Europe is cautiously but surely opening up after the first wave of COVID-19. With the upcoming summer holidays, tour operators would be looking to reorient their strategy to tap into the domestic demand and maximize revenue. European Travel and Hospitality leaders Decode The Future of Tour Operators in the Region.

1. www.rategain.com
Unraveling The Future of
European Tour Operators
in the New Normal
4 June 2020
#BetterTomorrow

2. Carles Saniger
GlobalE-CommerceDeputyDirector
BarceloHotels
OurPanel of European Travel & Hospitality Industry Experts
Ignacio Suárez-Zuloaga
Director&CEO
España Fascinante
Ignacio Suárez-Zuloaga
CEO
GoldenGlobeTravel
KhaledAbou-Zeid
SVPSalesEurope
RateGain
Mark Haywood
SalesDirectorforEurope
Hotelbeds
Joaquin Garcia
CCO
TravelgateX
Jose Diaz
AssociateVicePresident– Sales
RateGain
Fritz Müller

3. Performance Assessment
of the European Travel & Hospitality
ecosystem
01
Associate Vice President – Sales
RateGain
Fritz Müller

4. Hotel Bookings Across The World Have Started Picking Up
Source : RateGain-DHISCO
End of March was the turning point for hotel reservations globally andwe arenow seeing an uptick

5. All Incoming Flights toBerlin Flights FromGeneva
Flights fromZurich toAustria, Poland andDenmark
Flightswithin CentralEuropelooking atRecoveryDuring theSummer
Source : RateGain
Flights fromOslo toGermany
Upcoming
Public Holidays
Upcoming
Public Holidays

6. Car Rentals in Europe Driving Towards Recovery
Recovery Possible in June as Intra-
Europe Travel opening up
Greece, Italy, Germany, Switzerland,
France bubble would be key to
recovery
Domestic Demand to be High due to
curtailed International Travel to push
prices in July

7. Poll Alert
Which category of tourism will recover firstin Europe?
Domestic Leisure Travel
Domestic Corporate Travel
International Leisure Travel
International Corporate Travel

8. 8
How Does The ShiftIn SegmentsAnd Source Markets ChangeThe
Approach For Tour Operators?02
CEO
GoldenGlobeTravel
Khaled Abou-Zeid

9. 9
Evolving Travel Booking Journey
ShiftIn Search & Booking Behavior03
CCO
TravelgateX
Jose Diaz
TravelgateX
buildsworld-class technologyfor the travelindustry
A single connectionprovidesthegatewayto thelargestnetworkofclients and
suppliers.
Trustedby industryleadersaroundthe world
20,000+
Bookings/day
3,000+ M
Searches/day
€3,2+ M
TTV/year
350+
Clients
450+
Suppliers

10. How we see the current picture:
• Searches Down
• Conversion Rates Up
• The industry is dormant, in a Zombie mode
• Many Suppliers are going bankrupt and many more will come once companies run out of fuel or governmental
companies run out of fuel or governmental financial support finishes
• Insurance companies are “Missing in Action”
• No more credit and many sellers will only work if payment is secured
• Final customers less willing to spend and very cautious B2B players
The New Normality

11. Monitoring the market
closely
• Covid-19 market
watch:
https://www.travelgatex.co
m/covid-19
• Identify
opportunities and
trends
What we are doing…
Boost Efficiency:
• Automate all
internal processes
• Automate whole
connection flow
• Automate ticket
solving
Boost Efficiency:
• Adapt to new
requirements
• TGX Direct:
• Contract-less
• OTA <-> hotel
• Upfront
payments
• Partnering with
other tech co
• eWallet:
centralised
prepayments

12. 12

13. How we see the current picture:
• Still far from normal but showing a progressive recovery
• (from 10% in the worst week to 19% this week vs LY)
• Cancellations from 7/1 to 1.2/1 and improving
• Recovery is different by source market (top 10 source markets since March 15th):
March 15th):
• 6 weeks improving: US, Portugal, China
• 4 weeks improving: Spain, Germany, Mexico
• 3 weeks improving: UK, France, Italy
• Still going down: Brazil
• Domestic as expected it behaving better and now represents 52% of the total (vs 24% LY) With the exception
total (vs 24% LY) With the exception of UK, all markets increasing their domestic business. US showing the
their domestic business. US showing the highest ratio (90% domestic)
TravelgateX figures at the moment

14. Starting To See The Light At The End Of The Tunnel
Growth WoW
Last 12 weeks
+30%
+27%
+13%+18%+2%

15. • Airlines will be the starting shot to reactivate the industry. In
the meantime, the domestic business will partially offset the lack
of visitor
• It’s a matter of time, make sure you have the necessary money to
survive
• Now it is a good time to join forces with complementary businesses
• Clients will still show us the path to follow, new needs, new
opportunities
• We could still see roller coaster behaviors until a coronavirus
vaccine is developed, and faith in travel is restored
• We’ve seen a renewed interest of B2B players on the vacation
rental product
How we see it from TravelgateX

16. • Players will have to take into account the local customer
• Only lean companies that adapt quickly will survive
• Cash will be more King than ever, alternatives flexible payment
methods will be a are to explore
• Good and cheap talent will now be available out there
• 2021 of steady progressive recovery and hopefully back to normal
by 2022
How we see it from TravelgateX

17. 17
How CanTechnology Help Hotels
Find The RightTour Operators
To Boost Demand?
04
SVPSalesEurope
RateGain
Mark Haywood

18. Poll Alert
Is offering discount deals on packages (priceand/or duration) the right approach toattract
demand?
Yes
Maybe
No

19. 19
ScalingBack Ancillary Offerings
How To Adapt A Short Term And Long Term Strategy05
SalesDirectorforEurope
Hotelbeds
Joaquin Garcia

