Travel Report Volume 20, Number 2 July 2011

Travel Report Volume 20, Number 2 July 2011 IN THIS ISSUE: Ticket Profile... 2 Average Airfares... 2 Cost per Segment... 4 Cost per Mile... 5 Negotiated Airfares... 6 Market Fare Analysis... 8 Domestic City Pairs... 9 International City Pairs... 13 Summary of Audit Results... 15 Topaz Travel Report 2nd Quarter, April June, 2011

Average Airfares Ticket Profile Percent of Segments Domestic International *See fare basis definitions on page 8. Domestic Airfares The average cost per domestic PNR increased from $533 in the 1st quarter of 2011 to $556 in the 2nd quarter of 2011. International Airfares The average cost per international PNR for the 2nd quarter of 2011 was $2,223, up from $2,146 in the 1st quarter of 2011. Percent of Change Comparison Percent of Change Comparison Average Cost Per Domestic PNR % Change Average Cost Per International PNR % Change 2006 to 2007 $470 $470 0.0% 2007 to 2008 $470 $522 11.1% 2008 to 2009 $522 $480 8.1% 2009 to 2010 $480 $508 5.8% 1Q11 to 2Q11 $533 $556 4.3% 2Q10 to 2Q11 $544 $556 2.2% 2006 to 2007 $1,666 $2,112 26.8% 2007 to 2008 $2,112 $2,174 2.9% 2008 to 2009 $2,174 $1,865 14.2% 2009 to 2010 $1,865 $1,952 4.7% 1Q11 to 2Q11 $2,146 $2,223 3.6% 2Q10 to 2Q11 $2,373 $2,223 6.3% 2 Topaz Travel Report 2nd Quarter, April June, 2011

Average Domestic PNR Price 2009 2010 2011 Average Airfares Jan $466 $446 $423 Feb $429 $530 $610 Mar $437 $498 $520 Apr $428 $531 $546 May $511 $538 $570 Jun $488 $578 $552 Jul $575 $570 Aug $464 $431 Sep $436 $562 Oct $452 $455 Nov $486 $475 Dec $470 $498 Average International PNR Price 2009 2010 2011 Jan $4,841 $2,463 $2,322 Feb $2,189 $1,678 $2,602 Mar $1,415 $1,894 $1,909 Apr $ 939 $2,438 $2,072 May $2,088 $3,060 $2,289 Jun $2,333 $1,896 $2,244 Jul $1,379 $1,545 Aug $1,610 $1,247 Sep $1,739 $1,998 Oct $1,465 $2,102 Nov $2,440 $1,691 Dec $2,604 $1,533 Average Cost per PNR by Corporate Air Volume Domestic International 3 Topaz Travel Report 2nd Quarter, April June, 2011

Cost per Segment Cost per Segment by Fare Basis Domestic $1,200 $1,000 $800 $600 $400 $200 $0 1118 957 703 773 288 402 172 204 204 235 256 Y AP PRO NR YD NEG D FD FEG C BEG Fare Basis * Cost per Segment by Fare Basis International $5,000 5,171 $4,000 $3,000 $2,000 $1,000 $0 252 342 366 369 380 511 518 748 1,694 2,469 2,598 3,063 PRO NR Y AP NEG PP D YD F BEG C FEG FD Fare Basis* *See fare basis definitions on page 8. Average Cost per Domestic Segment by Airport Average Cost per International Segment by Airport SEA $ 275 DFW $ 318 SFO $ 359 CVG $ 341 LAX $ 344 LGA $ 266 DEN $ 261 ATL $ 258 ORD $ 273 BOS $ 285 SEA $1,419 MIA $1,107 SFO $2,241 LHR $1,584 LAX $1,968 CDG $ 942 ORD $1,814 HKG $1,880 DFW $1,537 MEX $ 680 JFK $2,202 SYD $ 551 ATL $1,939 NRT $2,856 4 Topaz Travel Report 2nd Quarter, April June, 2011

