ITQ InterGlobe Technology Quotient

1. ITQ InterGlobe Technology Quotient

2. Agenda • Two day workshop 1000 – 1730 hrs • Day 1 • Why ITQ and why this change • My TQ • Understanding Technology • Day 2 • Basic Networking • Virtual Private Networks • Software Development Lifecycle • SRS • Evaluation

3. What are your expectations from this workshop?

4. Questions • Why ITQ? • What is in it for me? • Why do we need to change? • So what is actually going to change? • What if we do not change? • What happens to Galileo? • How do we want to be seen in the market? • Who is our competition? • Am I expected to sell Technology? • When will the TQ Audit be ready? • What is the difference between ITQ and IGT? • Ask participants if they have any more questions…

5. Global Travel Industry – some insights • Airlines/Suppliers starting to use alternate distribution system, other than the GDS including going directly to consumers (ref handout) • Low cost airlines gaining ground • GDSs are also moving toward vertical integration and a 'direct to corporate model' - effectively competing with the big Travel Management Companies • Agency commission cuts – Agents need to look for alternative revenue streams • GDS fees been reduced – Incentives from GDS to agents increasing

6. The Indian Context • Online booking, which is fast becoming a phenomenon globally, will catch up in India sooner than later as GenNext Indians are tech-savvy • After western countries where low cost carriers are becoming the order of the day, it is gradually gaining ground in India too. • The Indian hotel industry is expected to spend Rs 500 crore over the next five years to upgrade and buy new information technology products. • Corporate travel in India accounts for around $1.5 billion to $2 billion per year

7. Galileo India - Present Market Conditions Globally there are 5 major GDSs and 4 of them are already in India, with Galileo & Amadeus controlling 80% of the market share. But in recent times, Abacus is seen to be getting aggressive in market place Internet has transformed the business. Airlines, Hotels & Car rental companies are looking for cheaper options to distribute their inventory. And are reducing GDS fees back & forth Very stiff. Discounts and incentives constitute a major portion of the costs. Most travel agents generally have access to both Galileo & Amadeus, and the usage of each depends on monetary incentives and sales person’s relationship The competition between Amadeus & Galileo is stiff and virtually there is no product differentiation. The target market is limited and therefore the buyers(Travel Agents) have a lot of bargaining power This is a major area where Galileo is facing a lot of threat from. Internet is the biggest threat and globally it has given a dent to all GDSs. Soon the trend will be seen in India too with GDSs losing ground to Internet

8. Darwinian Theory Rejuvenation Maturity Development Growth Decline Start-up Time Baghai: The Alchemy of Growth (1999)

9. Changing Models and Players: A Case Study Agency

10. Changing Models and Players Internet, Low cost airlines Local vendor systems Corporate travel agency Corporate Customer Consolidator Agency Consolidator, Agent Online Customer

11. Dwindling Profit Model Where we should have been Domestic Segment fees down to USD 2.0 from USD 3.5, resulting shortfall in revenues Revenues C O S T Revenues1 Where we are Costs1 Costs Ever increasing FA’s & Incentives to the travel agent, resulting in higher than normal costs T I M E

12. Analysis • Costs • Remarkable reduction in communication costs due to VPN Connectivity • Establishment costs have gone up • FA’s & incentives have gone up • Dwindling market share - 37%

13. Why ITQ? • Increasing cost of FAs and diminishing GDS distribution fees • The need for the travel agent to change his business model in order to survive and look for new sources of revenue • Expand the pie • Handhold the agent as a consultant and implement IT solutions to improve their bottom-line • Threat to Galileo business by way of • Competition & Customers- Success dependent on unending pumping on segment based incentives • Substitutes - Internet and Direct Supplier connectivity

14. InterGlobe’s Response Take Advantage of the Market Conditions Fill in the gaps in the IT & ITES sector in India Take the first mover advantage and structure itself to creating a new revenue stream Focus - Travel Technology Supremacy in Airlines Distribution Systems Provide solution frameworks for consolidators and corporate houses Support Galileo Business Supporting Galileo life cycle and differentiation itself from competition Blocking competition’s entry in an agency Providing value adds to the agency Facelift to the image of Galileo From a GDS to a Tech Consultant Industry leader & benchmark

15. Gaps in adoption of Technology • Complex Industry structure with further complexity in nature of businesses of the industry components • Very few Travel Technology companies in India and none have India focus • Industry at a nascent stage of Technology adoption. They have a vague about their requirements and unclear about the results desired • Industry having a myopic view of Technology as business enhancer (booking engines) and lacks an insight on business efficiencies

