Edreams Odigeo · BME:EDR
Edreams Odigeo — Investor Day (November 2019)
135 slides from Edreams Odigeo's investor day presentation, Nov 19, 2019
Slide 1: Investor Day
19th November 2019 INVESTOR DAY
Slide 2: Disclaimer
Disclaimer 1 This presentation is to be read as an introduction to the unaudited condensed consolidated interim financial statements of the Group and contains key information presented in a concise manner on the Group and its financial condition. The information contained in this presentations is ex
Slide 3: Agenda
AGENDA AGENDA Overview and investment highlights (12h00 – 13h30) Financial model & outlook (13h30 –14h00) Lunch (14h00 –14h30) Prime (14h30 –14h50) Revenue Diversification (14h50 –15h10) Customer Experience - Mobile First (15h10–15h30) Q&A (15h30 – 16h30) Closing remarks - Site visit (16h30 – 17h15)
Slide 4: Overview & Investment Highlights
OVERVIEW & INVESTMENT HIGHLIGHTS 1 Global OTA in attractive market, with leading position in flights 2 Sustainable scale advantages relative to competition 3 Large growth opportunities capitalizing on position 4 Proven high-margin, FCF-generating business model 5 Strong growth outlook with substanti
Slide 5: Global OTA in Attractive Market
Global OTA in Attractive Market 1 Global OTA in attractive market, with leading position in flights 2 Sustainable scale advantages relative to competition 3 Large growth opportunities capitalizing on position 4 Proven high-margin, FCF-generating business model 5 Strong growth outlook with substantia
Slide 6: Strong presence in 46 markets, covering 80% of the total travel market
1 1.1 STRONG PRESENCE IN 46 MARKETS, COVERING 80% OF THE TOTAL TRAVEL MARKET We are operating 5 leading brands 261 Websites and Apps in 20 languages and 30 different currencies on one central platform Strong presence in 46 markets 6 INVESTOR DAY 2019
Slide 7: #1 position in European online flight market
1 1.1 #1 POSITION IN EUROPEAN ONLINE eDO grew its market share by 5pp to 32% while changing its revenue model EUROPEAN OTA FLIGHT MARKET SHARE 2 EU OTAs eDO 1 # 27% 32% 2 1 eDreams ODIGEO: the leading flights 1 retailer in Europe 2 1 1 1 2016 2018 SOURCE: Internal analysis; Amadeus bookings data; Ph
Slide 8: Scale player in flights for Europe, one of the largest worldwide
THE SCALE PLAYER IN FLIGHTS FOR EUROPE, AND ONE OF THE LARGEST WORLDWIDE 1 1.1 ONLY 3 BIG GLOBAL PLAYERS IN FLIGHTS 3rd LARGEST IN FLIGHT WITH EXPEDIA AND CTRIP, VERY LARGE REVENUE IN THE US AND CHINA GLOBAL FLIGHT REVENUE Estimated, latest FY (€m) Ctrip 1,646 #1 Expedia 770 #2 eDreams ODIGEO 421 #3
Slide 9: Strategically positioned in enormous online travel market
STRATEGICALLY POSITIONED IN ENORMOUS ONLINE TRAVEL MARKET 1 eDO’s leadership in the €15B European online flight sector positions it strongly for growth in the €1.2T global travel market 1.2 WORLDWIDE TRAVEL MARKET (GROSS BOOKINGS, 2019 – 2022, €B) EUROPE 4.8% 6.7% 4.0% 1,2% €15B €63B €181B €361B €59
Slide 10: Intermediaries dominate leisure travel planning and purchasing
