MASTER IN ECONOMIA DEL TURISMO

2

Is internet technology the future of our business?

Internet Trends

4

Timing Of The Commerce Threshold Varies By Country

1998 1999 2000 2001 2002 2003 2004 2005

Portugal

Greece

U.S.

Austria

France

Italy

Spain

UK

Germany

Ireland

Netherlands

Switzerland

Norway

Finland

Sweden

Denmark

Belgium/Lux.

Source: Forrester

5

European e-Commerce Skyrockets

2,000,000

0

500,000

1,000,000

1,500,000

200420032002200120001999

Pioneers >8%

Early entrants 6% to 8%

(millions)

Late entrants <6%

Source: Forrester

6

European e-Commerce Skyrockets

% of total

country commerce

% of total European

eCommerceCountry

Total eCommerce sales in 2004

(millions)

Sweden

Netherlands

Finland

Denmark

Norway

Switzerland

Germany

Belgium

United Kingdom

Luxembourg

Austria

Ireland

Greece

France

Italy

Portugal

Spain

10.50%

10.10%

9.30%

8.90%

9.80%

9.50%

64,904

100,508

44,677

32,850

40,686

65,415

7.70%3,922

7.50%282,385

7.10%41,156

6.70%405,824

6.30%43,788

5.20%14,736

4.60%146,648

5.10%206,049

3.00%47,798

5,587 1.80%

1.00%3,517

4.20%

2.90%

2.60%

4.20%

6.50%

2.10%

26.20%

2.80%

1.00%

18.20%

0.20%

13.30%

9.50%

0.30%

2.70%

0.40%

3.10%

100.00%Western Europe 6.30%1,550,451

Note: Percentages do not total 100 due to roundingSource: Forrester

7

Europe Web Users Turn Into Buyers

Source: Forrester

2004

Cart

Cart

9% buy

65% buy

199972 million

online

201 million online

• 7 million buy online • Average annual purchase: 490

• 131 million buy online• Average annual purchase: 1,774

8

Conclusions

With over 386 million consumers, the 17 Western European countries represent the world’s

largest potential online trading block

e-Commerce growth > 100% per year

Total e-commerce reaching 1.6 trillion

e-Commerce will represent 6.3% of total trade by 2006

Source: Forrester

Travel Trends

10

Online ConsumerTravel Services

Online CorporateTravel Service

Online Supplier Direct

ChannelGrowth rates Suppliers

% of Total Sales by

2006

Growth of E-commerce in Travel

10%

23%

6-7%

295%

170%

200%

11

Traveler Channel% of Total Air

Bookings Suppliers

Travel Channels

40%

20%

15%

10%

74%

2-3%

2-3%

0.1%

1999 2006Traditional Travel

Agency

Supplier Direct(excl online)

Phone

Walk In

Online Supplier Direct

22% 15%

Online Travel Agency

Online CorporateTravel Service

Intranet/Internet

CC

RR

SS

12

Conclusions

Online travel is expected to be the single most purchased e-commerce item

40% of all travel will be purchased online

60% will not….

Result:

Traditional agents are well positioned to leverage e-commerce

Source: Forrester

13

Is internet technology the future of our business?

NO...NO... It’s the It’s the PastPast

14

Trends in Internet Usage

Source: IDC

1998 2000 20020

20

40

60

80

100

Percentage of internet transactions

OtherSmartphoneHand Held DevicesInteractive PagerInternet ApplicancesNotebookDesktop

15

The internet / web browser

was the world’s largest

successful proof of concept.

16

Concept

everyoneeverything

everyoneeverythingto

generates profound opportunity

Increase productivity

Decrease operational expense

Build new business models

Connecting