WHAT TRAVEL PAYMENT IS ALL ABOUT. Welcome to the 2011 AirPlus Annual Press Conference Schiphol,...

WHAT TRAVEL PAYMENT IS ALL ABOUT.

Welcome to the 2011 AirPlus Annual Press Conference

Schiphol, April 5th 2011

Patrick W. Diemer, Chairman of the Executive Board Lian Wolfs, Director AirPlus International BeNeLux


Increased travel under growing cost pressure – travel managers are gearing up to negotiate pricing

2011 AirPlus Annual Press Talks p. 2 2011 AirPlus Annual Press Talks

Agenda

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.

The 2010 AirPlus Global Review1. An Outstanding Year

More Mobility – Increasing Cost Pressure2. Trends in Travel Management

10 Years of savings on corporate travel costs, Outlook for 20113. In Focus: AirPlus The Netherlands

The Key to Successful Cost Management4. Negotiating with Travel Service Providers

2011 AirPlus Annual Press Talks p. 3


AirPlus Overview

Number 1 in Germany, Austria and Switzerland, Number 2 in Europe, Number 3 worldwide

Products and solutions in 59 countries on five continents

896 staff members

More than 125 million transactions per year

Registered financial-services provider

Shareholders: Deutsche Lufthansa AG and Bayerische Landesbank

Member of MasterCard, VISA, UATP and DinersClub (Austria, Spain)

Headquartered in Neu-Isenburg, GermanyBeNeLux headquarters at Schiphol

AirPlus is a leading international provider of solutions for daily business-travel

management.

p. 4 2011 AirPlus Annual Press Talks


AirPlus empowers companies to monitor, manage and reduce their travel costs

Cost transparency with

supplementary data

Analysis in the

Management

Information System

Optimal control and

basis for negotiation

MIS for

Travel

Management



2010: the economic upswing stimulates mobility worldwide

Settlement turnover was 21 billion € (+23%*)

BTM volume up globally 22 %, NL up 50 %

Increase in business travel turnover due to:

the acquisition of more than 2000 new customers resulting in more than 35,000

customers worldwide

a 12% rise in flight volumes

existing customers booking 5% more trips

Prices for train tickets, hotels and rental cars also escalated

* AirPlus Austria consolidated as of 2010



Record highs for settlement turnover, profit and loss proceeds and results



AirPlus issuing volumein billion €

AirPlus is Back on the Growth Track

Issuing volume = Company Account Corporate Card Road Account billinx



2010 Milestones

Successful business in China: turnover increased by 84 m € to 108 m € for the Air China AirPlus Company Account, the first central solution in China for settling business travel expenses

Very positive development of turnover in AirPlus’ European core markets also

AirPlus Corporate Cards: successful reduction of credit card abuse thanks to the development and use of state-of-the-art security technologies (Card Control, Chip, PIN@PoS, Fraud Prevention System)

Five innovations for products, data quality and service


Agenda




3. Focus On: The Netherlands


10 Years of savings on corporate travel costs, Outlook for 2011



The AirPlus Database

More than 125 million bookings for business travel per year including flights, train tickets, rental cars and hotel accommodations.



Development in business travel: prices increase with the growing number of travel bookingsSource: AirPlus Customers Global 2009/2011

Prices and business travel bookings increase analogously from Q2 / 2010 on



Prices for Flight Tickets are Going Back up

February 2008 February 2009 February 2010 February 2011

583 € 522 € 499 € 523 €

Source: AirPlus Customers Global 2008/2011

Average flight ticket price



Service Classes: Savings Policies Were Eased in 2010

2001 2008 2009 2010

First 1% 1% 1% 1%

Business 43% 12% 8% 14%

Eco 56% 87% 91% 85%

Source: AirPlus Customers Global 2001/2010

Allocation of service classes



Back to Business: Corporate Staff Travels Again

Customers in 31 countries use the AirPlus solution

Progression in the number of business trips: 2010 total: +32%start in 2011: +18%

Progression in travel expenses:2010 total: +28% start in 2011: +33%

Progression in service classes:2009: Eco 88%, Business 11%2010: Eco 87%, Business 12%2011: Eco 85%, Business 14%

Example: global customers’ travel behavior



In the first quarter of 2011, the number of business trips rose significantly – up by 9% worldwide

The need for global tools for effective cost management remains strong: 77% of travel managers worldwide will continue to press for savings despite the economic upswing

AirPlus will remain on the growth track and will continue winning new customers and market shares

Goals: tap further core markets, extend acceptance to include more merchants, extend global offerings for large customers, enhance product and service quality

2011: Another Record Year Expected



The AirPlus Solution – Outlook for 2011

Generation 3

Bring international Corporate Card offering to next level Extend card acceptance to include more car rental and railway companies,

e.g., the Avis Global Contract

Improve the portfolio of international AirPlus Corporate Cards

Offer reports for negotiations in the AirPlus Information Manager


Tap the MICE markets in all of AirPlus’ European core markets

Increase activities in APAC: Australia will become new AirPlus core market

Agenda








June 1st 2001 – June 1st 2011

10 year

in The Netherlands

AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT. 2011 AirPlus Annual Press Talks

AirPlus in the Netherlands: 10 Years successfully delivering savings to customers!

p. 21


AirPlus in the Netherlands: 10 Years successfully delivering savings to customers!

