Travel (UK) President of the IRU Passenger Transport Council Vice President of the IRU

2. © International Road Transport Union (IRU) 2008 Page 2 IRU Membership 2008 Updated August 2007 Created 1948 8 Founder States: Created 1948 8 Founder States: BelgiumDenmarkFranceNetherlands NorwaySwedenUKSwitzerland 2008 180 Members 72 Countries

3. © International Road Transport Union (IRU) 2008 Page 3

4. © International Road Transport Union (IRU) 2008 Page 4 Evolution of IRU Structure 1948 IRU founded in Geneva Consultative status with the UN 1973 IRU Permanent Delegation to the EU in Brussels 1998 IRU Permanent Delegation to the CIS (former Soviet Union) in Moscow 2005 IRU Permanent Delegation to the Middle East (and Asia) in Istanbul

5. © International Road Transport Union (IRU) 2008 Page 5 Coach tourism in Europe Coach tourism in Europe Europe remains the main host market for global tourism 54% of all tourist arrivals 54% of all tourist arrivals 4% stable annual growth in recent years 4% stable annual growth in recent years 25% expected increase by 2010, e.g. in Germany 25% expected increase by 2010, e.g. in Germany huge and growing population huge and growing population free travel area, i.e. one visa for 25 EU Member States free travel area, i.e. one visa for 25 EU Member States Europe remains the main host market for global tourism 54% of all tourist arrivals 54% of all tourist arrivals 4% stable annual growth in recent years 4% stable annual growth in recent years 25% expected increase by 2010, e.g. in Germany 25% expected increase by 2010, e.g. in Germany huge and growing population huge and growing population free travel area, i.e. one visa for 25 EU Member States free travel area, i.e. one visa for 25 EU Member States

6. © International Road Transport Union (IRU) 2008 Page 6 Coach tourism in Europe Coach tourism in Europe  Improvement in comfort and efficiency of coach travel  Niche and new markets: Europe provides endless opportunities for growing group travel Historic sites Historic sites Sporting events Sporting events Spiritual trips, e.g. The Da Vinci Code Film trail Spiritual trips, e.g. The Da Vinci Code Film trail City tours City tours Culture trips Culture trips Culinary and wine-tasting trips etc. Culinary and wine-tasting trips etc.  Improvement in comfort and efficiency of coach travel  Niche and new markets: Europe provides endless opportunities for growing group travel Historic sites Historic sites Sporting events Sporting events Spiritual trips, e.g. The Da Vinci Code Film trail Spiritual trips, e.g. The Da Vinci Code Film trail City tours City tours Culture trips Culture trips Culinary and wine-tasting trips etc. Culinary and wine-tasting trips etc.

7. © International Road Transport Union (IRU) 2008 Page 7  Coach tourism in Europe   Competition with other transport modes Subsidised air and rail travel Subsidised air and rail travel Low cost airlines Low cost airlines High fuel and social costs High fuel and social costs  Penalised or denied access to city centres Venice, Rome, Florence etc. Venice, Rome, Florence etc. London LEZ + LEZ's with various rules spreading all over Europe London LEZ + LEZ's with various rules spreading all over Europe  Over-regulation Loss of flexibility with removal of 12-day continuous driving derogation Loss of flexibility with removal of 12-day continuous driving derogation 6-day maximum driving 6-day maximum driving Increased weekly rest times Increased weekly rest times Driver’s loss of earnings Driver’s loss of earnings  Competition with other transport modes Subsidised air and rail travel Subsidised air and rail travel Low cost airlines Low cost airlines High fuel and social costs High fuel and social costs  Penalised or denied access to city centres Venice, Rome, Florence etc. Venice, Rome, Florence etc. London LEZ + LEZ's with various rules spreading all over Europe London LEZ + LEZ's with various rules spreading all over Europe  Over-regulation Loss of flexibility with removal of 12-day continuous driving derogation Loss of flexibility with removal of 12-day continuous driving derogation 6-day maximum driving 6-day maximum driving Increased weekly rest times Increased weekly rest times Driver’s loss of earnings Driver’s loss of earnings