16. Filling the Gaps Complex industry & business structure Lack of India focus Lack of Knowledge with the industry units Myopic view Domain expertise derived from decades of Travel industry experience spread across all companies within the InterGlobe group Concentration of efforts directed towards all sectors in the Indian Travel industry Taking a consultative approach and delivering solutions based on requirements. Moving beyond off-the-shelf products to custom build solutions Lead the change by educating the industry on the global perspective of technology in the travel industry

17. ITQ’s Value Proposition Superior Business Results for Clients = + + Focused Industryand technical expertise Scalability – localroots global assets Lower cost globaldelivery model Culture(Integrity, Dependability,Work Ethic, Commitment) + Proven QualityProcesses In summary, our focus is on delivering superior business results to our clients

18. Approach N O N M A N I P U L A T I V E Understanding or uncovering a client’s needs and objectives and securing agreement that they should be addressed S E L L I N G Converting Customers into Clients and ourselves Into trusted advisors Generating Profit Improvement Proposals Recommend solutions that produce business results, not just technical results

19. Leading the Change • Distribution Models • Airlines Distribution Systems • Online Booking Engines • Efficiency Enhancement • In house IT initiatives • Back office outsourcing • Revenue Enhancement • Business Process Improvement • TQ Audit • Value Addition • Beyond Travel Distribution Services • Delivery excellence

20. Does one size fit all?

21. “Difference ITQ” Solutions & Services tailor made to what fits the client best

22. ITQ – Service Offerings Consulting Solutions & Services Distribution • Customized IT programming • Airline distribution systems (B2B & B2C) • Internet-based B 2 B distribution systems • Unique aggregated content globally distributed • New business opportunities • Galileo GDS • Exclusive Content • World class features and functionalities • Cutting edge technologies • Certified TQ experts for specialized consulting • TQ Audit – defining current technological efficiency • Business Process Improvement Services Domain Expertise Global Delivery Experience Enablers Mature Processes Customer Focus

23. InterGlobe Technology Quotient (ITQ) ITQ is India’s exclusive Operational Consultant & Converged Solutions provider for the Travel Industry

24. InterGlobe Technology Quotient (ITQ) • InterGlobe’s “IT Consulting” SBU for airlines, cruises, hotels, tourism bureaus, car rental companies, portals, corporate and travel agents • ITQ aims to evaluate and enhance the technology quotient of its business partners with guaranteed results • ITQ offers following services • IT Consulting • Customised Software Development • Back office & voice processes • Travel distribution services • Headquartered in Gurgaon, ITQ has extended network across 119 cities with 18 dedicated offices

25. ITQ - what do we do ? • Consulting • Certified TQ experts for specialized consulting • TQ Audit – defining tech efficiency • Certified TQ training modules • Business Process Improvement • Services • Customized IT programming • Airline distribution systems • Internet based unique aggregated content globally distributed • New business opportunities • Travel distribution services

26. We guarantee*… • Higher profits • Better image • User friendly technology • Easy sourcing of staff • Global reach *subject to client following recommendations coming out of the BPI/Tech/BPO exercise

27. ITQ’s Consultative Approach • Business Process Audit • Assessment of current business processes. • Full documentation of these processes. • Comparative score against industry • benchmarks/ best practices for each process • Composite score across all processes, to denote • the relative status of the organization • Business Process Analysis • Detailed analysis of existing processes. • Opportunity assessment. • Cost-benefit analysis • Recommendations for improvement. Process Business Process Roadmap Identifying the gap areas and mapping them against the business plans and foreseen future market conditions to arrive at a business roadmap • Business Process Transformation • A full or partial redesigning of an organization's • business processes leveraging technology • and domain knowledge/ capabilities, based on • the identified areas of improvement Audit Business P r o c e s s P r o c e s s P r o c e s s P r o c e s s B u s i n e s s N e w D e v e l o p m e n t B u s i n e s s T r a n s f o r m a t i o n A n a i y s i s R o a d m a p B u s i n e s s • New Process Development • Developing IT solutions to implement the • changed processes efficiently • Monitoring the results to ensure that the set • objectives are met. • BPO/ BPI

28. The Outcome • Suggesting the client • Improvement in the existing process &/or • Entirely new process &/or • Outsourcing certain processes &/or • Technical solution

29. The three pronged approach • Cendant TDS ( 28 Billion dollars market cap and a clear strategy) • InterGlobe Enterprises (a complete travel enterprise) • InterGlobe Technology Quotient

30. InterGlobe Value Chain • InterGlobe Air Transport (14 international airlines including Virgin, Delta, SAA, United…) • InterGlobe Cruises • Hospitality InterGlobe • InterGlobe Technologies • Global Distribution system • InterGlobe Hotels

