Stuart Greif

Stuart GreifVice President & General Manager

Global Travel & Hospitality

J.D. Power and Associates

Agenda• J.D. Power and Associates• Travel Industry Satisfaction• 2010 Rental Car Satisfaction• What Travelers Want• Future Traveler Needs


Fiji IslandsFiji IslandsFiji IslandsFiji Islands

KoreaKoreaKoreaKorea

IndiaIndiaIndiaIndia

U.K.U.K.U.K.U.K.

MalaysiaMalaysiaMalaysiaMalaysia

MexicoMexicoMexicoMexico

AustraliaAustraliaAustraliaAustralia

CanadaCanadaCanadaCanadaSwedenSwedenSwedenSweden

GermanyGermanyGermanyGermany

South AfricaSouth AfricaSouth AfricaSouth Africa

IsraelIsraelIsraelIsrael

U.S.U.S.U.S.U.S.

BrazilBrazilBrazilBrazil

ArgentinaArgentinaArgentinaArgentina

ColombiaColombiaColombiaColombiaVenezuelaVenezuelaVenezuelaVenezuela

ChileChileChileChile

FranceFranceFranceFrance

ItalyItalyItalyItalySpainSpainSpainSpain

AustriaAustriaAustriaAustria

BelgiumBelgiumBelgiumBelgium

FinlandFinlandFinlandFinland

NetherlandsNetherlandsNetherlandsNetherlands

RussiaRussiaRussiaRussia

UkraineUkraineUkraineUkraineBelarusBelarusBelarusBelarus

TurkeyTurkeyTurkeyTurkeyJapanJapanJapanJapan

ThailandThailandThailandThailand

ChinaChinaChinaChina

SingaporeSingaporeSingaporeSingaporePhilippinesPhilippinesPhilippinesPhilippines

TaiwanTaiwanTaiwanTaiwan

DjiboutiDjiboutiDjiboutiDjibouti

TanzaniaTanzaniaTanzaniaTanzania

NigeriaNigeriaNigeriaNigeria

New ZealandNew ZealandNew ZealandNew Zealand

BahrainBahrainBahrainBahrain

BruneiBruneiBruneiBrunei

ScotlandScotlandScotlandScotland

SwitzerlandSwitzerlandSwitzerlandSwitzerland

PortugalPortugalPortugalPortugal

U. Arab EmiratesU. Arab EmiratesU. Arab EmiratesU. Arab EmiratesOmanOmanOmanOman

KuwaitKuwaitKuwaitKuwaitMoroccoMoroccoMoroccoMorocco

EthiopiaEthiopiaEthiopiaEthiopia

ZimbabweZimbabweZimbabweZimbabwe

PolandPolandPolandPoland

GeorgiaGeorgiaGeorgiaGeorgiaMaltaMaltaMaltaMalta

UgandaUgandaUgandaUganda

KenyaKenyaKenyaKenya

PakistanPakistanPakistanPakistanQatarQatarQatarQatar

SyriaSyriaSyriaSyria

BeninBeninBeninBenin

EgyptEgyptEgyptEgypt

CroatiaCroatiaCroatiaCroatia

GuatemalaGuatemalaGuatemalaGuatemala

PeruPeruPeruPeru

Hong KongHong KongHong KongHong Kong

IndonesiaIndonesiaIndonesiaIndonesia

Westlake Village, CAWestlake Village, CAOrange, CAOrange, CABoulder, COBoulder, COChicago, ILChicago, IL

Troy, MI Troy, MI Norwalk, CTNorwalk, CT

Washington, D.C.Washington, D.C.

