State of Travel 2016 - Thinktur

STATE OF TRAVEL 2016

This Skift deck curates data from every sector of travel and provides a wide sweeping overview of the state of the world’s largest sector and the forces driving it today. This is the State of Travel in 2016.

INTRODUCTION Welcome to the third annual State of Travel deck. This follows our 2014 global deck and our 2015 European deck. The 2016 State of Travel deck draws from our daily coverage of the global travel industry, from our ongoing series of Skift Trends Reports, and also incorporates expert research from throughout the travel industry. It helps frame the current global travel landscape through the lens of data, tables, charts, and graphs. From developments and new steps in specific verticals to the wide-ranging and ever-shifting nature of travelers’ choices and passions, the following 100+ slides represent significant measures of the industry during the past year and beyond. Learn more about the business of global travel, and see how its future of being defined, by using all of Skift's products, including our daily coverage, our newsletters, our Skift Trends Reports, our Skift Global Forum, and our content marketing studio SkiftX. Written and curated by J.C. Lupis for Skift.

ABOUT SKIFT Skift is the largest intelligence platform in travel, providing Media, Insights and Marketing to all sectors of the world’s largest industry. Based in New York City and covering the travel industry globally, Skift has deep experience in identifying and synthesizing existing and emerging trends, in its daily coverage of the global travel industry, through its Skift Trends Reports and its flagship Skift Global Forum conference. Within a short span of three years, Skift has become the leading voice in the travel industry, and is now a daily utility tool used by the top strategists, technologists and marketers in travel.

“You have built an incredible platform in travel, and are changing this industry. There is nothing like it.” — Mark Hoplamazian, CEO, Hyatt Hotels

“Congratulations on building an outstanding publication for our industry which is so interesting and worth reading every time it comes out.” — Brett Tollman, CEO, The Travel Corporation

“Great content, great data, passionate people. Tomorrow’s news today!” — Larry Pimentel, CEO, Azamara Club Cruises.

TABLE OF CONTENTS Introduction… page 2 About Us... page 3 1. Snapshots & Horizons... page 5 2. Tourism & Destinations... page 20 3. Airlines & Airports... page 35 4. Hospitality & the Sharing Economy… page 57 5. Bookings & Reservations… page 75 6. Travel Marketing & Tech… page 83 7. Business Travel… page 92 8. Meetings & Events… page 102 9. Cruises… page 106 10. M&A & VC Funding... page 110 11. Mobile… page 118 12. Attractions... page 132

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SNAPSHOTS & HORIZONS

LIKE WHAT YOU SEE? TALK TO US FOR YOUR NEEDS

Skift’s content studio SkiftX helps brands such as Amadeus, Sabre, Mastercard, American Express, Hilton, Club Med and many others create industry thought leadership to talk to the right constituencies inside the travel industry, using the right storytelling formats. We do this through trends reports, research, branded content, social content, video storytelling, in-person events and other content marketing initiatives, and distribute through the largest travel industry site, Skift. Contact us for more details: Carolyn Kremins President, Skift [email protected] +1- 212-564-5830 Skift Inc, 1239 Broadway, #703B, New York, NY 10001

6

TRAVEL & GDP IMPACT

2015 USDbn*

2015 (% of total)

2016 Growth**

Direct contribution to GDP

2,229.8

3.0

3.3

3,469.1

3.4

4.2

Total contribution to GDP

7,170.3

9.8

3.5

10,986.5

10.8

4.0

Direct contribution to employment****

107,833

3.6

1.9

135,884

4.0

2.1

Total contribution to employment****

283,578

9.5

2.2

370,204

11.0

2.5

Visitor exports

1,308.9

6.1

3.0

2,056.0

6.2

4.3

Domestic spending

3,419.9

4.7

3.3

5,245.5

3.9

4.0

Leisure spending

3,621.9

2.3

3.0

5,645.8

2.6

4.2

Business spending

1,106.9

0.7

3.9

1,658.8

0.8

3.7

Capital investment

774.6

4.3

4.7

1,254.2

4.7

4.5

World

*2015 constant prices & exchange rates; **2016 real growth adjusted for inflation (%); ***2016-2026 annualized real growth adjusted for inflation (%); **** '000 jobs

7

SOURCE: World Travel & Tourism Council: 2016

2026 USDbn*

2026 % of total

2026 Growth*** (% PA)

GLOBAL GDP IMPACT, BY INDUSTRY Automotive Manufacturing

Chemicals Manufacturing

Travel & Tourism

Banking

Education

Agriculture

Mining

Retail (without wholesale)

$USD billion (2014 prices)

5,000

$4,796 $4,261 $3,897

4,000

$3,111 3,000

$2,365 2,000

$1,590

1,000

$914

0

8


$2,436

$2,605

Financial Services

TRAVEL AND TOURISM GDP GROWTH BY REGION (2016-2026) annualized

South Asia South East Asia

North East Asia

Sub Saharan Africa

North Africa

4.2% 3.7% 3.5%

Other Europe

3.5%

Caribbean

3.4%

Oceania

3.2%


5.6%

4.9%

North America

European Union

5.8%

5.2%

Middle East

Latin America

9

2.7%

7.1%

WORLD GDP GROWTH VS. GROWTH OF VISITOR ARRIVALS AND SPENDING

Total International Overnight Arrival (132 cities)

Index 150

144.0

144.7

137.0

140

145.4

138.2 126.9

130

120

World Real GDP

118.8 115.6

112.1 100 104.1

100 2009

2010

SOURCE: MasterCard: 2015

132.0

124.2

114.9

110

10

127.3

Total International Overnight Arrival Expenditure (132 cities)

107.2

2011

109.8

2012

118.9

112.6

2013

2014

2015

GROWTH IN GLOBAL DEMAND FOR AIR TRAVEL

8% 7% 6%

5.9%

5.3%

5.2%

2012

2013

5.9%

6.5% 10-year average growth rate: 5.5%.

5% 4% 3% 2% 1% 0% 2011

11

2014

2015

SOURCE: © International Air Transport Association, 2015 . Air Passenger Market Analysis, December 2015. All Rights Reserved. Available on IATA Economics page.

INTERNATIONAL TOURIST ARRIVALS (2015)

Global

Europe

APAC

Americas

Middle East

-3% Africa

12

+4.4% +5% 609 million arrivals +5% 277 million arrivals +5%

191 million arrivals

+3% 54 million arrivals

53 million arrivals

SOURCE: World Tourism Organization: 2016

1,184 million arrivals

TOP TOURISM SPENDERS IN THE WORLD (2014)

165 USD$ billion +28%

CHINA USA GERMANY UK RUSSIAN FED.

13


112 USD$ billion 92 USD$ billion 58 USD$ billion 50 USD$ billion

+7% +1% +4% -6%

TOP EMERGING GLOBAL AND U.S. DESTINATIONS IN 2016

GLOBAL 1

Tulum, Mexico

Gatlinburg, Tennessee

2

Cartagena, Colombia

Orange Beach, Alabama

3

Porto, Portugal

Destin, Florida

4

Gatlinburg, United States

South Lake Tahoe, California

5

Moscow, Russia

Jackson, Wyoming

6

Brighton, United Kingdom

Estes Park, Colorado

7

New Delhi, India

Anchorage, Alaska

8

Banff, Canada

Pittsburgh, Pennsylvania

9

Lima, Peru

Porland, Maine

Foz do Iguacu, Brazil

Kailua-Kona, Hawaii

10

14

U.S.

SOURCE: TripAdvisor: 2015

U.S. INTERNATIONAL AIR TRAFFIC HITS ANOTHER NEW RECORD

177.6 million

2012

185.4 million

2013

197.3 million

2014

209.1 million

2015

This is International air traffic to/from the US measured by number of passengers (both US and non-US citizens)

15

SOURCE: Office of Travel Tourism Industries: 2016

A RECORD NUMBER OF AMERICANS TRAVELED ABROAD IN 2015

Regions Regions

TOTAL2015 2015Travelers Travelers TOTAL

%CHANGE CHANGEYOY YOY %

MarketShare Share Market

Europe 12,598,860 5.9% 17.2% Caribbean 7,648,197 6.6% 10.4% Asia

4,842,660 7.4% 6.6%

Central America 2,790,865 3.5% 3.8% Middle East

2,045,251 14.9% 2.8%

South America 1,869,463 5.5% 2.5% Oceania 643,485 7.0% 0.9% Africa

350,572 -2.1% 0.5%

Total Overseas 32,789,353 6.5% 44.6% Mexico (Total) 28,195,381 8.9% 38.4%

Mexico (Air)

7,993,665 15.3%

Canada (Total) 12,468,380 8.3% 17.0%

Canada (Air)

3,633,045 6.5%

Total North America 40,663,761 8.7% 55.4% Grand Total 73,453,114 7.7% 100.0%

16

SOURCE: National Travel & Tourism Office/Skift: 2016

U.S. TRAVEL SPENDING & VISITORS

Spending

Visitors

$Billions of Spending

Millions of Visitors 80

$250

70

$200

60 $150 50 $100

40 30

$50 99 00 01

17

02 03


04 05 06 07

08 09

10

11

12

13

14

INTERNATIONAL VISITOR SPEND IN THE U.S. DIPPED IN 2015

International Traveler Receipts in U.S.

