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Case Charts. High Speed Track Growth. High Speed Rail is transforming the travel landscape. In 10 years, European air travel on routes <600km will be virtually eliminated . 3,700 mi of HS track at end of 2009, 9K mi by 2020 ($250B investment). Today. + 15 Yrs. Source: UIC. 2.
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High Speed Track Growth High Speed Rail is transforming the travel landscape. In 10 years, European air travel on routes <600km will be virtually eliminated. 3,700 mi of HS track at end of 2009, 9K mi by 2020 ($250B investment) Today + 15 Yrs Source: UIC 2 Proprietary and Confidential
High Speed Rail Supplanting Air = Existing route = Planned route (X) = # daily flights Most new HSR track will be on routes where travel times will be <2.5 hours and HSR has 75%+ share. Without rail, OTA’s will lose their two key value propositions: convenience of booking air + hotel together, and net rate packaging. Rail Share vs Travel Time Paris-Brussels (15) Paris-Nantes (8) Paris-Lyon (13) Madrid-Seville (6) Brussels-Amsterdam Paris-Leeds (5) Warsaw--Krakow London-Plymouth (4) Munich-Frankfurt Stockholm-Gotteburg Istanbul-Ankara New York-Washington(117) Stockholm-Gothenburg (29) London-Paris (48) Moscow-St. Petersburg Paris-Bordeaux (24) London-Newcastle (14) London--Manchester (33) New York-Boston (85) London-Edinburg Rome-Milan London--Brussels (42) Paris-Milan Rail creates +15% induced travel Share of Travelers on Rail vs. Air Lisbon-Madrid Paris-Marseille (43) Stockholm-Malmo (25) London-Edinbugh (45) London-Glasgow (37) 2 hrs: 90% share 3 hrs: 70% share 4 hrs: 60% share Travel Time (hours) Sources: Thalys NBTA (5/09), Travel Weekly, (12/4/09), CNBC (11/07)
The “Perfect Storm” Consumer Trends Market Deregulation • Rising gas prices • Environmental concern/policy • Air travel/security inconvenience • EU deregulation Jan 2010 • Rail carriers can now compete cross border with air internationally Global Shift to Rail Travel Gov’t Investment Supplier Innovation • New 380km/h trains • 4x increase in high speed track globally next 15 yrs • Travel times compete w/ air • $200B annual investment in high speed rail globally • $500B in Europe rail infrastructure in next 15 yrs
Passenger Rail Sales by Country • $300B global market • $80B in Europe • $48B addressable (long distance leisure + bus. 40% of bkgs, 60% of sales) in Europe • 10yr CAGR of 8% Sources: UIC "International Railway Statistics” (2007), ATOC “Ten Year Growth Report” (6/07) 5 Proprietary and Confidential
European Online Rail Opportunity $48B market* with only 13% booked online U.S. Online Rail vs. All Travel Europe Online Rail Opportunity Rail 59% Rail (possible) All Travel All Travel $22B opportunity gap Rail (today) * Long distance leisure + business, excludes commuter and regional Sources: PhoCusWright 2007 Travel Report, PhoCusWright 2007 EU OTA Travel Report
SilverRail Solution Search Results Book Booking #1 7-steps Booking #2 7-steps Booking #3 9-steps Brussels Manchester London Cologne TODAY • 1 search • 1 booking • 4 steps SilverRail TOMORROW • All suppliers, one system, one booking = Global Solution
GUI Screens (_________) SRT can host the rail home page or provide the search widget 8 Proprietary and Confidential