TorontoToronto

LondonLondon

TokyoTokyo

SingaporeSingapore

MunichMunich ShanghaiShanghaiBeijingBeijing

Worldwide offices staffed by over 800 professional analysts, researchers, and consultants

Mexico CityMexico City

São Paulo São Paulo

BangkokBangkok

Regional OfficeRegional Office

Markets ServedMarkets ServedMarkets Served


Industries Served• Automotive• Travel & Hospitality• Commercial Vehicles• Recreational Vehicles• Marine • Real Estate• Financial Services• Insurance• Healthcare

• Telecommunications • Utilities• Retailing• Consumer

Electronics • Consumer

Packaged Goods• Media and

Entertainment• Office Products• Professional

Services

7

Core Capabilities

Syndicated Research– Industry Benchmarking, full market visibility

– JDPA designs, executes and owns the data

– Media coverage, Customer Satisfaction Awards

Club Studies– Conducted for several clients, including competitors– Information is co-owned by clients and JDPA– Confidential, no awards or press releases

Proprietary Research– Conducted exclusively for a single client, can

include competitor benchmarking– Client owns the information– No awards or press releases

Brand Strength• Trusted and widely recognized by Consumers

• Integrity and independence of results

• Mark of excellence and distinction

• Voice of the Customer

Travel Industry Satisfaction

The Challenge and the Opportunity

“…The airlines have infuriated the customers [with fees]…No wonder they are fed up by the time they come to get to our cars. Let’s put the “customer” back in customer service.”

Bob Barton

President, American Car Rental Association

,January/February 2011

2010 Satisfaction by Industry

Source: J.D. Power and Associates

827

826

778

777

771

763

757

750

750

748

690

673

673

2010 Motorcycle

2010 New-Home Builder

2010 APEAL - Vehicle

2010 Auto Insurance Service

2010 North America Hotel

2010 Self-Directed Investor

2010 Vehicle Sales Satisfaction

2010 Home Insurance Service

2010 North America Rental Car

2010 Retail Banking

2010 North America Airport

2010 North America Airline

2010 Original Equipment Tire

500 600 700 800 900 1,000

Index Score

Travel Industry Satisfaction


665

692687

668658

673

689 689

675

690

755 758 756 756

771

744750

734 733

750758

767

600

650

700

750

800

850

2005 2006 2007 2008 2009 2010 2011

Ind

ex

Sc

ore

North America Airline North America Airport

North America Hotel North America Rental Car

Travel Industry Advocacy


23%

29%

34%35%

33% 33%34%

30%31%

25% 25%

30%

28%

32%34%

36%

30%

34%

15%

20%

25%

30%

35%

40%

2005 2006 2007 2008 2009 2010 2011

% "

De

fin

itel

y W

ill"

Rec

om

me

nd

North America Airline North America Hotel

North America Rental Car

Travel Industry Loyalty


18%

33%

25% 25%

30% 30%

28%

30%

29%

26%

30%

33%

36%

30%31%

26%

34%

35%

15%

20%

25%

30%

35%

40%

2005 2006 2007 2008 2009 2010 2011

% "

Def

init

ely

Will

" R

ent

Ag

ain

North America Airline North America Hotel

North America Rental Car

Rental Car Satisfaction Over Time

500

700

900

1100

1300

1500

1700

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Time

S&

P

500

600

700

800

900

1000

Ove

rall

Ren

tal C

ar

Sat

isfa

ctio

n

S&P Close Overall Satisfaction (Rental Car)

Is The World Really Flat?

751773

762751

767 768789

777 773 770786

701 710 702690

725 716

746731

709686

713

600

650

700

750

800

850

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Time

Ove

rall

Sat

isfa

ctio

n (

Ren

tal C

ar)