Jan-Dec 2015 ($billions)

YOY Change

Total Travel and Tourism-Related Exports

$220.756

$216.867

-1.80%

Travel Receipts (for all purposes including education)

$177.240

$178.297

0.60%

Travel Spending

$135.723

$132.685

-2.20%

Medical/Education/Workers Spending

$41.517

$45.612

9.90%

Passenger Fare Receipts*

$43.516

$38.570

-11.40%

*Only U.S. carriers are included in this data.

18

Jan-Dec 2014 ($billions)

SOURCE: National Travel & Tourism Office/Skift: 2016

BIGGEST U.S. TRAVEL DAYS OF THE YEAR RANK

19

DEPARTURE DATE

RELATED HOLIDAY

1

11/26/2014

Thanksgiving

2

11/25/2014

Thanksgiving

3

12/23/2014

Christmas

4

7/3/2014

4th of July

5

12/19/2014

Christmas

6

5/23/2014

Memorial Day

7

8/29/2014

Labor Day

8

12/20/2014

Christmas

9

12/22/2014

Christmas

10

10/10/2014

Columbus Day

11

12/24/2014

Christmas Eve

12

12/26/2014

Columbus Day

13

11/21/2014

Thanksgiving

14

2/14/2014

Valentines Day

15

10/9/2014

Columbus Day

SOURCE: Adobe Digital Index: 2015

2

TOURISM & DESTINATIONS Topic: Tourism & Destinations

SHARE OF INTERNATIONAL TOURIST ARRIVALS, BY CONTINENT (2015)

609 million

51%

277 million

23%

191 million

16%

Europe

21

Asia Pacific


Americas

54 million

53 million

5%

5%

Middle East

Africa

GLOBAL INBOUND TOURISM BY PURPOSE OF VISIT (2014)

53%

27% 14% 6% Leisure, recreation and holidays

22


Visiting friends and relatives, health,religion, other

Business and professional

Not specified

TOP 10 DESTINATION COUNTRIES BY TOTAL TOURISM RECEIPTS $U.S. 2014 2013

Spain

65.2 billion 62.6 billion

China


France


Macao (China)


Italy


United Kingdom


Germany


Thailand


Hong Kong (China) 23


United States



CHINA OUTBOUND TOURISM GROWTH

2015 2014

109

120

million

million

China to U.S. ‘Air Arrivals’ Annual 2015: Non-U.S. Citizens (Originating PRC)

24

U.S. Citizens (Returning)

Total Inbound on Non-stop Flights

Load Factor (Estimate)

Passengers

2,167,436

982,422

3,149,858

81.8%

% Chg. 2015/14

25.2%

15.1%

21.8%

-0.4% pts

SOURCE: China National Tourism Administration (CNTA)/Xinhua: 2015 Office of Travel Tourism Industries: 2016

GLOBAL TRAVEL & TOURISM COMPETITIVE INDEX (2015) Value

Spain 5.31 France 5.24 Germany 5.22 United States 5.12 United Kingdom 5.12

25

Switzerland

4.99

Australia

4.98

Italy

4.98

Japan

4.94

Canada

4.92

SOURCE: World Economic Forum: 2015

Based on 14 pillars organized into four subindexes: Enabling Environment; T&T Policy and Enabling Conditions; Infrastructure; and Natural and Cultural Resources. Scale is on a range of 1-7.

TOP 20 COUNTRIES WHOSE CITIZENS ARE AFFECTED THE LEAST BY VISA RESTRICTIONS (2015) Mobility

Denmark Finland Germany Italy

160

Luxembourg Singapore United Kingdom France Japan Korea (Republic of) Netherlands

159 Mobility indicates to what extent citizens around the world are affected by visa policies. It is a measure ranging from 0 to 215. The higher the score, the more mobile the citizens of that country are.

Sweden United States of America Belgium Canada Ireland Norway Portugal Spain Switzerland 26

SOURCE: World Tourism Organization/Skift: 2016

158

FASTEST-GROWING DESTINATIONS FOR LEISURE TRAVEL SPENDING (2016 -2026) annualized

India

Angola

Uganda

7.4%

Brunei

7.3%

Thailand

7.6%

7.2%

China

7.0%

Myanmar

6.9%

Oman

27

7.8%

6.7%

Mozambique

6.6%

Vietnam

6.6%


TOP 20 GLOBAL CITY DESTINATIONS BY INTERNATIONAL VISITORS (2015) London 18.82 mn Bangkok

18.24 mn

Paris 16.06 mn Dubai 14.26 mn Istanbul 12.56 mn New York 12.27 mn Singapore

11.88 mn

Kuala Lumpur Seoul

10.35 mn

Hong Kong

8.66 mn

Tokyo Barcelona

8.08 mn 7.63 mn

Amsterdam 7.44 mn Rome

7.41 mn

Milan 7.17 mn Taipei

28

6.55 mn

Shanghai

5.85 mn

Vienna

5.81 mn

Prague

5.47 mn

Los Angeles

5.20 mn

SOURCE:MasterCard: 2015

11.12 mn

TOP 20 GLOBAL CITY DESTINATIONS BY INTERNATIONAL OVERNIGHT VISITOR SPEND (2015)

London $20.23 bn New York

$17.37 bn

Paris $16.61 bn Seoul

$15.24 bn

Singapore $14.65 bn Barcelona

$13.86 bn

Bangkok $12.36 bn Kuala Lumpur

Dubai

$11.68 bn

Istanbul

$9.37 bn

Taipei

$9.28 bn

Tokyo

$8.44 bn

Hong Kong

$7.44 bn

Los Angeles

$7.36 bn

Madrid

$7.13 bn

Miami

$6.40 bn

Sydney $6.15 bn Munich

29

$12.02 bn

$5.57 bn

Rome

$5.29 bn

Berlin

$5.22 bn


FASTEST-GROWING DESTINATION CITIES BY INTERNATIONAL OVERNIGHT VISITORS (2009- 2015 COMPOUND ANNUAL GROWTH RATE)

Colombo

21.1%

Chengdu

20.7%

Abu Dhabi Osaka Riyadh

Taipei

Lima Ho Chi Minh City


20.4%

Xi An

Tokyo

30

19.8% 18.0%

16.2% 14.9% 14.6% 13.9%

12.9%

FASTEST-GROWING DESTINATIONS WITHIN WORLD’S TOP 20 MOST VISITED CITIES (2009- 2015 COMPOUND ANNUAL GROWTH RATE)

14.9% 14.6% 11.7%

11.4% 10.1%

Taipei

31


Tokyo

Bangkok

Seoul

Istanbul

TOP ARRIVAL CITIES IN ASIA (2015) Rank by International Arrivals

Destination

Arrivals(mns)

1

Bangkok

21.9

2

Singapore

11.8

3

Tokyo

11.8

4

Kuala Lumpur

11.3

5

Phuket

9.3

6

Seoul

9.2

7

Hong Kong

8.3

8

Pattaya

8.1

9

Bali

7.2

10

Osaka

6.5

11

Taipei

6.4

12

Shanghai

5.5

13

Siem Reap

4.8

14

Hokkaido

4.7

15

Mumbai

4.6

16

Chennai

4.5

17

Chiba

4.2

18

Beijing

4.0

19

Guangdong

3.9

(excl. major cities)

20 32

SOURCE: Mastercard/ Skift: 2016

Phnom Penh

3.7

NORTH AMERICA’S FASTEST-GROWING DESTINATION CITIES BY INTERNATIONAL OVERNIGHT VISITORS 2015 Overnight International Visitors (millions) 2011

2012

2013

2014

2015

% CAGR 2009 to 2015

2015 Visitor Spend (US$bn)

USA

1.02

1.13

1.28

1.45

1.52

10.5%

$2.2

Los Angeles

USA

4.45

4.48

4.60

4.94

5.20

7.8%

$7.4

3

Miami

USA

3.25

3.77

4.30

4.40

4.52

7.5%

$6.4

4

New York

USA

10.26

10.59

11.07

11.86

12.27

6.0%

$17.4

5

San Francisco

USA

2.87

2.82

3.05

3.21

3.39

5.9%

$4.8

6

Toronto

Canada

3.41

3.53

3.68

4.02

4.18

4.3%

$2.4

7

Boston

USA

1.52

1.46

1.48

1.61

1.64

3.9%

$2.3

8

Vancouver

Canada

3.12

3.15

3.30

3.50

3.76

3.4%

$2.7

9

Chicago

USA

1.97

2.17

2.19

2.37

2.35

3.0%

$3.3

10

Montreal

Canada

1.94

1.93

1.95

2.04

2.12

2.9%

$1.2

Destination City

Country

1

Houston

2

Rank

Only destinations with more than one million international overnight arrivals in 2015 were included in this ranking.

33


TOP TRENDING DESTINATIONS ON AIRBNB (2015) 7000% Growth

Chūō-ku in Osaka, Japan Banglampoo in Bangkok, Thailand

1230% Growth

Brickfields, Kuala Lumpur, Malaysia

1200% Growth

Capucins in Bordeaux, France

960% Growth

Koukaki in Athens, Greece

800% Growth

Triana in Seville, Spain

770% Growth

Hammerbrook in Hamburg, Germany

415% Growth

Kaneohe on Oahu, Hawaii, U.S.

320% Growth

Meireles in Fortaleza, Brazil

285% Growth

Roma Sur in Mexico City, Mexico

275% Growth

Oak Lawn in Dallas, Texas, U.S.

260% Growth

Poncey-Highland in Atlanta, Georgia, U.S.

