As the pace of growth among OTAs collides with omni-channel distribution strategies in all travel industry sectors, what trends are shaping the Asia-Pacific landscape? Join this FREE WEBINAR on Wednesday 2 September led by Sabre to learn more about these top five trends in APAC: Mobility: especially in China and India Expansion: role of big OTAs, China outbound, EMEA inbound LCC: Impact of low-cost carriers Morphing business models: OTA, metasearch, offline Beyond flights: Understanding the mix and content Panelists for this FREE webinar are: Tai Parata, director, online business, Sabre Mirza Juddani, CEO & Founder, Skiddoo Kevin May, Senior Editor & Moderator, Tnooz Gene Quinn, CEO & Producer, Tnooz This free webinar took place on Wednesday 2 September 2015.

1. APAC online travel landscape
Webinar
2 September 2015

2. Your hosts
Kevin May
Senior Editor & Moderator
Tnooz
Gene Quinn
CEO & Producer
Tnooz

3. Your presenters
Tai Parata
Director, Online Business
Sabre
Mirza Juddani
CEO & Founder
Skiddoo

4. Poll no. 1
Where are you located?

5. Poll no. 2
What industry segment do you represent?

6. Poll no. 3
What percentage of your business
comes from APAC?

7. 7©2015 Sabre GLBL Inc. All rights reserved.
APAC Online Travel Landscape
Tai Parata, Director, Online Business, Sabre
Mirza Juddani, CEO & Founder, Skiddoo
Kevin May, Senior Editor & Moderator, Tnooz
Gene Quinn, CEO & Producer, Tnooz

8. 8©2015 Sabre GLBL Inc. All rights reserved.
Agenda
Introduction1
APAC OTA Trends Tai Parata2
APAC Travel & Technology Trends Tai Parata/ Mirza Juddani3
Roundtable Discussion Group4
Audience Q&A5

9. 9©2015 Sabre GLBL Inc. All rights reserved. 9
APAC OTA Trends
Tai Parata, Director Online Business APAC

10. 10©2015 Sabre GLBL Inc. All rights reserved.
The numbers
APAC OTA Gross bookings and share of the online
and total travel market (2013-2017)
OTAs growing to
16% of total market
44% of all online
bookings

11. 11©2015 Sabre GLBL Inc. All rights reserved.
India
41%
Korea
26%
Australia
15%
Taiwan
6%
HK
5%
SG
3%
NZ
2%
PH
2% ID
1%
GDS channel online country share YTM June 2015
Data: GDS numbers only. Does not include supplier direct sales by Legacy carriers or LCCs
Source: MIDT
India driving the volume with big
players like Makemytrip, Yatra,
Cleartrip
Markets like SG/HK which attract
a lot of interest are relatively small
markets

12. 12©2015 Sabre GLBL Inc. All rights reserved.
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
AUKRTWHKSG IN
YTM Jun 2014 vs
YTM Jun 2015
33%
12%
36%
50%
30%
14%
1%
24%
12%
1%
2013 vs 2014
10%
23%
Source: MIDT
GDS channel – stronger growth in 2015

13. 13©2015 Sabre GLBL Inc. All rights reserved.
• Content
– Fragmented content sources
– High net fare usage
– Differential fare distribution
• Ecommerce infrastructure
– Payment gateways and options
– Response times
• LCC penetration
• Mobile penetration
Unique aspects of APAC for OTAs

14. 14©2015 Sabre GLBL Inc. All rights reserved. 14
APAC Travel and Technology Trends
Tai Parata, Director Online Business APAC

15. 15©2015 Sabre GLBL Inc. All rights reserved.
SKIDDOO Launched in 2011, Skiddoo now operates in 3 markets
that include Australia, Singapore and Philippines
Through Technology developments, Skiddoo are able
to offer the widest range of flights in APAC markets
Skiddoo focus is to expand to the wider APAC markets
by using technology to competre against the
traditional model

16. 16©2015 Sabre GLBL Inc. All rights reserved.
Online
Business Model
01 / Be the ‘Lowest Cost to Ticket’ provider in the market
02 / Rely on low cost highly scalable API led services platform
03 / Focus on Millennial & Gen X who are high adopters of ecommerce & social platforms
Minimal
technology
infrastructure
risk
Ability to deliver
customer
experience @
lowest cost
Strong cash
generation

17. 17©2015 Sabre GLBL Inc. All rights reserved.
Travel and Technology Trends
1
Mobility
2
Expansion
3
Low-cost
Carriers
(LCC)
4
Morphing
business
models
5
Beyond
flights

18. 18©2015 Sabre GLBL Inc. All rights reserved.
Mobility
9%
18%
28%
38%
48%
17%
25%
32%
39%
46%
25%
52%
58%
66%
73%
2013
2014
2015
2016
2017
Mobile
Share
of
OTA
gross
bookings
India
Japan
China
China mobile
penetration > laptop
Averages hide peaks

