2010 & Beyond – Seven Travel Trends

1. 2010 & Beyond – Seven Travel Trends

2. About Me 2010 & Beyond – Seven Travel Trends Michael Boult – Chief Commercial Officer - Lanyon • Co-Founder / CEO – GroundRez • President / CEO – StarCite • Founder / COO – eCLIPSE Advisors (now Amex Advisory Services) • Founder / President – myTravelbid.com • SVP Supplier & Network Partner Relations – Rosenbluth International Be wary of anyone talking about the future (with confidence)

3. 2010 & Beyond – Seven Travel Trends February 20, 1910 Washington Post

4. 2010 & Beyond – Seven Travel Trends July 20, 2008 Washington Post

5. 2010 & Beyond – Seven Travel Trends "Expect Movies to be Produced in Every Home," Cecil B. DeMille predicts not only home movies of the future, but the rise of the amateur filmmaker as a force in the film industry. September 5, 1925 Charleston Gazette

6. 2010 & Beyond – Seven Travel Trends Founded in a garage in Feb 2005, acquired by Google 15,400 hours later for $1.65B = $107,143 / hour

7. 2010 & Beyond – Seven Travel Trends What May Happen In The Next Hundred Years Ladies Home Journal (1900) Man will See Around the World. Persons and things of all kinds will be brought within focus of cameras connected electrically with screens at opposite ends of circuits, thou- sands of miles at a span. American audiences in their theatres will view upon huge curtains before them the coronations of kings in Europe or the progress of battles in the Orient. The instrument bringing these distant scenes to the very doors of people will be connected with a giant telephone apparatus transmitting each incidental sound in its appropriate place. Thus the guns of a distant battle will be heard to boom when seen to blaze, and thus the lips of a remote actor or singer will be heard to utter words or music when seen to move.

8. 2010 & Beyond – Seven Travel Trends Iraq War 2005 Fox News Coverage

9. Procurement - Refresher 2010 & Beyond – Seven Travel Trends Causal Drivers • Economic • Social • Cultural • Evolution • Globalization • Technology • Mobile

10. Procurement - Refresher 2010 & Beyond – Economic

11. Procurement - Refresher 2010 & Beyond – Economic • ROI - Travel more, less or the same? Prediction:Despite “new” scientific studies, business travel will suffer the same cycle of expansion and contraction as the general economic cycle, with normal range of amplification (+/- 15%) • Opportunity to benchmark category leaders

12. 2010 & Beyond – Social

13. Procurement - Refresher 2010 & Beyond – Social Airlines vow to halve carbon emissions by 2050 The British Airways chief executive, Willie Walsh, will unveil an agreement between airlines, airports and aircraft companies to cut emissions to 50% below 2005 levels by 2050. In a bid to seize the initiative from environmental groups clamoring for higher taxes on the industry, the plan will be presented to world leaders at the United Nations forum on climate change in New York. • To reduce net carbon dioxide emissions by 50% by 2050, compared with 2005 levels. • To make all industry growth carbon-neutral by 2020. • To cut carbon dioxide emissions by 1.5% per year over the next decade. • To submit plans for joining a global carbon trading scheme to the UN by November 2010. 21 September 2009

14. Increased Number Think Global Warming Is “Exaggerated” Most believe global warming is happening, but urgency has stalled

15. Procurement - Refresher 2010 & Beyond – Social • How will CSR (Global Warming) impact travel? Prediction:(Air)Impact will be regional and sporadic with EMEA, Aus/NZ leading and Nth Am., Asia lagging. Expect higher taxes, levies and price increases. New technology (alternative fuels, fuel efficiency) not widespread until after 2020. (Hotel) Niche brands will reflect lifestyle choices (Car) Rental firms will offer Eco-Fleet Options • Opportunity to implement greener solutions

16. Procurement - Refresher 2010 & Beyond – Culture • In Person vs. Virtual Travel Solutions Will Cisco's "Telepresence" kill business travel? Marriott Becomes the Largest Hotel Company to Offer Telepresence Globally, Giving Customers the Widest Array of Meeting Options Using AT&T Telepresence Solution, Marriott Will Increase Opportunities for Small Meetings Business and Create New Revenue Streams for Its Hotels

17. 2010 & Beyond – Culture CWT To Launch Videoconferencing Strategy By Amon Cohen OCTOBER 26, 2009 -- Carlson Wagonlit Travel president Doug Anderson told BTN today that the company shortly would announce a videoconferencing management strategy, including a partnership with a technology provider."We are very close to making an announcement on a relationship with a strategic partner to offer our clients access to videoconferencing facilities," Anderson said.Anderson added that CWT will help customers to develop policies and booking processes for integrated management of travel and videoconferencing. "I view it as no different than what we do to help clients with air, hotel and other supplier categories," he said. "We will help them to access the inventory, which in some cases will be that of our partner and in others the client's own facilities."

