A Platform for growth. How Travelport s Platform is redefining travel commerce

Transcription

1 A Platform for growth How Travelport s Platform is redefining travel commerce

2 Travelport is... the world s only true Travel Commerce Platform, focused on providing distribution, technology, payment and other solutions for the $8 trillion global travel and tourism industry. Our Platform facilitates travel commerce by connecting the world s leading travel providers with online and offline travel buyers in a proprietary business-to-business (B2B) travel marketplace. In addition, we have leveraged over 40 years of expertise in the travel industry to design a pioneering B2B payment solution that addresses the needs of travel intermediaries to efficiently and securely settle travel transactions. We believe that there is no technology or scalable alternative to our Travel Commerce Platform which offers the same depth and breadth of travel inventory, functionality and global reach.

3 400 Number of airlines to which we provide air distribution services globally, including around 100 low-cost carriers. See p14 $810bn Our estimate of the addressable market for enett, as measured by the total transaction value of payments made by travel agencies to travel providers. See p Types of ancillary services including seat assignment, extra baggage, wi-fi, priority boarding and lounge access that we currently distribute on behalf of our airline customers. See p16 650,000 Industry-leading number of unique hotel properties fully bookable in our Platform (of which over 550,000 are independent hotel properties). Based on our internal estimates, this is the largest inventory of hotel properties on any travel platform in the world. See p Number of countries we serve, through our extensive global network of approximately 60 sales and marketing organisation offices and a diverse workforce of approximately 3,400 full-time employees. See p12 35,000 Number of car rental locations fully bookable on our Platform. See p Airlines signed for Rich Content and Branding, our unique merchandising solution enabling airlines to fully display all of their products and brand propositioning. As of April 2015, over 60 of these airlines are already live with this industry-leading capability within our point-of-sale applications. See p15 $90bn Transaction value processed on our Travel Commerce Platform in As a comparison, ebay transacted $83bn of gross merchandise volume over the same period. See p04 67,000 Number of travel agency locations across the world to which we provide the services of our Travel Commerce Platform, who in turn serve hundreds of millions of business and leisure travellers globally. See p28

4 01 Travelport: Case About studies us Redefining Travel Commerce After listening to our customers we began, four years ago, to deliver specific solutions with a sharp focus on previously unmet needs within our industry. And today we are enjoying the benefits of this investment in time and technology. Our unrivalled access to global travel provider content helps attract more travel buyers onto our Platform, which in turn drives greater value for travel providers, increasing their addressable customer base. We re also now leading the industry with our empowered selling tools, our transformative B2B payments solutions and our innovative travel technology. In addition, we have the scale that the industry needs with a diverse global footprint to match. Our approach and value proposition are unique and so are the results. We call it redefining travel commerce. About us Driving value creation in the travel industry 02 Truly differentiated from our competitors 04 A highly attractive financial profile 06 Our journey to redefine travel commerce 08 Air Unrivalled geographic coverage 12 Transforming air merchandising 14 Enabling a revolution in airline ancillary distribution 16 Creating value for airlines 18 Beyond Air Extending the Platform beyond air 20 Hotelzon innovative solutions for corporate hotel bookings 22 Creating value for corporate customers 23 Redefining B2B payments 24 enett customer case studies 26 Creating value for travel agencies 28 A proven and motivated management team 30 A strong and experienced Board 31 Contacts and Glossary of terms 32

5 02 Travelport A Platform for growth 03 Travelport: Case About studies us Driving value creation in the travel industry Travelport has a clear focus on its Travel Commerce Platform which does all the things that traditional global distribution systems (GDSs) do but more by responding to previously unmet customer needs in order to drive value creation in the travel industry. The traditional GDS model GDSs are a complex, technology-based distribution network used in the travel industry to aggregate millions of travel options from hundreds of thousands of travel providers, including airlines, hotels, cruiselines, and car rental agencies. These options are then made available to GDS-connected online and offline travel agencies in a format that allows them to select the optimal options for business and leisure travellers worldwide, and create integrated itineraries. In addition, a GDS handles post-booking processes and services, such as fulfilment and processing of the travel transactions, passenger tracking and services, in-trip change services and post-trip reconciliation. For corporations, a GDS also provides reservation tracking services and other tools that ensure corporate travel programme compliance. With very few exceptions, travel providers continue to choose to use GDSs because they provide superior efficiencies and have invested heavily to deliver the systems and technologies needed for travel agencies to attract and service high-yield customers. A GDS platform also offers a cost-effective means of accessing geographies where a travel provider s market penetration is low (for example, outside its Home market) by using local travel agencies to reach end consumers. Evolving needs of our industry Globalisation and technology are shifting the needs of the travel industry, redefining their requirements of GDSs. While traditional GDSs often fall short in addressing these evolving needs, Travelport is redefining travel commerce through its Travel Commerce Platform unique in the GDS space. It uses the merits of the traditional GDS as a base but offers enhanced functionality to address the new and changing needs of travel providers and travel buyers. Such needs include: enabling all airlines to distribute all of their fares and ancillary services, and market them through the travel agency channel, as they choose; expanding the number of hotel properties bookable through our Platform; and building an improved corporate travel proposition based on empowering technology and tailored corporate travel content. Our differentiated approach We have developed a unique platform-based approach to enable value creation for our travel provider customers, and widespread availability for travel buyers. By investing in the technology that underpins our Platform, we have vastly expanded the content available to travel buyers, while at the same time enhancing the functionality and effectiveness of our point-of-sale applications. Our approach enables travel providers to benefit from the distribution of their entire value proposition, for travel agencies to attract more consumers onto their websites and through their doors, as well as cross-selling higher value-adding hospitality products. And, of course, we benefit ourselves from the growth of same-store sales, or RevPas as we call it that is, the average amount of revenue we earn from each segment sold through our Platform. The extensibility of our Platform means that, with relative ease, we are able to address other unmet customer needs for example our pioneering payment solution, enett Virtual Account Numbers (VANs), which enables automated and safe payments between travel agencies and travel providers. The diagram below illustrates our role in global travel commerce as a provider of high value, real-time distribution services: Travellers Leisure Business Travel buyers Travelport Travel providers Online travel agencies Offline travel agencies Travel management companies Corporations Tour operators Meta-search Value to travel buyers Expanded addressable customer base and customer offering Efficient workflow automation and improved sales productivity Reduced operating costs Improved operational efficiency of highly complex/high volume operations Real-time access to content and ancillaries Secure and efficient B2B payment solutions Travelport Smartpoint our proprietary state of the art point-of-sale application for travel agencies and travel management companies Value to travel providers Extended distribution reach beyond Home markets Higher yielding ticket prices Innovative ancillary products/ services distribution and marketing channel Improved operations efficiency of highly complex/high volume operations Significant value for money Secure and efficient B2B payment solutions Airlines Hotels Car rental Rail Cruise Tour operators A typical agency user interface for a traditional GDS system We also enable automated and safe payments between travel agencies and travel content providers using Virtual Account Numbers (VANs), providing an alternative to previous manual payment methods. Supported by the sheer scale of our business and its geographic coverage, we have brought the historical GDS model and value chain well and truly into the 21st century. We re redefining travel commerce and, in so doing, driving value creation in the travel industry. DID YOU KNOW... Our travel agency customers include online, offline, corporate and leisure travel agencies. In our 2014 financial year, around 20% of our revenue was derived from online travel agencies (OTAs) and we estimate the remaining revenue was split evenly between leisure and business. Two of our largest OTA customers, by revenue, in 2014 were Priceline and Expedia i