1 1.2 INTERMEDIARIES DOMINATE LEISURE TRAVEL PLANNING AND PURCHASING EXPERIENCE TYPE OF ONLINE WEBSITES/APPS TYPICALLY USED WHEN COMPARING AND CHOOSING LEISURE TRAVEL PRODUCTS (*) OTA 58% General Search 44% Travel Review Websites 43% Metasearch 42% Travel Provider 22% (*) Question: What type(s) of o
Slide 11: European flight market especially attractive for OTAs
1 1.2 EUROPEAN FLIGHT MARKET ESPECIALLY ATTRACTIVE FOR OTAS Highly fragmented European market US 224 EUROPE 60 58 208 NUMBER OF NUMBER OF AIRLINES1 2016 2019 2016 2019 AIRLINES1 Supply MARKET SHARE OF MARKET SHARE OF US 81% EUROPE 29% TOP 4 AIRLINES2 TOP 4 AIRLINES2 HIGH AIRLINE BRAND AIRLINE BRAND
Slide 12: Sustainable scale advantages
Sustainable scale advantages 1 Global OTA in attractive market, with leading position in flights 2 Sustainable scale advantages relative to competition 3 Large growth opportunities capitalizing on position 4 Proven high-margin, FCF-generating business model 5 Strong growth outlook with substantial o
Slide 13: Scale player in flights: 1.8x more European flight revenue than #2
THE SCALE PLAYER IN FLIGHTS FOR EUROPE, AND ONE OF THE LARGEST WORLDWIDE 2 1.1 Significant scale advantage in European online flight market eDO UNRIVALLED SCALE WITH 1.8X MORE EUROPEAN FLIGHT REVENUE THAN THE #2 PLAYER EUROPEAN FLIGHT REVENUE ESTIMATED, LATEST FY (€M) 343 1.8X 190 150 # 100 Source:
Slide 14: Scale translating to advantages in classic flights and diversification
SCALE IS TRANSLATING TO ADVANTAGES IN CLASSIC FLIGHTS AND DIVERSIFICATION 2 1.1 1 2 CLASSIC FLIGHTS DIVERSIFICATION WINNING CONTENT RICHER PRODUCT PORTFOLIO BETTER PRICE AND MARGIN SUNK MARKETING COSTS AT LOWER COST POINT BETTER PRODUCT CAN TRANSFER BENEFIT TO CONSUMER AND CUSTOMER EXPERIENCE INCREA
Slide 15: Classic flights: better content quality
2 1.1 CLASSIC FLIGHTS: BETTER CONTENT QUALITY MORE FLIGHT COMBINATIONS ON METAS THAN ANY OTHER OTA OR AIRLINE (INDEXED) 100% 83% 75% 57% 45% 41% 29% 6% 5% eDO OTA A OTA B OTA C OTA D OTA E OTA F AIRLINE A AIRLINE B Source: eDO analysis based on +40,000 data points across FR, ES, IT, DE & UK markets
Slide 16: Classic flights: more comprehensive content
2 1.1 CLASSIC FLIGHTS: MORE COMPREHENSIVE CONTENT MORE FLIGHTS PER DAY PER ROUTE THAN ON ANY AIRLINE WEBSITES DIRECTLY We have on average 8 more flights 15.1 per day and route than airlines 14.8 offer on their websites directly 12.6 11.4 11.0 10.5 11 9.6 7.4 VS 6.6 5.9 4.5 4.0 3.9 3.0 2.4 2.7 3.1 3
Slide 17: Classic flights: virtual interlining (video)
2 1.1 CLASSIC FLIGHTS: VIRTUAL INTERLINING (VIDEO) Very few players in the world have this 17 INVESTOR DAY 2019
Slide 18: Classic flights: pricing superiority
2 CLASSIC FLIGHTS: PRICING SUPERIORITY % OF TIMES eDO HAS A LOWER PRICE 97% 96% 95% 93% 91% 90% 82% Airline A Airline B Airline C Average OTA A OTA B Average Top Airlines Metas Source: based on 25k datapoints collected between October 10th and October 26th 2019 on France, Germany, Italy & Spain. Com
Slide 19: Classic flights: best end-to-end mobile experience
