Are international payments an ongoing challenge for your company? Are you looking for savings in financial operations? Meet Teletext Holidays, a UK-based OTA with over 20 years experience, and find out how they shaved 2% off the cost of airline bookings. Join Tnooz, WEX, and Teletext Holidays for a FREE webinar and learn how to increase your payments efficiency. During our free webinar we will cover: Why international payments are too expensive and what your company can do about it How Teletext Holidays optimised its payment strategy How WEX creates tailor-made solutions to tackle travel industry-specific pain points Join these industry experts and Tnooz for our FREE webinar: Steve Endacott, Non-Executive Chairman, Teletext Holidays Ian Johnson, Director, European Sales, Virtual Payments, WEX Sean O'Neill, Editor-in-Chief & Moderator, Tnooz Gene Quinn, CEO & Producer, Tnooz This free webinar took place on Wednesday, 21 October, at 11:00 Eastern US.

1. Teletext Holidays and the optimal
payment strategy
Webinar
21 October 2015

2. Your hosts
Sean O’Neill
Editor-in-Chief & Moderator
Tnooz
Gene Quinn
CEO & Producer
Tnooz

3. Your presenters
Ian Johnson
Director, Sales, Virtual Payments
WEX Europe
Steve Endacott
Non-Executive Chairman
Teletext Holidays
Lee Jackson
Strategic Sales Manager
WEX Europe

4. Poll no. 1
Where are you located?

5. Poll no. 2
Which business segment do you represent?

6. Teletext Holidays and the optimal
payment strategy
October 21, 2015

7. What’s happening in the
travel industry?

8. What’s happening in the travel industry?
Where are people travelling?
How are they getting there?
What does this mean for payments?

9. Where are people travelling?
Consumers are increasing number of trips and driving demand for
customised packages
Holidaymakers seek more varied experiences, including new
destinations, multi-centre, and activity holidays
The destination landscape is volatile and destination choice is
impacted through global events and changes in perceived security
Customers are spending more and demanding more

13. Low Cost Carriers
offer a growing
independent
and flexible
network for leisure
travel operations
How are they getting there?

14. Poll no. 3
How do you pay low cost carriers?

15. Low Cost Carriers (LCCs) are
growing capacity versus Legacy
carriers
Service lines between Legacy
& Low Cost Carriers are less clear
LCCs linked to trade and business
through GDS and online booking
platforms
How are they getting there?
Low Cost Carriers’ Share of the
European Aviation Market
LCC
Legacy and
charter
*Data Provided by OAG
64%
36%

16. Ryanair
Others
How are they getting there?
Low Cost Carriers (LCCs)
replacing charter services for
tour operating
Emergence of Low Cost
tour operations
LCCs offers the
Leisure Traveller inbound
& outbound choice
Europe’s Top Six Low Cost Airlines
Ryanair
easyjet
Norwegian Air ShuttleVueling
Pegasus
Airlines
germanwing
s
Others

17. What travel industry development means for payments
SUPPLIER ACCEPTANCE
Non-contracted payments
Currency Fluctuation
FX Fees & Surcharges
PROCESS PRESSURE
Retain and increase
automation
Impact on sales time
Cash flow pressure
SECURITY CONCERNS
Protecting consumer
data
Exposure to merchant
fraud
GROWTH & DIVERSIFICATION

18. Poll no. 4
How is your current solutionfor paying LCCs
integrated into your booking process?

19. LCC Market in detail
generated on credit card
surcharges per year only
in UK
Edgar Dunn & Company
Gross bookings for
LCCs will expand by
26%
from 2013 to 2016
PhocusWright, 2015
£300m Regulation
• European Travel
Package
• ATOL Scheme
in the UK
Consumer
behaviour
Metasearch engine
usage is expanding.
Price is key

20. What are the implications for
Teletext Holidays?

21. Challenges faced by Teletext holidays
Pressure to stay competitive with no
money left in air
Profitability & competitiveness Regulatory impact on cash flow
Being innovative in finding ways to
save money
Focusing on maximising per
booking profitability
Travel becoming more regulated
Trust fund piece required by legislation
Struggling to maintain positive working
capital in general