Cost per Mile Cost per Mile by Fare Basis Domestic $1.50 1.38 $1.00 $0.50 0.26 0.26 0.27 0.31 0.46 0.48 0.55 0.56 0.56 0.56 $0.00 NR PRO AP NEG C YD FD FEG D BEG Y Fare Basis * Cost per Mile by Fare Basis International $1.50 1.37 $1.00 $0.50 0.16 0.17 0.24 0.31 0.32 0.33 0.43 0.45 0.50 0.60 0.69 0.89 $0.00 PP NR NEG PRO AP D YD Y BEG C F FEG FD Fare Basis* *See fare basis definitions on page 8. 5 Topaz Travel Report 2nd Quarter, April June, 2011

Negotiated Airfares Average Percent of Domestic Negotiated Discount by Corporate Air Volume Average Percent of International Negotiated Discount by Corporate Air Volume 12% 8% 4% 8.0% 5.0% 6.2% 10.6% 40% 30% 20% 10% 18.9% 34.0% 30.0% 25.7% 0% 0-14.9 15-29.9 30-49.9 50-99.9 100+ Corporate Air Volume in Millions 0% 0-14.9 15-29.9 30-49.9 50-99.9 100+ Corporate Air Volume in Millions Domestic Negotiated Airfares by Corporate Air Volume International Negotiated Airfares by Corporate Air Volume Percent of Segments Booked 80% 60% 40% 20% 56.5% 69.5% 58.6% 71.3% Percent of Segments Booked 60% 40% 20% 47.9% 42.2% 66.4% 53.3% 0% 0-14.9 15-29.9 30-49.9 50-99.9 100+ Corporate Air Volume in Millions 0% 0-14.9 15-29.9 30-49.9 50-99.9 100+ Corporate Air Volume in Millions Fare Basis with Domestic Negotiated Discounts Fare Basis with International Negotiated Discounts Y 0.1% YD 6.8% AP 2.0% D 13.7% YD Y 8.1% 1.3% PP 8.9% AP 0.1% D 28.2% NR 77.5% NR 53.5% Negotiated Airfares The information on the Corporate Negotiated airfares is derived from the Topaz Database and represents actual corporate discount levels with various carriers and corporations. 6 Topaz Travel Report 2nd Quarter, April June, 2011

From the President Following are the current links to our most recent announcements. Topaz Press Releases: http://www.etopaz.com/news Brad s Blog: http://bradseitz.typepad.com/ Jill s Blog: http://jillwalsh.blogspot.com/ Twitter: http://twitter.com/bseitz63 http://twitter.com/walsh25 http://twitter.com/topazintl Resources: http://www.etopaz.com/resources LinkedIn: http://www.linkedin.com/in/bradtopaz http://www.linkedin.com/in/jillwalsh Join the Topaz International Group on LinkedIn and Facebook for discussions and news! 7 Topaz Travel Report 2nd Quarter, April June, 2011