240% Growth

District VII in Budapest, Hungary

145% Growth

The Bukit Peninsula, Bali

130% Growth

Richmond in Melbourne, Australia

126% Growth

Constitución in Buenos Aires, Argentina

125% Growth

* Percent growth of inbound guests staying in listings on Airbnb in these neighborhoods from 2014 to 2015, with a minimum of 50 guests in 2014

34

SOURCE: Airbnb: 2016

3

AIRLINES & AIRPORTS

Topic: Tourism & Destinations



36

GLOBAL GROWTH IN AIR PASSENGER VOLUME (2015)

37

Global

6.1%

Middle East

11.3%

APAC

8%

North America

5.6%

LatAm/Caribbean

5.5%

Europe

5%

Africa

-0.1%

SOURCE: Airports Council International (ACI): 2016

WORLD AIRPORT TRAFFIC STATISTICS REGIONS

PASSENGERS

CARGO

MOVEMENTS

38

Africa APCA Europe LATAM Middle East North America Total Africa APCA Europe LATAM Middle East North America Total Africa APCA Europe LATAM Middle East North America Total

SOURCE: Airports Council International (ACI): 2015

Y/E APRIL 2015

144,904,667 1,527,745,570 1,731,006,669 466,288,259 252,145,032 1,577,419,750 5,699,509,947 1,423,776 32,887,440 17,562,492 4,592,203 7,076,475 28,150,569 91,692,956 2,011,091 12,135,256 18,526,728 6,630,431 1,992,885 25,546,557 66,842,948

Passengers

total passengers enplaned and deplaned, passengers in transit counted once.

Cargo

loaded and unloaded freight and mail in metric tonnes.

Movements landing or take-off of an aircraft. The Airport Traffic Report Summary is a comparison of airports with complete data series for the 12- month period under review, Number of participating airports by region: AFR: 122: ASP: 140; EUR: 444; LAC: 198; MEA: 18;: 1085

MOST CONNECTED AIRPORTS IN THE WORLD (2015) Airport

Country

Connectivity Index*

1

ATL

USA

2503

2

ORD

USA

2280

3

DFW

USA

1940

4

CLT

USA

1585

5

IAH

USA

1028

6

DTW

USA

903

7

CGH

Brazil

880

8

DEN

USA

877

9

MEX

Mexico

826

10

PHX

USA

778

11

SFO

USA

738

12

SEZ

USA

718

13

LHG

UK

692

14

PHL

USA

673

15

BOS

USA

663

16

MSP

USA

659

17

CGK

Indonesia

652

18

HND

Japan

643

19

GRU

Brazil

635

20

SYD

Australia

623

*OAG calculated a ‘Connectivity Index’ for each airport as a ratio of the number of possible connections to the number of destinations served by each airport.

39

SOURCE: OAG, the air travel intelligence company

TOP 10 FOREIGN AIRPORTS BY U.S. PASSENGER TRAFFIC (2015) 81.7 million Passengers, 39% of Total International Air Traffic Passengers (millions)

London Heathrow (LHR) Toronto (YYZ) Tokyo Narita (NRT) Cancun (CUN)

14.806

2.0%

12.371

6.0%

9.289

-1.3%

16.7%

8.253

Paris/de Gaulle (CDG)

7.028

6.1%

Mexico City (MEX)

7.012

10.3%

Frankfurt (FRA)

Incheon (ICN) Vancouver (YVR) Amsterdam(AMS)

40

% Chg Y-o-Y


6.818

2.1%

6.005

13.6%

5.25

8.1%

4.893

4.2%

TOP GLOBAL AIRPORTS (LARGE CATEGORY) BY ON-TIME PERFORMANCE Airport Name

1

Tokyo Haneda

91.25%

2

Munich

87.71%

3

São Paulo Guarulhos

87.47%

4

Minneapolis

85.27%

5

Sydney

85.20%

6

Melbourne

85.02%

7

Singapore Changi

84.75%

8

Atlanta

84.38%

9

Frankfurt

84.12%

10

Seattle

83.56%

11

Phoenix

83.53%

12

Madrid

82.62%

13

Chariotte

81.43%

14

Las Vegas

81.40%

15

Amsterdam

81.15%

16

Orlando

80.79%

17

Boston

80.68%

18

Houston

80.10%

19

Miami

80.08%

20 Dallas/Fort Worth 41

Average OTP 2015


79.89%

TOP GLOBAL AIRLINES BY ON-TIME PERFORMANCE Airline Name

1

airBaltic

94.39%

2

Copa Airlines

91.69%

3

Azul

91.03%

4

Japan Airlines

90.44%

5

All Nippon Airways

89.65%

6

Finnair

89.52%

7

TAM

89.50%

8

Austrian Airlines

89.28%

9

Hawaiian Airlines

89.11%

10

LOT - Polish Airlines

88.88%

11

Virgin Australia

88.56%

12

KLM

88.45%

13

SAS

88.21%

14

Monarch Airlines

88.18%

15

Qantas Airways

88.08%

16

Iberia

87.53%

17

Flybe

87.47%

18

Air New Zealand

87.33%

19

Qatar Airways

87.12%

20 Norwegian Air Shuttle

42

Average OTP 2015


86.67%

TOP AIRLINES BY ON-TIME PERFORMANCE (2015,U.S.) Carrier*

12 Months Ending Dec 2015 %

Rank

Hawaiian

88.4

1

Alaska

86.4

2

Delta

85.9

3

American

80.3

4

Virgin America

79.9

5

SkyWest

79.7

6

Southwest

79.9

7

United

78.2

8

ExpressJet

77.9

9

JetBlue

76.0

10

Envoy

74.1

11

Frontier

73.2

12

Spirit

69.0

13

Total

79.9

* All U.S. airlines with at least one percent of total domestic scheduled-service passenger revenues.

43

SOURCE: U.S. Department of Transportation: 2016

SYSTEMWIDE AIR TRAVEL IN THE U.S. Annual 2014

2015

% Change

Passengers (in millions)

853.1

895.5

5.0

Flights (in thousands)

9,553.8

9,526.0

-0.3

Revenue Passenger Miles (in billions)

1,221.9

1,289.0

5.5

Available Seat-Miles (in billions)

1,478.1

1,559.5

5.5

Load Factor

82.7

82.7

0.0

Flight Stage Length*

914.2

941.2

2.9

Passenger Trip Length**

1,432.2

1,439.4

0.5

* The average non-stop distance flown per departure in miles ** The average distance flown per passenger in miles

44

SOURCE: United States Department of Transportation: 2016

U.S. AIRLINE SEASONALLY-ADJUSTED LOAD FACTOR Systemwide (Domestic + International) passenger enplanements (seasonally-adjusted) in millions

90

82.9

83.1

83.2

Aug 12

Dec 12

83

82.8

Apr 13

Aug 13

83.3

83.8

83.4

82.9

83

Dec 14

Apr 15

83.7

84.3

80

Apr 12

Dec 13

Apr 14

Aug 14

Aug 15

Dec 15

Load factor is a measure of the use of aircraft capacity that compares the system use, measured in RPMs as a proportion of system capacity, measured in ASMs.

45


U.S. AVERAGE Q3 DOMESTIC ITINERARY FARES dollars ($)

500

461

459 450

447

417

400

406

399

401

404

396

390

387 374

378

377

370

396

372

372 366

338

300

1995

1996 1997

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

2011

BTS reports average fares based on domestic itinerary fares. Constant 2015 dollars are used for inflation adjustment.

46

SOURCE: United Stated Department of Transportation: 2016

2012

2013 2014 2015

TOP 10 BUSIEST U.S. AIRPORTS BY ENPLANED PASSENGERS Passenger numbers in millions

47

2015 Rank

Airport

2014 Rank

2014 Enplaned Passengers

1

Atlanta

49.314

1

46.577

5.9

2

Los Angeles

36.228

2

34.278

5.7

3

Chicago O'Hare

36.185

3

33.715

7.3

4

Dallas/Fort Worth

31.558

4

30.775

2.5

5

New York JFK

27.601

5

26.196

5.4

6

Denver

26.251

6

25.978

1.1

7

San Francisco

24.131

7

22.743

6.1

8

Charlotte

21.895

8

21.520

1.7

9

Las Vegas

21.638

9

20.349

6.3

10

Phoenix

21.331

10

20.328

4.9


SOURCE: United Stated Department of Transportation: 2016

Pct. Change 2014- 2015

TOP 10 U.S. AIRPORTS BY PASSENGER TRAFFIC TO/FROM FOREIGN AIRPORTS (2015) 145.0 million Passengers, 69% of Total Air Traffic Passengers (millions)

New York (JFK)

30.438

7.0%

21.3

4.6%

20.866

7.8%

Chicago (ORD)

12.112

0.5%

Newark (EWR)

11.97

-0.8%

San Francisco (SFO)

11.264

9.0%

Atlanta (ATL)

11.196

3.0%

10.705

7.8%

7.89

8.8%

7.224

0.2%

Miami (MIA) Los Angeles (LAX)

Houston (IAH) Dallas-Ft Worth (DFW) Washington Dulles (IAD)

48

% Chg Y-o-Y


TOP U.S. AIRLINES BY SCHEDULED ENPLANEMENTS Passenger numbers in millions

2015 Rank

Carrier

2014 Rank


1

American*

146.550

4

87.830

66.9

2

Southwest**

144.575

1

135.764

6.5

3

Delta

138.591

2

129.210

7.3

4

United

95.327

3

90.373

5.5

5

JetBlue

35.074

6

32.056

9.4

6

SkyWest

30.078

8

27.786

8.2

7

ExpressJet

26.003

7

30.950

-16.0

8

Alaska

22.828

9

20.935

9.0

9

Spirit

17.629

11

13.979

26.1

10

Republic

13.908

12

13.047

6.6


Pct. Change 2014- 2015

* American Airlines 2015 passenger number includes 28.256 million passengers reported as US Airways from Jan-Jun 2015. US Airways reported 57.514 million passengers in 2014 and was the fifth ranking airline. ** Southwest’s numbers include AirTran. The merged Southwest and AirTran reported separately through December 2014 although operating under a single certificate.

