This webinar, produced by Tnooz and Amadeus, examined new traveler behavior, the effects of unbundling services on business models and how suppliers manage the marketing opportunities and challenges. Panelists for this FREE webinar were: Brian Beard, executive technology consultant, Amadeus Scott Gillespie, travel industry consultant, Gillespie's Guide to Travel + Procurement Gene Quinn, CEO and producer, Tnooz Kevin May, Editor and moderator, Tnooz

1. How to Market and Sell
Unbundled Travel
October 30, 2012

2. K
Kevin May Gene Quinn
Editor / Moderator CEO / Producer

3. Panelists
Brian Beard Scott Gillespie
Amadeus Author, Gillespie’s Guide
Executive, Travel To Travel+Procurement
Technology & Consulting Founder, Travel Analytics

4. Poll no. 1

5. Poll no. 2

6. Predictive
Bundling
Scott Gillespie
Author, Gillespie’s Guide
To Travel + Procurement
Founder, Travel Analytics

7. Types of Ancillary Revenues
Flight-Specific Sources Other Sources
• Bag Fees • Lounge Pass
• Seating • Extra Miles/Points
Airline’s • Priority Boarding • Booking Method
Products • Food & Beverage • Payment Method
• Entertainment
• Pillows, Etc.
Partner’s • WiFi • Car, Hotel Bookings
Products • Catalog Sales • Destination Content,
• On-Board Advertising e.g. Concert Tickets

8. 10/30/2012 8

9. To Bundle,
Or Not To
Bundle?

10. The Cost of Shopping
High
Cost
To
Traveler
One Many
Bundle Options
Number of Choices
Source: Scott Gillespie |

11. The Cost of Shopping
High
Cost
To
Traveler
Cost of
Unwanted Features
One Many
Bundle Options
Number of Choices
Source: Scott Gillespie |

12. The Cost of Shopping
High
Shopper’s Time
Cost
To
Traveler
Cost of
Unwanted Features
One Many
Bundle Options
Number of Choices
Source: Scott Gillespie |

13. The Cost of Shopping
High
Total Shopping Cost
Shopper’s Time
Cost
To
Traveler
Cost of
Unwanted Features
One Many
Bundle Options
Number of Choices
|
Source: Scott Gillespie

14. The Cost of Shopping
High
Total Shopping Cost
Shopper’s Time
Cost
To
Traveler
Cost of
Unwanted Features
One Many
Bundle Number of Choices Options
|
Source: Scott Gillespie

15. Bundling Makes Sense When
High Shopper’s Time
Is Very Valuable
Total
Shopping
Cost
Cost
To
Traveler
Unwanted Features
Don’t Cost Much
One Many
Bundle Number of Choices Options
|
Source: Scott Gillespie

16. Bundling Makes No Sense When
High
Total Shopping Cost
Cost Unwanted
To Features
Cost a Lot
Traveler
Shopper’s Time
Is Not Valuable
One Many
Bundle Number of Choices Options
|
Source: Scott Gillespie

17. General Conclusion
• Bundle for Business Travelers
• Unbundle for Leisure Travelers

18. General Conclusion
• Bundle for Business Travelers
• Unbundle for Leisure Travelers
Marketing Implications
Fare
Families

19. General Conclusion
• Bundle for Business Travelers
• Unbundle for Leisure Travelers
Marketing Implications
Fare Traveler
Families Personas

20. General Conclusion
• Bundle for Business Travelers
• Unbundle for Leisure Travelers
Marketing Implications
Fare Traveler And
Families Personas eventually…

21. With Rich
Customer
Profiles…

22. Predictive Bundling
10/30/2012 22

23. Predictive Bundling
Recent Purchases Current Search Parameters
- Dates, Destinations - Dates, Times, Destination
- Cabin, Seat Choice - Number of Pax
- Days Advance - Number of stops
- Price, Booking Class
Airline Status
Corporate Link?
Co-Branded
OA’s Likely Credit Card
Bundle? - Ancillary Fees
10/30/2012 23

24. Examples of
Predictive Bundling
•One Checked Bag
•Priority Boarding
•Window/Aisle Choice
10/30/2012 24

25. Examples of
Predictive Bundling
•One Checked Bag
•Priority Boarding • Lounge Day Pass
•Window/Aisle Choice •$20 credit for on-board
F&B, Entertainment, WiFi
10/30/2012 25

