Case Charts

Case Charts

For HTMBA Class Discussion Purposes Only 2Proprietary and Confidential 2

High Speed Track Growth

3,700 mi of HS track at end of 2009, 9K mi by 2020 ($250B investment)

Today + 15 Yrs

Source: UIC

High Speed Rail is transforming the travel landscape. In 10 years, European air travel on routes <600km will be virtually eliminated.

For HTMBA Class Discussion Purposes Only 3

High Speed Rail Supplanting Air

Sources: Thalys NBTA (5/09), Travel Weekly, (12/4/09), CNBC (11/07)

1 1.5 2 2.5 3 3.5 4 4.5 5 5.50

10

20

30

40

50

60

70

80

90 Paris-Brussels (15) Paris-Nantes (8)

Paris-Leeds (5)Madrid-Seville (6)

London-Plymouth (4)

London-Paris (48) Stockholm-Gothenburg (29)Paris-Bordeaux (24)

London-Newcastle (14)

Paris-Lyon (13)

London--Brussels (42)London--Manchester (33)

New York-Washington(117)

Paris-Marseille (43)

Stockholm-Malmo (25)

New York-Boston (85)

London-Glasgow (37)London-Edinbugh (45)

Brussels-Amsterdam

Munich-Frankfurt

Lisbon-Madrid

Rome-Milan London-Edinburg

Moscow-St. Petersburg

Paris-Milan

Warsaw--Krakow

Istanbul-AnkaraStockholm-Gotteburg

Rail creates +15% induced travel

= Existing route = Planned route (X) = # daily flights

Shar

e of

Tra

vele

rs o

n Ra

il vs

. Ai

r

Travel Time (hours)

2 hrs: 90% share

4 hrs: 60% share

3 hrs: 70% share

Rail Share vs Travel Time

Most new HSR track will be on routes where travel times will be <2.5 hours and HSR has 75%+ share. Without rail, OTA’s will lose their two key value propositions: convenience of booking air + hotel together,

and net rate packaging.

For HTMBA Class Discussion Purposes Only 4

Market Deregulation

• EU deregulation Jan 2010• Rail carriers can now compete cross border with air internationally

The “Perfect Storm”

Consumer Trends • Rising gas prices• Environmental concern/policy

• Air travel/security inconvenience

Supplier Innovation• New 380km/h trains• 4x increase in high speed track globally next 15 yrs

• Travel times compete w/ air

Gov’t Investment

• $200B annual investment in high speed rail globally

• $500B in Europe rail infrastructure in next 15 yrs

Global Shift to Rail Travel

For HTMBA Class Discussion Purposes Only 5Proprietary and Confidential 5

Passenger Rail Sales by Country

• $300B global market• $80B in Europe• $48B addressable (long distance leisure +

bus. 40% of bkgs, 60% of sales) in Europe• 10yr CAGR of 8%

Sources: UIC "International Railway Statistics” (2007), ATOC “Ten Year Growth Report” (6/07)

For HTMBA Class Discussion Purposes Only 6

All Travel

Rail

All Travel

Rail (today)

Rail (possible)59%

Sources: PhoCusWright 2007 Travel Report, PhoCusWright 2007 EU OTA Travel Report

European Online Rail Opportunity$48B market* with only 13% booked online

* Long distance leisure + business, excludes commuter and regional

$22B opportunity gap

U.S. Online Rail vs. All Travel

Europe Online Rail Opportunity

For HTMBA Class Discussion Purposes Only 7

SilverRail Solution

Search Results Book

TOMORROW

All suppliers, one system, one booking = Global Solution

SilverRail• 1 search• 1 booking• 4 steps

Booking #27-steps

Booking #3

9-stepsManchester

Booking #17-steps London Brussels Cologne

TODAY

For HTMBA Class Discussion Purposes Only 8Proprietary and Confidential 8

GUI Screens (_________)

SRT can host the rail home page or provide the search

widget

For HTMBA Class Discussion Purposes Only 99