Be Smart. Be Hip. Be Seen.

Europe + Asia Event ForumSt. Petersburg

January 23-25 2013

Latest developments in global

Business Travel and where

the Russian market is different

presented byWinfried Barczaitis

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The Association of Corporate Travel Executives

(ACTE), founded in 1988, is a leading non‐profit

organization that serves and advances the global business

travel industry. For 25 years, ACTE has continued to fulfill

its vision of uniting travel executives around the world,

providing them with up‐to‐date news, knowledge, beneficial

research findings and networking opportunities.

About ACTE

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The education of ACTE members infiltrates to tens of

thousands of travel professionals in over 102 countries who

represent more than 12 million business travelers

worldwide. From corporate buyers to agencies and

suppliers, all sectors of the industry are granted equal

membership. ACTE has representatives in Africa, Asia,

Australia, Canada, Europe, Latin America, Mexico, Middle

East and the United States.

About ACTE

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• The Business Travel Market in numbers

• Promotable Business Travel

• Challenges of suppliers – sample airlines

• Professional Travel Management

• ACTE & ABT

• Payment solutions and more

• Maverick buying will become the norm

• And here are the solutions

• Q&A

Presentation Overview

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The total market is in the magnitude of

1 trillion $ per annum! (2012/ 987.8 bn $ / 2% growth yoy*)

Main regions:

Asia/Pacific 290 bn $ + 9.5%

North America 281 bn $ + 3,3%

Europe 258 bn $ - 6.2%

EU 216 bn $ - 6.9%

* WTTC

Business Travel Market in Numbers

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Germany 45 bn $ - 8.1%

UK 42 bn $ +/- 0%

France 35 bn $ - 7,9%

Non EU Europe 42 bn $

Russia 13 bn $ + 2.7%

Turkey 10 bn $ + 1.9%

Business Travel Market in Numbers

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Promotable Business Travel

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Promotable Business Travel

Breakdown of international MICE travel

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MICE is More than Just Travel

Source: meetings.com/April 2011

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Decision Making

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Outlook

BRIC states and GCC countries

with highest growth potential

Outlook for developed markets is

cautious

Market growth 2008 – 2013 (estimated)

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“Cost/effectiveness of distribution in focus – how

best to influence the decision maker?”

Have you seen Mr. Buffet investing in the airline business?

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• There is only one goal: How to get the traveler on the

individual airlines seat

• Airlines hate neutral distribution systems

• They increase efforts to influence the traveller direct

– Rates on airlines web-sites are the cheapest

– Loyalty systems

– Other benefits like launch access

“Cost/effectiveness of distribution in focus – how

best to influence the decision maker?”

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• In the western world airlines distribute through one or

two prefered GDS-Global Distribution System and

continuosly increase direct sales through their web-sites

• In Russia air content sit‘s in many systems:

– Three global GDS

– Local CRS Sirena

– Local CRS Gabriel

– Individual airline web-sites

“Cost/effectiveness of distribution in focus – how

best to influence the decision maker?”

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Conclusion

• In the western world airlines do all possible to bypass

middlemen which can be GDS and TMC-Travel

Management Companies and sell to the traveller direct

• In Russia the market is still too complex and on-line or

off-line travel agencies still control distribution together

with GDS + CRS

“Cost/effectiveness of distribution in focus – how

best to influence the decision maker?”

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Unmanaged versus Managed Corporate Travel

• The difference is approx. 20 – 30% cost optimization

without ‚Blood, Sweat and Tears‘!

• Straight to the bottom line

• In each company

• Business trips are investments

• If they are seen just as a cost factor – stop travelling, you

will save 100%

Travel Management

“What to learn from global enterprises?”

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Components of Professional Travel Management

Travel

Policy

The

bookingThe trip

Settlement

DataProcure-

ment

Travel

RequestPayment

Travel Management

And how to find the 20-30% ?

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• ABT’s mission: professional development of business

travel industry executives; maintaining corporate

buyers/suppliers communication platform; creating an

information sharing environment and inform about the

best practices and trends

• ACTE and ABT are partner in the Russian Federation

Your partners for professional travel management

&

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• Data is key for professional travel management

• In the western world 90+% of all business travel is paid

by corporate card systems

• In Russia this number is still close to zero

• Corporations rely on data generated by their TMC

“Is the Russian market waiting for

Corporate Card Systems?”

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• In future business travellers want to communicate

through various channels

• This means data management reaches a different stage

Travel Technology Provider

“Where will the revenue go?”

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Yesterday and Today

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Today and TomorrowMaverick buying will become the rule

Controlling?

Data?

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The Solutions are

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The Solutions are

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Any remaining questions?

Thank you for your attention!