26. Examples of
Predictive Bundling
•One Checked Bag
•Priority Boarding • Lounge Day Pass
•Window/Aisle Choice •$20 credit for on-board
F&B, Entertainment, WiFi
•Priority Standby for Upgrade
•Best effort at empty middle seat
• 50% off Change Fee, if needed
10/30/2012 26

27. Challenges of
Predictive Bundling
• Access to appropriate data sources
– Facebook, Twitter, LinkedIn, Klout, etc.
– Credit scores, purchase patterns
• Drawing good conclusions about which bundles to
present
• Offering bundles at point(s) of sale
– Online shopping sites (speed and accuracy issues?)
– In the booking path
– At check in
– Via mobile phone
• Potential conflict with corporate T&E policies

28. Poll no. 3

29. Poll no. 4

30. Unbundled Travel Services
Traveler Perspectives and Technology Impact
© 2010 Amadeus IT Group SA
Brian Beard, Executive, Travel Technology & Consulting, Amadeus

31. Unprecedented Complexity
 Proliferation of Choices
 Bags or No Bags
 Board early or take the risk
 Bring food
 Bring Wifi or take the risk
Airline
 Frustration and Inconvenience ancillary
 Plane checked bags revenue
 Slow Wifi
 In your face advertising
will
 Travelers expectations reach
 Know options ahead of time $36.1
© 2010 Amadeus IT Group SA
 Easy payment Billion in
 Listed in Itinerary
2012
Source: Amadeus and IdeaWorksCompany Press release

32. The Business Traveler Dilemma
 Please remember me
 Services selected previously
 Basic preferences
 Last time I traveled
 My favorite bundle
 Expense or not Expense?
 Out dated travel policies
 Personal travel costs
 Expense systems
 The partially functional OBT
 Lacking travel products and services
© 2010 Amadeus IT Group SA
 Completeness of the Itinerary
 Ability to change a reservation

33. Travel Manager Pain Points
 Travel Policies out of control
 A policy for every service
 Impacts of bundling
 Constant changes
 Reporting has become more difficult
 Lack of available Data Most US
 Reporting tool upgrades
corporations
 Expense systems
have yet to
set policies
 Impact on supplier negotiations regarding
 Addition inputs ancillary
 Stability of unbundled services
service
© 2010 Amadeus IT Group SA
 May be too early to tell
offerings

34. Poll no. 5

35. Future Paths
 The supplier Direct solution
 The EMD Solution
 The supplier API solution
 Fare Families
 System Integration
 Data collection
© 2010 Amadeus IT Group SA
Earlier this year, Amadeus and IdeaWorksCompany reported the ancillary revenue disclosed by 50 airlines for 2011. These statistics were
applied to a larger list of 176 airlines to provide a truly global projection of ancillary revenue activity by the world’s airlines in 2012. The
Amadeus Worldwide Estimate of Ancillary Revenue marks the third year Amadeus and IdeaWorksCompany have offered a projection
of global ancillary revenue activity.

36. Technology’s Role/Impact
 It’s all about Data
 Big Data, Small Data, timely data
 Access and Sharing
 Privacy and compliance
 Next Gen Booking tools
 Mobile and fully functional 5 Billion
 Evolution of the travel tool people will
 Power to the traveler
have
 Social and More access to
 Unbundled product will be increasingly
impacted by social input mobile
broadband
© 2010 Amadeus IT Group SA
 Multiple payment mechanisms will exist
 Apps become the new widgets by 2016

37. Conclusions
 Traveler frustration will drive
change
 TMC’s must adapt to the increasing
needs of the travel manager
 Leisure traveler’s will continue to
have an increasing number of
choices for travel products
 Technology will make selecting and
tracking unbundled services easier
 Sharing data across the travel
© 2010 Amadeus IT Group SA
supply chain will be a key driver for
change

38. with Amadeus
Brighter, Bolder, Better
© 2010 Amadeus IT IT Group SA
© 2010 Amadeus Group SA

39. Q&A

40. Thank You!
Please send your questions and comments to Kevin May,
Please
kevin@tnooz.com
Replay of today’s webinar and presentation will be available tomorrow at
www.tnooz.com