Market Fare Analysis Topaz Market Fare Analysis Each quarter, Topaz selects the most frequently booked city pairs from its proprietary database to appear in the Market Fare Analysis. The average cost per segment and cost per mile is provided for the city pair, broken out by fare basis. The segment data included here is one of the very few easily accessible reference documents that can help the user understand how other business travel is priced. Cost per Segment The most popular use of cost per segment is to analyze the company s expenditures compared to the Topaz averages which can be broken down by fare basis. Companies often change policy to reflect significant cost reduction based on analyzing the averages by fare type. For instance, the nonrefundable airfare is typically the lowest type of airfare a business traveler can use. A change in policy could result in cost savings if travelers booked a nonrefundable instead of discount coach airfare. Having the ability to quantify the impact of a policy changes can encourage policy mandates as well. Definitions: PNR: Passenger Name Record may include multiple tickets Segment: The origin/destination cities at which a fare is broken AP: BEG: Advance purchase, no penalties (KNAP3, QAP7, MA3) Negotiated business class C: Business class (C, COX, C25, CTCON, C06, C26, CF8UA, CR, J, JR, JOX) CON: Negotiated fare to/from a city, zone or system wide D: Unrestricted capacity controlled discount (BTW, K25, M25, B8US, BEE, B26MDW, BN, BUABIZ1, MR, Q, QJFK, B, H, H8) F: First class (F, A, P) FD: FEG: Discounted first class (A25, A4COACH, F4COACH, FFY, FSHUTTLE, FUABIZ1, F8, F25, F26, F06, FUA, FN, G) Negotiated first class Cost per Mile The cost per mile component is useful when a company or agency wants to reduce cost to a common denominator. Most often, cost per mile is used in airline negotiations, since cost per mile is a common unit of measurement in the airline industry. Knowing cost per mile sets the stage for effective airfare negotiations. Some companies look at cost per mile as a measurement tool for benchmarking purchasing performance. GOV: MTG: NEG: NR: PP: PRO: Government Negotiated fare for an individual meeting to a specific city Negotiated (includes CON and MTG fares) Non-refundable (HE7N, QE7NR, QSE14NQ, HE14NR, VE14NR, KNR, BE7IP, K14X236N) Advance purchase, partial penalty (HE14P25, HE7P50, MWE7P50) Promotional (VE1ADN, VE1CMN) Y: Full coach YD: Discounted coach (Y06, YSHUTTLE, YH, YX, YW, YEE, YN, YL, Y6, Y26, Y8, YUA, Y25) 8 Topaz Travel Report 2nd Quarter, April June, 2011

TOPAZ TOP 50 DOMESTIC ANC BET CON 217.42 0.54 NR 191.93 0.48 216.27 0.54 ANC ENA CON 93.41 1.56 D 93.00 1.55 NR 95.91 1.60 YD 118.70 1.98 95.06 1.58 ANC FAI CON 196.33 0.75 FD 268.95 1.03 NR 133.56 0.51 PP 119.00 0.46 YD 237.70 0.91 169.04 0.65 ANC JNU CON 221.67 0.39 FEG 183.80 0.32 NR 136.90 0.24 PRO 119.71 0.21 210.31 0.37 ATL DFW CON 222.54 0.30 FEG 323.09 0.44 NR 231.18 0.32 225.00 0.31 ATL EWR CON 355.13 0.48 D 520.70 0.70 FEG 469.70 0.63 NR 337.77 0.45 358.46 0.48 ATL LGA BEG 371.06 0.49 CON 227.32 0.30 FEG 354.43 0.47 NR 232.20 0.31 PRO 224.78 0.30 235.58 0.31 ATL ORD CON 205.29 0.34 FEG 367.94 0.61 NR 249.64 0.41 YD 286.70 0.47 213.25 0.35 ATL RIC CON 203.50 0.42 FEG 813.08 1.69 NR 154.49 0.32 YD 340.45 0.71 215.71 0.45 ATL STL AP 144.20 0.30 CON 205.29 0.42 NR 184.61 0.38 YD 332.03 0.69 203.17 0.42 AUS SJC CON 312.27 0.21 NR 247.80 0.17 YD 418.91 0.28 281.41 0.19 BNA RIC AP 276.40 0.52 CON 344.39 0.64 FEG 937.75 1.76 NR 251.29 0.47 336.53 0.63 BOS DFW CON 480.98 0.31 FEG 983.09 0.63 NR 295.29 0.19 485.65 0.31 BOS EWR AP 88.20 0.44 BEG 428.45 2.13 CON 150.41 0.75 D 421.07 2.09 NR 128.75 0.64 168.31 0.84 BOS LGA CON 199.17 1.08 D 382.83 2.07 FEG 391.76 2.12 NR 258.90 1.40 211.54 1.14 BOS ORD AP 124.70 0.14 CON 236.92 0.27 D 333.20 0.38 FEG 568.58 0.66 NR 180.50 0.21 246.85 0.28 CLE ORD CON 170.36 0.54 D 175.70 0.56 FEG 422.41 1.34 NR 119.85 0.38 167.21 0.53 Topaz Travel Report - 2nd Quarter, April - June, 2011 9

