123doku.com

THE EUROPEAN TRAVELLER’S BEHAVIOURSTRENDS, OPPORTUNITIES AND CHALLENGES OF THEEUROPEAN HOSPITALITY INDUSTRYFrank TrampertManaging Director &Chief Commercial Officer,APAC & EMEASabre Hospitality Solutions18 March 2020

METHODOLOGY5000 people answered the surveyFour different countries in Europe took part –France, Italy, UK and RussiaTravellers from the four countries surveyedasked a series of questions about hotelexperienceCommissioned by SabreSurveys were taken online in February 2020Europe 2019 Sabre GLBL Inc. All rights reserved.2

THE SHIFT IN THE SHOPPING ANDBOOKING CHANNELS 2016 Sabre GLBL Inc. All rights reserved.3

SHOPPING AND BOOKING CHANNELS PREFERENCE PER COUNTRY45% of European travellers rely on atravel specific search engine (e.g.Expedia, Trivago, Booking.com etc.)to find the best hotel dealItaly64%France45%46%UKRussia23% 2019 Sabre GLBL Inc. All rights reserved.4

SHOPPING AND BOOKING CHANNELS PREFERENCE PERGENERATIONA travel specific search engine (e.g. Expedia, Trivago,Booking.com etc.) is the first place to find the best dealGen Z(18-24)Gen Y(25-44*)Gen X(45-54)45%52%49%* MillennialsBaby Boomers(55 )38% 2019 Sabre GLBL Inc. All rights reserved.5

SHOPPING AND BOOKING EXPECTATIONSTravellers are looking for specific services and offers during the booking process52%Allow me to chooseproducts/serviceswhich are usuallyincluded in theroom rates36%To receive discountson items alreadypurchased in the past29%30%Be able to selectextra services for apersonalisedstay/experienceReceive offersbased on myprevious hotelbookings 2019 Sabre GLBL Inc. All rights reserved.6

DATA & ANALYTICS TO UNDERSTANDGUESTS’ PATTERNS 2016 Sabre GLBL Inc. All rights reserved.7

PERSONALISATION, RETENTION AND DATAEuropean travellers are willing to share personal data in return of personalised offers butdon’t know really what to shareGen Z18%29%24%Would be more likely tobe loyal to a hotelstudying previousbooking details to offereven more personalisedservicesGen Z15%Willing to share their locationin return for a personalisedservice37%Gen Z26%Willing to share basicpersonal data (date ofbirth, occupation, phonenumber, etc.) in return fora personalised service 2019 Sabre GLBL Inc. All rights reserved.8

PERSONALISATION, RETENTION AND DATA PER GENDERMen and women are equally willing to share data49%48% 2019 Sabre GLBL Inc. All rights reserved.9

THE RETAIL REVOLUTIONOPPORTUNITY 2016 Sabre GLBL Inc. All rights reserved.10

WHAT WOULD EUROPEAN TRAVELLERS SPEND MORE ON AT AHOTEL?Travellers want to be offered a unique experience that is not necessarily tied to a roomreservation36%31%27%25%If the hotelprovides aquality serviceIf the hoteloffers aloyalty/pointsschemeIf the hoteloffers servicestailored to mypersonal budgetIf I could bookall componentsdirectly with thehotel(e.g. being offeredreward/discounts forusage at the hotel)(transportationtickets, bike rentals,etc.)25%If I could add onseparatepolicies I value(pet allowance,cancellation policy,late check-out, etc.) 2019 Sabre GLBL Inc. All rights reserved.11

WHAT ARE THE PREFERENCES IN TERMS OF EXTRA SPEND?Most popularThe popularity of each ancillary varies between countriesOverallItalyquality serviceall components @hotelloyalty/points schemepersonal budgetpersonal budgetPolicies I valueFranceUKRussialoyalty/points schemequality servicequality servicequality serviceloyalty/points schemeloyalty/points schemepersonal budgetpersonal budgetall components @hotelquality servicePolicies I valuePolicies I valuePolicies I valueloyalty/points schemeall components @hotelall components @hotelall components @hotelpersonal budgetPolicies I value 2016 Sabre GLBL Inc. All rights reserved.12

HOW MUCH WOULD THEY SPEND?100% are willing to spend on ancillaries - and nearly one third would spend up to 500%None of the respondentsanswered “not applicable”4%100% are likely tospend moremoney with ahotel, including30% that will spendmore than 5010% 0 1-50 51-100 101 -15030% 2016 Sabre GLBL Inc. All rights reserved.13

IMPROVING PERSONALISATION THROUGH A HOLISTIC RETAILINGMODELEuropean travellers would be willling to pay more for specific offers and services theyvalue53%ALL COMPONENTSDIRECTLY AT THE HOTEL(e.g. transportation, tickets forevents, local guides, bikerental etc.)45%EXTRA SERVICES TOIMPROVE THE HOTELEXPERIENCE(e.g. butler service, babysitting service, daily freshflowers in room etc.)40%PERSONALISED OFFERSAROUND ACTIVITIES ATTHE HOTEL(e.g. yoga classes at the gym,painting classes, a concert inthe lobby etc.)60%PICK AND PAYSEPARATELY POLICIESTHE GUEST VALUES(e.g. cancellationflexibility, pet allowance,early check-in / latecheck-out, unbundledinsurance, etc.) 2019 Sabre GLBL Inc. All rights reserved.14

THINKING OUTSIDE OF THE ROOMAND BEYOND THE GUESTS 2016 Sabre GLBL Inc. All rights reserved.15

ARE EUROPEAN TRAVELLERS LOOKING AT HOTELS FORNON-TRAVEL PURPOSES?Consumers consider paying to use a local hotel as a service provider to the nearbycommunity39%27%23%21%“The default idea is that the holistic retailing model is only appropriatefor upscale or luxuryproperties, but in this holistic retailing model hotels are only limited bytheir imagination.” 2019 Sabre GLBL Inc. All rights reserved.16

OPPORTUNITY WITHIN A RETAIL REVOLUTIONMain findings from Sabre surveyWith rife fragmentation and vague pricing in hotel industry, technology can help simplify thechannel optimizationEuropean travellers demand and expect personalised guest experience that is not necessarilytied to a room reservation, also during the booking processThinking beyond the room can unlock a higher level of personalisation, loyalty and guestsretentionTravellers willing to spend up to 50 on ancillary and unbundled services – golden retailopportunity for hoteliersConducted by YouGov on behalf of SabreFieldwork Dates:23rd2020 201912thSabre -GLBLInc.FebruaryAll rights reserved.17

THANK YOUFrank TrampertSabre Hospitality Solutions#retailrevolution

HOTEL? 36% 31% 27% 25% 25% If the hotel provides a quality service If the hotel offers a loyalty/points scheme (e.g. being offered reward/discounts for usage at the hotel) If the hotel offers services tailored to my personal budget If I could book all components directly with the hotel (tran