2010 Purchased volume 15% above plan and +50% above previous year

Investment in addition team members and new positions to facilitate further successful growth (Business Development, Marketing Communication, Customer Service, SME Management, Sales Support)

From 5 employees in 2006 to over 20 today

Number of accounts: 1000+

AirPlus E-Academy Webinar Program



Dutch Companies‘ Flight Spendings 2010/2011

Air Volume + 9%

# Tickets + 7%

Source: AirPlus Customers Netherlands 2011 against previous year

2010Air Volume + 2% Jan/Feb

# Tickets - 2% Jan/Feb



Prices for Flight Tickets Are Going Back up

P. 25

February 2008 February 2009 February 2010 February 2011

661 € 571 € 556 € 597 €

Source: AirPlus Customers Netherlands 2008/2011

Average flight ticket price

2011 AirPlus Annual Press Talks


Service Classes: Business Class Comeback after the Recession

2009 2010 2011*

First 1% 1% 0%

Business 9% 18% 15%

Eco 90% 81% 85%

Source: AirPlus Customers Netherlands 2009/2011

*January 2011



Outlook 2011 - MICE!

Meeting Management and MICE is a widely-recognized concept in the Netherlands

MICE volumes getting more in focus within companies

Corporates have difficulties estimating MICE expenses

Billing process mostly by traditional paper invoicing

Partnerships with TMCs, intermediairs, event planners, booking platforms and hotels


AirPlus in the Netherlands first market to launch MICE product outside of Germany

p. 27


Outlook 2011 - MICE!

Meetingselect offer corporations reservation and consultancy services for the booking and purchasing of hotels and meeting facilities.

AirPlus solution fully integrated into Meetingselect booking tool

Central billing including DBIs e.g. cost centre, project number

Event related data e.g. event name, event type, event data, room nights, # participants


New: First partnership in place for meeting management with Meetingselect

p. 28

Agenda








Key Issue in 2011: Negotiating with Travel Service Providers

The AirPlus solution delivers extraordinary data quality

The AirPlus Information Manager is the analysis tool for successful price negotiations

AirPlus knows the needs when it comes to price negotiations – both of companies and of travel service providers

AirPlus supports corporate customers with their price negotiations



Key Issue Cost Management – as Important as Ever

Travel managers will continue to implement measures for cost reduction

Mobility is increasing despite higher prices

In 2010, cost reduction was more important than in 2009

Source: AirPlus International Travel Management Study 2010

More mobility despite cuts in travel budgets



Most Travel Managers Negotiate Corporate Rates ...

Quelle: AirPlus Travel Management Study 2010.



... but Obtain very Diverse Savings

Quelle: AirPlus Travel Management Study 2010.

.

5 to 50 %

5 to 40 %

3 to 35 %

2 to 40 %

2 to 40 %

Total 100%

What percentage did your company save through negotiating with travel service providers last year?



Negotiate Special Corporate Rates Successfully – with the Good Information

A complete and clearly structured overview of their companies’ business travel expenses

Clear identification of all providers

Figures to prioritize negotiation partners

Automated reports for fast and easy control of ongoing negotiations with service providers

A transparent overview of travel services supplied by specific providers to compare them by means of clear figures

What information do travel managers need for successful negotiations?



Example: Hotels – Prerequisites for Successful Price Negotiations

better control of hotel expenses

a reliable information base to decide which hotels or hotel chains are worth negotiating with

to negotiate better hotel prices

What companies need:

What hotels demand from companies:

a reliable information base to plan their room occupancy – “Room Nights” are therefore the the optimal solution



Step 1: Overview of Hotel Volumes by Country and City

Expenses by country and city

Top hotels and hotel chains

Further options: e.g., top hotels in a specific country or city

AirPlus Dashboard Hotel


The travel manager decides to concentrate on the sales country Germany to identify top hotels and hotel chains.

p. 36


Step 2: Analysis of the Development of Hotel volumes in a Specific Country ...

Overview of the hotel volume in a specific country

Its development over two time periods

Starting point for negotiations within a specific country

Options:

Hotel chain or individual hotel

Negotiate hotel deals in a specific city

AirPlus ‘One click’ Report: Hotels by Country


The better part of hotel volume is apportionated to Germany.

Choice of cities, hotel chains or individual hotels

p. 37


AirPlus Offers Encompassing Data for Negotiations

The AirPlus Information Manager offers excellent analysis tools when negotiating pricing with travel service providers, including

Hotel Report “Top Hotels”

Travel Agency Report “TMC fees”

Flight Report “Top airlines/ Top routes”

Flight Report “Booking class”

Flight Report “Cost per mile”

... and many more

Top reports in the AirPlus Information Manager – the key to successful negotiations



AirPlus Lab: Customised Analyzes of the Business Travel Processes of Companies

Offer for customers, prospects and cooperation partners

On basis of the AirPlus Information Manager, AirPlus experts analyse the expense structure and payment processes within the visitor´s company

This offer goes with the initiative for successful price negotiations



Thank you for your attention!We are happy to answer your questions.



WHAT TRAVEL PAYMENT IS ALL ABOUT. Welcome to the 2011 AirPlus Annual Press Conference Schiphol,...

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