2009 Business Travel Forecast For Business Travel Services please call: 800-807-8018

Industry in General Source: Travel Leaders Estimates 2009 Cost increase Projection: Primary T&E Segments Industry Segment Range of Increases 1-3% Airfare Hotel 4-8% 5-8% Car Rental 8% Meals For Business Travel Services please call: 800-807-8018

General Information Source: ACTE 64% Of Companies Will Reduce Or Maintain Current Travel Spending Levels In 2009 2009 Business Travel Activity Adjustments For Business Travel Services please call: 800-807-8018

Airline Industry 2009 Airfare Forecast & Industry Projections Domestic International Travel Leaders +5% to 8% +3% to 5% NBTA +7% to10% AMEX -3% to 5% +1% to 6% Advito +6% to 8% Egencia -4% to 17% (depending on country) Purchasing.com -5% to +5% The Beat +6% to 8% For Business Travel Services please call: 800-807-8018

Source: Runzheimer / * Estimated Rates - Travel Leaders Airline Industry US Domestic Airfare: Average Price Quarterly Average US Domestic Airfare Shows steady increase in 2009 For Business Travel Services please call: 800-807-8018

Source: Runzheimer / * Estimated Rates - Travel Leaders Airline Industry International Airfare: Average Price Quarterly Average International Airfare Shows steady increase in 2009 For Business Travel Services please call: 800-807-8018

Airline Industry Other Statistics Average Domestic Trip Will Increase to $1,002 Average International Trip Will Increase to $3,452 Overall Business Travel Will Decline 2.7% Small Meetings (70% Of All Meetings) Will Remain Flat Source: USA Today / ACTE / AMEX For Business Travel Services please call: 800-807-8018

Other Statistics

Average Domestic Trip Will Increase to $1,002

Average International Trip Will Increase to $3,452

Overall Business Travel Will Decline 2.7%

Small Meetings (70% Of All Meetings) Will Remain Flat

Ala Carte Pricing Customers are being charged for 1 st & 2 nd bag fees, reservation support, curb-side check-in, beverages, meals, select seating, internet services, pillows and blankets. 53% of Travelers Prefer Unbundled Pricing 28% of Travelers Would Pay More For Better Service United Airlines Forecasts $700 Million In Ancillary Revenue For 2009 Northwest Airlines Forecasts $600 Million In Ancillary Fees In 2009 Overall Ancillary Revenue for 2007 Was $1.7 Billion Ancillary Fees Add Between 5% - 15% of Base Fares Airline Industry Source: NBTA / USA Today For Business Travel Services please call: 800-807-8018

Ala Carte Pricing

Customers are being charged for 1 st & 2 nd bag fees, reservation support, curb-side

check-in, beverages, meals, select seating, internet services, pillows and blankets.

53% of Travelers Prefer Unbundled Pricing

28% of Travelers Would Pay More For Better Service

United Airlines Forecasts $700 Million In Ancillary Revenue For 2009

Northwest Airlines Forecasts $600 Million In Ancillary Fees In 2009

Overall Ancillary Revenue for 2007 Was $1.7 Billion

Ancillary Fees Add Between 5% - 15% of Base Fares

Our View With decreases in seat capacity from 10% to 13% in recent months, US domestic carriers have right sized their inventories to accommodate a slowing economy. Although fuel costs have decreased recently, airlines will not be passing these savings on to customers. How inventory and flight capacity affects your bottom line Major carriers will tweak remaining inventories to accommodate modest rate increases by altering aircraft size and seat mix to generate increased revenue. For Business Travel Services please call: 800-807-8018

With decreases in seat capacity from 10% to 13% in recent months,

US domestic carriers have right sized their inventories to accommodate

a slowing economy. Although fuel costs have decreased recently,

airlines will not be passing these savings on to customers.

Our View Regional jets and reduced seat capacity will drive prices higher as consumers compete for fewer seats. Airline discounts programs will be tougher for companies to negotiate as higher yields reduce the need for airlines to discount inventories. Additional ancillary revenue will increase the actual cost of air travel. How inventory and flight capacity affects your bottom line For Business Travel Services please call: 800-807-8018

Regional jets and reduced seat capacity will drive prices higher as

consumers compete for fewer seats.