6 04 Travelport A Platform for growth 05 Travelport: Case About studies us Truly differentiated from our competitors We believe that several aspects of our approach to travel commerce fundamentally differentiate us from our competitors. These include: our focus on redefining air distribution and commerce, enabling our airline customers to distribute all of their fares and ancillary services, and market them through the travel agency channel, exactly the way they choose; our fast-growing Beyond Air portfolio, including our industry-leading hotel content and our automated B2B payments solution with a large addressable market; and our emphasis on a value-based partnership approach with travel providers and travel buyers alike, that allows us to increase the revenue and profitability of every segment sold. 1. We operate a differentiated Travel Commerce Platform approach to address the evolving needs of the travel industry Our Travel Commerce Platform simplifies highly complex, high-volume operations, offering travel providers a flexible way to: (i) extend their distribution by broadening their geographic reach to Away markets; (ii) access higher yielding ticket prices from long-haul segments, room rates, complex itineraries and business travellers; and (iii) encourage travellers to purchase ancillary services and/or upgrade or upsell travellers through our highly-differentiated merchandising platform. Its global reach allows travel providers to display and sell products in over 170 countries and across over 67,000 travel agency locations. Furthermore, as travel industry needs have evolved, we have utilised our Travel Commerce Platform to extend our reach into the growing world of travel commerce beyond air, including to hotel, car rental, rail, cruise-line and tour operators. We have also designed a unique and pioneering B2B payment solution that addresses the need of travel agencies to efficiently and securely make payments to travel providers globally. 2. We are the partner of choice for low-cost carriers (LCCs) and the distribution of airlines ancillaries Over the past three decades, LCCs have become a substantial part of the air travel industry. Their share of global air capacity has risen from 13% in 2004 to 26% in LCCs have traditionally relied on direct distribution, but are increasingly targeting the indirect channel to grow their Away bookings, reach leisure travellers seeking complex itineraries booked through travel agencies, and most importantly increase their access to business travellers who use corporate booking tools accessible through GDSs. This has attracted and allowed for the full integration of several LCCs such as AirAsia, easyjet, Ryanair and Spirit Airlines into our Travel Commerce Platform. Unlike a traditional GDS, we provide XML connectivity and full merchandising capabilities so that LCCs and network carriers alike are able to distribute their entire value proposition via the indirect channel. This is especially valuable given the increasing importance of ancillary revenue for airline profitability. Our Travel Commerce Platform aggregates content from the world s leading travel providers and delivers it to travel agencies, corporations and third-party developers who write consumerfacing applications 3. We have industry-leading hospitality content Based on our internal estimates, we offer the largest inventory of hotel properties of any travel distribution business in the world, including both chain and independent hotels. Until now, independent hotels were largely unaddressed by the GDS industry. Our B2B solution for independent hotels, Travelport Rooms and More, is a single-user interface that captures highly fragmented content and includes over 550,000 unique hotel properties. We are also well positioned to address the corporate hotel booking channel through our acquisition of Hotelzon in May In addition, we serve approximately 35,000 car rental locations and 61 cruise-line and tour operators. 4. We have the most balanced global footprint, aligned with global growth areas We believe that we are the most geographically balanced participant in the travel distribution industry. In 2014, we generated more than $2bn in revenue, of which 68% was international 20% from Asia Pacific, 30% from Europe, 4% from Latin America & Canada and 14% from the Middle East & Africa and 32% from the United States, closely mirroring the total GDS-processed air segments globally. This geographically dispersed footprint helps insulate us from country or regional instability, and enhances our value proposition to travel providers as we are able to capture higher value business from travel providers operating in Away markets. Our Platform INDUSTRY STANDARD DIRECT CONNECT XML Travel Commerce Platform 5. We have designed a pioneering B2B payment solution, enett Virtual Account Numbers (VANs) enett is an automated B2B payments solution for travel agencies and providers, replacing cash and other payment methods with secure, virtual and pre-funded payment cards. It offers a strong value proposition to travel agencies and travel providers, including full flexibility, elimination of credit or bankruptcy risk, lower administrative costs due to significantly reduced time spent on reconciliation, and a lower spread for foreign currency payments. We estimate that there is over $2 trillion of direct spending on travel annually, around $810bn of which is booked through the indirect channel, and payment is made from travel agencies to travel providers. This is the opportunity that enett is addressing. 6. We have developed an innovative, flexible and scalable open technology Platform We have made significant strategic investments in innovative technology over the last four years, and we continue to invest in developing new technologies, platforms and ideas. Our open and accessible Platform allows us to pull together content delivered from multiple sources into a cohesive display for the travel buyer, enabling search, comparison, reservation and payment across multiple providers. We deliver our expansive content and functionality through our multi award-winning Travelport Smartpoint and Travelport Universal Desktop point-of-sale applications, and via Travelport Universal API, which enables flexibility for travel agencies and intermediaries to design customised user interfaces. Our point-of-sale tools are device agnostic, allowing our customers to access our Platform via an internet connection on a desktop or a variety of mobile devices, such as smartphones and tablets. AGENCY CORPORATE MOBILE DEVELOPER Priority

7 06 Travelport A Platform for growth 07 Travelport: Case About studies us A highly attractive financial profile The Travelport Travel Commerce Platform has a distinct set of financial attributes which we believe make it a highly attractive proposition. It is a transaction-based model not linked to the selling price Travel providers generally pay us only when we provide them with an air booking, a hotel reservation or a car rental booking so this is a classic transaction-based model where we are not exposed to the selling price of the air ticket or hotel room sold. which means we are protected against economic downturns Hence, Travelport delivers a consistent performance even when there is a challenging macroeconomic backdrop or downturn. We enable a higher quality of booking compared to direct channels Travelport s focus on corporate travel, high-end leisure travel and international bookings means that the average transaction value received through the Platform by our airline, hotel and car rental customers is generally higher than their own direct channels. at a fraction of the cost As a cost of sale, the fees Travelport receives from the travel product provider are at an average cost of approximately 2% of the ticket or room night value. Our revenues are highly recurring and predictable We have a highly visible revenue stream as some 70% of our travel providers and travel agencies are contracted for more than one year ahead. No customer accounts for more than 10% We have thousands of travel providers providing content to our Platform, yet none is greater than $5.70 RevPas the average revenue earned per Reported Segment sold through our Platform in m Reported Segments the number of travel provider air and hospitality segments sold through our Platform by our travel agency network in % of our revenue. Similarly, no single travel agency accounted for more than 10% of the segments which underpin our revenue, meaning our customer base is highly diversified. Our Platform is truly global and balanced regionally With a distribution network of 67,000 travel agencies across over 170 countries, we are the most geographically diverse and balanced travel distribution business in the world. Our global footprint provides a natural mitigation against region-specific factors which may impact the supply of and demand for travel. We continue to invest in our Platform s capabilities We target 7% of our annual revenue invested in capital expenditure around half of that is investment for growth as we accelerate our development of new capabilities, features and functionality to enhance the Platform further to support new trends in merchandising and to grow our RevPas. We have a strong and secure capital structure We have established a long-term sustainable capital structure, with a significantly reduced interest bill following a $1bn reduction in net debt in Our term loan debt does not mature until 2021, which means that our balance sheet is stronger and more secure. and excellent free cash flow generation With low capital intensity and a much reduced debt burden, we are well placed to generate significant free cash flows as we move forward. $2,031m Total net revenue generated by our Travel Commerce Platform in 2014 Momentum in our core area of focus Travelport s Travel Commerce Platform generated revenue of over $2bn in 2014, of which 68% was from outside the US, making us the world s second largest travel distribution business by revenue. In fact, we were some 9% larger than the number three GDS on this metric (compared to 4% larger in 2012). The Travel Commerce Platform represents 95% of our total revenue. We also have a small Technology Services (or what some people call an IT Solutions) channel, which in 2014 generated a further $117m in revenue. A significant element of this operation is the service we provide to Delta Air Lines to operate and run, in our data centre, their mission-critical reservations, inventory and operational systems without which no Delta flight could operate. We signed a new long-term contract with Delta for these services in the first half of Our strategic focus, however, is on our Travel Commerce Platform which enables the sale of traditional airline tickets as well as their ancillary and merchandised products and offers. But it also includes what we call Beyond Air which represents a considerable opportunity, in particular in hotel and car hire distribution, B2B digital media advertising and B2B payments. Today 79% of our Travel Commerce Platform revenue comes from Air and 21% from Beyond Air (up from 19% in 2013). Beyond Air is our fastest growth area growing at 14% in Up to the end of 2014, Travelport achieved 10 consecutive quarters of total revenue growth, 10 consecutive quarters of Adjusted EBITDA growth and 12 consecutive quarters of growth in what we call RevPas the average revenue we earn per segment booked in our system. This measure takes into account not only the volume of transactions including car and hotel segments as well as air but also the impact of geographical mix, as well as the growth of the rest of our Beyond Air portfolio, which includes payments Net revenue by channel: 2014 Travelport Commerce Platform revenue by geography: Key financials Year ended December 31, $2,031m Travel Commerce Platform: 95% $117m Technology Services: 5% Travel Commerce Platform comprises: $1,607m: Air: 79% $424m: Beyond Air: 21% 20% Asia Pacific 30% Europe 4% Latin America & Canada 14% Middle East & Africa 68% International 32% United States Net Revenue ($m, unless stated otherwise) Air 1,607 1,588 1,548 1,577 Beyond Air Travel Commerce Platform 2,031 1,959 1,874 1,860 Technology Services Net Revenue 2,148 2,076 2,002 2,035 Travel Commerce Platform revenue as a % of net revenue 95% 94% 94% 91% % of Air segment revenue from Away bookings 62% 62% 60% 58% Beyond Air revenue as a % of Travel Commerce Platform revenue 21% 19% 17% 15% International revenue as a % of Travel Commerce Platform revenue 68% 68% 66% 64% enett revenue Travel Commerce Platform Reported Segments and RevPas Reported Segments (millions) International RevPas $6.98 $6.81 $6.55 $6.32 United States RevPas $4.10 $4.07 $4.03 $4.02 Travel Commerce Platform RevPas $5.70 $5.60 $5.40 $5.24 Other Key Metrics ($m, unless stated otherwise) Adjusted EBITDA Adjusted Net Loss (11) (48) (80) (96) Unlevered Adjusted Free Cash Flow Capital Expenditure Adjusted EBITDA margin % 25.1% 24.9% 24.7% 24.6% Capital Expenditure as % of net revenue 6.7% 6.1% 5.4% 4.5%

