Investor Day 18 th November 2016
We provide customers with their perfect trip at the right price Video being played live – not viewable on webcast 2
Agenda We provide true value to customers & suppliers The value we bring to customers The value we bring to suppliers Our market is attractive and we are well positioned versus competitors We are uniquely able to deliver We are delivering a successful transformation for long-term sustainable growth Q&A
eDreams ODIGEO appeals to over 17 million customers of all demographics and needs … large range of group sizes Our … travelling to all sorts of destinations customers … with a variety of purposes are diverse … and differing price sensitivities 3 out of 4 of our The majority does not customers travel care about travelling with fewer than 3 times a a specific airline year 75% 80% SOURCE: Odigeo User Attitudes Survey; 2015 European Commission, Boxever, company data 4
Customers book with us because we provide strong value and choice, in the most convenient way <100 seconds We make it for users to book a direct flight easiest to book They can We give >1,000 8 vs 3 customize every customers the direct flight new product features element of their best choice every year allow our options per day trip customers to find with airline exactly what they want We save We offer customers better service money € 134 24/7 cheaper than airlines on Customer service average across all across all major markets common routes 5
Save Customers can save on each booking by using eDreams ODIGEO money 9 Average final price saving per booking, major pan-European eDreams v airline carriers and LCCs % AOV 45% > 5,000 43% 41% 36% or common routes on 37% 36% 36% same date, € 134 26% same payment average saving 20% including all fees per booking 400,000 + 5% 5% comparisons across 80m flights A B C D E F G I J K 6 Data accessed October 2016. Daily comparison of final prices for all routes on 6 random dates in the future for each airline, compared to equivalent local market eDreams Odigeo final price
Broad inventory selection means that eDreams can be cheapest: Save one example money Price of return flight, 1 pax , EUR 20-40% cheaper 161 149 142 123 120 Example trip: Barcelona > 99 Brussels (return) 18 th -21 st November Airline A Airline B Airline C Airline D Airline E 7 SOURCE: Airline websites, accessed 15th November 2016. Cheapest price for 1 pax, inc cheapest form of payment
Best For each route, we offer many more direct flight options per day choice Average number flights per day per route 1 Airline 14.3 10.4 9.7 8 7.6 7.1 7.0 6.5 direct flight 5.5 5.0 vs 4.9 4.7 options per day 4.3 with airline 3.6 3 (on average) 2.3 1.6 1.5 Airline A Airline B Airline C Airline D Airline E Airline F Airline G Airline H 1 Based on assessment of > 3,200 routes operated by airlines. Comparison of eDreams ODIGEO flight options on same routes (by city) as operated by airline 8
For the same route as before, eDreams offers twice as many flight Best options than the next nearest airline choice 9 06:00 08:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 Example direct one-way trip: 3 Barcelona > Brussels 18th November 9
Customers can book their trip much more quickly by Convenience using eDreams Time to complete booking, minutes Direct Multi-leg Flight and hotel 13mins 9m 30s 4mins 5mins 3m 20s 2m 30s 1m 30s Airline Meta Meta Meta Additional 20-25s can be saved if card payment details are stored 10 SOURCE: eDreams, metasearch, and airline mobile apps accessed October 2016. Times taken are from initial opening of app through to booking completion for the same flights and hotels.
