1. Corporate Travel... Extracting Value in a Recovering Market Chris Reynolds (CIPS) Nick Hurrell CIPS, Manchester and North West Construction, 16 November 2010

2. Introductions and Agenda Corporate travel trends : 2010 – 2011 Value:Smarter Buying Travel management companies Technologies Where to next ?

3. 2010...The market is growing Business Travel Growth ‘Steady but strong’ A 12% increase in air travel transactions exceeds 2008 levels for the first time BA back in the Black Before tax profit of £158 million during the first half of this financial year Ryanair profits leap 17% increase in half year net profit to €452m Capacity cuts boost Aer Lingus profits 35% increase in profits in July, August and September. Virgin Trains increases Market share Manchester-London: 69% to 85% UK Hotel occupancy rates growing London 87%, Regions 75%

4. The Market Outlook - Air

5. Airfares: likely outcome- 2011

6. Airline Consolidation Global Alliances –Star Alliance –One World –Sky Team BA/Iberia –IAG ‘Interested’ in 12 carriers Continental/United North West/Delta American: Largest US to 4 th in a year

7. Average Daily Hotel Rates 2010 Africa +7.5% Europe -3.2% Nth America -1.6% Sth America +4.5% M. East -2.6% ASPAC -3.0% Source: Advito

8. Predicted Hotel Rates 2011 Africa +4.0% Europe +2.5% Nth America +3.5% Sth America +6.0% M. East +4.5% ASPAC +5.0% Source: Advito

9. “Unbundling” 2011 ancillary revenues forecast at $22b –Ryanair alone: £600m in 2009 ! Little transparency of cost –No like for like comparison at point of sale –Swallowed up in expenses Latest charges –Blankets/Pillows on flights –Mileage multipliers –Credit Card surcharge on hotel bills

10. Value: Smarter Buying A Managed Travel Programme..... Key Drivers: Transparency of spend Safety and Security of employees Pooling of volumes Traveller Confidence

11. Value: Smarter Buying Airlines: –Contract or Best deal on the day? Hotels: –Contract is a ceiling only –Negotiate on the extras –Manage your meetings spend Rail: –Book online and in advance

12. Value: Travel Management Companies Too big a focus on agency fees –Accounts for only 2.5% - 5% of spend

13. Travel Management Companies Value and Cost Savings Online and Telephone booking Policy Control Access to best rates Data and traveller tracking Account Management

14. Travel Management Companies Should offer online and telephone booking Separate pricing for online and offline booking Global TMC, smaller agent or specialist? Choice of payment method Value and Cost Savings Consolidated booking process Policy Control Access to best rates Data and traveller tracking Account Management

15. Travel Management Companies Mandate or encourage ? Compliance to booking process and preferred suppliers Reduce leakage Consistent data Value and Cost Savings Consolidated Booking Process Policy Control Access to best rates Data and traveller tracking Account Management

16. Travel Management Companies Multi channel sources Capture last minute reductions Strong relationships with their suppliers Value and Cost Savings Consolidated Booking Process Policy Control Access to best rates Data and traveller tracking Account Management

17. Travel Management Companies Online and real time data Understand data sources Ability to hand off to 3 rd parties (traveller tracking, expense management, etc) Value and Cost Savings Consolidated Booking Process Policy Control Access to best rates Data and traveller tracking Account Management

18. Travel Management Companies The right person is vital –Thought Leadership –Culture fit –Confidence Should provide travel alternatives Offer additional products only when they are right for you Can be outsourced Value and Cost Savings Consolidated Booking Process Policy Control Access to best rates Data and traveller tracking Account Management

19. Where to next?

20. New Aircraft = More unbundling Flexible Cabins: Personalised Service...Unbundled pricing

21. Rail - more prominent Other Operators will use High Speed 1 (Channel Tunnel) High Speed 2 likely Airlines / Rail will market together Increasing Road Congestion and Environmental issues

22. Technology (again...) “On the go” booking Video Conferencing? Social Networking –No longer for the under 30’s...

23. Thank You... Questions ? Contact 3SIXTY Global at: chris.reynolds@3sixty-global.com or: enquiries@3sixty-global.com enquiries@3sixty-global.com Tel: +44 (0) 8456 808 360