8 08 09 Travelport A Platform for growth Travelport has undergone a tremendous transformation, with a substantively strengthened Travel Commerce Platform able to truly make travel merchandising real. With nearly $90bn transacted across our Platform in 2014, teamed with a significantly improved financial structure, it is clear we have the foundation necessary to continue growing our business. Gordon Wilson President and CEO Aboutstudies us Travelport: Case Our journey to redefine travel commerce For the past several years at Travelport, we have observed a few core trends within the travel and tourism industry: In particular, we knew that as competition within the airline industry increased, the best travel platform would require a robust offering of low-cost carriers (LCCs). First, it remains clear the degree to which travel and tourism will remain one of the world s largest industries, with well over $8 trillion in spending in 2014 helping to support approximately 1 in 11 jobs globally and nearly 10% of global GDP. Further, this industry is expected to grow at a 4% CAGR through 2025, which given its size translates to an $11 trillion market and presents attractive growth opportunities for a company like Travelport. By deeply integrating these traditionally consumer focused businesses into a distribution platform tailored to maximise reach within the business travel community, we have done just that with leading LCCs including AirAsia, easyjet, Ryanair and Tigerair already signed up on the Platform. Second, while the industry is growing at a respectable rate, there is also intensifying competition among travel providers. To fully appreciate the impact of this competition, it is important to understand a few of the drivers for this. Namely, as customer demands and expectations trend higher, so too do the travel providers need to expand beyond simply booking singular itineraries, with only one airline seat or hotel room. In contrast, providers have sought to sell better, more powerful experiences in an effort to expand their value proposition to increasingly global customers. As a tremendous illustration of this dynamic, Delta Air Lines alone has recently indicated a goal to seek a further $1.5bn by 2018 from new product sales, including from ancillary services such as seat upgrades, in-flight internet, etc. These two dynamics translate to a conclusion that a traditional GDS is nearly incompatible within this evolving marketplace. With a linear focus on distributing airline seats in isolation, a traditional GDS is unable to readily and easily build a traveller s itinerary, including the nearly dozens of items a modern-day trip now comprises. Platform and Strategy By understanding these broad developments, Travelport has been busy at work redefining travel commerce with a significantly improved Travel Commerce Platform. This Platform does not just provide industry-leading content, but also directly enables travel providers to present their unique value propositions to customers. Our reach extends even further when looking at Beyond Air the services we provide to non-airline travel providers such as hotels, car rental services, rail and cruise-lines. As of the end of 2014, we boast over 650,000 unique hotel properties bookable on our Platform, a number that is broadly triple the size of our main competitors. The power of our Travel Commerce Platform is best seen in two important areas: First, this large collection of content is not just impressive in isolation. The key is the way our Platform enables these parts of an individual s itinerary, which were previously considered as seperate silos, to be booked at once, in one place. A vacation, for instance, is not only your airplane seat, but also your hotel room and rental car, among others. This approach aligns us closely with our travel provider customers vision of selling an experience. Second, to fully realise this value proposition requires a Platform that allows travel providers to cross- and up-sell in a way that aligns with their brand and approach. Truly realising this vision can only be done by enabling airlines to sell their content, their way including raising their value proposition from a single alphanumeric line of text, which is how our industry had shown flights for over 40 years. $580m Strategically invested in our Platform since 2012, with a clear focus on redefining travel commerce

9 10 Travelport A Platform for growth 11 Travelport: Case About studies us Our journey to redefine travel commerce continued Since 2011, by listening to our customers and having a fundamental understanding of the industry, we have sharpened our strategic focus to ensure that our Platform is developed within this modern travel reality. In 2014, I am proud to say that we took the biggest step to date in achieving our goals. In particular, we have significantly expanded the breadth and depth of our offering. We have done this through a series of very important and notable additions and improvements to our Travel Commerce Platform. Most recently in November, we launched the latest version of our leading point-of-sale application, Travelport Smartpoint, which tightly integrates our Rich Content and Branding capabilities. This multi award-winning application enables our airline customers to not only sell their ancillary services, but to promote their entire product value and brand propositions, with over 100 airlines already signed up to date. As our customers increasingly improve their product portfolios and seek to push that content out to their own websites, with Travelport Smartpoint we enable our customers to activate that same content in their indirect selling channels. Travelport is now one of the only partners that enable a new set of product offerings to be shown, explained and transacted to any travel agency customer around the world. This is truly merchandising made real that aligns with our customers strategic goals. It is a reality today but only with Travelport. Along similar lines, we have also made meaningful progress in Beyond Air, the fastest-growing part of our business. During the latter half of last year, we integrated our Travelport Rooms and More shopping and booking engine into Travelport Universal API, the vehicle through which third parties who want to write their own front-end user experience can access our content and functionality. 122 million Number of airline tickets issued in 2014, up 2% from 2013 Examples of such clients include online travel agencies (or OTAs as they are known), the providers of corporate self-booking tools, and a myriad of other app developers seeking to offer real-time travel capabilities. Travelport Rooms and More provides multiple rates from multiple providers at independent hotel properties around the world. Adding this capability to Travelport Universal API means that, through one source, our customers can now access and book in real time an industryleading over 650,000 individual hotel properties with multiple offers of rates and prices. Finally, we also made a few notable investments to further strengthen our Platform: First, we acquired Hotelzon, whose technology enables individual hotel properties to load rates for a specific corporate client and then distribute these rates to the corporation, or TMC serving that corporation. Since its acquisition in May 2014, we have been diligent in expanding this business to additional locations, including Denmark, Norway, Portugal and Ireland. And we will continue to bring this capability into a number of other countries in 2015 as we drive up the customer base. Second, we acquired leading German tour operator distribution company, travel-it. This business enables the real-time search and booking of both static and dynamically-packaged tours from all the key tour operators servicing the German leisure travel industry, which we believe is the largest outbound leisure industry in Europe. To give an idea of scale, travel-it is populated with some 50 billion records of tour operator-offered content a record being a dedicated offer of either a hotel room or a dedicated flight or a dedicated package. Of course, a core component of our business that substantively differentiates Travelport is our business-to-business payments operation, enett International. There continues to be an extremely positive outlook for continued growth here as signed customers are on-boarded and existing customers, especially the large online travel agencies, ramp up their usage of enett s Virtual Account Numbers (VANs) as a means to pay their hotel suppliers, in particular. Furthermore, all indications are that the growing trend for experiential travel, especially on a short break basis, will cause consumers to book more of the type of hotel and other products which lend themselves well to the enett model in terms of how the retailer of the travel product onward pays the hotel or other product supplier. Performance and Growth Given these significant improvements to our Platform, there have been meaningful advances in our financial performance. For the past ten consecutive quarters, we have been able to grow both top line revenues and our bottom line Adjusted EBITDA, with over $2.1bn in net revenue and $540m in Adjusted EBITDA for full year But beyond these headline figures, we have also been able to make substantive progress in the figures we watch most closely, which clearly show how the advancements we are making to our Platform are translating into financial performance. For instance, we have seen notable increases in our customer attachment rates. That is, the average number of hospitality bookings made per airline tickets issued. These grew from 41 such bookings per 100 airline tickets issued in 2013 to 43 per 100 airline tickets issued in This in turn is driving more value to the travel providers we serve almost $90bn in the year, more than many leading global e-commerce marketplaces, including ebay. With this level of commerce being transacted across the length of the Platform, we saw a 2% increase in 2014 in RevPas, or revenue per segment. This increase in same store sales demonstrates how we are not only growing new customers, but also the traction we are gaining with all customers through our leading Air and Beyond Air offering. $1bn Reduction in net debt to $2.3bn at the end of 2014, representing a multiple of 4.2 times our Adjusted EBITDA for 2014 Of course, in addition to our solid operating performance, during the year we were also able to realise substantial improvements to our capital structure and balance sheet. In particular, our completed initial public offering, divestiture of our ownership in Orbitz Worldwide and various debt-forequity exchanges, have significantly improved our leverage by more than two full turns of Adjusted EBITDA from 6.5 times at the end of 2013 to 4.2 times, with net debt down 32% to $2.3bn at the end of The confluence of these trends translates to substantively improved free cash flow generation, allowing us to further invest in and grow our business. Looking ahead There are a number of other milestones I could mention but when you add all this up, Travelport has entered into 2015 in a fundamentally better position than it entered We have the substance to truly redefine travel commerce. We are on the front foot and being recognised by our customers, our investors and our industry as being the leading innovator in travel technology and distribution. None of this would have been achieved without a massive amount of hard work, dedication and focus across the entire organisation. I thank our entire team sincerely for the contribution that has been made. We are at the forefront of a fascinating era for our industry and I look forward to continued and sustainable success as we put further momentum under everything we have built together and deliver to our full potential. Gordon Wilson President and CEO