2 1.1 CLASSIC FLIGHTS: BEST END-TO-END (MOBILE) EXPERIENCE RETURN SINGLE CARRIER TIME TO COMPLETE BOOKING RETURN MULTIPLE AIRLINES 9m 36s 7m 7m PENDING 4m 4m 07s 26s PENDING CONFIRMATION 01s 06s CONFIRMATION OF BOOKING OF BOOKING 3m 3m 3m 05s 12s 21s 4m 10s 3m 1m 58s 40s 1m 38s eDO Meta (direct) Met
Slide 20: Leveraging strong flight position to gain share of consumer travel spend
2 1.2 LEVERAGING STRONG FLIGHT POSITION TO GAIN LARGE SHARE OF TOTAL CONSUMER TRAVEL SPEND Leisure travelers typically begin their travel planning process with the most time sensitive element – flights – and book other items around this FIRST PURCHASE IN TRAVEL GLOBAL SEARCH CPC PER PRODUCT PLANNING
Slide 21: Flight booking data gives advantage over hotel-first OTAs
THE DATA COLLECTED FROM FLIGHT BOOKINGS GIVE US A COMPETITIVE ADVANTAGE OVER 2 1.1 HOTEL-FIRST OTAS AND ALLOW US TO BETTER CROSS SELL OTHER PRODUCT AND SERVICES DATA COLLECTED FROM A BOOKING OF A... DATA USED TO PERSONALISE AND CROSS SELL A... LOCAL IN DESTINATION HOTEL FLIGHT HOTEL TRANSPORT ACTIVI
Slide 22: Diversification: leveraging scale to grow into full service travel provider
2 1.1 DIVERSIFICATION: LEVERAGING SCALE AND POSITION TO GROW INTO FULL SERVICE TRAVEL PROVIDER DIVERSIFICATION REVENUE NUMBER OF PRODUCTS NUMBER OF PRODUCTS SOLD (€ IN MILLIONS) (NUMBER) (PER 100 FLIGHTS) 237 16 72 24% CAGR 23% 179 CAGR 59% 56 CAGR 146 10 45 124 39 6 4 FY16 FY17 FY18 FY19 FY16 FY17
Slide 23: Differentiating from airlines with innovative products
WE DIFFERENTIATE FROM AIRLINES WITH INNOVATIVE PRODUCTS 2 Our Cancel for Any Reason product pays back to a customer even on low-cost flights which are not otherwise refundable 1.1 C4AR BOOKING ON eDREAMS WEBSITE BOOKING MADE ON A LEADING GDS AIRLINE Prices (*) Prices Ticket 1,262 1,262 € Ticket Serv
Slide 24: Our customers save money
2 1.1 OUR CUSTOMERS SAVE MONEY WHEN BOOKING THE FLIGHT & HOTEL WITH US WE OFFER CUSTOMERS BETTER PRICES (*) 2 … and then their hotel in another Our customers when booking a website Dynamic Package with us, save 83% of the times, with a 15% average discount vs. purchasing in the airline 1 Traditional
Slide 25: Sustainable scale: industry-leading technology
2 SUSTAINABLE SCALE: INDUSTRY-LEADING TECHNOLOGY POWERFUL, … ARE POWERING REAL REUSABLE PLATFORM... SCALE ADVANTAGES 1 platform 261 websites / apps 1.7 BILLION monthly searches 340,000 PEAK searches per second 160 MILLION Working with supplier searches 660 AIRLINES per day … AND INDUSTRY LEADING TEA
Slide 26: Industry-leading technology in product development
2 SUSTAINABLE SCALE: INDUSTRY-LEADING TECHNOLOGY IN PRODUCT DEVELOPMENT +1,000 AB tests since launch +6,000 Prime +27,000 customer interviews feature launches per year Most comprehensive seats & bags Revenue coverage in the industry Diversification 19 products and services offered Fastest and most i
Slide 27: Brand strength allows non-reliance on metas
2 BRAND STRENGTH ALLOWS NON-RELIANCE Our scale advantages make us both a better partner to and less reliant long-term on the metas versus competition, especially fragile tier 2 OTAS eDO IS THE OTA WITH THE HIGHEST AVERAGE MONTHLY META DEPENDENCY BY BRANDED QUERIES IN GOOGLE IN ALL EUROPEAN COUNTRIES
