BUSINESS TRAVEL MARKET RESEARCH:RESULTS OF 2016

AEROCLUB GROUP OF COMPANIES 02

1000+ CLIENTS

1 MLN TRANSACTIONS PER YEAR

14,3 mlnTRANSACTION DATA BASE FOR ANALYSIS

16 TURNOVER

BILLION RUBLES IN 2016

22+ YEARS ON RUSSIAN MARKET

4500+ TRANSACTIONS PER DAY

ST PETERSBURG

MOSCOW VLADIVOSTOK

TMC BUSINESS PROCESSES03Hotels in Russia and abroad

Our own customer service 24/7

Development of effective internal processes

Plane and aeroexpress tickets

Transfers and rent a car

Development of travel policy and programs of optimization

SERVICE PLATFORMS

Manager of the department of corporative service

Implant/Autplant

Online Mobile application (online and offline)

Bilateral and tripartite agreement conclusions with suppliers

Expense minimization consulting

Training of client's employees

Expenses control:advance, statistical accounting statements

EXPENSES MANAGEMENT FOR BUSINESS TRAVEL

ALL-INCLUSIVE TRIPS ORGANIZATION

HOTELCustomer supportin emergency situations

Train tickets

24/7

Travel group organization

AEROCLUB GROUP OF COMPANIES 04

CORPORATIVE EVENTS AND INDIVIDUAL TOURISM

SINCE 2004

BUSINESS TRAVEL SINCE 1994

DEVELOPMENT AND IMPLEMENTATION OF NEWEST SOFTWARE PRODUCTS IN BUSINESS TRAVEL

SINCE 2013

INTEGRATED IT05SOLUTIONS DESIGNED SPECIFICALLY FOR BUSINESS TRAVEL

TIME - ONLINE PLATFORM

LINK - MOBILE APP

> Ordering services optimization

> Online tool for business travel arrangements

Travel 2.0Travel 3.0Travel 3.0

> Mobile access to orders

> Informational support of business travel

ATOM ONLINE PLATFORM FOR ANALYSIS AND REPORTS

> Interactive visual platform business analitics

> Includes «what if» analytics

> Analysis and forecasting of expenses

STRUCTURE OF CLIENT PORTFOLIO06

Among Aeroclub customers there are representatives of almost all sectors of the economy, which is why analyzing the data of business trips you can draw conclusions about the state of any sphere.

25%pharmaceuticals and medical equipment

18%FMCG

11%energetics and

extractive industry

3%other5%

2%car industry

13%retail

13%

IT companies tightened travel policy – averege check on accomodation is down by 44%

Automotive companies keep cutting costs significantly

TRAVEL POLICY07in 2016 mass reduction of expenses by implementing limits in travel policy are not registered

Companies of media and entertain-ment increased the averege check on hotel accomodation by

Companies involved in medical and technical assistance to travelers and companies providing services in the field of management consulting have the softest travel policy

Retail companies grew by

Energy-producing corporations grew by

62% 17% 15%

STRUCTURE OF SERVICES08In 2016, the demand for car transfer growth increased most significantly by

Growth of overall services provided grew by 19% in 2016 cpmpared with

Services of insurance are losing the demand second year in a row

The demand for tickets for Aeroexpress grew by

In 2015 itwas up by

Sudden decrease of purchasing insurance by comparison with 2015 down by

In 2016 the demand for visas invitations for foregners recovered - growth by

respectively

VIP servicedown by

In 2015 there was significant drop in both positions

28%

19%

30%

12%

24%

7% & 41%

28%

AEROTICKETS FOR DOMESTIC DESTINATIONS

09demand for aerotravel in 2016 grew by

pharmaceutical companies – KazanEnergy and mining industry – Ekaterinburg and MoscowRetail companies – Samara

In 2015 the cost of tickets to Moscow increased by 16%, to Krasnodar 19%.The highest growth in demand compared to 2015 - Kazan (30%), Sochi (16%), Ekaterinburg (14%)

Top russian destinations (2014, 2015, 2016) among all sectors:Moscow / Saint-Petersburg / Kazan

in 2015 it grew by

demand for aerotickets for domestic destinations was

14%

14% 16% 12%

13% 14%

The most significant 2016 ticket prices rise

Petersburg Ekaterinburg Sochi

AEROTICKETS FOR INTERNATIONAL DESTINATIONS

10Top 10 international destinations

1. London2. Paris3. Frankfurt4. Munich5. Minsk

Demand for internationaldestinations tickets increased by

Biggest fall among the companies engaged in selling luxury goods

Growth in demand for business class flights from companies working in the field of information and communication by

Decrease in business class travel in the retail sector

Growth of flights with increased comfort class in companies from media and entertainment (20%) and of FMCG (18%) sectors

14% 32% 69%

DOMESTIC TRAIN TICKETS11Top domestic Russian destinationsMoscow / Saint-Petersburg / Nizhniy Novgorod

in 2016 demand for train transportation rose by

In 2015 it was

Demand for tickets to Moscow rose by

to Nizhniy Novgorod and Saint-Petersburg by

Demand for deluxe sleeping cars (1st class) went down by 50% since 2014

of tickets are for basic sits

are Kupé (2nd class)

deluxe (1st class)

Platskartny (3rd class)

meeting room compartments

Saint-Petersburg

10%

45% 43% 6% 5%

16%

1%

5% 11% 10%

The biggest increase in price was for trains to

INTERNATIONAL TRAIN TICKETS12

Top international destinationHelsinki / Minsk / Kiev

Usually used by pharmaceutical companies’ employees.

Demand for train tickets decreased only among the employees of the automotive sphere 35%

HOTELS13Holiday Inn Sokolniki Moscow

Hotel Astoria (Saint-Petersburg)

was the most popular in business travel booking in 2016

Price increase in the next year will be 5-10% on average, and the biggest increase will be in 5-star hotels

In middle class chain hotels (3-4-star) the increase will be 5-7% on average

was the most expensive hotel in Russia in 2016 the average check was 54000 rub per night

In the most popular destination of this year - London the cost of one night in

Four Seasons hotel was

In Paris the most expensive hotel was

Mandarin Oriental

The average cost of 1 night went up in 2016 by

per night in Russian Federation(4300 rub.)

By 10% abroad (7900 rub.)

372 RUB 181 RUB 7% 10%

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