You can book a return trip on eDreams 4x faster Convenience (vs meta and airlines) Risk of return leg being repriced or Metasearch and airlines made unavailable in the time taken to book first leg 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 2:00 PM 100% 5:30 9:30 0:00 1:00 2:00 3:00 4:00 5:00 Outbound 7:00 8:00 9:00 Return Example trip: 2:30 Both legs booked Barcelona > Brussels 4x (return) 2:00 PM 100% 2:00 PM 100% 18th – 21st November 2:00 PM 100% 2:00 PM faster for the same booking 11
Each step of a customer’s journey allows them to customize their Customization trip to suit their exact needs Inspire and Compare Order and Search Pre-travel Travel Post-travel plan and select confirm Personalized engagement Tailorable suite of products and Services to tailor trip to preferences methods add-ons Flexible travel dates Large-scale selection of hotels, bags, Personalized and free cancellation cars and insurance options offered content and allow customers to throughout booking experience to emails change their mind create dynamic packages Push notifications based on individual or cohort behaviour, plus travel alerts and information Heatmaps for exploring MyTrips and saved searches destinations mean next time we can adapt offering to their Last search allows instantaneous preferences launch of previous search 12
Best We have market-leading customer service service Award-winning 24/7 round the clock customer service customer service Customer service recognized 1 2 as better than competition 3 Trustpilot score ranking 4 5 6 Ebookers 7 Lastminute 8 AirFrance Airline 1 9 06:00 - 20:00 1 easyJet 10 Expedia Airline 2 11 06:00 - 19:00 1 12 Ryanair Airline 3 13 Lufthansa 08:00 - 20:00 14 Alitalia 15 Airline 4 09:00 - 18:00 1 BA 16 Vueling 2014 2015 2016 Airline 5 08:00 - 20:00 1 1 Reduced or no weekend service 13 SOURCE: Trustpilot, average scores France, Italy, Spain, Germany & UK
Best Customers love our service service Perfect customer service. I made a I had never travelled with mistake with my booking and they eDreams, but I will definitely sorted everything out for me. use them again. Invoice in 10 minutes on a Sunday. I requested an invoice for some services I contracted via the website by just filling a form with the required information, and just 10 minutes after, I got it by email. All this on a Sunday! Excellent – I spent two weeks looking for a getaway with the girls on different webpages without reaching a decision. In the end I called the bookings helpline on your page and in 10 minutes the bookings were done, for the price I wanted and with all the necessary information about the flights, the hotel, the transfers and the city. 14 SOURCE : Customer reviews from UK, French, and Spanish markets
Agenda We provide true value to customers & suppliers The value we bring to customers The value we bring to suppliers Our market is attractive and we are well positioned versus competitors We are uniquely able to deliver We are delivering a successful transformation for long-term sustainable growth Q&A
The demand an OTA brings to an airline allows them to improve Airlines their yield management Each incremental 1% of Airline demand is worth an extra 0.8% revenue Airline has to sell more seats at cheaper prices with lower demand to the airline and Extra demand allows an airline to close cheaper fare seat categories earlier, and therefore charge higher rates for the same seats increases load Airline factor by 0.4pp w/OTA demand Amadeus analysis on LCC booking data. 16 SOURCE: Amadeus IT Group, 2016 analysis
OTAs present a 50% cheaper means of indirect customer Airlines acquisition for airlines Estimated acquisition cost per booking (indirect traffic), EUR External acquisition (via OTA) 1 Internal acquisition 2 Additional investment also required for technology and infrastructure to support these transactions 25-36 Cost of fraud Transaction fees Customer Service vs 8-20 Traffic acquisition 1 Spend includes sales commissions to agencies, computerized distribution expenditure, and associated advertising and sales promotions. Based on airline annual reports and industry benchmarks. 2 Traffic acquisition based on Expedia, lastminute.com and Priceline FY15 results. Customer service and transaction fees based on Expedia FY15 results, cost of fraud based on internal estimates. 17 SOURCE: Airline and OTA annual reports, industry benchmarks
We are helping airlines grow and are an important strategic Airlines partner to them Airlines are benefiting from our growth 95% of our partner contracts have performance components eDreams ODIGEO has been always Our strong global partnership with Our dedication to you a very important partner , our eDreams ODIGEO is best described as a partner is 100%. relation-ship has always been very as a mutually beneficial business clear and transparent, and there is relationship, where the techno- no doubt that in the last years, the logical innovation set by eDreams situation has improved even more. ODIGEO has been one of the key drivers. 18
Agenda We provide true value to customers & suppliers Our market is attractive and we are well positioned versus competitors Market overview and our position within it Our relationship with metasearch players Scale advantage We are uniquely able to deliver We are delivering a successful transformation for long-term sustainable growth Q&A
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