The travel industry is facing major challenges which threaten growth, such as Britain's likely withdrawal from the European Union. The pound's value is at a 168-year low overall, and is at a 31-year low against the US dollar. With talk of Brexit, how can you successfully abate consumer concerns? In this webinar, Tnooz, WEX Travel and The Travel Trade Consultancy, present the results of exclusive research into the travel plans of consumers — conducted both before and after the Brexit vote. A must for anyone in the leisure travel industry, the webinar answers the following questions: What impact is Brexit having on the travel industry? Are other factors more pertinent? Why is building customer confidence central to success in the travel industry? How you choose the right supplier payment strategy? Panelists for the webinar are: Martin Alcock, Director, The Travel Trade Consultancy Lee Jackson, Head of European New Business, WEX Travel Sean O'Neill, Editor in Chief & Moderator, Tnooz Gene Quinn, CEO & Producer, Tnooz This webinar took place on 3 November 2016.

1. Win customers post-Brexit with the right
payment strategy
Webinar
November 3, 2016

2. Your hosts
Sean O’Neill
Editor in Chief & Moderator
Tnooz
Gene Quinn
CEO & Producer
Tnooz

3. Your presenters
Lee Jackson
Head of European New Business
WEX Europe
Martin Alcock
Director
The Travel Trade Consultancy

4. Poll no. 1
Where are you located?

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

6. CONFIDENTIAL AND PROPRIETARY 6
Overview of what we’re covering today
Brexit areas of impact
WEX Whitepaper objectives and findings
Are consumers still looking, booking and travelling?
What does this mean for payments

7. CONFIDENTIAL AND PROPRIETARY 7
Background 2015
The UK travel industry has been
projected to grow by around 4% a year
through to 2017, however, the industry
is facing some major challenges which
threaten growth, including terrorist
attacks in popular tourist destinations,
the ongoing refugee crisis that is
creating tension within Europe, and the
UK referendum vote to leave the EU.
WEX Europe Whitepaper May 2016

8. CONFIDENTIAL AND PROPRIETARY 8
Background 2015
The U.K. is now Europe's largest travel
market with €59 billion in gross
bookings in 2015, of which €33 billion
was booked online.
Its high online adoption rate of nearly
57% is second only to Scandinavia's 63%.
As these two markets reach saturation,
Germany, Italy, and Spain will become the
new growth leaders in online adoption.
Phocuswright

9. CONFIDENTIAL AND PROPRIETARY 9
WEX Whitepaper
Post-Brexit: Confidence
Remains The Key To
Success In The Travel
Industry, how has
Brexit impacted:
The frequency of travel abroad
Spending on travel
Long-haul travel
Popularity of destinations
Factors impacting plans

10. CONFIDENTIAL AND PROPRIETARY 10
WEX Whitepaper
Small decrease in the number of
consumers planning to travel abroad 2
or more times in the next 12 months.
25% are now planning to travel 3 or
more times, compared to 35%
previously.
Average amount per person has
dropped by 11% .

11. CONFIDENTIAL AND PROPRIETARY 11
WEX Whitepaper
Pre-Brexit May survey, 46% of
consumers were planning at least 1
long-haul trip in the next 12 months.
Following Brexit this has increased
to 51%.
Slight decrease in the number of
trips planned by those travelling
long-haul – 1.9 trips compared to
2.1 per person previously.

12. CONFIDENTIAL AND PROPRIETARY 12
WEX Whitepaper
Capacity - Spain is the destination that
most consumers plan to visit with 47%.
25% concerned with it being busy and
overcrowded.
Western Med hotspots, Portugal and
Italy, also feature in the top 10 in both
our pre- and post-Brexit surveys
Consumers intending to visit Greece
and the Greek islands has increased to
40% (from 17% previously).
Croatia is a destination to watch.

13. CONFIDENTIAL AND PROPRIETARY 13
WEX Whitepaper
Egypt, Tunisia and Turkey the top 3
destinations that consumers do not to
intend to visit.
Middle Eastern and North African
countries dominate the list of
destinations to avoid.
Along with countries where crimes
against tourists have been widely
publicised in the UK press.
Brexit is not keeping consumers away
from European destinations.

14. CONFIDENTIAL AND PROPRIETARY 14
WEX Whitepaper

15. CONFIDENTIAL AND PROPRIETARY 15
Brexit Impact: Confidence

16. CONFIDENTIAL AND PROPRIETARY 16
Brexit Impact: Confidence

17. CONFIDENTIAL AND PROPRIETARY 17
Brexit Impact: Currency
1.5
1.4
1.3
1.2
1.1
Oct Dec Feb 16 Apr Jun Aug
EUR per 1 GBP
24 Sep 2015 00:00 UTC – 23 Sep 2016 13:47 UTC
GBP/EUR close: 1.15495 low: 1.15236 high: 1.42962
1Y

18. CONFIDENTIAL AND PROPRIETARY 18
Brexit Impact: Currency
1.5
1.4
1.3
1.2
1.1
2012 2013 2014 2015 2016
EUR per 1 GBP
24 Sep 2015 00:00 UTC – 23 Sep 2016 13:47 UTC
GBP/EUR close: 1.15495 low: 1.15236 high: 1.42962
EUR to GBP is not new territory
5Y