Airline discounts programs will be tougher for companies to negotiate as

higher yields reduce the need for airlines to discount inventories.

Additional ancillary revenue will increase the actual cost of air travel.

Put Policy Verbiage In Place To Address Incremental Fees Control Renegade Spend To Increase Negotiating Leverage Combine Meeting Spend With Day-To-Day Travel Expenditures Create A Stand Alone Policy For Meetings And Events Tighten Advance Purchase Policies Tighten Exception Policies – Increase Penalties Consolidate Preferred Vendors Audit Expense Reports Provide Budget Owners With The Data They Need To Control Travel Spend In Their Sphere Of Influence Implement Approval/ Pre-Approval Processes For Travel Expenditures Use ROI Calculations To Justify Expenses Actively Track Unused Tickets Reduce Number of Employees Attending Conferences Our Recommendations 2009 Recommended Cost Containment Strategies For Business Travel Services please call: 800-807-8018

Put Policy Verbiage In Place To Address Incremental Fees

Control Renegade Spend To Increase Negotiating Leverage

Combine Meeting Spend With Day-To-Day Travel Expenditures

Create A Stand Alone Policy For Meetings And Events

Tighten Advance Purchase Policies

Tighten Exception Policies – Increase Penalties

Consolidate Preferred Vendors

Audit Expense Reports

Provide Budget Owners With The Data They Need To Control Travel

Spend In Their Sphere Of Influence

Implement Approval/ Pre-Approval Processes For Travel Expenditures

Use ROI Calculations To Justify Expenses

Actively Track Unused Tickets

Reduce Number of Employees Attending Conferences

Negotiated Rates Should Increase 3% To 4% In 2009 Increases In Surcharges & Taxes As Cities & Airports Try To Recoup Tax Revenue Losses Are Possible Car Rental Companies Will Reduce Fleets To Meet Lower Demand and Will Retain Vehicles Longer In Their Fleets Companies Will Increase Car Rental Spending As They Move Employees Away From More Expensive Personal Car Usage Average Domestic Cost Per Day Including Gas, Insurance, Taxes, Concession Fees And Insurance Will Increase To $68 Per Day (compact/ midsize) Car Rental Source: The Beat / Travel Leaders For Business Travel Services please call: 800-807-8018

Negotiated Rates Should Increase 3% To 4% In 2009

Increases In Surcharges & Taxes As Cities & Airports Try To Recoup Tax

Revenue Losses Are Possible

Car Rental Companies Will Reduce Fleets To Meet Lower Demand and

Will Retain Vehicles Longer In Their Fleets

Companies Will Increase Car Rental Spending As They Move

Employees Away From More Expensive Personal Car Usage

Average Domestic Cost Per Day Including Gas, Insurance, Taxes,

Concession Fees And Insurance Will Increase To $68 Per Day (compact/ midsize)

Source: Runzheimer / Travel Leaders Car Rental Quarterly Average Car Rental Pricing Shows Decrease in 2009! 2009 US Car Rental Pricing For Business Travel Services please call: 800-807-8018

Our Recommendations Renegotiate Your Current Contract /Go Out To Bid Change Policy To One Lower Class Of Service – Car Rental Companies Typically Don’t Carry Many Compact Cars As They Are Less Profitable Thus Insuring More Frequent Upgrades Strengthen Ancillary Cost Policies GPS Rental, EZ Pass Usage, Fuel Policies, Insurance, Etc.. Encourage Public Transportation, Ride Sharing & Taxi Cab Usage Conduct Internal Meetings At Airport Properties To Eliminate Costs 2009 US Car Rental Pricing Strategies For Business Travel Services please call: 800-807-8018

Renegotiate Your Current Contract /Go Out To Bid

Change Policy To One Lower Class Of Service –

Car Rental Companies Typically Don’t Carry Many Compact Cars As They Are Less Profitable Thus Insuring More Frequent Upgrades

Strengthen Ancillary Cost Policies

GPS Rental, EZ Pass Usage, Fuel Policies, Insurance, Etc..