49


TOP AIRLINES SERVING U.S. INTERNATIONAL NON-STOP MARKETS (2015) 116.3 million Passengers, 56% of Total Air Traffic

Passengers (millions)

United Airlines 30.504

-0.10%

Delta Air Lines 24.118

4.50%

American Airlines* British Airways

7.228

24.049

8.20% 0.50%

JetBlue Airways

6.432

11.60%

US Airways*

6.197

n/a

Lufthansa

5.693

3.20%

WestJet 4.326 Air Canada (mainline) 4.049 Air France 3.717

*American Airlines and US Airways merged in October 2015 50

% Chg Y-o-Y


1.10% -5.60% 7.50%

NET INCOME FOR U.S. CARRIERS 2012 2012

2013 2013

2014 2014

2015 2015

282,081

-660,979

654,051

1,113,817

6,477,781

685,990

978,519

1,144,629

10,549,234

684,469

3,551,016

American Airlines

-469,218

-1,965,101

-1,926,101

-15,25,707

1,309,739

3,342,574

Southwest Airlines

458,908

300,662

431,308

754,469

1,136,501

1,645,320

Alaska Airlines

250,474

256,434

301,601

497,328

598,449

641,587

JetBlue Airways

96,652

86,251

127,284

167,967

395,630

487,086

Spirit Air Lines

25,439

67,340

95,711

166,336

291,221

251,877

Hawaiian Airlines

114,375

7,967

66,260

62,358

79,787

153,910

Virgin America

-67,401

-100,403

-145,387

11,811

60,109

149,630

Frontier Airlines

-19,379

-72,055

4,735

11,642

129,029

113,795

SkyWest Airlines

57,719

36,557

66,284

87,082

46,486

85,770

Envoy Air

52,625

13,525

-32,267

33,248

5,814

-17,848

ExpressJet Airlines

13,642

-31,900

-10,699

-32,279

-84,017

-17,089

Atlas Air

137,446

80,252

103,286

67,144

66,316

-2,550

2010

2011

United Air Lines

401,598

Delta Air Lines

Net income ($000s)

These are U.S. carriers with at least $20m/year revenue.

51


MOST VALUABLE AIRLINE BRANDS 2016

Emirates Airlines

Delta

7,743 6,640 6,301

3,649 4,621

British Airways

Air China

3,645 4,474

52

SOURCE: Brand Finance: 2016

4,154

3,679 3,466 3,494 2,774 3,436

China Eastern Airlines

Lufthansa

4,861

2,953

Southwest

Qatar Airways

6,336

6,156

American Airlines

United

Brand Value ( $Millions)

2015

2,914 2,999

4,099

WORLD’S MOST INTERNET-CONNECTED AIRLINES % of available seat miles with at least a chance of Wi-Fi - top 20 airlines Scoot

100

% of available seat miles on long haul routes with at least a chance of Wi-Fi - top 20 airlines Lufthansa

100

Virgin America

96.37

Aeroflot

97.76

Icelandair

96.23

Garuda

95.86

Delta

88.51

United

95.14

Southwest

86.11

Aer Lingus

91.42

Etihad

85.51

Eithad

89.29

United

82.35

Emirates

80.43

Emirates

73.43

Oman

79.52

Norwegian

72.22

Iberia

78.64

68.5

Delta

78.37

American Alaska

68.27

Philippine

72.12

JetBlue

67.58

SAS

68.55

Lufthansa

64.6

Turkish

61.14

Japan (JAL)

61.29

Japan(JAL)

60.79

Virgin Atlantic

49.94

ANA

60.68

Singapore

49.45

Singapore

59.75

Philippine

49.28

China Airlines

53.81

Iberia

47.88

Virgin Atlantic

49.9

Garuda

45.98

Qatar

41.17

Kuwait

45.59

Saudia

40.27

Only airlines with at least 8 flights and 8 Wi-Fi equipped aircraft were included in the rankings. Long-haul is defined as flights longer than 2,800 miles.

53

SOURCE: Routehappy. Data are based on global flight schedules and Routehappy data for flights departing February 8, 2016.

U.S. AIRPORTS WITH BEST WI-FI (2015) Mbps

Denver International (DEN)

4.73

Dallas (Fort Worth) (DFW)

4.00

Los Angeles (LAX)

3.65

New York (JFK)

3.55

Chicago (O’ Hare) (ORD)

3.48

San Francisco (SFO)

3.26

Altanta (Hartsfield) (ATL)

3.05

These rankings are derived from the 7 busiest airports in the U.S. wefi’s analysis based on data from March through May 2015

54

SOURCE: wefi: 2016

AIRLINES' MAJOR UPTAKE IN SELF-SERVICE CHECK-IN By 2018

2015

49%

29%

23% 20%

20% 17% 12%

10% 8% 4%

4% 1%

Desktop

55

Desktop/ Laptop

SOURCE: SITA, Airline IT Trends Survey 2015

Kiosk

Smartphone

Tablet

3% 0%

Automatic

Other

WI-FI ROLLOUT - US CARRIERS

Fully rolled out

More than 2/3 rolled out

1%

1/3 to 2/3 rolled out

4%

Up to 1/3 rolled out

2%

No Wi-Fi

71%

22%

When flying on a US airline, 71% of available seat miles (ASMs) are fully rolled out with Wi-Fi, while 22% have no Wi-Fi

56

SOURCE: Routehappy. Data are based on global flight schedules and Routhappy data for flights departing February 8, 2016.

4

HOSPITALITY & THE SHARING ECONOMY Topic: Tourism & Destinations

LARGEST U.S. HOTEL BRANDS BY CHAIN SCALE SEGMENT (2015) Chain Scale Segment

58

Brand Rankings

Rooms

Parent Company Rankings

Rooms

Luxury

JW Marriott The Ritz Carlton Loews Hotels

13,962 11,574 9,436

Marriott International, Inc. Starwood Hotels & Resorts Worldwide, Inc. Hyatt Hotels Corporation

26,103 14,233 10,816

Upper Upscale

Marriott Hilton Sheraton

126,146 99,137 66.017

Marriott International, Inc. Hilton Worldwide Holdings Starwood Hotels & Resorts Worldwide, Inc.

176,349 155,272 118,204

Upscale

Courtyard by Marrott Residence Inn Hilton Garden Inn

124,650 81,432 78,607

Marriott International, Inc. Hilton Worldwide Holdings InterContinental Hotels Group PLC

246,429 197,868 65,159

Upper Midscale

Holiday Inn Express Hampton by Hilton Holiday Inn

166,757 115,302 104,639

InterContinental Hotels Group PLC Hilton Worldwide Holdings Choice Hotels International, Inc.

271,569 200,792 159,971

Midscale

Quality Inn La Quinta Inns & Suites Best Western

109,834 86,327 84,168

Choice Hotels International, Inc. Wyndham Worldwide Corporation LQ Management LLC

140,728 95,156 86,327

Economy

Days Inn Motel 6 Super 8

115,938 108,795 99,533

Wyndham Worldwide Corporation G6 Hospitality Choice Hotel International, Inc.

301,868 118,170 88,513

SOURCE: Hotel News Now: 2016

HOTEL BRANDS BY MARKET CAP (2015-2016) 2016

2015 Brand Value

Hilton

Marriott

Starwood

Accor

InterContinental Hotels Group

Wyndham

Hyatt

Choice Hotels

59

SOURCE: Skift and Google Finance

$21.89B $27.68B

$16.58B

$21.1B

$13.16B

$14.05B $9.75B

$12.6B

$9.53B

$9.87B

$8.43B

$10.09B

$6.41B

$8.14B

$2.94B $3.24B

HOTEL GROUPS WITH MOST FACEBOOK CHECK-INS IN 2015 check-ins Hilton Hotels & Resorts Sheraton Hotels & Resorts

2.62 million

Marriott Hotels

Hyatt Regency

1.80 million

1.90 million

Westin Hotels & Resorts

1.72 million

Best Western

1.69 million

JW Marriott

1.46 million

DoubleTree by Hilton

1.42 million

Novotel ibis

60

4.13 million

SOURCE: MediaPost:2016

1.13 million 880,000

TRAVELERS’ CHOICE HOTELS IN THE U.S. AND GLOBAL (2016) U.S.

