State of travel-sales & trends in Denmark BARD presentation 24JAN13

1. State of travel-sales & trends in Denmark BARD presentation 24JAN13

2. Agenda 24JAN13 • Incoming Denmark 2013 • Sales and trends • Outgoing Denmark • Sales 2012 – 2013 • Trends • IATAs NDC-project • Any other business?

3. Foreigner visitors To Denmark…: • Annual bednights: 44,7 mio.(2011) of which 21,9 million are foreign bednights. • Annual # of tourists: 53,2 mill. • Ånnual expenditure: 74,6 bill. DKK, of which 29,6 come from foreign visitors. • 5 largest markets: Germany, Norway, Sweden, Holland, UK.

4. Foreigner visitors TO Danmark: What can Denmark do to increase # of visitors? Co-operation between suppliers MUST improve Product development and marketing must improve!!!!!! Tourism to Denmark must become more of a political priority. More ressources to Visit Denmark (NTO) for marketing of Denmark aborad.

5. Foreigner visitors To Denmark: Marketing Denmark abroad. We need to change ”our old introvert image”. We’re a forward thinking, high-technology oriented nation with friendly people. We focus on providing tourism experiences of a lifetime.

6. Foreigner visitors To Denmark: The ”visa-to-Denmark discussion” – JAN12

7. Inbound trends Denmark 2013 • Scandinavia still an exotic, but expensive, destination!!!!! • Positive market development in: • Up market customers • Budget travellers, esp. Group travel. • MICE. • Losing out on the large mid-segment (e.g. Croatia is the same, but with a better climate)! • Product trends: • ”Slow Travel” • People to people • ”Behind the (Scandinavian) scenes

8. Danes travelling abroad: Annual sales of travel 2007-2011 – gross sales (travel agents and T/O’s).

9. Danes travelling abroad – where do we go? Top 5 overall: Germany (1,24 mio) Sweden (1,28 mio bednights) Spain (921.000) Norway (867.000 bednights) UK (614.000) France, Italy and Turkey are the next countries on the list. Top 5 intercont.: USA (274.000) Thailand (156.000) Egypt (93.000) China (50.000) Canada (38.000) Dubai is next on the list…

10. BSP sales DK 2006 - 2012

11. Oubound trends Denmark 2013 • Leisure: + 2-3% incl. Almost unchanged charter market. • VFR on the increase (+3-4%) • Group travel increases (+50 years) • Virtually unchanged destinations (!) • Business: +1-2% • MICE: +5%

12. IATA NDC – January 2013

13. Shopping for air travel today What does it look like? Search by city-pair and date Compare on price or time Limited product information

14. Shopping for hotel today What does it look like? Search by ratings and deals Compare on value to consumer Rich product information

15. Shopping for air travel tomorrow with NDC Is it possible? Yes. Airlines already offer today much richer content than what consumers can find on travel agent websites which use GDS data.

16. Shopping for air travel tomorrow with NDC What will it look like? (IATA mock-up) Search by affinity and value Compare on value to consumer Rich product information Transparency and choice

17. NDC value proposition Consumers Transparency (all-inclusive), choice (full-service & LCC), personalization Airlines Differentiation, innovation, customization, time to market Travel agents More content, better customer information, in one place Aggregators More content, incentive to innovate

18. Airline Distribution TodayPush content via 3rd parties to GDS GDS Availability Builds content Fare Filing Agent Customer 3rd Parties Schedule Airline

19. Aggregator Agent Customer Agent Airline Distribution TomorrowDynamic Airline Shopping Airline Product Price and Availability Engine Dynamic Airline Shopping Interface

20. Ref. Imp. v1.0 Ref. Imp. v2.0 XML Standards Reso787 Mock-up 1.0 Mock-up 2.0 The NDC Roadmap Learning Request for Pilot Participation Pilots Launch Pilots Review Pilots Review Business adoption Industry Pilots Risks 2012 2013 2014-2016

21. NDC collaborative approach Who are we reaching out to? Airlines (scope = 400+) Full service carriers, LCC Travel agents and meta-search (scope = 60,000+) Travel Management Companies: AmEx, CWT, HRG, BCD… Online Travel Agents: Expedia, Priceline… Meta-search: Kayak… IT companies (scope = 20+) Google, HP, Farelogix, Datalex, Concur, Travelsky… GDS (scope = 3) Sabre, Travelport, Amadeus Associations WTAAA, ASTA, ECTAA, ETTSA, GBTA, ACTE…

22. Prize: a joint WTAAA-IATA value proposition for NDC One-stop access to rich content, including ancillaries and low cost Personalized offers based on preferences Increased relevance of travel agent in comparing complex product offers Transparency on fees and charges What else?

23. What Forum to discuss Airlines & Travel agents concerns? What are the concerns raised by travel agents worldwide? Are the concerns related to NDC or to the business in general? Are the concerns legitimate or driven by lack of awareness or vested interests in status quo? Can the concerns be clarified now or only experience will tell?

24. Some concerns raised by Travel agents so far: Source: ECTAA, ASTA. Risk of bypassing the agent or the GDS? NDC is designed by airlines for airlines? Cost of implementation of NDC solution? Compatibility with back-office systems? Overall NDC cost to the industry and consumers? Ability to find a low fare or best value in NDC? Risk of customer or agent discrimination in NDC? Impact of NDC on the agent / GDS business model? Role of the aggregator in the selection of offers? Availability of NDC for self-booking tools? Access to PNR and data ownership in NDC? Risk of higher fares for en-route changes?

25. Areas of collaboration discussed by WTAAA and IATA 14JAN13. Development of a joint value proposition for NDC Engagement of travel trade partners in IATA activities (standard-setting and pilots) Forum / task force addressing concerns Mutual invitations to respective external events (e.g. WPS) Joint communication statements on the above topics

26. Any questions?