Welcome to the XIIth Annual Conference: Welcome to the XIIth Annual Conference 29th – 30th October 2003 Crown Plaza, St James London


Mr Joop Drechsel: Mr Joop Drechsel CEO of BCD-NV


Guild of European Business Travel Agents: Guild of European Business Travel Agents XIIth Annual Conference London, 29-30 October 2003


I.A.T.A. – What Value?: I.A.T.A. – What Value? Speech by Joop Drechsel CEO of BCD N.V., parent company of WorldTravel BTI


Slide6: Vision. Teamwork. Passion.


Overview presentation Joop Drechsel: Overview presentation Joop Drechsel BCD – WorldTravel – BTI a company overview Business Travel Management a changing industry I.A.T.A. a new approach to a valued relationship


Travel & Tourism Industry:Share of GDP and Direct Employment in World: Travel & Tourism Industry: Share of GDP and Direct Employment in World Source: WorldTravel & Tourism Counsel, May 2003 / BCD Report


Transformation of the Travel Industry: Transformation of the Travel Industry Travel Technology and E-Commerce: off line => on line travel booking


Importance of Internet will increase dramatically: Importance of Internet will increase dramatically Source: CSFB, Deutsche Bank Alex. Brown estimates and company information Industry Avg. 2001 Industry Avg. 2005


Importance of Internet will increase dramatically: Importance of Internet will increase dramatically Source: CSFB, Deutsche Bank Alex. Brown estimates and company information % Share of Total US Airline booking made online, 1999-2005


Transformation of the Travel Industry: Transformation of the Travel Industry Travel Technology and E-Commerce: off line => on line travel booking Low-Cost Airlines: regular carriers (IATA) => low-cost carriers (non-IATA)


Transformation of the Travel Industry: Transformation of the Travel Industry Travel Technology and E-Commerce: off line => on line travel booking Low-Cost Airlines: regular carriers (IATA) => low-cost carriers (non-IATA) Distribution Channel New online players on corporate travel market


New Online Players Are Targeting Corporate Travel Market: New Online Players Are Targeting Corporate Travel Market Top-10 US Travel Agents, 2002 Source: BCD Holdings operating companies three-year plans, BTN Online, Travel Weekly CSFB


New Online Players Are Targeting Corporate Travel Market: New Online Players Are Targeting Corporate Travel Market Competitive Positioning in the US Travel Industry, 2002 Offline Online Market Segments Distribution Channels Corporate Leisure Source: BCD Holdings operating companies three-year plans, BTN Online, Travel Weekly CSFB


Transformation of the Travel Industry: Transformation of the Travel Industry Travel Technology and E-Commerce: off line => on line travel booking Low-Cost Airlines: regular carriers (IATA) => low-cost carriers (non-IATA) Distribution Channel New online players on corporate travel market Remuneration Travel Agents Commission => management fee


Transformation of the Travel Industry: Transformation of the Travel Industry Consolidation: small national => large scale international


Fragmented Travel Agent Industry Continues to Consolidate: Fragmented Travel Agent Industry Continues to Consolidate Domestic Dollar Volume Booked ($ Bn) Number of Travel Agencies Consolidation trend in the US Travel Agent industry, 1995-2001 Source: US Travel Agency Surveys


Transformation of the Travel Industry: Transformation of the Travel Industry Consolidation: small national => large scale international CRS: no longer exclusive turning point in triangle: airline – travel agent – traveler


Transformation of the Travel Industry: Transformation of the Travel Industry Consolidation: small national => large scale international CRS: no longer exclusive turning point in triangle: airline – travel agent – traveler Impact of external events September 11, Iraq war, Sars


External Events Can Have a Dramatic Impact on the Travel Industry: External Events Can Have a Dramatic Impact on the Travel Industry Annual rate of Growth of International Scheduled Airline Passengers, 1983- 2001 Annual Growth Rate (%) “The economic impact from the tragic events of Sept. 11 continues to be unparalleled in the history of commercial aviation” IATA President and CEO Carol Hallett September 11 resulted in the first fall in traffic growth since the Gulf War in 1991 Source: IATA Monthly Statistics


I.A.T.A.: I.A.T.A. Staff 1.600 employees worldwide 600 employees Europe Budget US$ 50 million annual budget 2/3 airlines 1/3 travel agents


I.A.T.A. and Europe: I.A.T.A. and Europe


I.A.T.A. and Europe: I.A.T.A. and Europe


The I.A.T.A. Accreditation: The I.A.T.A. Accreditation


The I.A.T.A. Accreditation: The I.A.T.A. Accreditation Automatic access to all scheduled carriers, which were I.A.T.A. members; Access to all airlines available public fares; One single neutral ticket stock; Guaranteed min. remuneration (9%) for services rendered; Single clearing mechanism with all participating airlines, free of charge. A number of carriers are not I.A.T.A. members; Airlines do not make all public fares available to I.A.T.A.; Less important due to e-tickets development; No guaranteed remuneration; Single clearing mechanism, restricted to country to country transactions. Benefits in 1990 Today Benefits??


Future Scenarios for I.A.T.A.: Future Scenarios for I.A.T.A. Single EU accreditation Single EMU-BSP Direct relation travel agent – airline Modernisation obligations travel agency Revision of professional qualifications, security criteria, etc.


Future Scenarios for I.A.T.A.: Future Scenarios for I.A.T.A. Who has to pay for services rendered by agent to airline? Global playing field Europe – Trans-Atlantic – Global Global Travel Management Companies as separate league of members in I.A.T.A.


Message to I.A.T.A.: Message to I.A.T.A. “Change or …….” Review the old rule book, adapt to our new business models and become again the meat in the travel sandwich, by treating all parties equally.