18. 2010 & Beyond – Culture Amex Dives into Virtual Meetings Proprietary, Patent-Pending Solution Includes Automated Process Advising Clients at Point of Sale on Optimal Scenario for Selecting Telepresence Option Versus Face-to-Face Travel 'Ultimately, we believe that both virtual meetings and face-to-face meetings should be components of a best-in-class corporate travel and expense program, particularly in this environment,' said Mr. Petruccelli. 'By being able to rely on an automated process, companies can feel confident that employees are making the right decision when it comes to travel versus virtual meetings, and taking advantage of every opportunity to save while maintaining travel that is strategically essential.' 19th August 2009

19. 2010 & Beyond – Culture April 2009 Survey of 192 Travel Management Professionals NA & EMEA

20. Procurement - Refresher 2010 & Beyond – Culture • In Person vs. Virtual Travel Solutions Prediction:Most corporations will invest in new HD conference travel substitution solutions. Hotels will provide systems as a public “utility” option and adoption will slow traditional in person travel demand. • Opportunity to integrate new processes

21. 2010 & Beyond – Category Evolution • Identifying new sources of opportunity? GDS - Call Centers - E-Tickets - Self Booking - Web T&E - SMM - Virtual Travel

22. Procurement - Refresher 2010 & Beyond – Category Evolution • What’s next on the “To-Do” list? Prediction:Ground – Multi-Mode OptimizationSmall Meetings – Research and BookData Management – Predictive InsightTotal Hotel Spend Management • Opportunity to create new value; reduce waste

23. 2010 & Beyond – Globalization • Where is the beef, boeuf, rundvlees? • Airline Networks – Born in 1997 with Star Alliance • Travel Management – Amex 80s & CWL since 1994 • Hotels – >1990s – IC, STR, MAR, Cendant, HL • Car Rental – Hertz, Avis leading from 80s • GDS – Sabre EMEA 1985, Amadeus 1987, Galileo 1993 • After 20 (ish) years, the urgency and interest to globalize has lost some energy and momentum • Travel remains a largely regional and fractured category • Will growth in India, China, Brazil stimulate innovation?

24. Procurement - Refresher 2010 & Beyond – Globalization • Where is the beef, beouf, rundvlees? Prediction:G5000 corporations will continue to push suppliers to provide tangible multinational benefits. Smaller firms will struggle to identify ROI from consolidation and oversight. • Opportunity to leverage ww spend and process

25. 2010 & Beyond – Technology • Social Media – Web 2.0 – What impact? The great democratization of decision making, cohort consumer experience, anti-mass media marketing, power shifting to those who share and express opinions…… What influence will this have in business travel?

26. 2010 & Beyond – Technology • Social Media – Web 2.0 – What impact? Blogs, Forums, Wikis, Oh My! Working with information technology, communications and other departments within Cisco, Lichtenstein said, travel "changed our Web presence to make it more interactive and created a forum to find out what our travelers were thinking." The travel team used blogs, forums and wikis to open the communication channels with its 66,000 travelers. The new travel policy, booking tool enhancements, reporting, blogs, forums and wikis debuted on April 2, 2008. The team also added online training via on-demand videos and presentations that detailed the booking tool, meeting technology and airline programs. "One year and 51,000 hits later, we are the highest-viewed forum at Cisco," Lichtenstein said. "You know why? Travel is personal. What's great about social networking is I get to hear how we're doing from our travelers every day, one-on-one. Successful social networking requires monitoring, daily." For that, Lichtenstein relies on her seven-person team of travel professionals located around the globe. Each member of the team spends a half hour each day responding to questions. An added bonus, Lichtenstein said, is that she gets to see quickly how the team is doing with collaboration and communication. June 2009

27. Procurement - Refresher 2010 & Beyond – Technology • Social Media – Web 2.0 – What impact? Prediction:Private and professional habits will converge and accelerate as younger workers enter the workforce. Real time feedback, opinions, training, policy, forum use will increase.(i-Meet, Yammer, Present.ly, Floopo) • Opportunity for enhanced communication

28. 2010 & Beyond – Telephony • Mobile Innovation – Beyond Email Two horse race: Blackberry dominates North Am Market iPhone will challenge dominance Two horse race: Nokia dominates EMEA Market iPhone will challenge dominance

29. 2010 & Beyond – Telephony • Mobile Innovation – Beyond Email Passive: Position – I know where you are Disruption – I can alert you to known problems Immediacy – You can read/send email Active: Position – “The meeting room is this way”,“Turn left” Position - Your taxi is 800 yards (2 min) away from you Disruption – I am rerouting you to make your appointment Immediacy - Alert your designated contacts upon arrival Immediacy – “This speaker stinks, skip the session” Transaction – Make/change/speak reservations

30. 2010 & Beyond – Telephony • Mobile Innovation – Beyond Email Early notable efforts already in the market Taxi Magic – RideCharge ArrivedOK – Europe Hotels.com Tripit Wi-fi Finder Yelp

31. Procurement - Refresher 2010 & Beyond – Mobile • Mobile Innovation – Beyond Email Prediction:The road from marginal to core processes will take five to ten years to fully unfold. Progressively useful solutions will emerge from existing online providers (OTA, EMS, SBT, SMM) and from new entrants (Google). • Opportunity to expand connectivity

32. Procurement - Refresher 2010 & Beyond – Predictions Clearly not everything works out as you think • University education will be free • Everybody will walk ten miles per day • Peas as large as Beets • There will be no wild animals • Oranges will grow in Philadelphia Ladies Home Journal (1900) – “What may happen in the next 100 years” - John Elfreth Watkins Jr.

33. THANK YOU mike.boult@lanyon.com Skype: mboult 856-831-7900