Rental Car Variation vs. Other Industries

701 706732

618

713

610

739690

579

751

810

886

822786

861899 877

768

708

786

727685

625

739

500

600

700

800

900

1000

Ren

tal

Car

Ho

tel

Insu

ran

ce

Au

to

Ban

kin

g

Uti

liti

es

Ren

tal

Car

Ho

tel

Insu

ran

ce

Au

to

Ban

kin

g

Uti

liti

es

Ove

rall

Sat

isfa

ctio

n

2000 2010

Rental Car Brand Variation Financial Implications

40.1%31.9%11.5%11.9%Market share

38%27%19%16%Repurchase

772753719705Index

2010200220102002

Top 2Bottom 2

40.1%31.9%11.5%11.9%Market share

38%27%19%16%Repurchase

772753719705Index

2010200220102002

Top 2Bottom 2

Why Satisfaction Matters!Increased Advocacy

Increased Loyalty

Increased Usage

Greater Pricing Leverage

Lower Costs

Increased Market Share

Superior Operating Results

Superior Customer

Satisfaction

2010 Rental Car Satisfaction Study

A look in the rear-view mirror

2010 Rental Car Satisfaction Study

• Study Overview• Study Insights

– Key Findings

– Business vs. Leisure

– Wait Times

– Problem Incidence and Recovery

Study Overview

• Study in its 15th year• North America airport locations• Measures critical components

that drive satisfaction• Establishes importance of each

factor to overall satisfaction• Fielding from September 2009

to September 2010

• Unique and proprietary approach• Based on what matters most to Rental Car customers• 1,000 points equals perfection• 6 key measures:

– Reservation Process– Pick-Up Process– Rental Car– Shuttle Bus/Van– Return Process– Costs & Fees

• Comprised of 27 detailed attributes

J.D. Power and AssociatesRental Car Satisfaction Index Model

Reservation

Pick-Up Process

Rental Car

Shuttle Bus/Van

Return Process

Costs & Fees

Rental Car Satisfaction Index Model

Reservation

Pick-Up Process

Rental Car

Shuttle Bus/Van

Return Process

Costs & Fees

Rental Car Index Model - Attributes

Source: J.D. Power and Associates' North America Rental Car Satisfaction Study

Reservation

Pick-Up Process

Rental CarShuttle Bus/Van

Return Process

Costs & Fees

Phone Reservation Website ReservationEase of getting through to a representative Ease of navigationCourtesy of telephone reservation staff Appearance/design of the websiteEase of booking Ease of bookingAvailability of booking options/travel packages Availability of booking options/travel packagesKnowledge of telephone reservation staff Usefulness of the information on the website

Cleanliness of rental facilityClarity of explanation of rental contract terms/chargesCourtesy of the counter personnelProfessionalism of exit-gate personnel upon leaving lotKnowledge of counter personnelSpeed of rental pick-up process

Appearance/cleanliness of rental car receivedPerformance of rental car receivedAmenities in rental carComfort of rental car receivedRental car smell

OVERALL Shuttle Bus/Van Experience

OVERALL Cost & Fees

Convenience of rental car return locationAmount of time need to get from rental car facility

to terminalEase of getting rental car returnedCourtesy of rental car staff during drop-offKnowledge of rental car staff during drop-offSpeed of rental car return process

• Each ranked rental car brand improved performance from 2009

• Most companies returning to pre-recession levels of satisfaction

• Loyalty and advocacy rates increased for business and leisure

• Incidence of significant problems has decreased and remained in the 9%-11% range over the past 5 years

Key Findings

Satisfaction by Customer Type


750758

740

720 724

738

771

758

744 740

759

750

733734

767

650

700

750

800

850

2006 2007 2008 2009 2010

Ind

ex S

core

Total Industry Business Leisure

Satisfaction by Customer Type


¹Based to those who made a reservation themselves, by calling the rental car company or visiting the rental car company's website to make the reservation.²Based to those who used the shuttle bus/van service.

738

795

765741

709

770

679

759

802

765 767744

791

712

500

600

700

800

900

1,000

OverallSatisfaction

Index

ReservationProcessIndex¹

Pick-UpProcess Index

Rental CarIndex

ShuttleBus/VanIndex²

ReturnProcess Index

Costs & FeesIndex

Ind

ex

Sc

ore

Business Leisure

550 600 650 700 750 800 850 900Index Scores

Reason for Selecting Rental Car Company

Business Leisure

Primary reason you selected the rental car company¹Price 30% 52%Corporate policy 17% 1%Previous experience 16% 15%Rewards program 13% 7%Convenience 10% 8%Reputation 8% 9%Package deal 2% 4%Recommended by someone 2% 2%Other 1% 1%


¹Based to exclude 'Don't know.'

