The 10 Things you may not know about airfare & hotel prices. James Filsinger President & CEO Yapta

Transcription

1 The 10 Things you may not know about airfare & hotel prices James Filsinger President & CEO Yapta

2 Confidence in Travel 10 Things You May Not Know About Airfare & Hotel Prices Yapta proprietary. All rights reserved.

3 History of Yapta Today Your Amazing Personal Travel Assistant Started in 2007 Pivoted to Corporate Travel Launched RoomIQ Launched FareIQ 7,000+ Customers $120M+ total trip savings Any Point-of-Sale Fully automated Yapta proprietary. All rights reserved. 3

4 Confidence in Travel through: GUARANTEED SAVINGS GAME-CHANGING ANALYTICS Yapta proprietary. All rights reserved. 4

5 How It Works Travel Booked as Usual Itineraries Placed on Queue Price Checking Begins Savings Notifications Sent By traveler or agent Queue XX Queue XX Rebook at Lower Price Rebooking Confirmation Sent Price Checking Continues 24/7 Program Monitoring Or, agent can add reason code In FareIQ & RoomIQ web portals 5

6 Maximum Savings on the Total Trip for Airfare + = for Hotels Save $369 per trip $260 savings/ ticket $109 savings/ stay Yapta proprietary. All rights reserved. 6

7 Complete Savings Transparency Savings Dashboard Summaries Detailed Reports Real-time access to identified & realized savings and ADR metrics Weekly and monthly automated summaries - realized savings, non-actioned savings metrics Ad-hoc reports with summary and detailed information on identified & realized savings Yapta proprietary. All rights reserved. 7

8 24/7 Access to Your FareIQ Dashboard $100,876 in savings Transparency into actual, dependable savings to your bottom line. $198 savings per ticket Understand the savings impact to your ATP. 69% of savings in void Insight into ticket types purchased and savings. 68% conversion Industry benchmarking 2017 Yapta, Inc. All Rights Reserved Proprietary and confidential 8 8

9 24/7 Access to Your RoomIQ Dashboard $90,393 in savings Transparency into actual, dependable savings to your bottom line. $28,000 in savings Traveler has booked outside of policy booking a superior, view or club level room. $80,000 in savings No changes to traveler same rate code or same room type. 59% conversion Industry benchmarking 2017 Yapta, Inc. All Rights Reserved Proprietary and confidential 9 9

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11 Revenue/Yield Management Courtesy of American Airlines

12 What Is Airline Yield Management? Revenue management is difficult, and increases as a carrier s network grows in complexity Revenue management is a mix of art and science Science behind revenue management is nothing but economics (supply and demand) Supply is simple: Seats Demand is difficult: Number of passengers wanting to fly This is Yield Management 12

13 Are All Seats Created Equally? 13

14 Purpose of Revenue Management Revenue management is about demand-based pricing Recognizes the time-value / perishable component of a service or product Demand for airline seats varies by: Local market dynamics Day of week Time of day Season Purpose of revenue management is to maximize revenue 14

15 Airline with a Single Price Point If revenue management adopted a single price point, revenue opportunity would be lost Single price point is sub-optimal 15

16 Airlines Want to Capture the Curve Adopting multiple price points, little/no revenue is lost Pricing creates multiple fares for the multiple products Yield management creates availability of products 16

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18 Data Insights

19 Top 10 Countries Ranked by Total Spend 2. Canada 3. United Kingdom 4. Netherlands 1. United States 7. France 9. Germany 5. India 10. Brazil 6. Singapore 8. Australia 19 19

20 Savings from US vs. Europe Points-of-Sale 4.0% 3.5% 3.0% 3.36% 3.05% 2.5% 2.0% 1.5% 1.57% 2.11% 1.0% 0.5% 0.0% USA Europe FareIQ RoomIQ 20

21 EU Airlines with Greatest Fare Volatility 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 21

22 Global Airfare Volatility by Airline (*Data from 2017 White Paper) 400% 350% 300% 250% 200% 150% 100% 100% 50% 0% 22

23 Volatility by Month: European points-of-sale 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% FareIQ Volatility RoomIQ Volatility 23

24 Top Destinations: All Points-of-Sale Top cities (by air spend) Spend vol. Top hotel in each city Spend vol. London Amsterdam Frankfurt Paris Munich Dublin Zurich Brussels Barcelona Madrid Park Plaza Westminster Bridge Hilton The Hague Sheraton Airport Frankfurt Le Meridien Etoile Munich Airport Marriott Hotel The Marker Courtyard Zurich North Marriott Crowne Plaza Airport AC By Marriott Sant Cugat The Westin Palace Madrid 24

