1. Adventure Travel Division Simon Tobin17 September 2004

2. The World of Adventure Travel Small group exploration All continents / 107 countries / 400 trips Responsible Tourism

3. The Market in UK UK Worldwide Group Travel – Cultural, Activity & Adventure Adventure Small Groups (60,000*) *ATOL Licenses – 01/09/03 Walking Activity Special Interest Individuals & Groups Self Guided (61,200*) Worldwide Group Travel Cultural & Comfort (158 500*) Explore Exodus Bales Cox & Kings Noble Caledonia VJV Travel Collection Travelsphere The Adventure Company Journey Latin America Guerba / Dragmoman / ImTrav Discover the World Headwater Inntravel HF Holidays ATG Waymark Ramblers

4. Customer Profiles Grown up back packers Late starters First steppers Action men & women Serial Explorers Average age 46 … 55% female

5. The Business Model Small group packages Land costs & Tour Leader & Air & Misc Pricing = VFM Gross margin 30% Net margins 9% Yield management drives profitability Currency bought forward

6. Distribution 87% UK / IRL = EXUK Flight inclusive 13% International GSA’s = Land only USA CAN AUS NZ

7. Sales Mix UK Business 95% Direct 5%Agency Direct business 20% via Web 20% 80%

8. Customer Services Sales & Reservations Support Flights/Tix CR Organisation & Structure Explore Marketing Comms Services Distribution Internet IT Network Systems and Development Finance & Admin Financial Legal HR Operations Product Development Overseas Ops Aviation 120 Permanent Staff 140 Tour Leaders & Local Leaders

9. Divisional Board Simon Tobin (4) Mangaging Director (Sales & Marketing) Ashley Toft (9) Customer Services Director Nick Anstead (10) Product Development & Ops Director Andreas Elia (7) General Manager, RegalDive Mike Tyler (3) Finance Director (Finance/IT/HR) Derek Moore (24) Aviation Director

10. RegalDive - Product Red Sea Package Holidays –Diving, Liveaboards & Sun Worldwide Diving –Tailor made – to Caribbean, Maldives, Indonesia, South Africa etc Special Groups & Flights Only

11. RegalDive - Business Model 80% Red Sea Charter 7 / 14 day rotations 15% Worldwide 5% Seat only / miscellaneous Conventional Tour Operator Financial Model –20% Gross margins. 5% Net margins –Load factors / Fixed cost commitment

12. RegalDive - Organisation & Distribution Based in Cambridgeshire Technical Dive & overseas expertise Lean cost / overhead structure Direct sales 70% Agency / Specialist Dive 30%

13. Getting Through Difficult Times External factors post 9 / 11 –SARS, Bali, Afghanistan, Iraq Wars, Kenya, Morocco & etc –Continue product development Improve & Change & Develop internal systems –Flexibility in air –Internet & on-line capability –Streamline business processes Clarify brand strategy

14. The Explore Rebrand Experience Rationalise brand hierarchy Master brand allows for segmentation Multi channel application Refresh and add style / design to enhance values and communication

15. From this

16. To this

17. Financial Performance Since 9 / 11 +14% 31.0m 32.6m 33.3m (as at 7/9/04)

18. Financial Performance Since 9 / 11 *Before goodwill, impairment and exceptional costs

19. Financial Targets Strong top line sales growth Margins steady at 30% + Net margins in line with 2004 2005 sales currently 45% ahead – but Q4 (35% of annual total) bookings yet to start

20. Organisational Developments On-line booking launches Extend Web community development IT systems development plans for handling multi flight options Explore / RegalDive – air ticket synergies RegalDive goes on line

21. Strategic Challenges Operating in a changing world Aviation issues Competitive activity / Tour operating changing New markets – new channels

22. The Geo-Political Map Fundamentalism – Terrorism – Anti-Western Political instability – e.g. Bolivia, Katmandu New destinations vs conservation & Responsible Tourism Customer perception – FCO advice / media US / Allied Foreign Policy

23. Aviation Consolidation of Flight Carriers / Alliances Yield Management, allocation models Short haul / Low cost Fuel prices Air travel safety issues

24. New Markets / New Channels New customers – matching expectation –Plans for multi channel growth –New media / Rich media –3 party alliances e.g. British Museum, National Trust –Replace established above line with internet / Web –Extend specialist agency links

25. Adventure Travel Division – The Future Increased appetite for adventure travel Geopolitical risks but a huge range of destinations and travellers will adapt Market leadership and loyal customer base Successful product and brand development programmes Continuing opportunities for profitable growth

26. Investor Workshop 17 September 2004