19. CONFIDENTIAL AND PROPRIETARY 19
US$ to GBP is unprecedented in the past 5 years USD per 1 GBP
25 Sep 2011 00:00 UTC – 23 Sep 2016 13:56 UTC
GBP/EUR close: 1.29470 low: 1.28897 high: 1.71607
Brexit Impact: Currency
1.65
1.55
1.45
1.35
1.25
2012 2013 2014 2015 2016
1Y

20. Poll no. 3
What is your current booking volume
looking like? (travel sellers only, please)

21. CONFIDENTIAL AND PROPRIETARY 21
BASED ON A SAMPLE OF 70 TTC CLIENTS
Tour operators
Source: TTC analysis
22%
Average projected revenue
increase for 2016/17

22. CONFIDENTIAL AND PROPRIETARY 22
Consumers
Are they looking?
Are they booking?
Are they travelling?

23. CONFIDENTIAL AND PROPRIETARY 23
Consumers: Are they looking?
Source: Google Analytics keyword search
Holiday Searches
100
1.55
1.45
1.35
1.25
Apr ’14
120
100
Jan ‘14 Oct ’14Jul ‘14 Apr ’15Jan ‘15 Oct ’16Jul ‘15 Apr ’15Jan ‘15 Oct ’16Jul ‘15
• Very similar holiday
search profile
• There was a noticeable
dip in June 2016
• By mid September 2016,
search volumes had
recovered

24. CONFIDENTIAL AND PROPRIETARY 24
Consumers: Are they booking?
Booked Not booked
Summer 2016 Season
Season almost fully sold by the end of September
• Bookings are UP 4%
• Revenue is UP 1%
Key Trends:
• Family holidays UP
• Short breaks (6 nights or less) UP – Consumers trading down?
• Spain Balearics and Greece all showing DOUBLE DIGIT PERCENTAGE
GROWTH
• Long haul also positive, UP 7%
• Turkey DOWN 22%
• Egypt DOWN 70%

25. CONFIDENTIAL AND PROPRIETARY 25
Consumers: Are they booking?
Winter 2016/17 Season
Booked
Not booked
Winter holiday season is usually 40% sold by the end of September.
• Bookings are UP 17%
Key Trends:
• Shorter duration 6 nights or less UP 30%
• Big increase in Self Catering UP 30%
Booked
Not booked
SUMMER 2017 SEASON
Next summer is normally around 15% sold by the end of September.
• Bookings are UP 5%
Key Trends:
• Family bookings UP 12%
• Short breaks of 6 nights and under UP 58%

26. CONFIDENTIAL AND PROPRIETARY 26
• In August 2016, UK residents made 9.1 million visits abroad, an increase of 6% compared with August 2015.
• In the last 12 months, UK residents made 68.4 million visits abroad, an increase of 7% compared with the previous year.
Consumers: Are they traveling?
Source: Office of National Statistics
UK residents’ visit abroad
UK residents’ visits abroad % change from year earlier Expenditure (£ million) % change from year earlier
Non-seasonally adjusted
Aug 2016 9,120 +6 6,070 +10
June to Aug 2016 23,010 +5 14,590 +7
Year to date 2016 47,940 +6 29,180 +9
Latest 12 months 68,440 +7 41,430 +9

27. CONFIDENTIAL AND PROPRIETARY 27
Reasons To Be Cheerful Reasons To Be Fearful
Enquiries and bookings seem to be holding
up so far. Winter 16/17 and Summer 17
both made strong starts.
Consumer confidence has dropped
but not too much.
Oil prices should stay low for
the foreseeable future.
Airline capacity cuts could drive price
increases in 2017.
Currency has weakened again in
October. GBP:EURO around 1.11 and GBP:USD
below 1.30. This will make
pricing for 2017 a challenge.
We still don't know what Brexit will look like.
Pros and cons

28. Poll no. 4
As a result of Brexit, what changes have you
made to spending for marketing and staff
costs? (travel sellers only, please)

29. CONFIDENTIAL AND PROPRIETARY 29
Impact for Payments
Support easier contracting to
extend supplier base and
access new destinations
Extend supplier take up
through extended options for
accepting payments
Rapid response to changes in resort demand

30. CONFIDENTIAL AND PROPRIETARY 30
Impact for Payments
More demand for cash flow
assistance to support
booking campaigns
More focus on supplier credit
lines and credit control
Supporting the cash flow challenge

31. CONFIDENTIAL AND PROPRIETARY 31
Impact for Payments
Payment solutions need to
allow full treasury control
Suppliers welcome easy
payments when accepting
new partners for distribution
Managing currency fluctuation

32. Poll no. 5
Are you adjusting your payment strategy in the
next 12 months? (travel sellers only, please)

33. Q & A

34. Thank you!
WEX Travel whitepaper:
http://bit.ly/2fiphmz
Send your questions and comments to gene@tnooz.com
Replay and presentation will be available on www.tnooz.com

35. Win customers post-Brexit with the right
payment strategy
Webinar
November 3, 2016