Sabre low fare study

SABRE LOW FARE STUDY

AGENDA

Overview

Methodology

Aggregated results

Company information

Mar-2016 Sabre Low Fare Study 2

OVERVIEW

SABRE LOW FARE STUDY

Sabre requested Dr. Fried & Partner to conduct a

competitive GDS low fare search study.

The study includes 100 top booked city pairs per country

from across key regions (Asia Pacific, EMEA, Latin

America and North America), each city pair with 8

combinations of advance purchase / travel duration.

31 countries are part of this study, results are shown

aggregated on a global and regional level as well as

country-wise.

The data were collected in January and February 2016 by

an external technical service provider.

Following dimensions were considered in this study:

– Low fare efficiency

– Availability of results

– Time of day distribution

– Inbounds per outbound

– Price / service buckets


ADDRESS

Dr. Fried & Partner

Unternehmensberater für Marketing + Management

Lessingstraße 6

80336 München

Phone: +49-89-29 07 28 0

Fax: +49-89-29 07 28 99

Further information: www.fried-partner.de

SUMMARY* AVERAGE SAVINGS AGAINST ...

GLOBALLY, SABRE BEATS AMADEUS AND TRAVELPORT IN

FINDING THE LOWEST FARES

In average the lowest Sabre fare is $ 20,50 cheaper than

Amadeus fares an $ 11,40 cheaper than Travelport fares

Sabre beats Amadeus and Travelport in finding the lowest

fare in all regions. In average across all conducted markets

Sabre finds the lowest fare 12% more often than Amadeus

and 9% more often than Travelport

On a win / tie / loss comparison Sabre wins against

Amadeus in more than 25% and against Travelport in

more than 23% of all low fare searches


OVERALL WIN / TIE / LOSS COMPARISON

Sabre vs. Amadeus Sabre vs. Travelport

** All global results are weighted averages depending on the number of countries per region

FINDING THE LOWEST FARE ...

$20,5

$11,4

Amadeus Travelport

86%

77%

Sabre Travelport

87%

75%

Sabre Amadeus12,9%

61,6%

25,5%

Loss

Tie

Win

14,3%

62,4%

23,3%

Loss

Tie

Win

AGENDA

Overview

Methodology

Aggregated results

Company information


GDS SHOPPING TOOLS

METHODOLOGY OVERVIEW

AMADEUS Master Pricer

SABRE Bargain Finder Max

Galileo Super Best Buy*


*In study the name of the company Travelport will be used as a synonym for its

GDS Galileo

SHOPPING DETAILS

100 city pairs per source market

Only published fares

8 combinations of advance purchase / travel

duration

Availability check for 2 lowest fares

Margin error of EUR 5 or in equivalent currency

assumed, unless otherwise described

SOURCE MARKETS ADVANCE PURCHASE/ TRAVEL DURATION

Argentina

Australia

Belgium

Bolivia

Brazil

Canada

Chile

Colombia

Costa Rica

Cyprus

Denmark

Dominican Rep.

Ecuador

France

Germany

Greece

Israel

Italy

Japan

Mexico

New Zealand

Nigeria

Peru

Russia

South Africa

Spain

Sweden

Switzerland

UAE

United Kingdom

USA

Advance Purchase in days Travel Duration in days

3 1

3 7

8 1

8 7

15 3

15 7

22 7

22 22

DATE OF REQUEST (SORTED BY DATE)