10 12 Travelport A Platform for growth 13 Travelport: Air Unrivalled geographic coverage Historically, our industry has used the volume of air bookings made in GDS systems as the key measure of success. This is outdated for two core reasons. First, while the volume of air segments is important, so is the volume of hotel and car rental bookings and other services. In recent years, as the value to travel providers and travel buyers of non-air bookings has increased vastly, Travelport has been a clear winner in this space, growing its non-air segments at a compound annual growth rate of 4.3% between 2011 and 2014 (compared to our competitors who have either been flat or negative). Second, not all air segments have the same value. The value of a segment can depend quite significantly in many cases on the geographic origin of the booking. As you can see from the chart to the right, across all the major global GDSs, 31% of air segments are booked by travel agencies located in Europe, 31% in the United States and 17% in Asia Pacific. The second chart demonstrates that Travelport s air bookings are closely aligned to this global travel landscape. The point is, we are meaningful in all major geographies not just in one or two of them. For example, even using the simple measure of GDS air bookings, Travelport is the second largest GDS in the United States, Europe, and the Middle East & Africa. Indeed in the two largest regions by bookings, the United States and Europe, we are at least 75% bigger than the third player GDS in each region. Our geographic coverage is unrivalled in our space. This means that when we work with either our travel content provider customers or our global travel agency customers, Travelport can deliver service and reach to them virtually anywhere in the world at scale. Total GDS industry air bookings by geography (in 2014) 31% United States 31% Europe 11% Latin America & Canada 17% Asia Pacific 10% Middle East & Africa Travelport air bookings by geography (in 2014) 39% United States 26% Europe 5% Latin America & Canada 19% Asia Pacific 11% Middle East & Africa Source (both charts above): Travelport Marketing Information Data Tapes (MIDT), based on GDS air segments processed in GDS industry data includes Abacus, but excludes Travelsky and other regional GDSs. Leading exposure to high growth international regions... At present, the largest increase in passenger fleets around the world is coming from international airlines in Asia Pacific and the Middle East. Travelport s balanced global footprint and strong presence in these regions therefore perfectly aligns us to geographies where growth will be the strongest. The majority of Travelport s Travel Commerce Platform revenue is generated from outside the United States and that proportion is increasing. In 2014, 68% of our revenue was generated from international transactions that is, they originated in countries other than the US. This is up from 64% in 2011 as we have expanded our global footprint and indeed our revenue from international bookings has grown at a compound annual rate of over 5% since and a focus on higher value Away sales in Air In the Home market of an airline, where their brand is strong, the level of direct booking by customers (for example, via the airline s website) is higher than it is outside the airline s Home market particularly for leisure customers. But in countries outside the Home market of the airline, carriers need relatively more help with their distribution. We call these Away markets and they include countries that are at the other end of the routes to which a carrier flies and/or countries that it doesn t fly to but in which it seeks to develop business. Travelport is able to price transactions in Away markets at more of a premium than bookings made in Home markets reflective of their value to the airline. Last year, some 42% of all the airline bookings we made for our airline customers were for Away segments. But these Away segments represented 62% of our total air segment revenue. The depth and balance of the global footprint that we have provides us with a greater ability than some of our competitors to efficiently deliver more of these higher-yielding Away segments to our airline customers. For example, two of the biggest contributors to the increase in global airline capacity, Etihad Airways and Qatar Airways, have two-thirds of their passengers connecting through (rather than originating in) their home countries, which have small Home markets. So, they fill their existing and planned capacity increases largely from the Away markets they serve or seek to be sold in. The geographical origin of an air booking also has a major impact on revenue. To illustrate this, our air business originating in the US represents 39% of our total air segment volumes. Yet in revenue terms, the US represents only 25% of our total air segment revenue. The key reason for this is a feature of our price and value equation which we characterise as Home and Away. 68% of our Travel Commerce Platform revenue is from international bookings By volume % of total Air Segments By value % of Air Segment revenue JARGON BUSTER 170 We serve over 170 countries globally Travelport Away Segments in % 62% The graphic above illustrates our focus on high-yielding Away segments whilst only 42% of our Air segments sold are in Away markets, they generate 62% of our Air segment revenues What are Away bookings? Away bookings are bookings made by travel buyers located outside the travel provider s home country. Travel providers, such as airlines, value Away bookings because we provide access to demand in regions where the airlines brands are weaker?

11 14 Travelport A Platform for growth 15 Travelport: Air Transforming air merchandising Our focus is on enabling our airline customers to increase the revenue they earn per seat sold. We have done this by listening to these customers and redefining this piece of the travel commerce equation as a result of the investments we have made....to an intuitive merchandising platform This, on the other hand, is Travelport s latest travel agency point-of-sale application, Travelport Smartpoint. It enables airlines who subscribe to our Rich Content and Branding to detail what the traveller will get for their money, what optional extras such as seat assignments or checked bags they could add, and what an upgrade might cost. The difference between Travelport Smartpoint and the standard GDS is night and day. To date, over 100 carriers have signed up to Travelport s Rich Content and Branding including airlines such as United Airlines, British Airways, Air China, Ryanair and easyjet. Travelport has responded to the needs of airlines both LCCs and network carriers to redefine the way in which their value proposition is delivered to the travel agency and corporate travel channel through which they seek to sell. The content, devices through which it is sold, and the airline needs, have all evolved and Travelport has evolved with them and for them Airlines signed for Rich Content and Branding, with over 60 airlines content already live in Travelport s point-of-sale applications (as of April 2015) A smarter choice! Travelport Smartpoint is intuitive and easy to use. This means less time training, and more time selling for agents Travel agencies can offer customers more travel choices, convert more sales opportunities, and can sell more airline products and services more often Travel agents can book full service airlines and low-cost carriers side-by-side, and sell hotel rooms and car hire with ease It is available in more than 170 countries From legacy desktops... This is a traditional GDS screen showing how the industry has presented airline products for well over 30 years. This worked well for booking, pricing, amending itineraries, billing and invoicing. It is somewhat similar to a Bloomberg terminal and just as fast. However, effectively the screens reduced the airline s product offering to a line of alphanumeric text detailing the flight schedule, availability by booking or fare class and the type of airplane used. Furthermore, third parties can write to the Travelport Universal API in order to obtain all of Travelport s travel content and functionality which they can then incorporate into their own applications. This is, essentially, how we interface into our major online travel customers as well as the world s leading corporate travel self-booking tools alongside thousands of Android and ios-based applications focused on the end consumer. The image above is a traditional GDS cryptic, alphanumeric screen displaying airfare and seat assignment choices for a flight between Sydney and London The image above shows Travelport Smartpoint s innovative point-of-sale application, with an intuitive Graphical User Interface (GUI) and interactive seat map displaying choices for a flight between Sydney and London JARGON BUSTER What is Rich Content and Branding? Travelport Rich Content and Branding is a solution within Travelport s point-of-sale applications which allows airlines to more effectively control how their flights and ancillaries are visually presented and described on travel agency screens, aligning to the airlines value proposition and bringing the display more in line with airlines own websites?

12 16 Travelport A Platform for growth 17 Travelport: Air Enabling a revolution in airline ancillary distribution Airline ancillaries are a key area of focus and value creation for our airline customers. This is a major growth opportunity for airlines, with some already generating over 20% of their revenue from selling these services. Most airlines, however, have barely scratched the surface of the potential in this area. Ancillaries are services such as seat assignment, extra baggage, change requests, wi-fi, and lounge access. It is estimated that fees for such ancillaries generated some $50bn in revenue for the world s airlines in This is predicted to increase to $67bn by Several of the world s leading airlines network carriers and LCCs alike have already laid out ambitious goals to capitalise on the full value of this opportunity. $50bn Generated in revenue, through sale of ancillaries by the world s airlines in % Growth in revenue from the sale of ancillaries by the world s airlines, between 2008 and 2014 The image to the left is a graphical matrix indicating ancillary options for a selected air fare. The matrix displays ancillaries included within the fare, plus those as chargeable additional services. These ancillaries appear within the agents workflow The images to the right show a split-screen of Travelport s industryleading Travelport Smartpoint and Travelport Universal Desktop pointof-sale applications. The image from Travelport Smartpoint (left-hand side) displays Delta s new Delta One branded fare with Rich Content and Branding applied, which enables airlines such as Delta to differentiate their product offerings from the competition, as they would on their own websites. The Travelport Universal Desktop image (right-hand side) shows fare options for a flight search, with a hover-over pop-up box displaying the benefits and price associated with an up-sell Focused on value creation It is for this reason that Travelport has invested in merchandising capabilities that include the sale of ancillary services as well as Rich Content and Branding to enhance the airline value proposition. Travelport Ancillary Services allow travel agencies to sell airline ancillaries, such as checked baggage, premium seats and lounge passes, directly through their existing interface rather than needing to book separately on an airline s website. This is especially valuable to airlines given the increasing importance of ancillaries to revenues and profitability. It was LCCs who first developed the ancillary revenue model, and they attribute a far greater proportion of their overall revenue to this aspect of their business. They therefore see Travelport as an attractive distribution partner to them because of our capabilities in this area. Travelport gets paid by the airlines whose products it distributes on a fee per transaction basis. But the size of the fee depends on factors such as the geographical origin of the booking and the ancillary services attached to the base flight reservation. Our merchandising capabilities create value for airlines through: differentiating their products and services from their competitors building awareness of their brand and product offerings maximising their ability to realise the full revenue potential of the ancillaries opportunity 50+ Types of ancillary services that we currently distribute on behalf of our airline customers