TOPAZ TOP 50 DOMESTIC CLT LGA CON 143.47 0.26 D 463.20 0.85 FD 633.95 1.17 NR 179.06 0.33 YD 1,034.20 1.90 186.59 0.34 DCA LGA CON 203.39 0.95 D 378.95 1.76 FD 300.70 1.40 FEG 303.66 1.41 NR 256.55 1.19 210.68 0.98 DEN SNA CON 164.96 0.20 NR 144.61 0.17 YD 213.99 0.26 161.32 0.19 DFW EWR CON 427.66 0.31 D 1,040.70 0.76 FEG 854.89 0.62 NR 296.99 0.22 422.42 0.31 DFW IAH CON 164.23 0.73 D 139.08 0.62 FD 359.95 1.61 FEG 290.70 1.30 NR 123.37 0.55 166.16 0.74 DFW LGA CON 529.26 0.38 D 910.00 0.66 FEG 961.61 0.69 NR 385.71 0.28 570.34 0.41 DFW ORD CON 274.05 0.34 FEG 1,124.07 1.40 NR 252.20 0.31 287.73 0.36 DFW SFO CON 270.88 0.18 D 565.00 0.39 FEG 624.90 0.43 NR 161.98 0.11 YD 516.70 0.35 281.73 0.19 10 EWR IAH BEG 734.88 0.52 CON 411.25 0.29 D 773.21 0.55 FEG 766.35 0.55 NR 264.25 0.19 419.53 0.30 EWR MCO AP 109.70 0.12 BEG 608.19 0.65 CON 197.16 0.21 D 527.70 0.56 FEG 616.06 0.66 NR 203.28 0.22 254.23 0.27 EWR MSP CON 423.71 0.42 FD 869.37 0.86 FEG 779.39 0.77 NR 424.95 0.42 438.51 0.44 EWR ORD BEG 507.50 0.71 CON 263.90 0.37 D 337.85 0.47 FEG 454.93 0.63 NR 206.37 0.29 272.20 0.38 EWR SFO BEG 1,003.60 0.39 CON 528.27 0.21 FD 1,244.70 0.49 FEG 1,080.99 0.42 NR 390.64 0.15 577.62 0.23 EWR TPA BEG 524.51 0.53 CON 199.47 0.20 FEG 524.50 0.53 NR 156.50 0.16 204.97 0.21 IAD SFO CON 384.27 0.16 D 782.20 0.32 FEG 1,635.05 0.68 NR 469.40 0.19 502.45 0.21 IAH MSY BEG 312.50 1.02 CON 178.62 0.59 FEG 474.61 1.56 Topaz Travel Report - 2nd Quarter, April - June, 2011