Encourage Public Transportation, Ride Sharing & Taxi Cab Usage

Conduct Internal Meetings At Airport Properties To Eliminate Costs

Car Rental Negotiations Liability Insurance LDW Deductible (If Not Self Insured) LOA Terms Age Limits Frequent Renter Club Enhancements GPS Rentals VIP Services HQ Pricing Additional Day Charge Weekly Rental Charges One-Way Rentals Additional Mileage Charges Mid-Week Rental Charges Back-End Rebates 2009 US Car Rental Pricing Considerations For Business Travel Services please call: 800-807-8018

Liability Insurance

LDW Deductible (If Not Self Insured)

LOA Terms

Age Limits

Frequent Renter Club Enhancements

GPS Rentals

VIP Services

HQ Pricing

Additional Day Charge

Weekly Rental Charges

One-Way Rentals

Additional Mileage Charges

Mid-Week Rental Charges

Back-End Rebates

Hotels Source: Runzheimer / Travel Leaders Hotel Pricing Reflects a 6% increase for 2009 2009 US Hotel Pricing For Business Travel Services please call: 800-807-8018

Hotels Source: Smith Travel Research / PKF Hospitality Research 2009 Average Occupancy Rate 58.3% REVPAR Down -4.3% to -7.9% 1.5% Decline In Demand 3% Increase In Inventory 2009 Hotel Supply & Demand For Business Travel Services please call: 800-807-8018

2009 Average Occupancy Rate 58.3%

REVPAR Down -4.3% to -7.9%

1.5% Decline In Demand

3% Increase In Inventory

Hotels Source: Smith Travel Research / PKF Hospitality Research 5% Drop In Occupancy Rate Increases In Top US Markets (MIA,NYC,DFW,ORD,DCA,LAX) Overall Rate Increases Of 4% to 8% Nationally Secondary & Tertiary Markets Will See Rate Reductions of 2% 2009 Hotel Supply & Demand For Business Travel Services please call: 800-807-8018

5% Drop In Occupancy

Rate Increases In Top US Markets (MIA,NYC,DFW,ORD,DCA,LAX)

Overall Rate Increases Of 4% to 8% Nationally

Secondary & Tertiary Markets Will See Rate Reductions of 2%

Our Recommendations Stay In Suburban Locations When Possible Develop A Segment Policy Instead Of A Per-Diem Policy Negotiate Your Hotel Program In The Summer Use Hotel RFP Software For Cities With Over 100 Room Nights Negotiate One Primary & One Secondary Hotel Per City Consolidate Spend Consider Six Month Performance Agreements For Reluctant Properties Pre-Negotiate New Locations Ask That Most Add On Costs Are Included In The Rate (Internet, Parking, Breakfast, Business Center, Gym, Etc.) Play The Annual Shell Game – Shift Share Look at Dynamic Pricing In Addition To Fixed Rates For Business Travel Services please call: 800-807-8018

Stay In Suburban Locations When Possible

Develop A Segment Policy Instead Of A Per-Diem Policy

Negotiate Your Hotel Program In The Summer

Use Hotel RFP Software For Cities With Over 100 Room Nights

Negotiate One Primary & One Secondary Hotel Per City

Consolidate Spend

Consider Six Month Performance Agreements For Reluctant Properties

Pre-Negotiate New Locations

Ask That Most Add On Costs Are Included In The Rate

(Internet, Parking, Breakfast, Business Center, Gym, Etc.)