25 Top Destinations: European Points-of-Sale Top cities (by air spend) Spend vol. Top hotel in each city Spend vol. London Brussels Paris Amsterdam Milan Zurich Oslo Dublin Frankfurt Madrid Park Plaza Westminster Bridge Hilton Brussels Grand Place Courtyard Colombes Marriott Hilton The Hague Excelsior Hotel Gallia Milan Trafo Hotel Baden Radisson Blu Plaza Hotel Oslo Radisson Blu Royal Dublin Sheraton Airport Frankfurt Melia Madrid Princesa 25

26 Negotiated vs Public Fares Lower Fare was Negotiated Lower Fare was Public Airline Identified Savings per Alert * % of Savings /Alert % of Airlines' Total Alerts Airline Identified Savings per Alert * % of Savings /Alert % of Airlines' Total Alerts Air France $375 8% 3% British Airways $512 11% 9% KLM $260 8% 9% Lufthansa $336 12% 9% Air France $693 18% 13% British Airways $548 15% 6% KLM $444 17% 6% Lufthansa $723 16% 4%

27 Public vs Negotiated Rates Lower Rate was Negotiated Lower Rate was Public Hotel Brand Identified Savings per Alert* % of Savings/ Alert % of Brands' Total Alerts Hotel Brand Identified Savings per Alert* % of Savings/ Alert % of Brands' Total Alerts Hilton Hotel Brands $97 16% 33% Hilton Hotel Brands $87 14% 19% Intercontinental Hotel Brands $99 15% 29% Intercontinental Hotel Brands $110 13% 16% Marriott Hotel Brands $170 23% 25% Marriott Hotel Brands $132 14% 6% Starwood Hotel Brands $123 17% 21% Starwood Hotel Brands $97 13% 9%

28 Booking-to-stay difference 7 Days of Less 8 14 Days Days 21+ Days Average Online Booking Average Lower Identified Rate $228 $238 $237 $242 $191 $202 $203 $209 Average Net Savings $37 $35 $34 $33 * Identified savings is average per night 28

29 Hotel Savings: 30 Days Before Arrival $38 10% 9% $36 8% 7% $34 6% 5% $32 $30 $28 Savings per Night Percent of Alerts Days from Alert to Stay 4% 3% 2% 1% 0% 29

30 Savings from European Points-of-Sale RoomIQ identified savings: TOP PERFORMING CUSTOMER: $2 Million Total identified savings (past 12 months) 3.05% FareIQ identified savings: 2.1% Total program savings: 3.05% 5% savings $1+ Million spend LARGEST VOLUME CUSTOMER: 3.14% savings $10+ Million spend 30

31 Total Trip Savings: London to Hong Kong Client uses Yapta s Intelligent Price Tracking lowers trip cost by Original trip cost: 9, Airfare: 5, Hotel: 3, Final trip cost: 8, Airfare: 4, Hotel: 3, DAY 1 DAY 21 Airfare booked: 5, FareIQ Lower finds airfare fare: 4, savings Hotel rate booked: 3, RoomIQ Lower finds rate: hotel 3, savings

32 Why Yapta? Innovation Total Trip Guaranteed Savings w/ Dynamic Pricing Game-Changing Analytics: Deeper insights into airfare & hotel bookings First to implement Auto-reticketing for FareIQ BestMatch and Auto-rebooking for RoomIQ Trusted Partner 7,000+ corporate customers Yapta clients comprise 50% of the BTN Top 100 Partnered with the largest TMCs in the US Security SOC 2 compliant Improved Duty of Care Fully vetted by TMC partners Yapta proprietary. All rights reserved. 32

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34 Thank you James Filsinger, CEO (206)

35 Countries Ranked by Total Spend Country Spend Identified Savings % Identified Savings Realized Savings 1 USA $7,032,911, $126,515, % $62,455, Canada $66,580, $1,626, % $780, UK $25,974, $833, % $299, Netherlands $13,628, $423, % $194, India $10,504, $263, % $69, Singapore $6,638, $175, % $64, France $6,534, $157, % $45, Australia $6,227, $167, % $35, Germany $4,654, $106, % $38, Brazil $4,279, $69, % $16, Italy $3,947, $104, % $25, Switzerland $3,384, $116, % $19, Mexico $2,935, $72, % $21, Spain $2,564, $72, % $27, Argentina $608, $18, % $4, Israel $442, $7, % $3, New Zealand $176, $5, % $1, Ireland $158, $7, % $5, Belgium $120, $3, % $1,

36 The 10 Things you may not know about airfare & hotel prices James Filsinger President & CEO Yapta