13 18 Travelport A Platform for growth 19 Travelport: Case studies Creating value for airlines Managing the business traveller Our experience working with Travelport and the TMC community has been very positive. We engaged with global distribution systems in order to reach the corporate managed traveller and Travelport has enabled us to do this, while increasing our yield per seat. Our strategy going forward is to build and grow this relationship. Anthony Drury Head of Business, easyjet Extending our product offering and reach Delta Air Lines provides more than 5,400 flights a day in 64 countries on six continents and serves around 170 million customers each year. Delta is also a long-term strategic partner of Travelport, with ticket sales of $8.4bn through our Platform last year. In 2012, Delta made a strategic decision to compete with low-cost carriers and introduced a new Basic Economy branded fare offering cheaper flights, but with fewer flexibility options in order to attract customers that had flocked to increasingly popular discount airlines. In December 2013, they also introduced a new (ancillary) product called Economy Comfort (recently rebranded as Delta Comfort+), reflecting changing consumer behaviour. Travelport combined standard fare distribution with our innovative API through Travelport s Smartpoint point-of-sale application. This enables Delta to sell its Economy Comfort (now Delta Comfort+) product via travel agencies worldwide in the same way it is sold on Delta.com. Travelport s unique Rich Content and Branding and Graphical Seat Map functionality allows agents to experience the cabin in its entirety, in exactly the same way as travellers would on Delta s own website. In contrast to legacy GDS operators, Travelport enables the value proposition behind each of Delta s products to merchandise themselves right at the point of booking. This results in agencies being able to: Illustrate Delta s product offering in detail with imagery and marketing text, replicating Delta s own website for brand consistency. Differentiate the product offering based on sales needs. Rich Content and Branding enables Delta to effectively communicate the features of their products to travel agencies all over the world. Facilitate upselling opportunities, whereby agents can easily compare Delta s products and their attributes, alongside price options, to better inform travellers and help meet their needs. One of the main strategic priorities for easyjet, one of the world s top 10 airlines by passengers boarded, is to significantly increase its share of the business travel industry, specifically the managed business traveller sector where travel requirements are coordinated through retained corporate travel agencies. As a new sector for easyjet, it offers both strong growth potential and the opportunity to realise higher average ticket prices. But to realise these benefits, easyjet required visibility on industry-wide booking platforms. Travelport s strong presence in key easyjet geographies, exposure to the corporate channel, and its industryleading commerce platform were a perfect match to enable easyjet to achieve its goals. Travelport s Travel Aggregated Shopping solution meant that easyjet could be inserted into travel agents availability screens, allowing easyjet to effectively compete for managed business traffic for the first time. Travelport s innovative API connectivity and Rich Content and Branding functionality enabled easyjet to tailor their content to be agent-specific and truly convey their value proposition to agents. With this new access to the managed business traveller sector, empowered by Travelport, easyjet is enjoying significant growth in booking volumes from the indirect channel, whilst also benefiting from higher yields per seat. Delta One/ First Class Delta Comfort + Main Cabin/Basic Economy Travelport and Delta are continuing to closely collaborate. Delta s newest branded fares Delta One/First Class, Delta Comfort+, Main Cabin and Basic Economy have just been launched into the marketplace via Delta s direct channels and, at the same time, with Rich Content and Branding via Travelport Smartpoint. This is truly merchandising made real today but only with Travelport. 74% Growth in easyjet s booking volumes through the Travel Commerce Platform (over the 12 month period ended September 30, 2014) DID YOU KNOW... We were the first travel distribution business to service all of the world s top 10 airlines (by passengers boarded) i

14 20 Travelport A Platform for growth 21 Travelport: Beyond Air Extending the Platform beyond air Alongside our industry-leading air distribution and merchandising solutions for our airline partners, our Travel Commerce Platform also has a distinct and differentiated focus on travel commerce beyond air, including hotel and car rental distribution, B2B digital media advertising, and our pioneering B2B payment solution (which we cover in detail on pages 24 and 25). Extending the platform to hotels and car rental... Independent hotels Outside of North America, chain hotels account for less than 20% of all hotel properties, and in Europe and Asia in particular there is a much larger independent or non-chain hotel industry. Travelport has therefore invested in meta-search technology, so that our travel agency customers can now see, compare and book all the hotel content offered by major hotel distributors such as Priceline and Expedia in addition to the chain hotels traditionally offered by the GDS. What we have created which is unique to our industry is the equivalent to a Kayak or Trivago, but for the B2B space that we specialise in. The result is that we have increased the number of individual hotel properties available on our Platform from around 100,000 in 2011 to over 650,000 in We believe this figure is the largest in the B2B sector by some considerable margin. Each travel agent now has a comprehensive range of choices for his or her customer. In addition, we have also been able to integrate into our system independent hotels which offer private negotiated rates to corporations who book regularly with them. Our acquisition of Hotelzon in May 2014 enables us to offer corporate hotel bookings in the independent hotel sector (see pages 22 and 23 for further details). We plan to significantly grow this travel commerce capability, particularly in international regions where there is much more hotel fragmentation than in the United States. Car rental, cruise-lines, rail networks and tour operators Our relationships with travel providers extend significantly beyond airlines and hotels. We distribute car rental products for brands such as Avis, Dollar, Enterprise, Hertz and National from around 35,000 car rental locations, with 85 million car rental days sold through our Platform in We also serve 61 cruise-lines and tour operators, and 12 major rail networks worldwide. Furthermore, at the end of 2014 we acquired a majority stake in a leading German tour operator distribution company, travel-it. This business enables real-time search and booking of static and dynamically-packaged tours from the key tour operators servicing the German leisure travel industry, which is delivered into travel agency retail outlets in Germany as well as through API connections for online agencies. These are further examples of how the content, geographic reach and extensibility of our Platform is driving significant value for our travel provider and travel agency partners. * A hospitality segment refers to one complete hospitality booking. For example, a five night hotel stay equals one hospitality segment. Hospitality includes hotel, car, rail and other non-air bookings. 63 million Number of hotel room nights sold through our Platform in 2014, up 4% from million Number of car rental days sold through our Platform in 2014, up 12% from Number of hospitality (or non-air) segments* sold for every 100 air tickets issued in 2014 (which has grown from 34, in 2010) 14% Beyond Air revenue growth in Beyond Air revenue in 2014 of $424m included $67m related to enett, whose revenues grew by 49% in 2014 Hotel chains There are some 27 million hotel rooms to be filled every night across the world. Around a quarter of these rooms go unsold with even the big chains only managing occupancy of around 65%. While big hotel chains possess the size and scale to market and sell their rooms to potential guests worldwide via direct channels, Travelport s global reach through 67,000 travel agency customers, can add significant incremental value when it comes to increasing occupancy rates. And a fee is only payable to us when a booking is made. More importantly, the Average Daily Rate (ADR) that hotels achieve through our Platform is on a par with bookings from hotel call centres the highest type of revenue-generating bookings that hotels achieve today. The difference is that bookings via Travelport come at a significantly lower cost. We have around 100,000 chain hotel properties fully bookable on our Platform, and last year we delivered over 63 million room nights to our hotel customers, up 4% from While this is good, we see enormous scope for further growth....accessed through the same intuitive Platform, offering advertising opportunities Digital media advertising We operate across 170 countries, with our proprietary browser and app-based point-of-sale applications linked to some 259,000 travel consultant desktops. This creates an opportunity for travel content providers to advertise their products on our prime digital real estate. Our technology can ensure that advertisements for a particular hotel can appear on screen when a travel agent conducts a flight search for the destination city of the hotel property. Similarly, where an airline is keen to promote a particular routing, or to announce a new route or service, we can serve up an advertisement detailing that airline s alternative service, product or price. We have some 5,000 advertisers on any given day, seeking to influence our global network of travel agencies. DID YOU KNOW... With over 650,000 unique hotel properties bookable through our Platform, this represents more bookable properties than either of Expedia and Booking.com i