1

The Sherry-Netherland Hotel

Umaid Bhawan Palace Jodhpur – Jodhpur, India

2

Bardessono

Shinta Mani Resort – Siem Reap, Cambodia

3

The Nantucket Hotel & Resort

Bellevue Syrene – Sorrento, Italy

4

French Quarter Inn

Hanoi La Siesta Hotel & Spa – Hanoi, Vietnam

5

The Oxford Hotel

Achtis Hotel – Afitos, Greece

6

Ponte Vineyard Inn

Belmond Le Manoir aux Quat’Saisons – Great Milton, United Kingdom

7

Icona Diamond Beach

Mirihi Island Resort – Mirihi, Maldives

8

The Talbott Hotel

Bucuti & Tara Beach Resorts Aruba – Palm - Eagle Beach, Aruba

9

Belamere Suites

Calabash Luxury Boutique Hotel & Spa – Lance aux Epines, Grenada

Casablanca Hotel Times Square

Hotel Ritta Höppner – Gramado, Brazil

10

61

GLOBAL


FASTEST-GROWING REGIONS BY NEW HOTELS

FEB 2016 PIPELINE

62

# OF ROOMS UNDER CONTRACT

Asia/Pacific

594,917

U.S.

497,409

Europe

163,826

Middle East

151,454

Central/South America

74,668

Africa

62,191

Caribbean/Mexico

31,886

SOURCE: STR Global: 2016

HOTEL OPENINGS IN 2016

CITY North America

New York Miami Houston

26 20 13

Europe

London Frankfurt Hamburg

19 11 10

Rio de Janeiro Cartagena Sao Paulo

6 4 4

South America

63

HOTELS

SOURCE: American Express: 2016

Middle East

Asia

Africa

CITY

HOTELS

Dubai Riyadh Doha

25 17 15

Shanghai Chongqing Bali

14 12 10

Cairo Marrakech Algiers

7 5 5

GROWTH IN 4 AND 5 STAR HOTELS UNDER CONSTRUCTION 2014-2016

% change by region

North & Central America South America APAC

+95%

Middle East Africa

–18%

64

SOURCE: American Express: 2016

+128%

+38% +20%

+9% Europe

TOTAL U.S. PIPELINE, BY PHASE AND SEGMENT

Chain Scale

Preliminary Existing Supply (as of Dec 31, 2015)

% Change

In Construction

% Change

Under Contract

% Change

Unaffiliated

1,533,422

-0.2%

17,749

+13.2%

89,757

-11.0%

Upper Midscale

888,843

+1.4%

47,954

+36.1%

157,034

+23.9%

Economy

784,149

+1.3%

1,512

+130.8%

6,801

+70.0%

Upscale

660,640

+4.7%

49,203

+10.8%

135,580

+18.1%

Upper Upscale

583,906

+2.7%

11,524

-13.5%

38,885

+23.4%

Midscale

479,040

-0.8%

5,321

+1.3%

29,533

+17.0%

Luxury

108,485

+0.4%

7,440

+35.0%

11,549

+18.7%

Total

5,038,485

+1.2%

140,703

+17.2%

469,139

+13.6%

JW Marriott

65

SOURCE: STR, Inc./Hotel News Now: 2016

U.S. HOTEL PERFORMANCE IN 2015 YTD Variance (%) 2015 vs 2014 8% 7%

+6.3%

6% 5%

+4.4%

4% 3% 2%

+1.7%

1% 0%

Occupancy

66

SOURCE: STR, Inc.: 2015

Avg Daily Rate

Revenue Per Avail Room

NORTH AMERICAN HOTEL METRICS BY TRAVEL SEGMENT ADR

Reserved Occupancy*

RevPAR

7.2%

5.3% 4.3%

3.8% 3.3%

2.9%

2.5%

2.7%

2.9%

2.9% 2.0%

1.4%

2.3%

0.6%

-0.9% All Travel Segments

Group Only

Transient Only

Business + Leisure

Figures show "Y-o-Y growth in Q4 2015 *Reserved Occupancy – Total number of rooms reserved / capacity

67

SOURCE: TravelClick: 2015

Transient Business

Transient Leisure

AIRBNB-ACCOMMODATED DEMAND AS A PERCENT OF TRADITIONAL HOTEL DEMAND (U.S.)

Demand: Airbnb/Hotel 2.0% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0% Oct

Nov

Dec

2014

68

SOURCE: CBRE Hotels/Skift: 2016

Jan

2015

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

AIRBNB VS. PUBLIC COMPETITORS: PRICE TO SALES RATIO

27.8

6.6 2.5 Airbnb

69

HomeAway

SOURCE: CB Insights: 2015

Starwood

2.4 Expedia

1.9

1.6

Wyndham

Marriott

Projected 2015 revenue for Airbnb vs. Trailing 12 months of public companies (6/18/2015)

AIRBNB VS. PUBLIC COMPETITORS: REVENUE GROWTH

2015 vs. 2014 Airbnb

113%

HomeAway

24% 20%

Expedia 8%

Marriott

6%

Wyndham -2%

Starwood

Airbnb revenue calculated as 2014 v. 2015 projected. Public competitor revenue calculated as Q1 2015 Trailing 12 months vs. Q1 2014 Trailing 12 months

70


AIRBNB VS. HOTELS BY REVENUE, Q3 2015

Company

71

Valuation/Market Cap

Q3 Revenue

Marriott International

$18.59B

$3.6B

Hilton Worldwide

$23.2B

$2.9B

Accor Hotels

$10.2B

$1.58B

Wyndham

$8.9B

$1.56B

Starwood Hotels

$12.4B

$1.4B

Hyatt Hotels

$6.9B

$1B

Airbnb

$25.5B

$340M

Choice Hotels

$2.9B

$241.5M

SOURCE: Skift: 2015

BIGGEST AIRBNB CITIES OUTSIDE OF THE U.S. Entire Homes

Paris London Rome Barcelona Rio de Janeiro Copenhagen Milan Sydney Amsterdam Istanbul Bali Tel Aviv Madrid Toronto Lisbon Buenos Aires Florence Melbourne Munich Lyon Sao Paulo Tokyo Prague Vienna Seoul 72

Private Rooms

40667 5622 16470 11654

14119

6752

9768 8265

13108 4788

12770 2352

10094 3822 4887 7251 2275 9653 4898 6688 6819

3544 8531 1803 5012 3655 5753 2800 5888

5675

5327

2255 1824 1842

3310

3061

3362

2838

4624

1617

3358

2758

4295

1458

4392

1230

3820

1705

2938

2587

SOURCE: AirDNA: 2015

These are the largest based on combined Entire Home and Private Room listings

CITIES OUTSIDE U.S. WITH THE HIGHEST AIRBNB DEMAND Tokyo

68.3%

Melbourne

65.9%

Osaka

64.1%

Vancouver

64.1%

Singapore

Lisbon

61.8%

Berlin

61.6%

Amsterdam

60.5%

Sydney

60.0%

London

59.9%

Brisbane

59.4%

Mexico City

59.3%

Barcelona

59.1%

The Hague

59.0%

Dublin

58.6%

Hong Kong

58.6%

Paris

58.5%

Buenos Aires

57.8%

Munich

57.4%

Bangkok

56.9%

Madrid

56.9%

Budapest

56.6%

Zurich

56.6%

Calgary

56.5% Average occupancy rates on entire home listings from Jan-Sep 2015

73

63.1%


TOP-PERFORMING AIRBNB PROPERTIES # of Properties

Airbnb City

Total “Entire Home” Listings

% Top Performing

Venice, CA 126 875 14% Santa Monica

77 549 14%

San Francisco

375 2812 13%

Berkeley 57 465 12% New York

831 7854 11%

Portland 131 1198 11% Honolulu 74 828 9% Los Angeles

366 4742 8%

Brooklyn 312 3884 8% Oakland 40 522 8% The top 10 in terms of % top performing is derived from the list of cities with the most number of top-performing properties. Top-performing listings are those with more than 20 reviews that achieved at least a 70% occupancy rate in the 12 months preceding July 2015

74


5

BOOKINGS & RESERVATIONS Topic: Tourism & Destinations



76

WORLDWIDE DIGITAL TRAVEL SALES, BY REGION Digital Travel Sales (Billions)

$242.57

250

Asia-Pacific $214.87 $202.13 $192.36

200

$179.02 $163.85

$160.31 $151.73

150

$161.97 $140.45

100

Western Europe

$189.69 $171.07

$220.06

$178.76

$185.52

$139.12

$116.11

50 $24.92 $20.33

0

$211.41

North America

$8.85

$29.97

$36.26

$23.97

$28.12

$9.71

$10.62

$42.44

$32.87 $11.66

$48.31

$38.33

$55.26

Latin America Middle East & Africa

$44.63

Central & Eastern Europe $13.10

$14.30

2014 2015 2016 2017 2018 2019

77

SOURCE: eMarketer: 2015

CHANNELS USED TO BOOK ACCOMMODATIONS Last 12 Months 60%

56% 54%

Next 12 Months

56%

48%

50%

% of Travelers

40%

30%

30%

29%

20%

18% 16% 12%

13%

10%

0% Online Travel Agency

Hotel Website

Travel Agent

Airbnb

HomeAway, VRBO, Other Rental Site

Results based on survey of 4,116 adults aged 18+ evenly distributed across the U.S., U.K., France, and Germany in November 2015.

78

SOURCE: Morgan Stanley Research: 2015

SHARE OF NORTH AMERICAN TRANSIENT ROOMS BOOKED BY CHANNEL Q1 2015

Q2 2015

29.1%

Brand.com (Bookings through hotel company websites)

28.5% 22.0%

Direct to Hotel 23.6%

19.3%

Global Distribution Systems (In-person travel agents)

Online Travel Agents

CRO (Calls to hotels’ 800-numbers)

20.6% 16.4% 14.8% 13.3% 13.1%

The chart illustrates the share of transient room nights by channel based on actual reservations.