31. Cendant – Travel Profile • Direct access to over 30m consumers in US, EU, Asia and Australasia through travel related brands and membership/affiliation businesses • Major travel retailer, wholesaler and travel distribution group • Inventory and reservation systems management systems for United Airlines and several of the leading hotel chains • Largest timeshare exchange and development company • Largest general use rental car company • World’s largest hotel franchiser • Europe’s leading cottage and villa rental company • US’s third largest online travel retailer • Europe’s largest online travel retailer

32. Cendant Travel Value Circle

33. ITQ Advantage DomainExpertise QualityCommitment DemonstratedCapability CostAdvantage • International standard Quality Systems and Processes • Standardized Methodology and dynamic structure to incorporate learning's & best practices. • Organization-wide Quality focus driven by Top Management commitment • Ability to recruit and retain quality professionals across all levels. • Domain knowledge across travel industry segments - airlines, travel agencies & GDS’s • In-depth understanding of travel, voice & back office processes including Queues Management, Call center and Fares based processes etc. • Extensive experience & functional knowledge across various aspects of travel industry. Increased Profits & Better Image • Track record - over 4 decades of experience across travel domain. • Operational Scalability – ability to ramp up on People, processes, Space & Infrastructure • Demonstrated practices – effective Operations, employee management practices. • Proven Processes for smooth and successful migration offshore. • State of the art Technology and Infrastructure with theLow-Cost Advantage • Cost-effective skilled resources • Economies of scale/ scope & Specialization.

34. Delivery Model - Development QUALITY ASS URANCE Requirement Analysis Client ITQ Design Business Needs Identification Build Testing Requirement Gathering Package & Release Deploy

35. Solution Frameworks • ConneXion • Customizable internet booking engine • Built on open framework architecture • Airline Distribution System - ADS • Web based computerized reservation system • Online inventory management and distribution • Ebusiness Enterprise Solution • ERP solution framework • Integrating Front, Mid & Back office

36. Case Study - Leading Online Travel Company Latent Business Need Fares Engine with offline booking request system • Business Need - IBE • Approach • ITQ sales staff explored client’s requirements and concluded that he is interested in expanding his reach through online offering • At the same time he agrees that consumer behavior in India is not conducive to eCommerce as internet penetration is less and people are averse to online payment • The results of the need analysis were delved upon to further suggest him that he does not need an IBE but a Fares engine • Solution • ITQ is developing robust fares system having capability to retrieve fares from Local Private Fares System (a sub system designed by ITQ) and Galileo in single command

37. Case Study - Leading Online Travel Company Web front End Query of Destination and fares Customer Detail Form Options for Arrival, Departure, payment modes & fulfillment centers Customer submits the request Customer pays & collects the Ticket from the fulfillment center Ticket gets Queued to the Ticketing center Calls the Customer to action the request Back office Executive receives the request Back Office/Offline fulfillment

38. Case Study - Delhi Based Tour Operator • Perceived Business Need - Internet Booking Engine • This was based on the premise that the Tour operator had earlier opted for TravelGalileo • Approach - Ask right questions to uncover the need • Result • Wanted to sell Tour packages but did not have the hotel inventory with himself • There was no scope for online transactions • Had discontinued using TravelGalileo because did not make any booking on it • Lesson learnt - Are we asking the “RIGHT QUESTIONS”

39. ITQ - Roadmap & WIP • 10 travel companies shortlisted in North, West, East & South (3 in each region and 1 in East) • High level TQ audit completed for 2-3 agencies • Analysis of the audit and business inefficiencies highlighted (ref case studies) – both agents 1 non Galileo, 1 multi CRS user are now converting to sole Gal -14K segs/pm • Recommendations made on the following: • Business Process Integration • Technology Solutions • BPO

40. ITQ Strengths • Only travel technology company in India offering distribution and technology solutions • We have a dedicated technology unit comprising of over 50 software developers • Proven track record – Air Deccan, Air India Express • Can leverage the technology strength of IGT • Offer Operational consulting and Guarantee results Our offering is unique and we have no competition Create your own future

41. What is going to change? • Our offering to the customer is beyond distribution • Our customer segment is much bigger than travel agents – includes airlines, tourism boards, hotels • From GDS to travel technology consulting

42. How am I expected to change? • Move away from product selling to consultative selling • Uncover the latent need of the customer • Nothing comes free - All services that we offer need to have a perceived value that is offset by either the customer paying or adjusted against FAs once increase profits are demonstrated • Because I am now coming from a different company I need to ensure I am not compared to other GDS companies

43. ITQ & IGT • Focus - ITQ is set up to revolutionize the Indian Travel Industry, while IGT will remain focused to become a leading travel technology player in the international market place • Expertise - Both the companies will continue to operate as a common pool for expertise & experience • Resources - Both companies will have dedicated resources deployed on individual company’s project but will have the door open for cross utilization of domain & technology expertise • ITQ is a complete converged solution provider

44. Vision To be India’s # 1 Travel Technology Company

45. Do u ?