Benchmarking Online Wettbewerber 2005

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Thomson Online Booking Report 2007 Charlotte
Street Hotel London 19th June 2007
Miles Morgan Director Sales and Marketing Graham
Donoghue Head of New Media
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Agenda

• Introduction
• The Online Market Place
• Customer Behaviour
• Trends
• Trip Advisor - TravelerNetwork
• What are Thomson doing
• Summary
• QA

Speakers Stephen Lane, Head of Communications
TUI UK Graham Donoghue, Director of New Media TUI
Northern Europe Marc Charron MD, TripAdvisor
Europe
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Online Travel is Still Only 10 Years Old
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But What Has Happened in 10 Years?
Google and Ryanair Home pages from 1998
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43 Million People online in the UK
Internet users UK 1999-2007 - in million users-
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50 of the Overseas Leisure Market Will Book
Online in 2007 in U.K.
Total overseas Holiday Market volumes 2000-2009 -
in millions booked -
Total volume
Internet volume
Forecast
Source IPS, National Statistics 2005/ Mintel
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Online Travel Market Still Growing Strongly
European and U.K. online travel market
development Leisure and un-managed Business
travel - in bn. -

• U.K. represented 35 of the European online
  travel market 2006

Forecast
Source Phocuswright 2007
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TUI Online Turnover is Strong - 2.2bn in 2006
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Thomson.co.uk Second most visited site

• Source Hitwise, Travel Agencies Categories
  Apr 07 and Apr 06

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Top Search Terms in Travel are mostly brands
Share of Traffic
Source hitwise search terms travel agents 16/06
for 4 weeks aggregated top 10 terms/sites out of
83k
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The Ever Changing Landscape

• TUI UK Web Results

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9361 Travel Websites in UK
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7000 Flights a Week on LCC from UK

• Source CAA

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We operate in a New Environment
Tour Operators
Online Travel Agency
Online Travel Community
Hotel
Travel Search Engine/ Search Engines
Airline (Low Cost and Charter)
GDS
Hotel portal
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Fundamental structural change in the market
Expected development travel market (in mn. trips)
Package
35
DIY
Future Battlefield
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Modular
30
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Non-organised
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35
Source Own estimate on basis Basis European
Travel Monitor and WTO.
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Rise of the Silver Surfer

• Source Hitwise, Travel Agencies Categories
• Based on Rolling 4 week period up to 9th June 07
  and 2006 equivalent

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The Old Model Does not work !
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Our Model
Business Model
I
Flexability
Range
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1
Unique Product
Service
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4
II
Cultural Change
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Product Range
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Family Clubs

• Children's Entertainer
• Babyzone
• Toddler zone
• Rebook Soccer Academy
• Stage Academy
• Family Themed rooms
• Internet access
• Swimming Lessons
• Crèche
• Teen Clubs
• Theme Parties and Awards

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Luxury Web Filtering
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Build Your Own Resort Our Tuscany Project
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Gold Clubs
45 rebook rate with Thomson 30 Gold Club
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Flexibility Our Long Tail
Asset Management
asset investments
Distribution

• Make everything available and help people to find
  it
• Long tail is to supply an almost unlimited content

Flight
Hotel
3rd party content
Our range Flights 500 airlines, Accommodation
target 200k hotels, villas, apartments,
mobiles, millions Packaged/pre packed holidays
inc specialist niche product, Extras 30 car
providers, 1000s of excursions, range of
insurance etc
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Just a Holiday Single Search
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Migration to Web Based Applications
Web Based applications
Hotel Suppliers
Internet
Call Center
Retail

• Market leading web solutions for all our channels
  (B2B, B2C, retail, call center)

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Our Hotel Longtail 30,000 Hotels

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Customers Are In Control
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Its an internet jungle?
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Marc Charron MD Trip Advisor Europe
Introducing TripAdvisor Traveler Network
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Recommendations from Consumers GenerateHighest
Levels of Trust
"Indicate your overall level of trust in the
following forms of advertising"
Base 470 responses recruited from
PlanetFeedback.com members.Source Forrester
Research Inc. and Intelliseek.
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Demo available online
Login for demo, go to http//community.tripadviso
r.com Username tripadvisor Password samantha
Then
Sign in to the traveler profile Email
community_at_tripadvisor.com Password tripadvisor
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• What have Thomson been doing in the UK to embrace
  these changes?

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TUI UK 2005 2008 Web Pax Growth
Passengers

• 60 Share of Passengers in 2007 TUI UK
• Over 1m package passengers

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700,000 Video Views a Week
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Google Earth in our TV adverts
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Cha Cha People Powered Search Engine
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In Summary

• A lot has changed in 10 years
• Customers are shaping our industry and new
  entrants are growing it
• We are embracing change and allowing people to
  re-consider us
• However the pace of change is fast
• The web is not just about a distribution channel
  for us
• We have a clear strategy in Product, Technology,
  Content and Differentiation
• Exciting times ahead