Play The Annual Shell Game – Shift Share

Look at Dynamic Pricing In Addition To Fixed Rates

Meals Traveler Meals Represent 9% Of Total Travel Spend Source: Runzheimer Average High Breakfast 14.43 17.23 Lunch 14.32 16.31 Dinner 31.21 37.46 3 Meal Total 60.16 71.00 Reduce Daily Meal Per-Diems To $60 Consider Not Reimbursing Alcohol Expenses Unless Entertaining Clients For Business Travel Services please call: 800-807-8018

Travel Policy & Communication Frequency of Communication to Travelers Source: BTN For Business Travel Services please call: 800-807-8018

Traveler Awareness of Preferred Suppliers Travel Policy & Communication Yes No Unsure Airlines 59% 37% 4% Hotels 64% 30% 6% Car Rental 66% 29% 6% Chauffeured Service 33% 55% 12% Corporate Credit Card 70% 25% 5% Travel Agency 65% 30% 5% Recommendation: Provide More Frequent Information To Travelers Source: BTN For Business Travel Services please call: 800-807-8018

Source: BTN Travel Policy & Communication Traveler Awareness of Company Policy* *Frequent Travelers 10+ Trips Annually For Business Travel Services please call: 800-807-8018

Source: BTN Travel Policy & Communication How Companies Address Policy Non-Compliance Exception Report to Supervisor 63% Non-Reimbursement 43% Exception Report to Traveler 36% Formal Reprimand 20% Other Actions 8% No Action 8% * Does Not Equal 100% Due To Multiple Answers For Business Travel Services please call: 800-807-8018

Source: BTN Travel Policy & Communication Travel Policy Changes In 2009 For Business Travel Services please call: 800-807-8018

Source: BTN Travel Policy & Communication How Companies Are Trimming Travel Costs Budgetary Restrictions 66% Advance Purchase (Air Travel) 52% Travel Reduction (# of Trips) 51% Restrict Number of Meeting Attendees 47% Restrict Number of Meetings 42% Use of Non-Refundable Tickets 37% Lower Class of Hotel, Car Rental 30% Use Low Cost Carriers 27% For Business Travel Services please call: 800-807-8018

Source: BTN Travel Technology Percentage Of Companies Currently Using The Following Technologies All Large* Respondents Companies Online Booking Tool 71% 96% Online Expense Reporting Tool 58% 92% Data Warehousing / Decision Support Tools 26% 52% Pre-Trip Reporting Tools 35% 50% *30million + In Annual Travel Spend For Business Travel Services please call: 800-807-8018

Source: BTN Travel Technology Travel Technology Use Today & In 2009 Personal Computing Use Will Use Laptop Computer 91% 5% Personal Digital Assistant 64% 15% Mobile Phone 92% 4% Videoconferencing 53% 27% For Business Travel Services please call: 800-807-8018

Source: BTN Travel Technology Travel Technology Use Today & In 2009 Airline Technology Use Will Use Onboard Laptop Power 52% 26% Airport Check-In Kiosk 80% 13% Electronic Seat Selection 78% 14% Automated Electronic Upgrades 60% 22% Car Rental Technology Satellite Navigation System 56% 22% Automated Toll Device 41% 24% For Business Travel Services please call: 800-807-8018

Source: BTN Travel Technology Use Today & In 2009 Travel Technology Hotel Technology Use Will Use Business Center Services 69% 14% In-Room High Speed Internet 83% 10% Automated Check In Kiosk 61% 18% Automated Check Out 76% 15% In-Room Voicemail 67% 13% Interactive Television 44% 21% For Business Travel Services please call: 800-807-8018

Source: BTN Travel Technology Use Today & In 2009 Travel Technology Information Technology Use Will Use Online Booking System 77% 10% Electronic Expense Reporting 62% 19% Corporate Internet Travel Page 49% 21% For Business Travel Services please call: 800-807-8018

Source: BTN Travel Leaders is offering a Complimentary 2009 Business Travel Analysis To speak with one of our Business Travel Consultants Click Here Offer expires December 21, 2008 For Business Travel Services please call: 800-807-8018

Let us focus on what WE do best, so you can focus on what YOU do best! Our comprehensive travel management programs give you an advantage like no other. Providing the perfect blend of vast resources and technology with personalized service and dedication We are your travel management department, MINUS the overhead. For Business Travel Services please call: 800-807-8018