15 22 Travelport A Platform for growth 23 Travelport: Case studies Hotelzon innovative solutions for corporate hotel bookings Creating value for corporate customers Travelport has addressed how independent hotels which offer private negotiated rates can sell to corporations and the Travel Management Companies (TMCs) that those corporations might use. For years, Travelport has distributed the rooms of large hotel chains to corporations and TMCs. However, the independent hotel sector which in our estimation makes up over 80% of all hotel properties outside of the United States was largely unserved in this regard, often resorting to handling phone calls and/or bookings for their key corporate clients. This has led to inefficient, time-consuming and highly administrative booking processes for both the hotels and the corporations and TMCs. Travelport has solved this unmet industry need through our acquisition in May 2014 of Hotelzon, a Nordic-based company specialising in corporate hotel bookings in the independent hotel sector. Hotelzon s Hotel Extranet enables an individual hotel property to load rates for a specific corporate client and then distribute these rates to the corporation, or TMC serving that corporation. In addition, its new and state of the art self-booking tool Hotelzon Online provides corporations and TMCs with the tools to simplify its corporate hotel booking process, implement company travel policies, and provide control functions with real-time reporting. At the same time, Travelport onward distributes Hotelzon-contracted hotels including the special rates negotiated for corporations through the existing Travelport hotel booking system used by our TMC clients. This means that they can now be booked seamlessly and with no process flow changes required by the corporate travel agencies who work with us. We plan to significantly grow this travel commerce capability, particularly in international regions where there is so much more hotel fragmentation than in the United States. Hotelzon currently operates across multiple European locations, including the UK, Finland, Sweden, Romania, France, Poland, Ireland, Denmark, Norway and Portugal. The business already has an extensive corporate customer base all around the world, and several of the world s largest TMCs. Hotelzon Online Hotelzon Online is a self-booking tool for any corporation looking to save on hotel costs. It has 24/7 availability and easy integration with corporate reporting systems. Hotelzon Online has been developed in consultation with Hotelzon s corporate customers, with compelling benefits: Saves time and resource via an easy-to-use self-booking tool Significant savings in hotel spend through corporation-negotiated, Hotelzon-negotiated, or Best Available rates, with no transaction fees Control and transparency on spend tailored to hotel and/or rate policies of the corporation, with real-time automated reports providing visibility on hotel spend More choice over 175,000 unique hotel properties, fully available online Fulfils duty of care obligations corporations can track the whereabouts of their employees in case of an emergency Hotelzon Online ABB s global choice ABB is one of the largest engineering companies in the world, specialising in power and automation technologies. The company operates in more than 100 countries and employs over 140,000 people of which around 50,000 employees hotel bookings for business trips are made through Hotelzon. ABB has worked with Hotelzon since 2004, and in 2010 chose it as the group s global hotel booking tool. As many of our travellers book their travel themselves, the user-friendliness of Hotelzon is a key criterion, says Anne Moberg, Global Category Leader for hotels in ABB. The reliability of the system and global customer service proposition are also vital for us. Hotelzon s solutions allow ABB to apply their travel policy across its many locations around the globe in a simple and intuitive way. This has enabled ABB to not only increase the efficiency of its hotel spend, but also to significantly reduce costs within the organisation. Services such as rate audits, hotel programme updates and travel profile uploads are automated in Hotelzon, and so routine tasks can be processed quickly and efficiently. Via the Hotelzon Extranet solution, independent hotels and small hotel chains that are normally unable to connect to distribution systems now have an efficient distribution option to reach specific corporate customers as well as a broader global distribution. Anne Moberg explains: Hotelzon has very strong hotel content but the ability to have specific hotel properties added, for instance a smaller hotel near an ABB location or key customer, makes the Hotelzon solution extra relevant. The partnership between ABB and Hotelzon also extends to system and process innovation. For example, ABB s internal city guides are available within the Hotelzon system, and ABB travellers can make bookings via mobile devices. Hotelzon continues to demonstrate its agile and innovative approach, as well as its responsiveness to ABB s every need both in terms of development and service. Through simple integration with ABB s various travel procurement and back-office systems, Hotelzon s solutions and reporting tools enable ABB travellers to fully comply with ABB s travel policies and procedures, while providing the most cost-efficient travel options. DID YOU KNOW million hotel nights were booked through the Travel Commerce Platform last year enough to fill every room in one of the world s largest hotels, the MGM Grand in Las Vegas, every night for over 34 years i

16 24 Travelport A Platform for growth 25 Travelport: Beyond Air Redefining B2B payments Leveraging over 40 years of domain expertise, Travelport has developed a unique and pioneering B2B payments business called enett International in order to address significant unmet needs in the travel industry. With a proven business model, enett has a clear first mover advantage within an addressable market of over $800bn. TRAVELLERS enett payment model ONLINE AND OFFLINE TRAVEL AGENCIES 2 TRAVEL PROVIDERS What are the unmet needs of the industry? Where consumers buy travel from a travel agency, the travel agent is the merchant of record. A travel agency will create an itinerary for the customer, the customer will pay the agency by card or cash, and then the travel agency will onward pay the airlines, hotels, car rental companies or other travel providers involved. The traditional payment methods involve either bank wire transfers, the use of the travel agency s own credit card or, in the case of flights, an airline-industry managed clearing system. These various methods have a number of drawbacks. Time and resources: travel consultants at large agencies can typically spend up to 10% of their time manually reconciling the aggregated payments they have made to a travel supplier to each individual customer booking. Based on our estimates, some $1.5bn is wasted by the industry each year on manual processing and reconciliation. Default risk: where the travel agency uses cash or electronic fund transfers to make a payment, they are exposed to risk should the travel provider default. Fraud: travel agents often utilise an agency-wide credit card or lodge card as they are called to secure hotel reservations and make payments to suppliers, which is susceptible to fraud at both the agent and supplier end of the transaction. enett s unique value proposition the three Rs Travelport has invested in and developed enett to replace these outmoded forms of payment with their inefficiencies and risks, and convert the travel business to the use of Virtual Account Numbers or VANs. enett is focused on delivering what we call the three Rs. 1. Reduced Risk enett VANs are single-use virtual cards, and are pre-funded by the travel agency so there is no credit risk. The payments run over MasterCard s global acceptance network and can be set up to pay a specified supplier on a specified date, for a specified amount of money. Being single-use, fraud risk is significantly reduced. Moreover, the payments made fall under the MasterCard Guarantee which gives a much higher degree of protection to the paying travel agency should the travel provider default. 2. Reconciliation Each individual VAN can be automatically reconciled back to the individual element of the customer itinerary for which it has been paid. This compares well to traditional debit and credit card statements which do not have specific transaction descriptions. enett therefore frees up significant time and resources for travel agencies. 3. Reward enett receives a percentage of interchange every time a VAN is used to make payment, some of which is then shared with agency customers in the form of a rebate. Travel agencies can therefore turn what is an administrative, inefficient and costly part of their operation into an efficient area of revenue and profit generation. Moreover, with 29 payment currencies (15 of which with local settlement capabilities), enett can enable a different currency for each VAN which means that significantly fewer transactions are marked up for FX commission or fees. This can mean substantial savings for travel agencies. World of opportunity Uniquely positioned enett s revenue comes from a percentage of interchange, as well as from monthly product subscriptions and foreign exchange. enett is already generating profits and we believe the model is highly scalable as we expand beyond the core hospitality sector into air travel, including LCCs, as well as other sectors of the travel industry. In 2014, enett generated revenue of $67m, an increase of approximately 50% on 2013, and more than doubled its customer base. enett is positioned for significant further growth as it approaches more of its addressable market, which we estimate to be around $810bn (as measured by the total transaction value of payments made by travel agencies to travel providers in 2014). High barriers to entry enett has a set of capabilities which are hugely challenging for others to replicate. Because it is the cardholder, enett can on-board new travel agency customers within days and, at present, in over 65 countries worldwide. It has an operating cost model which is significantly lower than entities which issue virtual cards via banks enett does not issue plastic, nor paper statements, and is not subject to the credit risks that bank-based virtual card operators are so limited by. 1. Traveller books and can pay with multiple forms of payment 2. Agent funds Pay In account 3. enett VAN is generated according to booking criteria and accepted by travel provider 4. Agent receives real-time, automated reconciliation data 5. Provider processes as any Card-Not-Present (CNP) MasterCard transaction Strategic partnership with MasterCard enett has a long-term agreement with MasterCard, that essentially joins the global payments network of MasterCard with the global travel distribution network of Travelport giving access to the payment systems of virtually all the world s travel providers who accept MasterCard as a form of payment. enett is not just for Travelport Smartpoint users Of course, enett is seamlessly integrated within Travelport Smartpoint. However it is also available through an API connection for customers who do not use our point-of-sale applications. And, via the technology of Conferma a leading global technology provider for Virtual Card Numbers enett VANs are also available to customers of our traditional GDS competitors. JARGON BUSTER What is an enett VAN? An enett Virtual Account Number (VAN) is an automatically generated MasterCard number that travel intermediaries can use to make supplier payments. A single-use and unique number is used for each new booking or payment transaction, which makes it a highly safe and secure way to pay, or to be paid?