Shuttle Bus/Van Wait Times


764

708

672

751

702

665

632

577

648654

500

550

600

650

700

750

800

850

1 to 5 minutes 6 to 10 minutes 11 to 15 minutes 16 to 20 minutes 21 minutes or more

Shuttle Bus/Van Wait Time

Ind

ex S

core

To Rental Counter To Airport

Car Pick-Up Wait Times


738

708

682

643

577

500

550

600

650

700

750

800

850


Pick-Up Wait Time

Ind

ex S

core

Car Return Wait Times


726

665

633618

600

500

550

600

650

700

750

800

850


Return Wait Time

Ind

ex S

core

Significant Problem Incidence


11%

9%10%

11%

9%

0%

5%

10%

15%

20%

2006 2007 2008 2009 2010

% E

xper

ien

ced

a S

ign

ific

ant

Pro

ble

m

Top 5 Problems Experienced

2010 2009 2008

Problems with this rental car experience?¹Pick-up process 38% 39% 39%Billing 24% 22% 18%Customer service 20% 22% 22%Return process 20% 15% 15%Vehicle 19% 23% 21%


¹Based to those who experienced a significant problem.

How you resolve problems matters!


¹Based to those reporting a problem.²Based to those whose problem was resolved.

*CAUTION: Small sample size (n=30-99).

762

635

694

559526

662

796

888

500

600

700

800

900

1,000

Ind

ex

Sc

ore

550 600 650 700 750 800 850 900Index Scores

Had Significant Problem

Problem Resolved¹

Problem Resolution²

What Travelers Want

Accelerating Expectations

Convenience and comfort consistent with their lives outside of travel

Home, Work, Society

Airport Airline

HotelRental Car

Expectations

Expectations

Future Traveler Needs

The Road Ahead

Rental Car Customer Trends• Green – electric / hybrids• Fractional usage – companies / individuals• Technology integration - personal devices, apps, location

– I want to listen to my music

– I want to use my phone hands free

– I want to use my navigation and other apps

• Customization and individualization (arrange pre-rental)• Address and integrate across the overall travel experience

The bigger picture• How can you better solve customer pain points?• How can you differentiate your product and service?• Technology as key enabler - opportunities and threats• Think expansively

– Reservation

– Pre-arrival

– Shuttle bus / van

– Pick-up

– Rental car

– Customer destination

– Car return

– Post-return travels

Address Pain Points

Examples of innovative thinking

Car sharing; Car Rental Cos; P2P

Point-to-point, boarding process, gate area seating,

outlets….

On-board entertainment options, JFK terminal….

Guaranteed baggage delivery

Air Travel

Room service app

Online check-in, seat selection,

kiosks, alerts, apps, digital boarding

passes

Redefining budget Customer service

Enduring Truths

• You must deliver– each and every customer – each and every time– Product AND Service

• Culture, staff and service as competitive advantage

• Innovation is critical and ongoing– Today’s innovation = tomorrow’s expectation

• E.g., Navigation Systems Integrated into cars Mobile devices– Commoditization

• Continue to find ways to address pain points and add value, convenience, comfort, save time and save $ for your customer

You may be feeling a little….

Summary Takeaway

“One of the profound lessons I have learned is that customer satisfaction is a moving target. You can never

declare victory.”

Source: J.D. Power III

Satisfaction – How Every Great Company Listens to the Voice of the Customer

February 2006

Questions?

Stuart GreifVice President & General Manager, Global Travel and Hospitality

J.D. Power and Associates(805) 418-8661

[email protected]

Matt HollandManager, Global Travel and Hospitality

J.D. Power and Associates(805) 418-8869

[email protected]

Contact

Documents

Stuart Greif