20. We are all in this
together
We are coming out of this
together

21. Tour Operators
Will need to reshape
Will need to make difficult decisions

23. De-escalating the model
FOCUS ON THE CORE

24. HQ
AIRLINE
BRANDED HOTELS
CRUISES
IN DESTINATION
OFFICES & SERVICES
CONTRACTING
TEAMS
PRODUCT INVESTMENT
ANCILLIARIES
PLATFORMS
TODAY

25. AIRLINE???
BRANDED HOTELS
CRUISES
HQ
CONTRACTING
TEAMS
PRODUCT INVESTMENT
IN DESTINATION
OFFICES & SERVICES
ANCILLIARIES
PLATFORMS
TOMORROW

26. The Good News
An opportunity to be
+Efficient
+Profitable

27. Bed Only Offering ?
Or/And Hotel Only
Offering?

28. Pick up in domestic destinations in Continental EU

29. Self catering and bed & breakfast most demanded in Continental Europe

30. Room Only growing

31. All will depend
on the flight
capacity
Short to mid term:
1. If not enough routes, domestic and
surrounding countries
2. Alternative accommodations on demand
3. Sc, and bb boards most searched
4. Hotel Only distribution is key
Long Term:
1. Hotels will still be the
distribution kings

32. How Ancilliaries
Will Play In The
Future?

33. The connected trip idea consists
of a seamless travel experience
for travelers, whereby technology
allows for multiple touchpoints
throughout the customer journey
across several product
categories, centralized under a
unique booking platform and
customer service
“From the wishful thinking and
hype of years ago, the connected
trip is beginning to draw real
investment and become a thing.”
“Our long-term goal is to create the
connected trip. It is every single part
of travel: the flight, ground
transportation, hotel, attractions
under one single platform”
“The team has many plans to
build into the connected trip's
experience by being able to
bundle things together, have your
itinerary all in one place”

34. CULTURE TRIP 34
These two products make up the
core of the travel industry
with a market share of c. 73%
(40% hotels and 33% flights)1,
and are generally the starting
point of the booking journey
Products characterized by the
high supply side
concentrations. Their strong
demand and stand-alone sales
potential make them highly
profitable additions to any the
one-stop-shop
1) PhocusWright
Online distribution is limited
due to the offline and
fragmented nature of the supply,
it´s however the strongest value
add to the connected trip;
inter-connecting products and
inspiring the traveler
HOTELS
FLIGHTS
CRUISE
CAR RENTAL
EXPERIENCES
TRANSFERS
Key benefits for
travel
intermediaries
Increase the basket
value of the bookings
made
Improve customer
loyalty and lower churn
Capitalize on mobile
app opportunity by
being more relevant to
the customer more often
Lower cost of customer
acquisition (ad-spend)
6 PRODUCT VERTICALS GUIDE THE CONNECTED TRIP

35. THE CONNECTED TRIP
IS THE NEXT PHASE IN
TRAVEL DISTRIBUTION
Packaged
travel
The rise of
online
distribution
& FIT
Connected
trip
The connected trip marries the digitalization
process across all the segments in the travel
industry for travel agents and the final
customer. However, the industry is yet in an
early stage of maturity
Hotelbeds
wants to
lead the
digitalizati
on of the
industry

36. BEYOND THE BED’S ROLE IN THE MARKET
 Pure B2B, we do not
compete for the final
consumer
 We connect to >60k travel
intermediaries worldwide
 One-stop shop leveraging
a curated portfolio of
directly contracted
travel products
 Market leading API
connectivity and a
powerful agency website
 Strong capital partners
providing financial
strength & stability
SUPPLY INTERMEDIARIES
Experiences
Transfers
Car rental
Airlines
TO
TA
DMCs
OTAs
Other
END CUSTOMERB2B BRANDS
Cruises
18k activities
25k transfer routes
500 suppliers
3k cruise itineraries

37. 37
Aspirational Content
Importance In Boosting In
Domestic Leisure & Corporate
Travel
06
Director & CEO
España Fascinante
Ignacio Suárez-Zuloaga

38. Shift From Discovery And Practical
Focus
To Entertainment

39. SOURCE: McKinsey
Long Steady Recovery With Shifts In Consumer Trends

40. “Meanwhile, as travel restrictions keep many from getting on a plane or going to a
hotel, the desire to experience, explore, and find inspiration can start to feel more
like a necessity than a luxury. People looking to escape are turning to digital to
connect with the arts and nature”
SOURCE: Marie Gulin-Merle, Global Vice President, Ads Marketing at Google
Comparing The Trends Of Consumers During COVID-19

41. Users want to find places to go
or find information about their
destination
BOOKING
Broader audience, more people
appealed to the content
New
complementary
Revenue streams
Pre-Covid
Post-COVID
Discover +
Prescription
content
Discover +
Prescription
content
CTR Revenue
streams
Smaller
Revenue
from CTR
USERS
REVENUE
STREAM
Smaller audience, more
uncertainty and look for
security
Entertainment
DISCOVER EXPERIENCE
BOOKINGDISCOVER EXPERIENCEENJOY
Travel Content Funnel

42. 42
Evolving Relationship Between Tour
Operators – Hotels
In The Post COVID Era07
Carles Saniger
Global E-Commerce Deputy Director
Barcelo Hotels

43. 43
Go to www.menti.com and use the code 96 62 20

44. Questions
44

45. 45
Final Thoughts

46. 46
Upcoming Webinar Series
Unraveling The Future
of Hoteliers in the
post COVID Era
Decoding Future of
Corporate Travel in
the Post COVID
Write to us at amanda.smith@rategain.com to receive your
invite

47. Thank You
FOR ATTENDINGTHEWEBINAR
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