17 26 Travelport A Platform for growth 27 Travelport: Case studies enett customer case studies enett is driving security, efficiency and value for travel agencies and travel providers, combining risk reduction, reward and reconciliation. enett VANs reduced the financial risk associated with online transactions by allowing us to issue virtual cards for an exact transaction value, and include a future activation date. Our transition to enett has been exceedingly positive for our underlying business. Tamara Heber-Percy Co-Founder, Mr & Mrs Smith Creating a global market Mr & Mrs Smith is a travel publisher and online hotel booking service specialising in small, boutique luxury hotels. The company previously used corporate credit cards as their supplier payment option. However, providing the same card details to a large number of third-party suppliers carried a high risk of fraud and misuse, with cards often reaching their maximum payment threshold due to the volume of transactions being processed. To solve this issue, Mr & Mrs Smith turned to Travelport s payment solution, enett VANs. enett provides a unique, single-use, Virtual Account Number (VAN) with an exact transaction value and future activation date for each supplier payment. enett also integrates the VANs into the company s existing booking system via enett s API. By switching to enett, Mr & Mrs Smith has improved security with single-use card numbers, it earns a rebate on transactions, and the company s credit cards no longer exceed their limits. Based on the success it experienced with enett, Mr & Mrs Smith increased its business with enett by 75% from 2013 to 2014, and has taken part in testing of a B2B payment acceptance solution that is designed to reduce the cost of VAN acceptance and enable acceptance from suppliers without merchant facilities. Multi-currency strategy and risk reduction with enett VANs Since 2010, enett has been working closely with an international OTA with a strong European presence. The company is a multi-faceted business with a large number of suppliers across multiple geographies and transacting in numerous currencies. The company therefore found that managing payments to suppliers was hugely complex and carried significant risk of fraud and supplier default. The company needed a payments solution that would address these challenges. In order to address these needs, the company switched to enett s VANs for low-cost carrier (LCC) air spend, integrated into the company s existing booking and payment system via an API connection. enett s ability to automatically generate VANs across multiple currencies is ideally matched to support the company s large volume of cross-border payments, all while increasing efficiency. Since payments are protected by the MasterCard Guarantee, enett VANs increase security against default and fraud. Through enett s range of currency offerings, the company has access to more suppliers, at lower costs than traditional payment methods. As a result, the company has generated significant revenue through the rebate received on transactions made through enett. Based on these successes, the company increased its business with enett by 192% from 2013 to 2014, earned over $1m in rebates just last year, reduced costs on cross-border payments and recovered over $1.5m when a European LCC filed for bankruptcy protection. enett improves the payment process for travel agencies by addressing the risks of fraud or default, costs of reconciliation, and other inefficiencies that are prevalent in traditional payment methods used today. Anthony Hynes Managing Director and CEO, enett International

18 28 Travelport A Platform for growth 29 Travelport: Case studies Creating value for travel agencies (and their travelling customers) Partnering HRG s vision for business transformation HRG is the global travel management division of UK-based Hogg Robinson Group Plc. HRG is one of the most successful travel companies in the world, reporting total revenues in 2014 of 341m from over 120 selling locations. HRG continually reshapes its worldwide business to align to the evolving needs of the travel industry, while finding ways to increase agent productivity and workflow efficiencies, in order to drive sustainable revenue and earnings growth. Already a major customer of the Travel Commerce Platform and a technology partner to Travelport for over 40 years, HRG is familiar with the benefits of Travelport s product offering. In 2014, HRG adopted Travelport s ground-breaking Travelport Smartpoint point-of-sale application to help achieve its business objectives and to meet its corporate clients requirements. Travelport Smartpoint, with its multisource content capabilities and rich graphics, has enabled HRG to capture additional productivity and workflow efficiencies. In addition, HRG is servicing new online revenue streams by integrating to Travelport s Universal API. Partnering with Travelport, HRG has reduced staff training needs, as well as the time that its agents spend on bookings. This has allowed HRG to increase its transactions through Travelport by 22% over the last 18 months (with a lower uplift in associated costs and overheads), making Travelport HRG s number one distribution partner by volume. With the support of Travelport s dedicated account management team, Travelport Smartpoint s automated workflows and point and click functionality, HRG agents have vastly improved their productivity. Travelport has enabled our agents to provide the first-class service our clients expect from HRG. Travelport Smartpoint provides us with a wealth of relevant information and content, which gives our clients the flexibility and choice that they require. This has helped our volumes on Travelport grow by 22% in the past 18 months. Travelport Smartpoint has also enabled us to achieve this in an efficient manner, through the productivity and workflow benefits attached to the application. Travelport has a solid track record with forward-looking plans and they are absolutely the type of partner we need to ensure our continued success. David Radcliffe Chief Executive, Hogg Robinson Group Plc Redefining agent efficiency and customer service World Travel, Inc. is the fourth largest independently-owned travel management company in the US, providing customised travel management services for its corporate customers that generally spend between $1m and $50m per annum on travel. More than ever before, World Travel, Inc. customers are demanding access to a broader range of travel content from airfares and hotels, to ancillary services such as extra baggage and additional legroom. In addition, they are demanding detailed and instant information about travel products at the point of booking, with an overall expectation that the reservation process will be fast, efficient, flexible and full of choice. Travelport ran us through a demo of Travelport Smartpoint and it blew our minds. We saw how we could save time with the graphical user interface (GUI), point-and-click controls and automation features. We also immediately saw the benefits of being able to pull ancillaries and other content into our normal booking process, which will eliminate the need to interrupt the workflow to access third-party supplier sites. Monet Raths Training and Development Manager, World Travel, Inc. To help agents fulfil their clients needs, World Travel, Inc. made the decision to deploy Travelport Smartpoint s innovative point-of-sale application across its entire business. With its intuitive point-and-click tools and the ability to book differentiated content, Travelport Smartpoint can speed up and enhance the booking process for agents and travellers, while empowering agents to maximise their revenue opportunities from up-selling and cross-selling. Travelport supported World Travel, Inc. in its deployment of Travelport Smartpoint with comprehensive on-site training for agents, providing them with the knowledge and confidence they needed to begin working with the new application. World Travel, Inc. agents are now able to service their customers with differentiated travel content, including low-cost fares and ancillary services such as seats and bags, wi-fi, priority boarding and more. This competitive advantage has attracted new customers while at the same time vastly improving the booking experience for existing customers. Leveraging Travelport Smartpoint s integrated booking process, agents are better informed to answer customers queries faster, meaning they can minimise routine administration tasks and maximise the time they spend selling and serving customers. World Travel, Inc. was also able to reduce training time, as Travelport Smartpoint s intuitive graphical user interface streamlined its agent training curriculum for new staff. The company intends to keep pace with Travelport s release schedule of enhancements to Travelport Smartpoint, resulting in further efficiencies for agents and complete satisfaction for its customers.

19 30 31 Travelport A Platform for growth A proven and motivated management team Travelport: Our team A strong and experienced Board Douglas Steenland Chairman Appointed to the Board August 2011 Chairman of the Nominating and Corporate Governance Committee Mr. Steenland is Chairman of the board of directors at Performance Food Group, Inc. In addition, he holds a portfolio of board directorships, including RGIS, Inc., Hilton Worldwide, Inc. and American International Group (AIG), Inc. where, effective July 1, 2015, Mr. Steenland will also serve as Chairman of the board of directors. Mr. Steenland held numerous executive roles during 17 years with Northwest Airlines Corporation, most latterly as President and Chief Executive Officer. Gordon Wilson President and Chief Executive Officer Appointed to the Board June 2011 Left to right: Christopher Roberts, Kurt Ekert, Gordon Wilson, Philip Emery, Thomas Murphy, Matthew Minetola, Terry Conley 1. Gordon Wilson President and Chief Executive Officer See page Christopher Roberts Group Vice President, Corporate Strategy and Development 2. Philip Emery Executive Vice President, Chief Financial Officer Mr. Roberts joined Travelport in January 2014 and assists in the development of corporate strategy, including mergers & acquisitions, strategic alliances, and the development of new business initiatives. Prior to this, Mr. Roberts held various senior positions at Regus Group Services, most recently as Global Director for New Business Commercialisation. Before this, he was an executive of British Telecommunications Alliance for Hewlett Packard UK. Mr. Emery was appointed to his current role in October Prior to this, since September 2006, Mr. Emery was CFO of Travelport s GDS division. Before joining Travelport, Mr. Emery held a number of global and European financial roles at UK and US-listed companies, including Radianz, Rexam Plc, CoSine Communications and 3Com, Inc. He has over 20 years experience as a qualified chartered accountant. 3. Kurt Ekert Executive Vice President, Chief Commercial Officer Mr. Ekert holds global responsibility for sales, customer engagement, product, marketing, pricing, supplier services/content and operations. Previously, Mr. Ekert was Chief Operating Officer at GTA, a former Travelport-owned multi-channel travel intermediary, and Chief Operating Officer for Travelport/Orbitz for Business. Prior to joining Travelport, Mr. Ekert s experience included a number of senior finance roles at Continental Airlines. 4. Terry Conley Executive Vice President, Capability and Performance Mr. Conley is responsible for the Human Resources and Corporate Services functions, and was formerly Travelport s Executive Vice President of Integration, leading the integration of Worldspan into Travelport GDS. Prior to this role, Mr. Conley was Travelport s Chief Administrative Officer, responsible for communications, corporate IT, real estate and contact centres. Mr. Conley also held a number of senior roles at Cendant Corporation and PepsiCo, Inc. Mr. Wilson was appointed to his current post in June 2011, having previously served as Travelport s Deputy CEO since November 2009 and as President and CEO of Travelport s GDS division since January Mr. Wilson has over 20 years experience in global electronic travel distribution, in various senior positions, including CEO roles with Galileo and Cendant Travel Distribution Services. During his career, Mr. Wilson has lived and worked in the United Kingdom, the United States, South Africa and Portugal. Michael Durham Director Appointed to the Board September 2014 Chairman of the Audit Committee Mr. Durham currently serves on the boards of directors of Hertz Global Holdings and Cambridge Capital Acquisition Corporation. Mr. Durham served as Director, President and Chief Executive Officer of The Sabre Group, positions he held from 1996 to For the 16 years prior to joining Sabre, he worked at American Airlines where he was Chief Financial Officer from 1989 to Matthew Minetola Executive Vice President, Chief Information Officer Mr. Minetola holds global responsibility for leading Travelport s technology organisation. Before joining Travelport in December 2014, Mr. Minetola gained over 30 years experience through a number of senior, IT leadership roles in various high profile global organisations. Most recently, he spent over 14 years working for HP in various global roles including CIO for their Financial Services business. 7. Thomas Murphy Executive Vice President, General Counsel Elizabeth Buse Director Appointed to the Board September 2014 Ms. Buse is Chief Executive Officer of Monitise Plc, a global technology services provider of mobile banking, payments and commerce solutions. Prior to this, she served in a number of roles with Visa, Inc. from 1998 to 2014, most recently as Executive Vice President, Global Solutions, and from 2010 to 2013 as Visa s Group President for Asia Pacific, Central Europe, Middle East and Africa. Gavin Baiera Director Appointed to the Board October 2011 Mr. Baiera is currently a Managing Director at Angelo, Gordon & Co, L.P., a privately-held registered investment advisor currently managing approximately $23bn. Prior to joining Angelo Gordon, Mr. Baiera was co-head of the Strategic Finance Group at Morgan Stanley. Prior to that, he was a Vice President at General Electric Capital Corporation. Gregory Blank Director Appointed to the Board May 2013 Mr. Blank is currently a Principal in the Corporate Private Equity Group of The Blackstone Group. Prior to joining Blackstone in 2009, Mr. Blank was an Associate at Texas Pacific Group (TPG) in San Francisco. Prior to that, Mr. Blank worked in investment banking at Goldman, Sachs & Co. focused on technology, media and telecommunications clients. Douglas Hacker Director Appointed to the Board September 2014 Chairman of the Compensation Committee Mr. Hacker previously held several senior roles with UAL Corporation, most recently as Executive Vice President for Strategy, and President of UAL Loyalty Services. He also held a number of roles with United Airlines from 1993 to 2001, including as Chief Financial Officer. Mr. Hacker currently serves on the boards of Aircastle Ltd., Columbia Funds, NES Rentals Holdings, and SpartanNash Company. Steven Chambers Director (not pictured) New Appointment to the Board April 2015 Mr. Chambers most recently served as Executive Vice President and Chief Information Officer of Visa Europe Ltd. Prior to Visa Europe, Mr. Chambers held various leadership positions with ACI Worldwide, Inc. and First Data Resources. He also previously served as a director of Monitise Plc. Douglas Steenland Gordon Wilson Michael Durham Elizabeth Buse Mr. Murphy joined Travelport in January 2015 and has overall responsibility for Travelport s legal function. Prior to this, Mr. Murphy was General Counsel and Company Secretary for William Hill Plc. During his eight year tenure, Mr. Murphy also served as Head of Business Systems and was Managing Director of the Americas. Before this, Mr. Murphy served as General Counsel for RHM Plc. Gavin Baiera Gregory Blank Douglas Hacker