TOPAZ TOP 50 DOMESTIC 186.69 0.61 IAH SFO BEG 738.05 0.45 CON 354.38 0.22 D 352.62 0.22 FEG 835.15 0.51 NR 252.34 0.15 388.48 0.24 JFK LAX AP 169.70 0.07 BEG 1,425.87 0.58 C 521.70 0.21 CON 355.88 0.14 D 594.95 0.24 FD 1,282.55 0.52 FEG 1,790.82 0.72 NR 299.20 0.12 701.95 0.28 JFK SFO AP 179.70 0.07 BEG 1,441.76 0.56 C 1,100.35 0.43 CON 337.04 0.13 D 613.20 0.24 FEG 1,914.00 0.74 NR 378.36 0.15 431.60 0.17 JNU KTN CON 187.21 0.80 NR 118.47 0.50 PRO 115.56 0.49 YD 226.70 0.96 181.56 0.77 LAX ORD AP 124.70 0.07 BEG 1,123.10 0.64 CON 282.64 0.16 D 441.70 0.25 FD 1,594.33 0.91 FEG 1,070.26 0.61 NR 168.63 0.10 YD 798.00 0.46 368.16 0.21 LAX SFO CON 140.42 0.42 D 195.70 0.58 FEG 586.90 1.74 NR 160.00 0.47 YD 185.70 0.55 151.26 0.45 LAX SJC CON 162.14 0.53 D 198.56 0.64 NR 140.22 0.46 YD 186.19 0.60 169.92 0.55 LGA ORD CON 198.21 0.27 D 345.70 0.47 FD 385.70 0.53 FEG 462.33 0.63 NR 199.01 0.27 213.20 0.29 LGA RIC CON 313.29 1.07 D 442.25 1.51 NR 184.42 0.63 253.10 0.87 LGA STL CON 171.96 0.19 FD 374.41 0.42 FEG 293.06 0.33 NR 240.70 0.27 189.06 0.21 LGA YYZ BEG 1,189.43 3.34 CON 380.02 1.07 FEG 1,189.34 3.34 NR 312.81 0.88 401.63 1.13 MSP ORD CON 158.06 0.47 D 200.70 0.60 FEG 292.23 0.87 NR 117.70 0.35 159.30 0.48 ORD RIC CON 379.57 0.60 D 454.70 0.72 NR 414.23 0.66 383.85 0.61 ORD SFO BEG 893.92 0.48 C 1,119.70 0.61 CON 309.05 0.17 D 430.70 0.23 FEG 1,106.80 0.60 NR 252.73 0.14 376.53 0.20 Topaz Travel Report - 2nd Quarter, April - June, 2011 11

TOPAZ TOP 50 DOMESTIC ORD STL CON 164.72 0.64 FEG 509.60 1.98 171.29 0.66 PHL RIC CON 401.62 2.03 NR 442.56 2.24 404.91 2.05 PHX SJC CON 258.55 0.42 D 275.70 0.44 NR 185.25 0.30 YD 275.89 0.44 208.55 0.34 SJC SNA D 196.95 0.58 NR 151.92 0.44 YD 185.54 0.54 172.73 0.51 12 Topaz Travel Report - 2nd Quarter, April - June, 2011

TOPAZ TOP 15 INTERNATIONAL ARN CPH BEG 172.00 0.50 C 336.00 0.98 CON 169.40 0.50 D 202.50 0.59 NR 177.73 0.52 PRO 72.67 0.21 YD 337.80 0.99 173.77 0.51 CDG GVA BEG 342.00 1.35 C 485.36 1.91 CON 249.96 0.98 D 263.90 1.04 FEG 316.00 1.24 NR 125.99 0.50 PP 67.50 0.27 Y 316.00 1.24 214.67 0.85 DUS MUC BEG 158.00 0.51 CON 117.62 0.38 NR 95.03 0.31 YD 307.78 0.99 122.72 0.39 EWR LHR BEG 2,697.79 0.78 C 3,496.74 1.01 CON 835.38 0.24 D 1,054.60 0.30 NR 583.58 0.17 PP 654.30 0.19 YD 1,743.95 0.50 2,399.41 0.69 FRA HAM BEG 362.33 1.41 CON 100.17 0.39 NR 57.55 0.22 99.79 0.39 HAM STR BEG 152.21 0.44 CON 128.20 0.37 NR 103.22 0.30 127.03 0.37 HKG SFO BEG 2,095.60 0.30 C 4,331.77 0.63 CON 1,870.43 0.27 FD 6,131.40 0.89 NR 869.45 0.13 2,163.10 0.31 JFK LHR BEG 2,312.75 0.67 C 2,247.36 0.65 CON 990.81 0.29 D 1,350.54 0.39 FD 9,470.85 2.74 FEG 6,387.70 1.85 NR 614.92 0.18 PP 263.00 0.08 YD 1,665.60 0.48 2,002.35 0.58 KUL SIN C 237.83 1.17 CON 80.64 0.40 D 118.98 0.58 NR 78.22 0.38 PP 90.38 0.44 PRO 32.50 0.16 YD 168.91 0.83 105.30 0.52 LHR ORD BEG 2,538.29 0.64 C 2,481.79 0.63 CON 815.07 0.21 D 1,229.30 0.31 FD 2,634.50 0.67 FEG 4,677.72 1.18 NR 679.88 0.17 Y 1,606.00 0.41 YD 903.50 0.23 2,136.92 0.54 LHR SFO BEG 3,162.18 0.59 C 4,626.11 0.86 CON 920.04 0.17 D 1,390.85 0.26 FD 10,557.33 1.97 FEG 5,827.70 1.09 NR 520.71 0.10 2,794.21 0.52 MEL SYD BEG 472.00 1.08 C 680.05 1.55 CON 256.64 0.58 D 280.83 0.64 FD 166.00 0.38 NR 166.12 0.38 Topaz Travel Report - 2nd Quarter, April - June, 2011 13

