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2010 US Online Business Travel Benchmarking Study. 2010 Online Travel Benchmarking Group Study Methodology . Compared airfares, hotel rates and car rental rates of: American Express Expedia.com Orbitz.com Travelocity.com Analyzed 440 business travel itineraries (110 tests x 4 rounds) - PowerPoint PPT Presentation
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This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
2010 US Online Business Travel Benchmarking Study
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
22010 Online Travel Benchmarking Group Study Methodology
■ Compared airfares, hotel rates and car rental rates of:• American Express• Expedia.com• Orbitz.com• Travelocity.com
■ Analyzed 440 business travel itineraries (110 tests x 4 rounds)■ Utilized comprehensive business travel booking behaviors■ Route by route simultaneous testing was conducted across all four
systems controlling for all variables which were tested in proportion to their actual occurrence based on travel data
■ Testing occurred during November/December 2010
Study found that American Express delivers a lower overall cost per trip vs. online travel agencies
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
3Lowest Air Fares
Within all types of air fares, American Express offers the lowest available air fares versus the OTAs
International Air
Domestic Air
Air
% Difference in Airfare vs. American Express*
Unrestricted Fare (1)
Lowest Available Fare (1)
Business Fare
(1) – Domestic*% difference is how much GREATER OTA fare versus American Express fare
6%More expensive
6%More expensive
2%More expensive
3%More expensive
22%More expensive
1%More expensive
3%More expensive
4%More expensive
9%More expensive
Expedia Orbitz Travelocity
2%More expensive
4%More expensive
1%More expensive
Best in Class
Best in Class
Best in Class
AmericanExpress
Best in Class
7%More expensive
7%More expensive
52%More expensive
Best in Class
5%More expensive
5%More expensive
3%More expensive
Best in Class
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
4Overall Fare Differential% difference between American Express fare and online travel agency fare
American Express delivers lower fares vs. OTAs
Best in Class
American Express
Expedia Orbitz Travelocity
3%more expensive
4%more expensive
9%more expensive
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
5Domestic Fare Differential% difference between American Express fare and online travel agency fare
American Express delivers lower domestic fares vs. OTAs
American Express
Expedia Orbitz Travelocity
Best in Class
6%more expensive
6%more expensive
22%more expensive
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
6International Fare Differential% difference between American Express fare and online travel agency fare
American Express delivers lower international fares vs. OTAs
American Express
Expedia Orbitz Travelocity
Best in Class
2%more expensive
3%more expensive 1%
more expensive
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
7Business Class Fare Differential% difference between American Express fare and online travel agency fare
American Express
Expedia Travelocity
Best in Class
2%more expensive
4%more expensive
1%more expensive
American Express delivers lower business class fares vs. OTAs
Orbitz
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
8Unrestricted Fare Differential% difference between American Express fare and online travel agency fare
American Express delivers lower unrestricted fares vs. OTAs
American Express
Expedia Orbitz Travelocity
Best in Class
7%more expensive
7%more expensive
52%more expensive
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
9Lowest Available Fare Differential% difference between American Express fare and online travel agency fare
American Express
Expedia Orbitz Travelocity
Best in Class
5%more expensive
3%more expensive
5%more expensive
American Express delivers lower lowest available fares vs. OTAs
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
10Impact of Low Cost Carriers
On Southwest routes, American Express average ticket price was significantly lower.
15% of all domestic travel bookings tested were on Southwest routes* Southwest Airlines accounted for 6% of comparable domestic routes
Where all 3 OTAs have valid fares Axiom average of $416 vs. average OTA fare $648 or 56% savings
Axiom also performed well in non-Southwest** LCC routes Saving 8%
$416 $467 $463
$648
$507 $516
American ExpressAverage of 3 OTAs
11%More Expensive
9%More Expensive
56%More Expensive
% difference is how much GREATER OTA fare versus American Express Axiom fare
** Routes where Frontier or AirTran were found to have the lowest fares
* Defined as routes where Southwest fares were selected as lowest by Axiom
Routes w/ Southwest
Routes w/o Southwest
ALL Routes*
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
11Impact of Advanced Purchase
■ American Express offers lower fares versus all of the OTAs regardless of advance purchase
Series1
$1,060
$538
$960
$653
$1,868
$1,118
$607
$1,011
$698
$1,933
American ExpressAverage of 3 OTAs
<=3 daysadvance
4-7 daysadvance
20% of routes
8-10 daysadvance
+10 daysadvance
40% of routes 15% of routes 25% of routes
ALLRoutes*
4%More Expensive
5%More Expensive
13%More Expensive
5%More Expensive
*382 travel itineraries were tested vs. All 3 OTAs *% difference is how much GREATER OTA fare versus American Express Axiom fare
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
12Hotel Rate Summary
American Express delivers lower overall hotel room rates vs. online travel agencies
International Hotel
Domestic Hotel
Hotel
% Difference in Airfare vs. American Express*
5%More expensive
5%More expensive
5%More expensive
7%More expensive
6%More expensive
7%More expensive
5%More expensive
6%More expensive
6%More expensive
Expedia Orbitz Travelocity
Best in Class
Best in Class
AmericanExpress
Best in Class
*% difference is how much GREATER OTA rate versus American Express rate
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
13Overall Hotel Room Rate Differential% difference between American Express rate and online travel agency rate
American Express
Expedia Orbitz Travelocity
Best in Class
6%more expensive
6%more expensive5%
more expensive
American Express delivers lower overall hotel room rates vs. online travel agencies
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
14Domestic Hotel Room Rate Differential% difference between American Express rate and online travel agency rate
American Express
Expedia Orbitz Travelocity
Best in Class
5%more expensive
6%more expensive5%
more expensive
American Express offers lower domestic hotel rates vs. OTAs
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
15International Hotel Room Rate Differential% difference between American Express rate and online travel agency rate
American Express
Expedia Orbitz Travelocity
7%more expensive5%
more expensive
7%more expensive
Best in Class
American Express offers lower international hotel rates vs. OTAs
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
16Hotel Inventory
American Express
Expedia Orbitz Travelocity
* % of instances where hotel being tested was found and returned an available valid rate.
