SABRE LOW FARE STUDY
AGENDA Overview Methodology Aggregated results Company information 2
SABRE LOW FARE STUDY OVERVIEW 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 3
GLOBALLY, SABRE BEATS AMADEUS AND TRAVELPORT IN FINDING THE LOWEST FARES SUMMARY* AVERAGE SAVINGS AGAINST... 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 $20,5 Amadeus $11,4 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 87% FINDING THE LOWEST FARE... 86% OVERALL WIN / TIE / LOSS COMPARISON 75% 77% Win Tie Loss 25,5% 12,9% 61,6% Win Tie Loss 14,3% 23,3% 62,4% Sabre Amadeus Sabre Travelport Sabre vs. Amadeus Sabre vs. Travelport ** All global results are weighted averages depending on the number of countries per region 4
AGENDA Overview Methodology Aggregated results Company information 5
METHODOLOGY OVERVIEW GDS SHOPPING TOOLS 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 SOURCE MARKETS 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 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 6
OVERVIEW DATE OF DATA REQUEST PER MARKET DATE OF REQUEST (SORTED BY DATE) Market Date Market Date Market Date US December 29 th, 2015 CA January 11 th, 2016 AR January 12 th, 2016 BO January 13 th, 2016 BR January 13 th, 2016 CL January 14 th, 2016 CO January 14 th, 2016 CR January 15 th, 2016 EC January 15 th, 2016 MX January 27 th, 2016 PE January 27 th, 2016 AE January 28 th, 2016 DO January 28 th, 2016 BE January 29 th, 2016 CH January 29 th, 2016 CY February 02 nd, 2016 DK February 02 nd, 2016 ES February 03 rd, 2016 DE February 04 th, 2016 FR February 04 th, 2016 GB February 05 th, 2016 GR February 05 th, 2016 IT February 06 th, 2016 ZA February 06 th, 2016 IL February 07 th, 2016 SE February 09 th, 2016 RU February 10 th, 2016 NG February 11 th, 2016 JP February 11 th, 2016 NZ February 12 th, 2016 AU February 18 th, 2016 7
OVERVIEW CURRENCY EXCHANGE RATES CURRENCY EXCHANGE RATES USED FOR MARKET RESULTS Market Currency 1 EUR equals 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 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 Market Currency 1 EUR equals 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 8
AGENDA Overview Methodology Aggregated results Company information 9
FOUR REGIONS USED TO SUMMARIZE MARKET LOW FARE RESULTS SOURCE MARKETS 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) Canada USA LATIN AMERICA (10 MARKETS) Argentina Bolivia Brazil Chile Colombia Costa Rica Dominican Rep. Ecuador ASIA PACIFIC (3 MARKETS) Mexico Peru 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 10
SABRE BEATS AMADEUS IN FINDING THE LOWEST FARE IN ALL REGIONS North America 91% 83% Sabre Amadeus Europe / Middle East / Africa 90% 80% Asia Pacific 89% 69% Sabre Amadeus Latin America 81% 66% Sabre Amadeus Sabre Amadeus Sabre finds the lowest fare 12%* more often than Amadeus Latin America and Asia Pacific with highest fare difference * Weighted average 11
SABRE BEATS TRAVELPORT IN FINDING THE LOWEST FARE IN ALL REGIONS North America 89% 85% Europe / Middle East / Africa 85% Asia Pacific 80% Sabre Travelport 88% 82% Sabre Travelport Latin America 81% Sabre Travelport 66% Sabre Travelport Sabre finds the lowest fare 9%* more often than Travelport Latin America and EMEA with highest fare difference * Weighted average 12
SABRE HAS CHEAPEST AVERAGE FARE PRICES OF LOWEST FARES FOUND AGAINST AMADEUS AND TRAVELPORT IN ALL REGIONS North America 1,9% 1,3% Amadeus Travelport $ 7,3 $ 5,6 Europe / Middle East / Africa 5,4% 3,5% Asia Pacific 4,6% 3,9% Amadeus Travelport $ 27,8 $ 25,0 Latin America 3,0% 1,7% Amadeus $ 23,2 Travelport $ 11,9 Amadeus Travelport $ 16,8 $ 7,7 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 * Weighted average 13
