At Your Door Step:

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• At Your Door Step
• New Travel Technology
• Presenter
• Johnny Thorsen
• Independent Consultant

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At your doorstep New travel technology

• Are you prepared ?
• Singapore, 13th March 2007

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Disclaimer

• The following slides represent the viewpoints and
  future vision of Johnny Thorsen, independent
  travel technology evangelist, and does not
  reflect the outlook or plans of any other
  companies or individuals

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Todays menu

• Understanding the veterans
• Looking outside the door
• Riding the mobile wave
• Travel buying in 2010

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Understanding the veterans

• Who are they ?
• GDSs
• TMCs
• Old airlines
• Are they defining their business or is it being
  defined by somebody else ?

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Understanding the veterans

• The hard facts
• They are now old and very mature
• Most of them are making a very good profit
• They continue to delay change whenever possible
• Their life is getting harder each year
• They are becoming less relevant in more areas

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Understanding the veterans

• Their focus is on protection, not innovation
• They have no chance of stopping or controlling
  the trends we are about to take a closer look at
• What is the price going to be if you trust them
  to solve all your problems in the future ?

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Did anyone say dinosaur ?

• They are actually more like crocodiles
• Scary, but harmless as long as you leave them on
  their own in the pond

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Looking outside the doorfor innovation
(Finding the next disruptive technology)
The Google count 121 Million responses for
innovation 1.5 Million responses for disruptive
technology
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Examples of innovation

• Converting your emails into voicemails would
  you pay for that ?
• Last minute upgrade offers directly to your
  mobile phone would you pay for that ?
• Fast track through the airport for recognised
  travellers would you pay for that ?
• Instant answer to any question sent via SMS
  would you pay for that ?
• Personal travel concierge in your hand - would
  you pay for that ?

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Innovation is driven by trends
Trends
Resistance
Ideas
Todays safe world
Rules
Ability
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What are the current trends

• Trend 1 New supplier landscape
• Trend 2 Controlled freedom of choice
• Trend 3 Invisible travel security
• Trend 4 Helping the traveller
• Trend 5 Unlocking new savings
• Trend 6 New kids on the block
• Trend 7 The green traveller
• Trend 8 Protect or innovate
• Trend 9 Unbundling the model
• Trend 10 Time for the mobile wave

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1 New supplier landscape

• New airlines are emerging with different
  distribution strategies, forcing old airlines to
  change
• Increasing number of services only available on
  airline websites
• The GDS will continue to become less important
  for airlines
• The credit card companies will come under attack
  from the suppliers

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2 Controlled freedom of choice

• Buy what you want, as long as you pay less than
  corporate maximum price
• Maximum price levels for specific transaction
  types on corporate cards
• Use any source as long as data are provided back
  to central location
• Travel policy is based on unit price, with much
  higher usage of spot market buying

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3 Invisible travel security

• Central data repository for all bookings made via
  endorsed channels
• New technology enabling you to communicate
  instantly with all travellers will become
  available
• Recognised travellers are fast tracked through
  major airports
• Corporate travel security available as optional
  service for employees during leisure travel

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4 Helping the traveller

• New services will finally make life easier for
  the actual traveller
• Corporate infobots, predictive information
  delivery, just-in-time assistance
• Increasing number of services available on the
  mobile phone as last minute channel
• 24/7 emergency and accident centre

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5 Unlocking new savings

• Optimisation of destination based services such
  as transportation, restaurants, etc
• Eliminating the TMC from 50 of your travel
  program due to direct buying
• Dramatic cost reduction through shared savings
  programs with the traveller
• Ability for traveller to use accumulated savings
  for future travel requirements

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6 New kids on the block

• You will probably never have heard the names of
  the new solution providers
• Some will emerge from travel, but most will be
  outsiders who become leaders
• The time window available for launching new
  solutions continue to reduce
• If you wait for the traditional TMC to react, you
  will always be late

