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Cendant TDS Day

Cendant TDS Day. Understanding Cendant Travel Distribution Services & How GTA Fits Into The Bigger Picture – Sales Focus. Joanna Catalano : Senior Director Sales Planning and Development Werner Tschiesche : Sales Operations Manager. 23 rd September 2005. Objectives.

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Cendant TDS Day

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  1. Cendant TDS Day Understanding Cendant Travel Distribution Services & How GTA Fits Into The Bigger Picture – Sales Focus Joanna Catalano : Senior Director Sales Planning and Development Werner Tschiesche : Sales Operations Manager 23rd September 2005

  2. Objectives • To give you an overview of Cendant and the TDS businesses • To give you an overview of the Galileo business • To explain how we can work together on joint customer propositions +

  3. Cendant Travel Distribution Services (TDS) • Established in 2001 – employs nearly 8,950 people • Over 30 business languages in 100+ countries • Operates across two global regions • Americas (HQ in Parsippany, USA) • International Markets • Europe, Middle East & Africa (HQ in Langley, GB) - EMEA • Asia, (HQ in Hong Kong, SAR China) • South Pacific (HQ in Sydney, AUS) - APAC • Occupies a top10 position in the Travel Weekly Power List

  4. Cendant Corporate - Key Figures • New York Stock exchange listed: ‘CD’ • Net Revenue = $19.8 bn • Free Cash Flow = $2.2 bn • Market Capitalisation = $23.5 bn • Employees = 80,000 • Represented in 100+ countries • How much we made in 2004 = $19.8 bn • How much we have in the bank = $2.2 bn • How much we are worth = $23.5 bn

  5. Travel distribution industry model $873 Billion1 Suppliers Travelers • Airlines • Hotels • Car Rental • Vacation Rental • Tours • Rail • Cruises Leisure Connectivity Systems Travel Agencies Offline Tour Wholesaler Online Global Distribution Systems Business Direct Connect 1 Based on research from PhoCusWright, Thomas Weisel and Cendant Estimates

  6. 2001 2002 - 2003 2004 - 2005 2006 onward PHASE 1 PHASE 2 PHASE 3 PHASE 4 Construction Alignment Delivery Innovation INTEGRATION OF THE BUSINESSES PROVING CUSTOMER VALUE PROVING CUSTOMER VALUE PROVIDING A COMPETITIVE ADVANTAGE TDS: A brief history

  7. Global Distribution Systems Connectivity Systems Travel Agencies Offline Tour Wholesaler Online TDS Provides All Pieces of the Jigsaw $873 Billion1 Suppliers Travelers • Airlines • Hotels • Car Rental • Vacation Rental • Tours • Rail • Cruises Leisure  Connectivity Systems Travel Agencies Offline Tour Wholesaler Online Global Distribution Systems    Business  Direct Connect   1 Based on research from PhoCusWright, Thomas Weisel and Cendant Estimates

  8. Deep Dive into the B2B Business

  9. Client Segmentation – Who We Sell To Travel Agents (Leisure & Corporate) Government & Industry Travel Suppliers Online Travel Agencies

  10. Key EMEA Markets – Where We Do Business Central Europe: Switzerland Germany Slovakia Czech Republic Hungary Austria Middle East: Saudi Arabia UAE Oman Qatar Bahrain Kuwait Iraq Egypt Jordan Lebanon Syria Yemen Pakistan Sri Lanka Emerging Markets: Greece Cyprus Latvia Lithuania Estonia Russia Georgia Azerbaijan Ukraine Moldova Belarus Kazakhstan Balkans Cameroon Senegal Ivory Coast North West Europe: UK Ireland Southern Europe: Italy SE Sub markets Western Cont'l Europe: Portugal France Netherlands Belux Spain Turkey Scandinavia: Sweden Finland Denmark Norway Poland Africa: South Africa Botswana Namibia Kenya Tanzania Ethiopia Zimbabwe Zambia Nigeria Ghana Rwanda Cape Verde Malawi Angola Mauritania Mozambique Eritrea Uganda Burundi Key markets shown in red

  11. NDC (Distributor Operation) No Current Operations SMO (Owned Operation) Galileo – European Market Structure Galileo International, our International & EMEA operations, our UK & Ireland Regional Office, and UK operations are based in Langley in the UK, close to London Heathrow Airport. In addition to local helpdesks in each SMO / NDC London also houses the EMEA Regional Service Desk. There are a further four regional offices in Europe providing additional support to local market based offices.

  12. SMO (Owned Operation) NDC (Distributor Operation) No Current Operations Galileo – MEA Market Structure In the Middle East Galileo is distributed by the ARABI group of carriers. Regional Office for Middle East and Africa based in Dubai. Our extensive NDC structure in the Middle East and Africa offers an unparalleled understanding of these markets. Galileo holds a 68% market share in Africa and 61% market share in the Middle East* *Source: YTD Jun 04 MIDT.

  13. NDC (Distributor Operation) No Current Operations SMO (Owned Operation) Galileo – Asia Pacific Market Structure Our AP operations, & our Asia Regional Office, are based in Hong Kong A further Regional office in Sydney, oversees our operations in the Pacific region.