79

SOURCE: TravelClick: 2015

AIRBNB’S SHARE OF ONLINE LEISURE PENETRATION, VERSUS OTAS 50%

40%

39%

40%

43%

37%

37%

11%

11%

44%

44%

38%

37%

41% 35%

31%

43%

Priceline

Expedia

32%

30% 27%

22%

20%

15%

10% 6%

8%

12%

Airbnb 7%

10% 8%

3%

12% 7%

brand.com/Other OTAs

0 2014

2015

2016 (E)

2017 (E)

Assume Priceline/Expedia/Airbnb room nights are 80%/ 80%/ 90% leisure

80

SOURCE: Morgan Stanley Research: 2015

2018 (E)

2019 (E)

2020 (E)

ONLINE BOOKING TOP IMPROVEMENT IN AIR TRAVEL

Ease of booking online

Comparison shopping on flight search sites

Availability of in-flight Wi-Fi

63%

55%

33%

Airline check-in process

30%

Ability to find comprehensive fare, flight and price information on a single site

29%

Results based on 2015 survey of more than 2,700 US travelers

81


POPULAR ONLINE BOOKING SITES

Booking.com

Tripadvisor.com

Expedia.com

124.1m

50.9m

Hotels.com

44.1m

Agoda.com

41.4m

Airbnb.com

40.1m

Figures are for January 2016 and are limited to .com domains.

82

SOURCE: SimilarWeb: 2016

306.6m (total desktop + mobile web visits)

6

TRAVEL MARKETING & TECH Topic: Tourism & Destinations

INTERNET ADVERTISING REVENUE BY INDUSTRY: 2015 % of total

Half-Year 2015

Retail

22% 21%

Financial Services

13% 13%

Auto

13% 12%

Half-Year 2014

84

Telecom

9% 9%

Leisure Travel

9% 9%

Consumer Packaged Goods

6% 7%

Consumer Electronics & Computers

7% 7%

Pharma & Healthcare

5% 5%

Media

5% 5%

Entertainment

4% 4%

SOURCE: Interactive Advertising Bureau: 2015

U.S. MOBILE ADVERTISING SPEND BY INDUSTRY (2015) % of total 23.2%

12.1%

$3.49

Automotive

12.0%

$3.43

Telecom

11.4%

Travel

8.3%

$2.38

8.1%

$2.33

Computing products & consumer electronics

7.3%

$2.09

Media

6.0%

Entertainment

5.2%

$1.50

Pharma & Healthcare

2.3%

$0.66

Other

4.2%

Retail Financial services

Consumer Packaged Goods & consumer products

85

billions


$3.27

$1.73

$1.20

$6.65

GLOBAL TRAVEL INDUSTRY FACEBOOK AD BENCHMARKS Cost Per Impression Q4 2014 $5.60 Q1 2015 $4.03

Cost Per Click Q4 2014

$0.28

Q1 2015

$0.39

Click Through Rate Q4 2014

2.03%

Q1 2015

86

SOURCE: Salesforce: 2015

1.05%

SOCIAL MEDIA BRANDED POST-INTERACTION RATE BY INDUSTRY (GLOBAL, 2015)

Technology

2.7

Automotive

2.7

Media & Entertainment

2.7

Retail

2.4

Travel & Hospitality

2.4

Financial Services

87

SOURCE: Adobe Digital Index/CMO.com: 2016

1.2

SEARCH ENGINES ARE TOPS FOR HOTEL RESEARCH, BOOKING INFLUENCE % of respondents by where travel research begins

% of respondents by most influential source in booking

48.4%

48.4%

28.4%

27.9% 20.4%

17.4% 13.9% 13.8% 5.8%

Search Engine

Property Website

OTA

Review Site

Compiled from more than 2,900 U.S. and Canadian respondents all of whom planned and consumed at least one leisure vacation in the past 12 months

88

SOURCE: Fuel: 2016

TOP SEARCH TERMS IN TRAVEL Branded Keywords (Jan.- Nov. 2015)

89

Non-Branded Keywords (Jan.- Nov. 2015)

1

Expedia

Flight Tracker

2

Kayak

Hotels

3

American Airlines

Flights

4

TripAdvisor

Restaurants near me

5

Southwest

Flight status

6

Southwest Airlines

Vacation rentals

7

United Airlines

Cheap airline tickets

8

Airbnb

Cruises

9

Orbitz

Plane tickets

10

Cheap flights

Las Vegas

SOURCE: SimilarWeb/Travolution: 2016

TRAVEL INDUSTRY PAID SEARCH GROWTH (GLOBAL)

25% 22% 20% 20%

Click Through Rate

18%

15%

12% 9%

10%

11%

8%

5% 0%

1%

0% -1% -5%

Cost Per Click

Spend -6%

-10%

90

Q4 2014

SOURCE: Adobe Digital Index: 2016

Q1 2015

Q2 2015

-8%

Q3 2015

Q4 2015

TRAVEL TOPS INDUSTRIES IN INTERNET OF THINGS (IOT) SPENDING Average loT spending per company (millions)

Average revenues per company (billions)

loT spending % of company revenues

Travel, transportation and hospitality

$128.9

$21.49

0.60%

Industrial manufacturing

$121.3

$21.16

0.57%

Banking and financial services

$117.4

$26.43

0.44%

Telecom

$110.7

$20.22

0.55%

High tech

$96.9

$24.72

0.39%

Automotive

$93.5

$26.89

0.35%

Insurance

$77.7

$25.99

0.30%

Energy

$74.9

$33.69

0.22%

Utilities

$67.7

$14.41

0.47%

Healthcare and life sciences

$56.2

$16.99

0.33%

Media and entertainment

$47.2

$8.24

0.57%

Retail

$41.8

$13.47

0.31%

CPG

$41.2

$17.43

0.24%

2015 survey of 795 participants at very large global companies from North America (44%), Europe (31%), Asia-Pacific (15%) and Latin America (9%)

91

SOURCE: Tata Consultancy Services/eMarketer: 2016

7

BUSINESS TRAVEL


GLOBAL BUSINESS TRAVEL SPENDING AND GROWTH FORECAST 8 Total travel spending: $1.25 trillion

6.9%

7 6.5%

6.4% 6%

6

5.8%

5 2015

93

SOURCE: GBTA: 2015

2016

2017

2018

2019

TOP GLOBAL MARKETS FOR BUSINESS TRAVEL SPENDING (BTS) 2014 Total BTS ($ Billions USD)

United States China

Japan

$61.5

Germany

$57.9 $43.5

$261.5

5.4% 16.6% 1.1% 7.7% 5.4%

UK

France

$36.0

2.0%

South Korea

$32.1

3.9%

Brazil

$32.0

3.7%

Italy

$30.9

1.3%

India

$26.4

9.7%

Canada

$22.5

3.8%

Russia

$20.9

-6.7%

Australia

$20.5

1.3%

Spain Netherlands 94

$288.4

Annual Growth in BTS (2014)

$18

6.8%

$17.8

-1.7%

SOURCE: GBTA: 2015

FASTEST-GROWING MARKETS FOR BUSINESS TRAVEL SPENDING, 2016-2026 annualized

Myanmar

95

9.0 %

Zambia

8.8

China

8.8

Ukraine

8.4

Tanzania

8.2

Cambodia

7.9

Gabon

7.7

Democratic Republic of Congo

7.6

Greece

7.5

Hong Kong

7.4


BUSINESS TRAVEL SHARE OF OVERSEAS ARRIVALS IN U.S. (2015)

YTD Jan

16.6%

YTD Feb

17.4%

YTD Mar

17.4%

YTD Apr

17.2%

YTD May

17.1%

YTD Jun

16.6%

Figure are for the top 20 overseas tourist-generating countries.

96

SOURCE: National Travel and Tourism Office: 2015

BUSINESS TRAVELERS’ TOP BOOKING DECISION INFLUENCERS Convenient schedule Price Frequent flier miles and status/ Travel reward points Brand loyalty

Seat options/availabilty

Offers/deals from the airline

27%

20%

7%

4%

3%

Free perks ( Wi-Fi, snacks, no fees)

2%

Other

2%

None of the options listed

2%

Survey of 804 US business travelers who had taken at least 4 business trips in the prior 12 months

97

SOURCE: GBTA: 2016

33%

HOW U.S. COMPANIES ALLOCATE BUSINESS TRAVEL SPENDING (2015) % of total

Meal 19% Airlines 17% Miscellaneous 17% Lodging 14% Gas Cell Phone

5%

Car Rental

5%

Supplies

5%

Taxi Shipping

3% 2%

Tolls 1% Parking 1%

98

SOURCE: Certify: 2015

11%

UBER MOST EXPENSED GROUND TRANSPORTATION IN U.S. BUSINESS TRAVEL

50%

47%

45%

44% 41%

40% 34%

Uber Car Rental

39%

31%

30%

27% 24% 25%

22%

20%

20%

Taxi

10%

0% Q1 2015 99


Q2 2015

Q3 2015

Q4 2015

MOST EXPENSED HOTELS AND AIRLINES (US, 2015)

Most Expensed Hotels

100

Most Expensed Airlines

Marriott

Delta

Hampton Inn

American Airlines

Courtyard by Marriott

United Airlines

Hilton Garden Inn

Southwest Airlines

Holiday Inn Express

US Airways


AIRBNB FOR BUSINESS HEATS UP (U.S.)

Airbnb

101

All Hotels

3.8 nights/avg.