8. © International Road Transport Union (IRU) 2008 Page 8 Impact of the loss of the 12-day continuous driving derogation Operating costs up 25% since April 2007Operating costs up 25% since April 2007 Profit margins down by 25 -30%Profit margins down by 25 -30% 18% more planning staff and drivers needed18% more planning staff and drivers needed 20% of drivers thinking of leaving the occupation20% of drivers thinking of leaving the occupation Impact of the loss of the 12-day continuous driving derogation Operating costs up 25% since April 2007Operating costs up 25% since April 2007 Profit margins down by 25 -30%Profit margins down by 25 -30% 18% more planning staff and drivers needed18% more planning staff and drivers needed 20% of drivers thinking of leaving the occupation20% of drivers thinking of leaving the occupation  Coach tourism in Europe 

9. © International Road Transport Union (IRU) 2008 Page 9 Long term challenges  Concerted effort by the industry and partners needed to improve coach image Not just for the young, elderly or those on low income Not just for the young, elderly or those on low income Must be seen as a credible alternative to get to a destination Must be seen as a credible alternative to get to a destination  Persuade politicians, partners and the general public that coaches are: Efficient Efficient Energy compliant Energy compliant Provide comfort and quality Provide comfort and quality Access to city centres Access to city centres  Promote coach travel as a global brand  Concerted effort by the industry and partners needed to improve coach image Not just for the young, elderly or those on low income Not just for the young, elderly or those on low income Must be seen as a credible alternative to get to a destination Must be seen as a credible alternative to get to a destination  Persuade politicians, partners and the general public that coaches are: Efficient Efficient Energy compliant Energy compliant Provide comfort and quality Provide comfort and quality Access to city centres Access to city centres  Promote coach travel as a global brand

10. © International Road Transport Union (IRU) 2008 Page 10 Promoting coach travel The IRU can help by:  Building and increasing political weight at global level  Pooling industry know-how ExpertiseExpertise Best practiceBest practice  Helping to build a global brand for the coach industry SafetySafety QualityQuality Environmental-friendlinessEnvironmental-friendliness  Establishing guaranteed quality and safety standards The IRU can help by:  Building and increasing political weight at global level  Pooling industry know-how ExpertiseExpertise Best practiceBest practice  Helping to build a global brand for the coach industry SafetySafety QualityQuality Environmental-friendlinessEnvironmental-friendliness  Establishing guaranteed quality and safety standards

11. © International Road Transport Union (IRU) 2008 Page 11 IRU Star Classification System   1 to 4-star scale according to a set of technical and performance criteria   Based on comfort standards   Annual vehicle inspections   Issue of classification panels (labels)    Not known by partners and customers   Somewhat bureaucratic   No 5-th star   1 to 4-star scale according to a set of technical and performance criteria   Based on comfort standards   Annual vehicle inspections   Issue of classification panels (labels)    Not known by partners and customers   Somewhat bureaucratic   No 5-th star

12. © International Road Transport Union (IRU) 2008 Page 12 Source: FBAA, 2007 Results: coaches are getting more comfortable Belgian coaches in each IRU star category (% of total)

13. © International Road Transport Union (IRU) 2008 Page 13 The new IRU Star Classification system – towards an industry brand   Simplification and streamlining of administration   Vehicles to be rated from 1 to 5 stars   Companies to commit to basic rules of service quality and safety management   Global Internet site and search engine to promote companies and their services   Customers’ complaint procedure   Simplification and streamlining of administration   Vehicles to be rated from 1 to 5 stars   Companies to commit to basic rules of service quality and safety management   Global Internet site and search engine to promote companies and their services   Customers’ complaint procedure

14. © International Road Transport Union (IRU) 2008 Page 14 IRU Star Classification System – IRU Star Classification System – objectives   Consolidate varying systems in various countries   Guarantee recognisable minimum uniform standards for each star category   Harmonise level of standards at international level   Ensure transparency of the “coach” product   Help forge partnerships between operators and other trade partners   Consolidate varying systems in various countries   Guarantee recognisable minimum uniform standards for each star category   Harmonise level of standards at international level   Ensure transparency of the “coach” product   Help forge partnerships between operators and other trade partners

15. © International Road Transport Union (IRU) 2008 Page 15 IRU Priorities 2008   Sustainable Development Innovation Incentives Infrastructure   Facilitation Trade Tourism Road Transport   Sustainable Development Innovation Incentives Infrastructure   Facilitation Trade Tourism Road Transport These are also the priorities of the IRU Global Training Academy

16. © International Road Transport Union (IRU) 2008 Page 16 Welcome to the IRU World Congress 2008: Istanbul 15 – 16 May 2008

17. © International Road Transport Union (IRU) 2008 Page 17