19. 19©2015 Sabre GLBL Inc. All rights reserved.
Mobility
China and India require strong mobile strategies Qunar.com Q2 2015 report excerpt:
Mobile revenues for the second quarter of 2015
were RMB600.1 million (US$96.8 million), an
increase of 321.7% year-on-year, representing
68.1% of total revenues.
Ctrip.com Q1 2015 comments from CEO: Cumulative mobile app
downloads reached approximately 800 million by the end of first quarter,
an increase of over 550% from a year ago. Mobile channels accounted
for around 70% of total online transactions this quarter.
Makemytrip Q1 earnings call:
“…growth in India standalone online hotels
fueled by over 200% growth on transactions
coming from mobile channel during this quarter,"
said Deep Kalra, Group Chairman and
Group CEO.
Cleartrip Press release April 2015:
53% of the total traffic emanates from the
mobile channels…. over 70% of our mobile
customers are now using mobile as their only
channel for transactions. Also, this quarter,
Cleartrip’s transactions grew by a whopping
214% YOY where mobile now accounts for
40% of overall transactions.

20. 20©2015 Sabre GLBL Inc. All rights reserved.
Mobility – UI adaptions
• Mobile marketing is different by culture
MakemytripCtrip
Building depth in
• Product range
• Search options
• Integration
• Payment methods
• Pricing differential

21. 21©2015 Sabre GLBL Inc. All rights reserved.
Expansion and growth
• Larger APAC player
– Getting deeper because market is huge
– Some diversifying
– Strategic alliances
• New gen players
– Nimble, fast and meta driven expanding quickly
• Global OTAs had to work hard
– Hotels specialist done well
– Full service OTAs found it difficult due to content acquisition
• Meta entry
– European OTAs enter via meta

22. 22©2015 Sabre GLBL Inc. All rights reserved.
LCC penetration is very high
Source: Capa 2014
LCC % SHARE OF SEAT CAPACITY – 2014
26%
11%
22%
7%
8%
9%
14%
20%
29%
31%
35%
42%
47%
54%
57%
0%
10%
20%
30%
40%
50%
60%
70%
USA
NZ
Australia
Taiwan
Hong
Kong
China
Japan
Sth
Korea
Vietnam
Singapore
Thailand
Philippines
India
Malaysia
Indonesia

23. 23©2015 Sabre GLBL Inc. All rights reserved.
LCC pushing out legacy carriers on domestic routes
Source: Capa 2014
LCC SEAT CAPACITY BY DOM & INT – 2014
30.7%
15.9%
25.1%
9.3%
16.9%
37.3%
40.9%
60.8%
57.2%
64.5%
61.6%
63.1%
11.6%
6.8%
16.8%
7.2%
8.3%
8.3%
9.0%
13.3%
17.0%
31.3%
23.3%
25.8%
17.9%
50.3%
42.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
USA
NZ
Australia
Taiwan
Hong
Kong
China
Japan
Sth
Korea
Vietnam
Singapore
Thailand
Philippines
India
Malaysia
Indonesia
InternaMonal
DomesMc

24. 24©2015 Sabre GLBL Inc. All rights reserved.
• Is a core business requirement for OTAs
• Fragmented content
• Cash flow management
• Technical/operational complications
• Point of sale pricing
• Compete with direct pricing
Impact of LCC

25. 25©2015 Sabre GLBL Inc. All rights reserved.
New business models and business drivers
• B2B online only players
– fastest growing models
• Meta/ Marketplace/OTA players
– Customers choice
• Meta going OTA
– Controlling the quality
• Seamless OTAs
– Point of sale: (Online/ offline) + Sale device

26. 26©2015 Sabre GLBL Inc. All rights reserved.
Beyond flights - changing content mix
• Accommodation-based product
– Race to get product depth in China and India
– Large diversification of revenue base with leading OTA
– Slow pick up in dynamic packaging
– Deals sites helped drive villas sales and highlighting ancillary revenue
• Content diversification through acquisition and investment
– Expedia
– Priceline
– Ctrip
– Makemytrip

27. 27©2015 Sabre GLBL Inc. All rights reserved.
• APAC OTAs are experiencing high growth
• Net fare/LCC/mobile penetration are key differentiators for APAC
• A strong, locally tailored mobile strategy is vital in region
• Content fragmentation, especially with LCC provide challenges
• OTAs are moving and morphing quickly to the environment
Summary and Roundtable Discussion

28. Q & A

29. Thank you!
Send your questions and comments to kevin@tnooz.com
Replay and presentation will be available on www.tnooz.com

30. 30©2015 Sabre GLBL Inc. All rights reserved.
APAC Online Travel Landscape
Tai Parata, Director, Online Business, Sabre
Mirza Juddani, CEO & Founder, Skiddoo
Kevin May, Senior Editor & Moderator, Tnooz
Gene Quinn, CO & Producer, Tnooz