22. Pressure to stay competitive with no money left in air
Cost of 2% for airline surcharges
Meta search increasing and ranking is based on price offered
How to keep costs down and maintain market share
Consumers looking for bargains and comparing easily online

23. Maximising per booking profitability through split flying
Cheapest way is buying outbound in GBP and inbound in EUR
Airlines used fix exchange rates which paying in EUR avoids
This is only possible on corporate cards, not consumer cards
Reconciliation of split flying needs VCN’s automatic
reconciliation functionality

24. Trust funds
Under Flight Plus the CAA seek to put the retailer in the front line if
an airline collapses and make them responsible for replacing flights
Using VCNs here means a recharge in case of airline failure to ensure
customers get their money back, via the “non product delivery”
mechanism back into the trust fund
Recharging cards is cheaper than supplier failure insurance
Customer’s money is kept in trust account for up to 5 business days

25. Maintaining positive cash flow
Trust fund workflow means OTAs are out of pocket for up to 5 days
Airline requires immediate payment
Need prepaid product to avoid surcharging
OTAs have no or very little cash to play with

26. Poll no. 5
What are the biggest concerns for your
business in making LCC reservations?

27. How WEX and Teletext worked
together on the solution

28. WEX’s solution to help Teletext
Airline Payments Top 3 Concerns
Avoid surcharges
Minimise forex fees & risk
Maximise cash flow
Solution for Airline Payments
1
2
3
A credit facility
debit card attributes
multicurrency capabilities

29. Prepaid funding vs credit facility
Prepaid Credit
Account funding by Customer WEX
Surcharge avoidance ü ü
Currency capability ü ü
Reduce admin time û ü
Automated funding û ü
Positive cash flow û ü
Credit facility û ü

30. Solving the problem with WEX Airline Payments
How Why
Pay airlines with debit VCNs to avoid
surcharges
Save 2% per booking: £8 per £400
flight
Increase sales through more
competitive pricing
Improve per booking profitability
Pay and settle in multiple currencies
without FX or conversion fees
Use credit account to:
Pay airline immediately
Avoid being out of pocket whilst
customer funds are in trust account
Increase cash flow

31. How Does It Work? BEFORE
Customer books
flight with OTA
Customer’s
money goes into
trust accounts
OTA gets
customer’s
money
5 days
OTA is out
of pocket
OTA uses pre-
funded debit card
to pay airline Avoids surcharge = 2% cost saving
5 days

32. How Does It Work? AFTER
Customer books
flight with OTA
Customer’s
money goes into
trust accounts
OTA gets
customer’s
money
5 days
OTA has
improved
cash flow
OTA funds debit
card from credit
line to pay airline Avoids surcharge = 2% cost saving
5 days

33. Major European Currencies Available
Major European currencies supported
No FX risk and no fx or conversion fees
Billing and settlement in same currency
Save up to 2.5% on international payments
Total currency coverage of European LCC market
Globally a total of 22 billing currencies with transactions occurred in over 45 currencies
and 190 countries worldwide

34. Example business case

35. Example Business Case
Average booking value £400
Total spend £50m
85%
125,000 bookings / year
Credit Line (10-day terms)
£2m
Surcharge per booking
£8
NO FX fees 15%

36. Example Business Case
Cash flow
Net Surcharge
£0.03m
£1.0 m
£1.03 m
Total Benefits

37. Overview

38. Overview
Growth of LCCs
Key challenges
Solution for Airline Payments
Profitability and competitiveness Regulatory impact on cash flow
2% saving per booking
Enhanced competitive offering
and per booking profitability
Pay in multiple currencies
without FX or conversion fees

39. Poll no. 6
From what you’ve heard today what would
have the most impact on your business?

40. Q & A

41. Thank you!
Send your questions and comments to gene@tnooz.com
Replay and presentation will be available on www.tnooz.com