20 32 Travelport A Platform for growth Contacts With representation in over 170 countries, Travelport s Platform is truly global. Corporate Headquarters Langley, United Kingdom Europe 30% United States 32% Latin America & Canada 4% Asia Pacific 20% Data Centre Atlanta, United States Middle East & Africa 14% International 68% Percentage of revenue from international bookings (i.e. outside the US) Key Corporate Headquarters Data Centre Countries we operate in Stay informed Contacts Go online Stay informed about Travelport, its products, operations and investor relations, and access a full PDF download of this brochure at: Corporate Headquarters Axis One, Axis Park Langley SL3 8AG United Kingdom Investor Relations Majid Nazir Vice President, Investor Relations Media Kate Aldridge Vice President, Corporate Communications T: +44 (0) F: +44 (0) T: +44 (0) majid.nazir@travelport.com ir.travelport.com T: +44 (0) kate.aldridge@travelport.com media-centre

21 Glossary of terms Air: refers to our air distribution products and services Airline Ancillaries: refers to chargeable services from non-ticket sources, such as seat assignment, extra baggage, wi-fi, priority boarding and lounge access API: Application Programming Interface specifies how software components interact with each other Away Segment: refers to a booking made by travel buyers located outside the travel provider s home country B2B: Business-to-Business Beyond Air: refers to our non-air products and services, which include distribution and merchandising solutions for hotel, car rental, rail, cruise-line and tour operators, B2B travel payments and digital media advertising CBT: Corporate Booking Tool a tool used by organisations to manage their business travel online GDP: Gross Domestic Product the monetary value of all the finished goods and services produced within a country s borders on an annual basis GDS: Global Distribution System a technology-based network that enables automated transactions between travel providers and travel buyers Home Segment: refers to a booking made by travel buyers located within the travel provider s home country Hospitality Segment: refers to one complete hospitality booking. For example, a five night hotel stay equals one hospitality segment. Hospitality includes hotel, car, rail and other non-air bookings IATA: International Air Transport Association a trade association representing and serving the airline industry worldwide Interchange Fee: refers to a fee paid between banks for the acceptance of card-based transactions LCCs: Low-Cost Carriers airlines that generally have lower fares and fewer flexibility options. LCCs may charge for Airline Ancillaries OTA: Online Travel Agency Reported Segments: refers to travel provider revenue generating units (net of cancellations) sold by our travel agency network, geographically presented by region based upon the point-of-sale location RevPas: refers to a dollar-based measurement of same-store sales, which represents the average amount of revenue we earn from each segment sold. Computed by dividing Travel Commerce Platform revenue by the total number of Reported Segments Technology Services: refers to our critical IT services to airlines, such as shopping, ticketing, departure control and other solutions. Technology Services represented 5% of Travelport s net revenue in 2014 TMC: Travel Management Company a business travel agency that manages an organisation s business travel requirements Travel Commerce Platform (or Platform ): refers to our proprietary B2B travel marketplace, made up of our Air and Beyond Air products and services. Our Travel Commerce Platform accounted for 95% of Travelport s net revenue in 2014 Travelport Rooms and More: refers to our B2B solution for independent hotels; a single-user interface that captures highly fragmented content and includes over 550,000 unique hotel properties Travelport Smartpoint: refers to our state of the art point-of-sale application for travel agencies and TMCs. This is available as a browser-based or downloadable desktop application Travelport Universal API: Travelport Universal Application Programming Interface the vehicle through which third parties who want to write their own front-end user experience can access our content and functionality Travelport Universal Desktop: refers to our innovative booking solution that unifies selling and merchandising into a single platform VANs: Virtual Account Numbers single-use and pre-funded enett virtual cards, which run over the MasterCard global acceptance network XML: extensible Markup Language an open standard used for encoding documents in a specific format that is both human-readable and machine-readable Financial definitions Adjusted EBITDA: defined as Adjusted Net Income/(Loss) excluding depreciation and amortisation of property and equipment, amortisation of customer loyalty payments, interest, and income taxes Adjusted Net Income/(Loss): defined as net income/(loss) from continuing operations excluding amortisation of acquired intangible assets, gain/(loss) on early extinguishment of debt, share of earnings/(losses) in equity method investments, the contribution from the terminated master services agreement with United Airlines, and items that are excluded under our debt covenants, such as gain on sale of shares of Orbitz Worldwide, non-cash equity-based compensation, certain corporate and restructuring costs, certain litigation and related costs, and other non-cash items such as foreign currency gains/(losses) on euro denominated debt, and earnings hedges along with any income tax related to these exclusions Unlevered Adjusted Free Cash Flow: defined as net cash provided by/ (used in) operating activities of continuing operations, adjusted to remove the impact of interest payments and cash paid for other adjusting items which we believe are unrelated to our ongoing operations and to deduct Capital Expenditures Capital Expenditures: defined as cash paid for property and equipment plus the repayment of capital lease obligations Net Debt: defined as total debt comprising of current and non-current portion of long-term debt minus cash and cash equivalents, and cash held as collateral Disclaimers Forward-looking statements Certain items in this document, including matters relating to revenue, net income and earnings, and percentages or calculations using these measures, capital structure, future business opportunities, plans, prospects or growth rates and other financial measurements and non-financial statements in future periods, constitute forward-looking statements. These forward-looking statements are based on management s current views with respect to future results and are subject to risks and uncertainties. These statements are not guarantees of future performance. Actual results may differ materially from those contemplated by forward-looking statements. Travelport Worldwide Limited (the Company or Travelport ) refers you to our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K filed with the SEC on February 27, 2015, for additional discussion of these risks and uncertainties, as well as a cautionary statement regarding forward-looking statements. Travelport expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Non-GAAP financial information Travelport analyses its performance using Adjusted EBITDA, Adjusted Net Income/(Loss), Adjusted Earnings/(Loss) per Share, Adjusted Free Cash Flow, Capital Expenditures, Net Debt, Trading Working Capital and Unlevered Adjusted Free Cash Flow, which are non-gaap measures. Such measures may not be comparable to similarly named measures used by other companies. The Company believes these measures provide management with a more complete understanding of underlying results, trends and the liquidity of the core operating business, along with the Company s ability to meet its current and future financing and investing needs. Travelport refers you to our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K filed with the SEC on February 27, 2015, for additional discussion of such measures.

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