2.12 night/avg.

$571.53 per expense

$222.55 per expense


8

MEETINGS & EVENTS


U.S. EVENT TOTALS (2015) Number of Events: Total Net Square Feet (000s): Attendance (000s): Exhibitor Companies (000s):

11,427

3.5% (5-yr chg)

461,102 81,382 1,685

TOTALS FOR UNITED STATES Industry Category

Events

Business Services 1,048 Consumer Goods 818 Discretionary Consumer Services 993 Education 857 Food 393 Financial, Legal, and Real Estate 607 Government, Public, and Non-Profit Services 555 Home & Repair 574 Industrial/Heavy Mach. & Finished Business Inputs 161 Communications, Info. Technology, and Science 1,053 Medical and Health Care 2,017 Natural Resources and Agriculture 831 Sporting Goods, Travel, and Amusement 982 Transportation 538

TOTAL EVENTS BY SIZE

(TOTAL NET SQUARE FEET OF EXHIBIT SPACE)

100,000+ 50,000-99,999

Analysis excludes all events with less than 3,000 net square feet of exhibition space

103

SOURCE: CEIR Census report: 2015

1,144 1,635

25,000-49,999 10,000-24,999 3,000-9,999

2,964 4,631

EVENT ORIENTATION

Total 11,427

BY TYPE OF VENUE Number Percent Exhibition/Convention Center 4,422 39% Hotel (includes hotel convention centers) 6,048 53% Conference Center/Other 957 8%

1,052

18%

82%

Business-to-Business Business-to-Consumer

TOP 20 U.S. STATES BY NUMBER OF EVENTS (2015) 5-year % chg

California

Texas

1,316

10%

Florida

1,304

23%

Nevada

938

5%

10%

New York

546

12%

Illinois

543

-19%

Georgia

481

10%

369

32%

333

22%

Massachusetts

-13%

District of Columbia

Arizona Maryland

319

Tennessee

296

8%

291

8%

Louisiana

269

8%

Washington

254

22%

Colorado

240

Pennsylvania Virginia

203 198

-19% -29% -3%

Missouri

174

61%

Minnesota

172

19%

New Jersey

166

12%


104

1,485


TOP 20 U.S. CITIES BY NUMBER OF EVENTS (2015) Las Vegas, NV

802

Orlando, FL

411

Atlanta, GA

New York, NY

Chicago, IL

San Diego, CA

368 355

341

Washington, DC

San Antonio, TX

Houston, TX

378

296 271

270

Dallas, TX

Lake Buena Vista, FL

246

New Orleans, LA

244

Nashville, TN

232

263

Boston, MA

207

Miami, FL

206

San Francisco, CA

206

Phoenix, AZ

183

Los Angeles, CA

180

Baltimore, MD

173

Denver, CO

164


105


9

CRUISES Topic: Tourism & Destinations

GLOBAL CRUISE PASSENGER TRENDS 2016P

2015P

23M

2014

2013

2012

20.9M

2011

21.3M

20.5M

17.8M

2009

P = Projected

SOURCE: CLIA: 2016

22.04M

19.1M

2010

107

24M

CRUISE LINE DEPLOYMENT, BY REGION (2016) % share of total, Available Lower Berth Day

Caribbean

Mediterranean

Europe w/o Med

Asia

Australia/NZ/Pac

Alaska

South America

All Other

108

SOURCE: CLIA: 2016

33.7%

18.7%

11.7%

9.2%

6.1%

4.1%

2.7%

13.8%

Asia is the fastest-growing region in terms of passenger volume, which grew at a CAGR of 34% between 2012 and 2014 (775,000 passengers to nearly 1.4 million)

TOP 10 COUNTRIES BY CRUISING DEMAND (2014)

U.S.

11.21M

Germany

1.77M

UK

1.61M

Australia Italy

840,000

Canada

800,000

China

700,000

France

590,000

Spain

450,000

Norway

109

1M

SOURCE: CLIA: 2016

180,000

Total number of passengers from the top 10 countries 19.15 million The total from the rest of the world 2.84 million

10

M&A & VC FUNDING


TRAVEL TECH FINANCING HISTORY

US Dollars ($M)

Deals

360

(FY Projected)

$5,381

(FY Projected)

348

(YTD, 12/21/2015)

245 190

208

89

$2,316

59

$710

$718

$789

2011

2012

2013

$137 2010

111


2014

2015 YTD

$5,204

DOLLAR AND DEAL SHARE IN TRAVEL TECH BY GEOGRAPHY 2010-2015 YTD (12/24/15)

Dollar share Deal share

38%

US 39%

32%

China 8%

6%

India 11%

25%

Rest of the world 42%

112


MOST WELL-FUNDED TRAVEL TECH COMPANIES 2010-2015 YTD (12/24/15)

Airbnb

LY.com

$1.2B

TuJia Online Information Technology

Decolar


$291M

Momondo Group

$149M

HotelUrbano

$130M

Oyo Rooms

$126M

Zhubaijia

$109M

Mafengwo

$105M

GetYourGuide

113

$464M

$96M

$2.3B

BIGGEST VC-BACKED TRAVEL TECH EXITS, BY VALUATION (2011-2015)

Date of Exit

114

HomeAway 6/6/2011

$2.155M

Qunar 6/27/2011

$1.200M

Trivago 3/13/2013

$1.026M

Kayak Software

7/20/2012

$1.016M

Viator

8/11/2014

$200M


TRAVEL SECTORS ATTRACTING MOST FUNDING IN 2015

Sector

Total Amount Raised

Travel Booking

$651.75 million

52

Ground Transportation*

$444.7 million

16

B2B

$192.5 million

16

Tours and Activities

$120.5 million

12

Trip Planning and Inspiration

$61.4 million

23

*Doesn’t include funding from larger companies such as Uber, Lyft, GrabTaxi, or Didi Kuaidi.

115

Number of rounds

SOURCE: Skift: 2016

10 MAJOR TRAVEL MERGERS AND ACQUISITIONS IN 2015

116

Company Company

Sector Sector

Acquiring Company Acquiring Company

Nokia’s HERE

Mapping

Audi, BWW, Daimler

Orbitz

Online booking

Expedia

Navitaire

Airline digital services

Amadeus

Abacus

Distribution

Sabre

$830 million $411 million

Brazil Hospitality Group

Lodging

GTIS Partners

$400 million

Travelocity

Online booking

Expedia

$280 million

Perisher

Ski resort

Vail Resorts

$135 million

Delta Hotels

Lodging

Marriott

$135 million

Eat24

Online food ordering

Yelp

$134 million

Mobile Travel Technologies

Mobile software

Travelport

$61 million

SOURCE: Skift: 2015

Acquisition Amount

$3.1 billion $1.6 billion

10 LARGEST FUNDING ROUNDS OF 2015 Company

117

Amount

Round Type

Sector

Didi Kuaidi

$2.6 billion

Series M and Private Equity

Ground Transport

Alibaba, Capital International Private Equity Fund, China Investment Corporation, Coatue Management, Ping An, SoftBank, Temasek Holdings, Tencent Holdings, Tiger Globa Management

Uber

$2.1 billion

Series E and F, Private Equity

Ground Transport

Accelerate IT Ventures, Bennett Coleman and Co. Ltd., Foundation Capital, Microsoft, Tata Capital, Tata Opportunities Fund, Times Internet

Airbnb

$1.5 billion

Private Equity

Lodging

General Atlantic, Hillhouse Capital Group, Tiger Global Management, Baillie Gifford, China Broadband Capital, Fidelity Investments, GGV Capital, Horizon Ventures, Kleiner Perkins Caufield & Byers, Sequoia Capital, T. Rowe Price, Temasek Holdings, Wellington Capital

Lyft

$680 million

Series E

Ground Transport

Rakuten, Icahn Enterprises, Altpoint Ventures, Aslanoba Capital, Fontinalis Partners, Kortschak Investments, SierraMaya360

Ola

$400 million

Series D

Ground Transport

DST Global, ABG Capital, Accel Partners, Falcon Edge Capital, GIC, Mauritius Investments, SoftBank, Steadview Capital, Tiger Global Management

Grabtaxi

$350 million

Series E

Ground Transport

China Investment Corporation, Coatue Management, SoftBank, Tiger Global Management

Tujia

$300 million

Series D

Lodging

All-Starts Investment, Ctrip, The Ascott China

SOURCE: Skift: 2015

Investors

11

MOBILE Topic: Tourism & Destinations

MOBILE SHARE OF WORLDWIDE TRAVEL BOOKINGS

Q2 2015

23%

Q1 2015

20%

Q4 2014

19%

Q3 2014

16%

Q2 2014

12%

Q1 2014

9%

Worldwide, all travel sub-categories, OTAs, and suppliers, excluding apps

119

SOURCE: Criteo: 2015

MOBILE SHARE OF BOOKINGS BY SUB-CATEGORY H1 2015 H1 2014

Apartment Hotel Car Package Air Rail

31% 30% 28%

25%

18%

19% 14%

17% 14% 15% 14%

Worldwide, OTAs, and suppliers, excluding apps

120


22%

MOBILE SHARE OF BOOKINGS BY COUNTRY % of total

Tablet

6% 24%

30%

10% 20%

30%

Sweden

14% 14%

28%

Canada

11% 15%

26%

17%

25%

Japan

Smartphone

United States

Denmark Turkey

8%

4% 21%

Australia

13% 12%

25%

Spain

11% 12%

23%

South Korea United Kingdom Netherlands Italy France

9%

6%

2%

23%

13%

22%

16%

22%

11%

10%

21%

10% 11%

21%

6%

9%

15%

Austria

6%

9%

15%

Belgium

5%

9%

14%

8%

5%

13%

Americas

9% 18%

27%

APAC

8% 19%

27%

EMEA

10%

21%

June 2015, worldwide, all travel sub-categories, OTAs, and suppliers, excluding apps.