OVERVIEW – DATE OF DATA REQUEST PER MARKET


Market Date

US December 29th, 2015

CA January 11th, 2016

AR January 12th, 2016

BO January 13th, 2016

BR January 13th, 2016

CL January 14th, 2016

CO January 14th, 2016

CR January 15th, 2016

EC January 15th, 2016

MX January 27th, 2016

PE January 27th, 2016

Market Date

AE January 28th, 2016

DO January 28th, 2016

BE January 29th, 2016

CH January 29th, 2016

CY February 02nd, 2016

DK February 02nd, 2016

ES February 03rd, 2016

DE February 04th, 2016

FR February 04th, 2016

GB February 05th, 2016

GR February 05th, 2016

Market Date

IT February 06th, 2016

ZA February 06th, 2016

IL February 07th, 2016

SE February 09th, 2016

RU February 10th, 2016

NG February 11th, 2016

JP February 11th, 2016

NZ February 12th, 2016

AU February 18th, 2016

CURRENCY EXCHANGE RATES USED FOR MARKET RESULTS

OVERVIEW – CURRENCY EXCHANGE RATES


Market Currency 1 EUR equals

CY EUR 1,00

DE EUR 1,00

DK DKK 7,46

DO DOP 49,54

EC USD 1,09

ES EUR 1,00

FR EUR 1,00

GB GBP 0,77

GR EUR 1,00

IL USD 1,09

IT EUR 1,00


JP JPY 127,44

MX MXN 20,05

NG NGN 224,90

NZ NZD 1,68

PE USD 1,09

RU RUB 88,27

SE SEK 9,48

US USD 1,09

ZA ZAR 18,06


AE AED 4,00

AR ARS 14,58

AU AUD 1,55

BE EUR 1,00

BO BOB 7,53

BR BRL 4,38

CA CAD 1,56

CH CHF 1,11

CL CLP 795,22

CO COP 3598,35

CR CRC 575,97

AGENDA

Overview

Methodology

Aggregated results

Company information


SOURCE MARKETS

FOUR REGIONS USED TO SUMMARIZE MARKET LOW FARE

RESULTS

Argentina

Australia

Belgium

Bolivia

Brazil

Canada

Chile

Colombia

Costa Rica

Cyprus

Denmark

Dominican Rep.

Ecuador

France

Germany

Greece

Israel

Italy

Japan

Mexico

New Zealand

Nigeria

Peru

Russia

South Africa

Spain

Sweden

Switzerland

UAE

United Kingdom

USA


NORTH AMERICA (2 MARKETS)

Argentina

Bolivia

Brazil

Chile

Colombia

Costa Rica

Dominican Rep.

Ecuador

Mexico

Peru

ASIA PACIFIC (3 MARKETS)

Australia Japan New Zealand

EUROPE / MIDDLE EAST / AFRICA (16 MARKETS)

Belgium

Cyprus

Denmark

France

Germany

Greece

Israel

Italy

Nigeria

South Africa

Spain

Sweden

Switzerland

Russia

UAE

United Kingdom

LATIN AMERICA (10 MARKETS)

Canada USA

SABRE BEATS AMADEUS IN FINDING THE LOWEST FARE

IN ALL REGIONS


Sabre finds the lowest fare 12%* more often than Amadeus

Latin America and Asia Pacific with highest fare difference

91% 83%

Sabre Amadeus

North America

90% 80%

Sabre Amadeus

Europe / Middle East / Africa

89%

69%

Sabre Amadeus

Asia Pacific

* Weighted average

81%

66%

Sabre Amadeus

Latin America

SABRE BEATS TRAVELPORT IN FINDING THE LOWEST FARE

IN ALL REGIONS


89% 85%

Sabre Travelport

North America

88% 82%

Sabre Travelport


85% 80%

Sabre Travelport

Asia Pacific

Sabre finds the lowest fare 9%* more often than Travelport

Latin America and EMEA with highest fare difference

* Weighted average

81%

66%

Sabre Travelport

Latin America

SABRE HAS CHEAPEST AVERAGE FARE PRICES OF LOWEST

FARES FOUND AGAINST AMADEUS AND TRAVELPORT IN ALL

REGIONS


1,9% 1,3%

Amadeus Travelport

North America

5,4%

3,5%

Amadeus Travelport


4,6% 3,9%

Amadeus Travelport

Asia Pacific

Average savings of Sabre fares are 4,3%* (USD 20,5) against Amadeus and

2,8%* (USD 11,4) against Travelport

Sabre with significant lower average fare prices in all regions

$ 7,3

$ 23,2

$ 27,8 $ 5,6

$ 11,9

$ 25,0

* Weighted average

3,0%

1,7%

Amadeus Travelport

Latin America

$ 16,8 $ 7,7

REGIONAL RESULTS NORTH AMERICA – SABRE VS.

