Newmarket Confidential and Proprietary Information Customer - PowerPoint PPT Presentation

Newmarket Confidential and Proprietary Information

Customer obsession is the new competitive advantage Only companies that are customer obsessed and adapt to changing behaviors in real-time will succeed. - Forrester Research Newmarket Confidential and Proprietary Information Source: Forrester Research Page 2

What’s driving disruption today? Innovation and opportunity ‣ Changing demographics and consumer behaviors ‣ Desire for information, transparency, personalization and trust ‣ Technology enablers ‣ Big data, mobility, social ‣ Decreasing cost of transactions ‣ New entrants and consolidation/M&A ‣ Customer obsession and innovation ‣ Travel providers’ response ‣ Major investment in infrastructure to connect to venues where customers interact Newmarket Confidential and Proprietary Information Reference: Amadeus, From Chaos to Collaboration 2012 Page 3

Boomers: The ‘Senior Active’ Travelers 70% of disposable income in USA Young Boomers Older Boomers Age: 49 – 57 years Age: 58 – 67 years Total in US: 38.9 MM Total in US: 44.2 MM Median Income: $59K Median Income: $64K Many Retired Many Still Have Kids at Home Empty Nesters More Tech Savvy than Older Boomers Disruption Opportunity How do they want to buy and experience travel? _ Enable trusted experts with more ‣ Authentic holidays information access to satisfy this ‣ Multi-generational experiences segment’s needs ‣ Customizable ‣ Trust expert support Newmarket Confidential and Proprietary Information Sources: Amadeus: The Senior Active Traveler 2014; Nielsen 2013. Page 4

Millennials: The NEXT GEN travelers Young Millennials Older Millennials Age: 19 – 27 years Age: 28 – 36 years Total in US: 41.2 MM Total in US: 31.3 MM Median Income: $48K Median Income: $25K Establishing Careers Still in School Starting Families Living with Parents Earliest Adopters Disruption Opportunity How do they want to buy and experience travel? _ Even more need to connect, react, ‣ Seamless online/offline travel journey acquire, manage and distribute more information faster ‣ Heavy reliance on peer recommendations _ Even more need for mobility and access at ‣ all points in the travel chain Co-created unique travel plans Newmarket Confidential and Proprietary Information Sources: Amadeus: The Next Gen Traveler 2013; Nielsen 2013. Nielsen 2013 Page 5 Amadeus: The Next Gen Traveler 2013

Common Themes Customer segments require the travel industry to… 1. Acquire, connect and manage more complete information 2. Provide customers with more control throughout all touch points 3. Be agile to cover end-to-end needs Newmarket Confidential and Proprietary Information Page 6

The big three innovations converging in the technology space. Social Mobility Big data = valuable customer experiences and process efficiencies Newmarket Confidential and Proprietary Information Reference: Amadeus: From Chaos to Collaboration 2012. Page 7 Amadeus: From Chaos to Collaboration 2012

2020: Tenets of technology convergence Mass personalization ‣ Mobility - Self service, Big data - Customer knowledge, Social – Virtual assistance - connecting to places where customers are Intelligent pricing & merchandizing ‣ Big data – Customer knowledge - Deeper analysis capabilities Intelligent recommendation ‣ Social - Experience and expertise sharing - Greater quality control - More personalized Newmarket Confidential and Proprietary Information Reference: Amadeus: From Chaos to Collaboration 2012. Page 8 Amadeus: From Chaos to Collaboration 2012

2020: The collaborative travel arena Open systems and collaboration pave the way for: ‣ A new era of greater information sharing and exchange, facilitated by technology innovations, between communities of travel providers and travelers. ‣ New ecosystem where information is freely exchanged and Envision a one-stop co- the idea of one-way transactions becomes obsolete. creation travel shop, from planning to post trip to create the perfect journey ‣ Qualitative shift where service-users become partners with a single door to door rather than customers. Context is as important as the combined ticket. transaction. Newmarket Confidential and Proprietary Information Reference: Amadeus: From Chaos to Collaboration 2012. Page 9 Amadeus: From Chaos to Collaboration 2012

Conclusion: You will have disruption Customer obsession = Investment ‣ The use of information for enhanced customer knowledge, personalization, and merchandizing across the customer lifecycle ‣ Travel companies will have invested to provide for more complete information and greater customer control ‣ The ability for travel providers to plug into a more holistic ecosystem ‣ Transaction based systems will be come a standards based utility ‣ Reduced transactional cost will fund additional investment in value added customer services Newmarket Confidential and Proprietary Information Reference: Amadeus: From Chaos to Collaboration 2012. Page 10

Customer obsessed companies… 1. Focus on Customer Satisfaction/Retention over acquisition 2. Align Brand Strategy with the Customer Experience 3. Nimble and Connected 4. Multiple Data Sources Enabling Predictive Analytics 5. Customer Insights to Develop New Products & Services 6. Real-Time 360 View of the Customer 7. Invest in the Customer Experience 8. Connect with Consumer Post Transaction 9. Invest in Content Over Advertising 10. Agile in Meeting Customer Needs Newmarket Confidential and Proprietary Information Page 11 Source: Parature from Microsoft