21%

Germany

Brazil

121

25%

11%

DIGITAL TRAVEL SALES IN CHINA BY DEVICE Desktop/laptop

2017*

Mobile

2016*

2015*

2014

23.5% 76.5% 24.9% 75.1%

2011

63.7%

55.4%

44.6%

88.9%

2013

2012

36.3%

11.1% 97.2% 2.8% 98.9% 1.1%

*The 2016 and 2017 numbers for digital travel sales in China are forecasts and 2015 figures are an estimate.

122

SOURCE: eMarketer/ Analysys International Enfodesk: 2015 China Mobile Travel Transportation Booking Market report

U.S. MOBILE TRAVEL BOOKERS FORECAST 69.8M 64.8M 59.2M 51.8M 43.8M

69.8% 64.8%

59.2%

38.3M 51.8%

43.8%

35.9% 2014

2015

Moblie travel bookers

2016

2017

2018

2019

% of digital travel bookers

Ages 18+; Mobile Device users who have booked travel via mobile device at least once during the calendar year.

123


U.S. MOBILE TRAVEL BOOKERS, BY DEVICE Smartphone travel bookers Tablet travel bookers

68.4M

2019

51.1M

62.1M

2018

46.4M

55.6M

2017

2016

2015

41.6M 47.0M

36.6M

38.1M

31.3M

2014

30.5M 25.1M

Ages 18+; Mobile Device users who have booked travel via mobile device at least once during the calendar year.

124


SMARTPHONE SHARE OF GLOBAL TRAVEL SITE VISITS (2015) Smartphone

36.6% Media & Entertainment

54.6% 29.5%

Automotive

57.4% 26.1%

Travel & Hospitality

61.1% 25.7%

Retail

63.3% 16.8%

Telecommunication

76.8% 14.5%

Financial Services

80.1% 11.7%

Technology

125

SOURCE:Adobe Digital Index/CMO.com: 2016

84.0%

Desktop

TOP TRAVEL SITES BY US MOBILE WEB VISITS (2015) Moblie Web Visits

Share of Traffic from Moblie

58.0%

55.2% 53.7% 51.4% 629.1M 50.2%

49.7%

48.1%

47.4%

47.6% 337.8M 275.5M 233.2M

vis

m .co r o

d ipa

tr

126

m co . t s

m co ia.

ed

p ex

s

SOURCE: SimilarWeb: 2015

e hw

t ou

o bo

k

m .co g in

43.0%

206.3M

l ice r p

m .co e in

171.2M

m

arr

io

m co tt.

166.3M

h

om c . s el ot

163.3M

m .co k ya ka

158.2M

m

de

l

co ta.

144.8M

m .co a a

TOP FREE TRAVEL APPS (US) Apps on iOS

127

Google Play

1

Uber

Waze

2

Yelp

Yelp

3

Lyft

Google Earth

4

Google Earth

TripAdvisor

5

TripAdvisor

trivago

6

Airbnb

Expedia

7

United Airlines

Airbnb

8

Fly Delta

booking.com

9

Expedia

Southwest Airlines

10

Southwest Airlines

Grubhub

11

American Airlines

GasBuddy

12

Hopper

United Airlines

13

booking.com

Fly Delta

14

My Disney Experience

Hopper

SOURCE: AppAnnie: as of 3/3/2016

GLOBAL MOBILE TRAVEL APP SESSION GROWTH (2015)

Personalization

News & Magazines

Utilities & Productivity

Travel & Navigation

54%

Sports

53%

Messaging & Social

Music, Media & Entertainment

Games

SOURCE: Flurry from Yahoo: 2015

135%

125%

Lifestyle & Shopping

Health & Fitness

128

332%

81%

52%

51%

21%

-1%

MAJOR INVESTMENTS IN MOBILE % of airlines and airports investing in mobile over the next 3 years

Airlines

Major Program

Airports

76% 49%

16% R&D 41%

8% No Plans 10%

129

SOURCE: SITA: The Future is Connected 2016

MOBILE APP DEPLOYMENTS PLANNED BY AIRPORTS AND AIRLINES % OF AIRLINES PROVIDING PASSENGER SERVICES VIA APPS

Baggage location status updates

Location-based notifications

Passenger surveys and focus groups

10%

33% 67%

70% Purchase of airport services

10% 65%

Customer relationship management

2% Missing baggage communication

Real-time baggage status information for passengers

% OF AIRPORTS PROVIDING PASSENGER SERVICES VIA APPS

64%

Notifications about airport status

27% 68% 30% 79% 25% 83%

7% 63%

Navigation/Wayfinding within the airport

30% 91%

Airlines today (2015)

130

Airlines implemented by 2018

SOURCE: SITA: The Future is Connected 2016

Airport today (2015)

Airport implemented by 2018

WHAT PASSENGERS WANT FROM MOBILE PASSENGER DEMAND FOR NEW SERVICES ON BOARD

Access entertainment on own tablet

PASSENGER DEMAND FOR NEW SERVICES AT AIRPORT

67%

24%

Send emails, text messages

60%

31%

Access live flight information

60%

32%

Access entertainment on airline tablet

56%

56%

Access live streaming of content

56%

56%

Flight updates

72%

Bag collection updates

63%

33%

60%

31%

Use mobile for ID

59%

33%

Airport maps & directions

57%

35%

Scan phone for access

Yes, would definitely use

23%

May use

Results based on an online survey of 5,871 respondents from 17 countries across Americas, Asia, Europe and the Middle East and Africa who had traveled between December 2014 and March 2015.

131

SOURCE: SITA: The Passenger IT Trends Survey 2015

12

ATTRACTIONS Topic: Tourism & Destinations

ATTENDANCE TRENDS FOR TOP ATTRACTIONS

millions

250 Amusement/theme park attendance (top 25)

200

150 Museum attendance (top 20)

100

50

Museum attendance (top 20)

0 2010

133

2011

SOURCE: Themed Entertainment Association (TEA)/AECOM: 2015

2012

2013

2014

TOP 10 AMUSEMENT/THEME PARKS WORLDWIDE (2014) % change

MAGIC KINGDOM at Walt Disney World, Lake Buena Vista, FL

TOKYO DISNEYLAND, Tokyo, Japan DISNEYLAND, Anaheim, CA TOKYO DISNEY SEA, Tokyo, Japan UNIVERSAL STUDIOS JAPAN, Osaka, Japan EPCOT at Walt Disney World, Lake Buena Vista, FL

DISNEY’S ANIMAL KINGDOM at Walt Disney World,

17,300,000 16,769,000 14,100,000

11,800,000 11,454,000

16.8% 2.0%

10,402,000

2.0%

World, Lake Buena Vista, FL

10,312,000

2.0%

DISNEYLAND PARK AT DISNEYLAND PARIS,

Lake Buena Vista, FL

DISNEY’S HOLLYWOOD STUDIOS at Walt Disney

Marne-La-Vallee, France

DISNEY’S CALIFORNIA ADVENTURE, Anaheim, CA

134

19,332,000 4.0%


9,940,000

8,769,000

-4.7%

3.0%

0.1%

0.5% 3.5%

TOP 10 MUSEUMS WORLDWIDE (2014)

% change

LOUVRE, Paris France NATIONAL MUSEUM OF CHINA, Beijing, China

NATIONAL MUSEUM OF NATURAL HISTORY

Washington, D.C.

7,630,000 2.4%

7,300,000

-8.8%

NATIONAL AIR AND SPACE MUSEUM,

6,700,000 -3.9%

BRITISH MUSEUM, London, U.K.

6,695,000

NATIONAL GALLERY, London, U.K.

Washington, D.C.

THE METROPOLITAN MUSEUM OF ART, New York, NY

VATICAN MUSEUM, Vatican City TATE MUSEUM, London, U.K. NATIONAL PALACE MUSEUM, Taipei, Taiwan

135

9,300,000


6,417,000

-0.1% 6.4%

6,280,000 0.0%

6,177,000

13.2%

5,785,000 18.4% 5,402,000

22.4%

-4.0%

TOP 10 WATER PARKS WORLDWIDE (2014)

% change

CHIMELONG WATERPARK, Guangzhou, China

2,259,000

TYPHOON LAGOON AT DISNEY WORLD, Orlando, FL

2,185,000

BLIZZARD BEACH AT DISNEY WORLD, Orlando, FL

2,007,000

THERMAS DOS LARANJAIS, Olimpia, Brazil

1,939,000

OCEAN WORLD, Gangwon-Do, South Korea

1,604,000

AQUATICA, Orlando, FL

1,569,000 1.0%

CARIBBEAN BAY, Gangwon-Do, South Korea AQUAVENTURE WATERPARK, Dubai, U.A.E.

136

1,493,000 1,400,000

16.7%

HOT PARK RIO QUENTE, Caldas Novas, Brazil

1,288,000

0.3%

WET'N'WILD, Orlando, FL

1,284,000

2.0%


2.0% 2.0%

17.5%

-5.7%

-8.0%

4.0%



137