  14. Major Leisure Customers: Europe (Galileo) (Travelwire)

  15. Major Leisure Customers: Rest of World Seekers Travel

  16. Global Distribution Service GALILEO Wholesale/Tour Operator gta, WBS, RBS Merchant Content / Consolidator / Retail TRAVEL 2 / TRAVEL 4 Hotel Inventory Mgmt, Res & Sales TRUST INTERNATIONAL Hotel CRS connectivity & switching WIZCOM B2B Services – What We Sell Service Brand Product Name

  17. Service Brand Product Name Orbitz Airline Supplier Link ORBITZ SUPPLIER LINK Airline/Agency Marketing Intelligence AGENT FLASH Offers marketing, distribution and 24 hr emergency services THOR FIT and Group travel to Travel Agencies TRAVEL BOUND B2B Services

  18. Focus on Galileo GDS How The Global Distribution System Works

  19. Who is Galileo • Part of Cendant Corporation since 2001 • UK’s leading GDS with 42% market share • Represented in 107 countries • Operates one of the world’s largest commercial data centres • 21 servers in Denver - USA • Handles 175 million requests a day

  20. Why Galileo Is Important Galileo is the TDS “cash cow” It contributes 90% of overall EMEA profits or $214m in 2004

  21. EMEA Business Performance % Contribution

  22. What Does Galileo Do? • Global Distribution System (GDS) providing: • Computerised reservation systems • Internet-based solutions • We connect: • 43,000 travel agency locations • 480 airlines • 26 rental car companies • 60,000 hotel properties • 430 tour operators

  23. Who Do We Sell To? Travel Agents Government & Industry Travel Suppliers Online Travel Agencies

  24. Galileo Content – What Do We Sell? • Agencies book products in the GDS from the content listed on behalf of vendors Cruises Car Rental Hotels Flights Car Parking Package Holidays Car Ferry Crossings Rail Tickets

  25. Process – How We Sell To Leisure Agencies Galileo Account Manager Financial Assistance Contract Travel agency revenue Financial Assistance Contract Agents Mark Up Brochure GDS Content Travel Agent Travel Agent Consumers Brochure

  26. How Do We Make Money? Yield $5 (approx, varies) FA / Market Support (varies) • Galileo • GDS Agents Vendors INFO / DATA INFO / DATA NDC • Each time a product e.g. a flight from LHR to LAX is sold: • The vendor e.g. British Airways pays Galileo a fee • Galileo pays the agency e.g. Thomas Cook market support • If we do not own our local distributor (SMO) the NDC (distributor) • receives a % of our booking fee revenue as commission

  27. GDS: Key Customers By Type End Consumer (Passenger) Business Travel Management Companies Wholesaler (Tour Operator) Leisure Retailer (Travel Agency)

  28. Galileo Key Competitors GDS CRS Global New Entrants

  29. TDS – Who You Need To Know

  30. Regional Managing Directors - Contacts Julio Bruno Western Europe Tel: +34 91 7430 678 Mob: +34 609 684436 Julio.Bruno@TDS.Cendant.com Jason Clarke UK & Ireland Tel: +44 (0) 1753 288776 Mob: +44 (0) 7793 696664 Jason.Clarke@Cendant.com Marco Benincasa Southern Europe Tel: +39 065 105 5601 Mob: +39 335 579 2157 Marco.Benincasa@Cendant.com Niklas Andreen Nordic Region Tel: +46 8555 23899 Mob: +46 709 520475 Niklas.Andreen@TDS.Cendant.com Rabih Saab Middle East & Africa Tel: +97 1430 40380 Mob: +97 1506 455329 Rabih.Saab@TDS.Cendant.com Gunther Holzschuh Central & Alpine Region Tel: +49 69 22 736711 Mob: +49 17 04 3009 Gunther.Holzschuh@Cendant.com

  31. GTA & Galileo – Selling a Future Joint Proposition What TDS Means For You

  32. Consider What We Had Until Recently Supply-Driven Distribution Inventory Supply Tour Operator/ Wholesaler Distribution Retailer Traveller

  33. Consider What We Have Today – Galileo & GTA Demand-Driven Distribution Supplier/ Retailer/ Packager Travel Club/ Credit Card/ Timeshare, etc Tour Operator/ Wholesaler Retailer/ Packager Singles Couples Families Business Travellers Adventure Travellers Older Travellers Traveller

  34. GTA & Galileo – Selling a Future Joint Proposition Over 20,000 directly contracted hotel and self-catering properties in more than 3,000 destinations • 43,000 travel agency locations • 480 airlines • 26 rental car companies • 60,000 hotel properties • 430 tour operators The complete package Over 1,000,000 land services including, car transfers and regular sightseeing

  35. A Preview Of The Future

  36. How do we work together moving forward? • Take 45 minutes discussing the following 4 categories in your groupRecord your thoughts on the handout givenPresent back to the larger group 1. Customer Approach: How should a GTA salesperson bring Galileo into customer discussion? 2. Value Proposition: How does an integrated Galileo/GTA purchase benefit the customer? 4. Product Opportunities: What quick-win opportunities exist to integrate GTA/Galileo products? 3. Lead Passing: At which point and in what way do I involve a Galileo salesperson?

  37. What next? Sales Planning and Development (SPD) will support the GTA integration and field adoption in the following ways: • Development of the Galileo/GTA commercial offering • Implementation of Siebel at GTA • Consolidation of reports and design of an integrated business metrics strategy • Development and communication of value proposition • Development of a sales toolkit to support integrated sales (from pre-sale through close) • Release revised • toolkit • Release final report • pack and metrics • Release revised • commercial offering • (as needed) • Complete Siebel • implementation OPERATE and SELL! • Conduct internal • needs analysis; • interview key • stakeholders • Conduct market • analysis (integrate • customer data) to • understand where • opportunities lie • Begin Siebel • implementation • Deliver commercial • offering (end Sept) • Release value • propositions paired • to customer types/ • tiers (November) • Release initial • version of toolkit • (end Dec) • Release draft of • metrics strategy • and sample reports Q3 05 Q4 05 Q1 06 Q2 06

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