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7 The green traveller

• The next generation of travellers will base
  travel decisions on environmental impact
• Airlines will be forced to introduce carbon
  emission fees in developed markets
• Hotels will use environmental position as key
  marketing message
• New solutions will keep track of the green cost
  of your travel program

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8 Protect or innovate

• The crocodiles (TMCs, GDSs, etc) will continue
  to stall innovation to protect current business
  models
• TMCs will struggle with increasing cost for
  manual service, leading to further dramatic
  change
• GDSs will protect segment volumes with
  restrictive booking engine solutions
• Travel outsourcing will mature, including options
  such as pre-trip approval, policy compliance,
  travel procurers, and TMC management

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9 Unbundling the model

• Increasing number of components in the travel
  program will become unbundled
• New solution components are designed to integrate
  and will be flexible
• Transparent cost models for majority of travel
  services
• New roles required within the corporation to
  manage growing list of components

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10 Time for the mobile wave

• The online wave is 10 years old and fading, but
  the mobile wave is just forming
• Suppliers will embrace the mobile wave as the
  perfect direct channel
• Asia will be the driver, as they are leading the
  race for mobile usage and penetration
• SMS based boarding cards
• RFID

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Riding the mobile wave

• Think back to the early days of the online wave
• I am not a travel agent
• I use my secretary for travel
• Our network is too slow
• It only works in the US

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Now think about today

• 1 Billion active mobile handsets
• No standards for handsets, browsers, networks or
  software
• Typical user changes handset every second year
• Extreme cost of roaming calls
• The phone is always with you
• 2 common user competences calls and SMS

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What will the mobile wave bring ?
Before travel
During travel
After travel
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What will the mobile wave bring ?
Before travel
During travel
After travel

• Instant communication to all or select group of
  travellers based on active itinerary
• Automated delivery of information based on
  corporate rules
• On-demand access to corporate travel dictionary
• Integration to corporate booking engine for
  instant availability and price
• Ability to activate process and receive relevant
  results when ready

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What will the mobile wave bring ?
Before travel
During travel
After travel

• Automated itinerary notification for next travel
  event
• Pro-active delivery of destination specific
  information defined by the corporation or the
  traveller
• Check-in notification and confirmation
• Flight status alerts
• Airport arrival recognition and fast track
  access
• Last minute upgrade options
• Meal selection from enhanced menu

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What will the mobile wave bring ?
Before travel
After travel
During travel

• Destination sensitive 24/7 instant access to
  travel information and services a Travel
  Concierge in your hand
• Scheduled delivery of corporate and personal
  trip-specific information
• Automated notification when friends are in same
  destination
• Rules-based push of corporate defined information

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What will the mobile wave bring ?
Before travel
During travel
After travel

• Travel survey at completion of individual
  service or complete itinerary
• Update personal travel services directory
• Notify predefined recipients about actual arrival

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Remember the online revolution ?

• It actually happened in many small steps
• Mobile will happen the same way
• SMS based services in the first phase
• Downloadable Java-based services in the second
  phase
• Build-in applications in the third phase
• The next generation travellers grew up with a
  phone in their hand

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Are you ready for this ?

• These trends will not disappear if you decide to
  wait, but they will evolve into solutions without
  your involvement
• Your travellers will apply increasing pressure
  for access to the new services, and you will be
  the roadblock

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A 2010 Preview
Corporation XYZ
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A 2010 Preview
Which of these boxes will you belong in, and will
your role be designed by you, or by somebody else
Online Booking Engine
Airlines, Hotels, etc
Expense Report
Shared Savings
Corporation XYZ
Travel Technology manager
Travel Security
Travel Procurement manager
IT Solutions
Leisure Travel Support
Policy Options
Corporate Infobot
Payment Services
Location Services
Green Scheme
Travel Services manager
Mobile Device Access
TMC
Location Tracking
Benchmark
Web Direct
Web Indirect
Mobile
TMC
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Thank you for listening

• Johnnythorsen_at_contgo.com
• (A firm believer in innovation driven by
  disruptive technology)