REGIONAL RESULTS NORTH AMERICA SABRE VS. COMPETITOR FARE DIFFERENCE CLUSTERS Sabre vs. Amadeus Overall win / tie / loss comparison Sabre vs. Travelport Overall win / tie / loss comparison Win Tie Loss 8,7% 17,5% 73,8% Win Tie Loss 15,0% 10,5% 74,5% Sabre vs. Amadeus Sabre vs. Travelport 17,5% 15,0% 13,3% 11,0% 10,5% 8,3% 8,7% 4,5% 7,0% 6,1% 2,5% 1,3% 3,0% 5,0% 3,8% 2,1% 100 50 10 5 5 10 50 100 100 50 10 5 5 10 50 100 Sabre cheaper Amadeus cheaper Sabre cheaper Travelport cheaper 14
REGIONAL RESULTS LATIN AMERICA SABRE VS. COMPETITOR FARE DIFFERENCE CLUSTERS Sabre vs. Amadeus Overall win / tie / loss comparison Sabre vs. Travelport Overall win / tie / loss comparison Win Tie Loss 18,8% 33,8% 47,4% Win Tie Loss 18,6% 33,9% 47,5% Sabre vs. Amadeus Sabre vs. Travelport 31,3% 33,8% 30,9% 33,9% 20,7% 18,8% 16,9% 19,2% 18,6% 17,0% 14,1% 9,9% 11,7% 9,6% 6,2% 6,0% 100 50 10 5 5 10 50 100 100 50 10 5 5 10 50 100 Sabre cheaper Amadeus cheaper Sabre cheaper Travelport cheaper 15
REGIONAL RESULTS ASIA PACIFIC SABRE VS. COMPETITOR FARE DIFFERENCE CLUSTERS Sabre vs. Amadeus Overall win / tie / loss comparison Sabre vs. Travelport Overall win / tie / loss comparison Win Tie Loss 11,3% 31,5% 57,2% Win Tie Loss 15,1% 20,1% 64,8% Sabre vs. Amadeus Sabre vs. Travelport 28,6% 31,5% 18,4% 20,1% 15,1% 13,9% 16,0% 9,8% 11,3% 10,0% 4,1% 2,3% 5,3% 8,8% 7,4% 4,1% 100 50 10 5 5 10 50 100 100 50 10 5 5 10 50 100 Sabre cheaper Amadeus cheaper Sabre cheaper Travelport cheaper 16
REGIONAL RESULTS EMEA SABRE VS. COMPETITOR FARE DIFFERENCE CLUSTERS Sabre vs. Amadeus Overall win / tie / loss comparison Sabre vs. Travelport Overall win / tie / loss comparison Win Tie Loss 10,1% 20,2% 69,7% Win Tie Loss 11,9% 18,3% 69,8% Sabre vs. Amadeus Sabre vs. Travelport 18,3% 17,7% 20,2% 15,2% 11,9% 10,0% 4,1% 7,8% 10,1% 8,5% 3,1% 1,6% 2,6% 5,3% 4,1% 2,3% 100 50 10 5 5 10 50 100 100 50 10 5 5 10 50 100 Sabre cheaper Amadeus cheaper Sabre cheaper Travelport cheaper 17
AGENDA Overview Methodology Aggregated results Company information 18
SUMMARY AND CONTACT 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. 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 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) 19
CONCENTRATION ON TRAVEL INDUSTRY ENSURES SPECIALISTS KNOWLEDGE STRATEGY DEVELOPMENT AND IMPLEMENTATION DEVELOPMENT OF PROCESS ORGANIZATION SALES & MARKETING CONCEPTS OPTIMISED SYSTEM INTEGRATION INTERNATIONALIZATION ASSISTANCE WITH IMPLEMENTATION 20
STRATEGY DEVELOPMENT IS BASED ON PROVEN METHODS AND PRODUCES IMPLEMENTATION-ORIENTATED RESULTS RANGE OF SERVICES STRATEGY DEVELOPMENT AND IMPLEMENTATION 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
DEVELOPMENT OF MULITCHANNEL CONCEPTS WITH THE AIM OF PUTTING COORDINATED SALES & MARKETING CHANNELS IN PLACE RANGE OF SERVICES SALES & MARKETING CONCEPTS 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) 22
PROJECTS WITH AN INTERNATIONAL FOCUS ARE CENTERED PRIMARILY ON HARMONIZATION, INTEGRATION AND MARKET RESPONSIVENESS RANGE OF SERVICES INTERNATIONALIZATION 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 23
DEVELOPMENT OF PROCESS ORGANIZATIONS ON THE BASIS OF OPTIMIZED CORE AND SUPPLEMENTARY PROCESSES DEVELOPMENT OF PROCESS ORGANIZATION RANGE OF SERVICES 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 24
CAPTURING AND VALIDATING SYSTEM REQUIREMENTS WITH A VIEW TO IMPROVING SALES AND PRODUCTIVITY OPTIMISED SYSTEM INTEGRATION RANGE OF SERVICES 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 25
ENSURING SPEEDY IMPLEMENTATION IN TERMS OF PROCESSES AND EXPERTISE BY MEANS OF PROFESSIONAL PROJECT MANAGEMENT ASSISTANCE WITH IMPLEMENTATION RANGE OF SERVICES 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 26