TOPAZ TOP 15 INTERNATIONAL PP 129.00 0.29 237.85 0.54 NCE ORY AP 255.30 0.60 BEG 318.50 0.75 CON 324.53 0.76 D 264.63 0.62 NR 199.67 0.47 PP 254.50 0.60 PRO 179.50 0.42 Y 249.59 0.59 278.62 0.66 ORY TLS AP 236.00 0.66 CON 298.53 0.84 D 259.44 0.73 FD 299.50 0.84 NR 237.29 0.67 PP 234.56 0.66 PRO 180.25 0.51 Y 239.10 0.67 271.97 0.77 PVG SFO BEG 2,640.25 0.43 C 3,022.86 0.49 CON 1,369.55 0.22 NR 774.60 0.13 PP 1,291.88 0.21 2,490.01 0.40 14 Topaz Travel Report - 2nd Quarter, April - June, 2011

Summary of Audit Results Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2008 2009 2010 2011 2011 2011 2011 Average Price per PNR:* Domestic $ 521 $ 480 $ 508 $ 533 $ 556 International (Global) $ 2,174 $ 1,865 $ 1,952 $ 2,146 $ 2,223 International (US/CAD only) $ 3,441 $ 3,015 $ 2,614 $ 2,401 $ 2,522 Average Negotiated Discount Domestic 8.28% 5.37% 7.94% 9.63% 9.02% Average Cost per Segment: ** Domestic $ 266 $ 245 $ 257 $ 267 $ 290 International (Global) $ 975 $ 855 $ 909 $ 978 $ 1,045 International (US/CAD only) $ 1,615 $ 1,385 $ 1,253 $ 1,128 $ 1,233 Average Cost per Mile: Domestic $ 0.30 $ 0.26 $ 0.28 $ 0.29 $ 0.32 International (Global) $ 0.38 $ 0.33 $ 0.33 $ 0.30 $ 0.39 International (US/CAD only) $ 0.39 $ 0.35 $ 0.35 $ 0.30 $ 0.41 Average Cost per Error: Domestic $ 113 $ 201 $ 177 $ 154 $ 142 International $ 322 $ 256 $ 204 $ 241 $ 298 Overall $ 194 $ 220 $ 193 $ 180 $ 193 *PNR: Passenger Name Record may include multiple tickets **Segment: The origin/destination cities at which the fare is broken Topaz Publications The Topaz Travel Report includes four quarterly issues. The Monthly Airfare Index consist of twelve monthly reports. Subscribers include financial, administrative and purchasing executives responsible for managing the expense of air travel, travel agencies serving the business traveler, airlines and travel accounts. Subscription Information: 1 year of quarterly Topaz Travel Report $400.00 1 year of Monthly Airfare Index $240.00 Copyright 2010 Topaz International Ltd. No part of this publication may be reproduced in any form without permission from the publisher. Bradley Seitz, Publisher Michele Simon, Editor Please advise of address changes. Back issues of the Topaz Travel Report are available to current subscribers for $62.50 each. Previous issues of the Monthly Airfare Index are available for $10.00 each. To order, send or Fax request to: Topaz Publications Topaz International Ltd. PO Box 3185 Tualatin, OR 97062 P: 503-651-4300 F: 503-612-9960 15 Topaz Travel Report 2nd Quarter, April June, 2011