COMPETITOR FARE DIFFERENCE CLUSTERS


4,5%

7,0%

13,3%

17,5%

8,7%

6,1%

2,5% 1,3%

€100 €50 €10 €5 €5 €10 €50 €100

Sabre cheaper Amadeus cheaper

3,0%

5,0%

11,0%

15,0%

10,5%

8,3%

3,8%

2,1%

€100 €50 €10 €5 €5 €10 €50 €100

Sabre cheaper Travelport cheaper


8,7%

73,8%

17,5%

Loss

Tie

Win

Sabre vs. Amadeus –

Overall win / tie / loss comparison

Sabre vs. Travelport –


10,5%

74,5%

15,0%

Loss

Tie

Win

REGIONAL RESULTS LATIN AMERICA – SABRE VS.

COMPETITOR FARE DIFFERENCE CLUSTERS


14,1%

20,7%

31,3% 33,8%

18,8% 16,9%

9,9%

6,2%

€100 €50 €10 €5 €5 €10 €50 €100


11,7%

19,2%

30,9%

33,9%

18,6% 17,0%

9,6%

6,0%

€100 €50 €10 €5 €5 €10 €50 €100



18,8%

47,4%

33,8%

Loss

Tie

Win





18,6%

47,5%

33,9%

Loss

Tie

Win

REGIONAL RESULTS ASIA PACIFIC – SABRE VS. COMPETITOR

FARE DIFFERENCE CLUSTERS


9,8%

16,0%

28,6%

31,5%

11,3% 10,0%

4,1% 2,3%

€100 €50 €10 €5 €5 €10 €50 €100


5,3%

8,8%

18,4%

20,1%

15,1% 13,9%

7,4%

4,1%

€100 €50 €10 €5 €5 €10 €50 €100



11,3%

57,2%

31,5%

Loss

Tie

Win





15,1%

64,8%

20,1%

Loss

Tie

Win

REGIONAL RESULTS EMEA – SABRE VS. COMPETITOR FARE

DIFFERENCE CLUSTERS


4,1%

7,8%

17,7%

20,2%

10,1% 8,5%

3,1% 1,6%

€100 €50 €10 €5 €5 €10 €50 €100


2,6%

5,3%

15,2%

18,3%

11,9%

10,0%

4,1%

2,3%

€100 €50 €10 €5 €5 €10 €50 €100



10,1%

69,7%

20,2%

Loss

Tie

Win





11,9%

69,8%

18,3%

Loss

Tie

Win

AGENDA

Overview

Methodology

Aggregated results

Company information


SUMMARY AND CONTACT


ADDRESS

Dr. Fried & Partner

Unternehmensberater für Marketing + Management

Lessingstraße 6

80336 München

Telefon: +49-89-29 07 28 0

Fax: +49-89-29 07 28 99

Further information: www.fried-partner.de

GENERAL

Dr. Fried & Partner has been providing consulting

services to leading companies for more than 45 years.

Seeking to ensure the success of our clients, we have

been steadily expanding our project know-how with them

and for them over these many years, while at the same

time continually developing our holistic consulting

concept, which encompasses analysis, concept

development and implementation.

MANAGEMENT

Stephan Haller and Dr. Markus Heller

TEAM

9 Consultants

2 Assistants for Projectsupport / Administration

Broad network of experts and freelancers (e.g. areas

training, IT and market research)

CONCENTRATION ON TRAVEL INDUSTRY ENSURES

SPECIALISTS KNOWLEDGE


DEVELOPMENT OF

PROCESS ORGANIZATION

OPTIMISED

SYSTEM INTEGRATION

ASSISTANCE WITH

IMPLEMENTATION

STRATEGY DEVELOPMENT

AND IMPLEMENTATION

SALES & MARKETING

CONCEPTS

INTERNATIONALIZATION

RANGE OF SERVICES

STRATEGY DEVELOPMENT IS BASED ON PROVEN METHODS

AND PRODUCES IMPLEMENTATION-ORIENTATED RESULTS

Analyzing and assessing strategic

starting-points and ultimate objectives

Undertaking primary analyses with a view to

determining the relevant basis for decision-making;

