Joint marketing activity opportunities Consumer opportunities

1. Joint marketing activity opportunitiesConsumer opportunities July 2009

2. The Monarch Travel Group is made up of several different companies, all of which are established and successful players in the UK travel industry. The Monarch Travel Group Monarch Airlines Cosmos Holidays(also trading as Monarch Holidays) Cosmos Tourama / Archers Direct Somewhere2stay(also trading as Monarch Hotels) Avro Sell capacity on Monarch’s flights, directly to the travel trade. Holiday accommodation only I.e apartments, villas, hotels. 33 aircraft - offering scheduled and charter flights Escorted coach tours, river cruises and rail journeys Pre-packaged and dynamically packaged holidays

3. Monarch Airlines - with over 40 years experience, award-winning airline Monarch provides scheduled and charter flights to nearly 100 destinations worldwide, flying a total of around 7 million passengers every year. With a fleet of 33 aircraft, roughly 50% of Monarch’s flying is scheduled, sold directly to consumers via the monarch.co.uk website, and 50% is charter, sold through tour operators and other ad hoc charter agreements. • Cosmos Holidays (also trading as Monarch Holidays) - provides pre-packaged and dynamically packaged holidays both via the travel trade (sold as Cosmos) and directly to consumers (sold as Monarch Holidays via the monarch.co.uk website). Around 85% of all Cosmos holidays travel on a Monarch flight. • Somewhere2stay.com (also trading as Monarch Hotels) - provides holiday accommodation options i.e villas, hotels, apartments via the travel trade (as somewhere2stay) and directly to consumers (as Monarch Hotels). • Cosmos Tourama (also trading as Archers Direct) - provides an exciting selection of pre-packaged escorted tours, river and ocean cruises, rail journeys, resort stays, short breaks and multio-centre holidays to destinations worldwide. • Avro - the UK's award-winning leading flight-only broker. With 25 years’ experience, Avro is the number one provider of charter flight seats to the travel trade, the vast majority of which are on Monarch Airlines flights.

4. Marketing proposalMonarch customer demographic • AB demographic 45%, C1C2D demographic 55% • Aged on average between 35 and 64 , 31% of whom fit within the 45-54 age bracket • Slightly higher proportion of female customers (around 58%) • Healthy household income, with just over 28% in the £40K +income bracket • The majority own their own home, with a third owning a detached family home • High representation of people working in office / clerical roles at management or supervisory level, only 14% are retired • The majority are married • Interests include gardening, theatre and book reading • Geographically the customers are from the Granada, Anglia, Meridian and London TV regions

5. Marketing opportunities Our media plans have been produced considering a number of factors: • Historical response of channel • Speed to market / availability • Media cost • Production cost and time • Reach and impact - around our core catchment areas of London, Birmingham and Manchester

6. Media Channel selection rationale • Press • Positive historical results • High coverage • Relevant environments – travel sections • Regional targeting possible • Visualisation of proposition • Environment consumers who expect to see offer to Costa Blanca and actively seek them • Outdoor • Excellent stand out across targetted regions • High reach and OTS • Historically effective • Minimal wastage due to regional targeting • Good upweight to other activity • Online display/SEO • Highly targeted through destination specific activity – in market site • Low cost • Provides direct sales – accountable • Good harvester of awareness driven by other mediao • Core research tool so is present at the optimal time Email activity • Highly relevant audience – previous bookers • Low cost/high coverage • Regional targetting possible • Provides direct sales - accountable

7. Press advertising • Targeting: • Broad selection of titles as the Canaries has such a wide appeal • National press provides the highest coverage and most cost effective way of delivering volume, potentially supported by the core regional paper in each airport catchment area. • We would run a campaign to cover both holidays to the destination and Flights to the destination • Format: • We propose at least 20x3 advert size in Travel Sections for Holiday advertising and 25x4 in Main News for Flights advertising to achieve relevant impact to the target audience. All advertising will be in full colour. • Title selection selection: • Qualities and Mid markets are core to this campaign with Qualities being more suited to flights target audience.

8. Press advertising • The campaign would focus on our core national press titles, such as The Daily Express, Daily Telegraph, Sunday Telegraph, The Times, Dail Mail, The Independent and The Guardian. We always advertise in colour to maximise the attractiveness of our advertising and reinforce our brand and the destination. • Monarch will plan to use a solus advertising to promote the destination in Travel sections • This involves promoting a single destination with a variety of lead in holiday or hotel offers Cost per advert would be £2,000 to £5,000 depending on the newspaper This could feature your hotel or resort Examples of previous solus press advertising

9. Outdoor • Targeting: • Regionally within airport catchment areas • Format: • A networked outdoor poster campaign to promote monarch and the featured hotel or destination Cost of campaign depending on media format – range from £20,000 to £60,000

10. Email campaign The Monarch database contains nearly 500,000 customer email addresses. This is an extremely well targeted database, containing only addresses of people who have previously booked with Monarch, have requested a brochure from us or registered to receive our newsletters. A weekly email is sent out to this whole database promoting flight, holiday and hotel offers. The email contains offers for a variety of destinations, but also usually includesone folder where we highlight a specific destination. See below for the examples of previous destination features. E.g Kenya focus e.g Sri Lanka focus

11. Potential customers can click through from the email to your hotel where they can then book Email cost £5000 per destination feature, £1000 for hotel only

12. Website opportunities The holidays.monarch.co.uk website home page receives an average of 400,000 visits each month. We would run a banner promoting the destination for one month on the home page, which would feature in rotation with other destinations. The banner would also feature on the destination specific page, which is visited by anyone coming to our website from a destination search term or those customers looking for more information on the destination. Total cost range £1,500 to £5000 depending on length of campaign E.g Destination listing in home page banner: E.g Destination specific home page banner:

13. Website campaign The flights.monarch.co.uk website home page receives an average of 900,000 visits each month. We would place a promotion on our special offers page which is linked to directly from the home page. This is one of the most highly visited areas of our site. The promotion could remain on the site for up to one month at a cost of £5000 per week.

14. Digital opportunities PPC and SEO £5 to 40k • campaign activated on core ‘destination’ search terms e.g holidays to Fuerteventura, Canaries villas, Gran Canaria holidays etc. • SEO activity, building links into monarch.co.uk for core destination search terms.

15. Summary of potentialopportunities • National or regional press advertising - £2,000 to £5,000 • Outdoor - £20,000 to £60,000 • Email features - £1,000 to £5,000 • Online activity on Monarch website £1,500 to £5,000 • SEO activity - £5,000 to £40,000