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
WHAT TRAVEL PAYMENT IS ALL ABOUT.
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. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
p. 5 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
p. 6 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
Record highs for settlement turnover, profit and loss proceeds and results
p. 7 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
AirPlus issuing volumein billion €
AirPlus is Back on the Growth Track
Issuing volume = Company Account Corporate Card Road Account billinx
p. 8 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
p. 9 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
3. Focus On: The Netherlands
The Key to Successful Cost Management4. Negotiating with Travel Service Providers
10 Years of savings on corporate travel costs, Outlook for 2011
p. 11 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
The AirPlus Database
More than 125 million bookings for business travel per year including flights, train tickets, rental cars and hotel accommodations.
p. 12 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
p. 13 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
p. 14 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
p. 15 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
p. 16 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
p. 17 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
p. 18 2011 AirPlus Annual Press Talks
Tap the MICE markets in all of AirPlus’ European core markets
Increase activities in APAC: Australia will become new AirPlus core market
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
p. 19 2011 AirPlus Annual Press Talks
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
2011 AirPlus Annual Press Talks p. 22
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
20112011 AirPlus Annual Press Talks p. 24
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
2011 AirPlus Annual Press Talks p. 26
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
2011 AirPlus Annual Press Talks
AirPlus in the Netherlands first market to launch MICE product outside of Germany
p. 27
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
2011 AirPlus Annual Press Talks
New: First partnership in place for meeting management with Meetingselect
p. 28
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. 29
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
2011 AirPlus Annual Press Talks p. 30
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
2011 AirPlus Annual Press Talks p. 31
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
Most Travel Managers Negotiate Corporate Rates ...
Quelle: AirPlus Travel Management Study 2010.
2011 AirPlus Annual Press Talks p. 32
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
... 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?
2011 AirPlus Annual Press Talks p. 33
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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?
2011 AirPlus Annual Press Talks p. 34
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
2011 AirPlus Annual Press Talks p. 35
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
2011 AirPlus Annual Press Talks
The travel manager decides to concentrate on the sales country Germany to identify top hotels and hotel chains.
p. 36
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
2011 AirPlus Annual Press Talks
The better part of hotel volume is apportionated to Germany.
Choice of cities, hotel chains or individual hotels
p. 37
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
2011 AirPlus Annual Press Talks p. 38
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
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
2011 AirPlus Annual Press Talks p. 39
AIRPLUS. WHAT TRAVEL PAYMENT IS ALL ABOUT.
Thank you for your attention!We are happy to answer your questions.
WHAT TRAVEL PAYMENT IS ALL ABOUT.
2011 AirPlus Annual Press Talks p. 40
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