this includes talks/interviews with experts, surveys of

target groups, discussions with focus groups and

stakeholder interviews

Undertaking secondary (accompanying) analyses,

including benchmarks, market analyses, and the

tracking of trends and future developments

Determining the strategic factors for success

Defining strategic lines of attack

Developing implementation concepts

geared to processes and systems

Working out recommended courses of action and

packages of measures to be adopted

21

STRATEGY DEVELOPMENT AND

IMPLEMENTATION

Mar-2016 Sabre Low Fare Study

RANGE OF SERVICES

DEVELOPMENT OF MULITCHANNEL CONCEPTS

WITH THE AIM OF PUTTING COORDINATED SALES &

MARKETING CHANNELS IN PLACE

Carrying out sales, marketing and service analyses in

order to obtain strengths/weaknesses profiles (e.g.

mystery analyses, audits, customer surveys)

Developing segmentation concepts

(psychographic, sociodemographic, reasons

for traveling) to be applied to target groups

Developing and harmonizing innovative multichannel

concepts

Focusing the internal and external sales & marketing

organization on meeting market requirements

Configuring a suitable marketing mix (service and

product concepts, pricing and conditions systems,

advertising concepts, basics for strategic PR)

Configuring the marketing agent factors/instruments

(remuneration, retention, control, motivation, etc.)

Analyzing and assessing quality profiles

and working out suitable quality measures

(partly in collaboration with TÜV Süd)


SALES & MARKETING

CONCEPTS

RANGE OF SERVICES

PROJECTS WITH AN INTERNATIONAL FOCUS ARE CENTERED

PRIMARILY ON HARMONIZATION, INTEGRATION AND MARKET

RESPONSIVENESS

Developing positioning strategies in

the international market environment

Configuring and implementing concepts

for entering new markets

Market-oriented expansion of the range

of services in source markets

Focusing the overall organization on

sales markets

Aligning sales, marketing and production concepts in

international groups of companies

Adaptation of marketable pricing and

sales concepts to suit new markets

Diversifying market processing in different markets

Undertaking system analyses and devising suitable IT

strategies for different business units in international

groups of companies


INTERNATIONALIZATION

RANGE OF SERVICES

DEVELOPMENT OF PROCESS ORGANIZATIONS ON THE BASIS

OF OPTIMIZED CORE AND SUPPLEMENTARY PROCESSES


DEVELOPMENT OF

PROCESS ORGANIZATION

Carrying out analyses of process times

and process costs

Assessing and/or validating actual

processes and defining target processes

Developing and/or adapting process organizations

Working out the relevant process concepts

(process drivers, distribution of roles and spheres of

responsibility, etc.)

Evaluating optimization concepts on

the basis of relevant key indicators

and business cases

Developing the organizational structure

Defining organizational units

Compiling job descriptions

RANGE OF SERVICES

CAPTURING AND VALIDATING SYSTEM REQUIREMENTS WITH

A VIEW TO IMPROVING SALES AND PRODUCTIVITY


OPTIMISED

SYSTEM INTEGRATION

Undertaking strengths/weaknesses

analyses at system level

Detailing the reasons for suboptimal deployment of

the system (technical, user-related, etc.)

Developing measures aimed at optimizing

deployment of the system

Drawing up requirements catalogs relating

to a system solution

Dealing with calls for bids/quotations for providers

Compiling and assessing lists of providers (long list,

short list)

Holding provider workshops in order to determine

fulfillment of the technical and functional requirements

Selecting potential system partners

RANGE OF SERVICES

ENSURING SPEEDY IMPLEMENTATION – IN TERMS OF

PROCESSES AND EXPERTISE – BY MEANS OF PROFESSIONAL

PROJECT MANAGEMENT


ASSISTANCE WITH

IMPLEMENTATION

Putting project management in place

Leading project teams

Harmonizing national and international project

requirements

Operationalizing and formulating areas

of action

Defining work packages and spheres of responsibility

Monitoring the progress of the project and the project

resources

Initiating measures aimed at ensuring achievement of

the project goals

Preparing, holding and postprocessing regular project

status meetings

Sabre low fare study

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