100%*valid rates
87%*valid rates
13%invalid rates
86%*valid rates
14%invalid rates
89%*valid rates
11%invalid rates
American Express found more hotels with available valid rates vs. online travel agencies – same hotel property for all systems
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
17Lowest Car Rental Rates
American Express offers competitive car rental rates with the OTAs
Domestic Car
Car Rental
% Difference in Airfare vs. American Express*
41%More expensive
41%More expensive
41%More expensive
32%More expensive
31%More expensive
Expedia Orbitz Travelocity
Best in Class
Best in Class
AmericanExpress
International Car 4%Less expensive
9%Less expensive
9%Less expensive
Competitive
30%More expensive
*% difference is how much GREATER OTA rate versus American Express rate
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
18Overall Car Rental Rate Differential% difference between American Express rate and online travel agency rate
American Express
Expedia Orbitz Travelocity
Best in Class
31%more expensive
32%more expensive
30%more expensive
American Express offers lowest car rental rates compared to rates offered by the OTAs
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
19Lowest Total Cost Per Trip
American Express provides the lowest total cost per trip versus the OTAs
HOTEL
CAR RENTAL
AIRFARE
Expedia Orbitz Travelocity
TOTAL TRIP**
3%More Expensive
4% More Expensive
9% More Expensive
5%More Expensive
6%More Expensive
6%More Expensive
32%More Expensive
31%More Expensive
7%More Expensive
7%More Expensive
11%More Expensive
American Express
Best in Class
Best in Class
Best in Class
Best in Class
30%More Expensive
American Express provides lowest overall travel rates available online
*% difference is how much GREATER OTA fare versus American Express**Includes itineraries where air, hotel and car were all available
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
20Overall Cost Per Trip* Differential% difference between American Express rate and online travel agency rate
American Express
Expedia Orbitz Travelocity
Best in Class
7%more expensive
7%more expensive
11%more expensive
American Express delivers a lower overall cost per trip vs. OTAs
This document contains unpublished confidential and proprietary information of American Express. No disclosure or use of any portion of these materials may be made without the express written consent of American Express. © 2010 American Express Company
21Confidentiality Statement
By viewing and/or reading this American Express Travel Related Services Company, Inc. (“American Express”) document, [CLIENT NAME] (“Company”) acknowledges and agrees to comply with the following confidentiality obligations (“Obligations”):
• Company agrees to treat as confidential all information about American Express obtained by Company in connection with this proposal, related presentations and discussions (“Confidential Information”). Confidential information does not include information that: (i) becomes publicly available without Company’s fault or; (ii) developed by Company, without reference to or use of the Confidential Information.
• Without first obtaining written consent of American Express, Company will not disclose the Confidential Information to any third party, except that Company may only disclose Confidential Information to those of its employees and agents that require such material to evaluate this proposal and the potential business relationship, and for no other purpose.
• Notwithstanding the foregoing, Company may disclose Confidential Information to the extent that such disclosure is required by an order or a court or by any law or regulation: provided, however, that, where legally possible, Company will give prompt written notice of any such requirements to American Express. Company will cooperate with American Express, at American Express’ expense, with any reasonable efforts of American Express to avoid or minimize such disclosure.
• In the event of a breach or threatened breach of the Obligations by Company, Company will promptly give notice thereof to American Express and will take reasonable steps to enforce the Obligations, and American Express reserves all of its rights and remedies at law and equity in connection with such a breach.
• Company will indemnify American Express for all loss or damage to American Express caused by Company’s breach of these Obligations.
• No representative or warranty, express or implied, is made as to the accuracy or completeness of any information that is provided in this proposal.
• These Obligations will survive any expiration of this proposal.• At any time and upon American Express’ request, Company agrees either to return or destroy the originals
(and all copies) of such information, documents and/or materials which are in its possession or under its control.