Slide 28: Large Growth Opportunities
Large Growth Opportunities 1 Global OTA in attractive market, with leading position in flights 2 Sustainable scale advantages relative to competition 3 Large growth opportunities capitalizing on position 4 Proven high-margin, FCF-generating business model 5 Strong growth outlook with substantial opt
Slide 29: Large Growth Opportunities
Large Growth Opportunities 3.1 Grow Prime subscription program to 2M members in 2023 3.2 Continue to diversify and expand revenue around flights 3.3 Continue delivering most innovative, end-to-end mobile experience 3.4 Reinvest strong free cash flow in strategic M&A 29 INVESTOR DAY 2019
Slide 30: Grow Prime subscription program
GROW PRIME SUBSCRIPTION PROGRAM 3.1 Grow Prime subscription program to 2M members in 2023 3.2 Continue to diversify and expand revenue around flights 3.3 Continue delivering most innovative, end-to-end mobile experience 3.4 Reinvest strong free cash flow in strategic M&A 30 INVESTOR DAY 2019
Slide 31: Prime is the first ever travel subscription program
3.1 1.3 PRIME IS THE FIRST EVER TRAVEL SUBSCRIPTION PROGRAM 31 INVESTOR DAY 2019
Slide 32: Our ambition to grow Prime to 2M members in 2023
3.1 OUR AMBITION TO GROW PRIME TO 2M 1.3 We have reached ~450k members since launching 2 years ago MEMBERS IN 2023 Launch of Launch Launch of 450k 2M 1st pilot in of Prime Spain and MEMBERS MEMBERS France in Italy Germany 2017 2018 2019 2020 2023 1st renewals France Launch of Hotels in France 2 YEAR
Slide 33: Prime is a win-win for customers and for us
3.1 PRIME IS A WIN-WIN: GREAT FOR OUR CUSTOMERS AND GREAT 1.3 Strong and unique value proposition for customers, with beneficial impact for our business FOR US! GREAT FOR OUR GREAT FOR CUSTOMER Great flight prices: More engaged and better converting customers: we are the cheapest in Members are more
Slide 34: Prime is already delivering significant benefits to eDO
3.1 PRIME IS ALREADY DELIVERING SIGNIFICANT 1.3 Higher repeat, at lower cost and delivering uplift in customer lifetime valueBENEFITS TO eDO PRIME MEMBERS BOOK MORE ...AT A LOWER COST, DUE TO A ...RESULTING IN HIGHER THAN NON-PRIME USERS... HEALTHIER CHANNEL MIX... LIFETIME VALUE 24M Bookings Repeat
Slide 35: Prime is driving sustainable long-term impact
3.1 PRIME IS DRIVING SUSTAINABLE LONG-TERM IMPACT 1.3 It is not a self-selection of existing heavy users, it generates incremental bookings for every cohort UPLIFT IN 12 MONTH REPEAT BOOKINGS - COHORT ANALYSIS (INDEXED TO 1x) NEW USERS LIGHT USERS HEAVY USERS NO PURCHASES OF ANY KIND IN THE ONE NON
Slide 36: Overwhelming response from customers in key markets
OVERWHELMING RESPONSE FROM CUSTOMERS IN OUR KEY MARKETS 3.1 1.3 Strong performance of the main KPIs SHARE OF VOLUNTARY REVENUE RENEWAL 22% BOOKINGS Prime has become 2% CHURN RATE Very few customers 65% RATE Percentage of 3% 64% requested to subscriptions renewed 26% a high share of the total booking
Slide 37: Prime plan to achieve ~20% of bookings and 2 million subscribers in 2023
PRIME PLAN TO ACHIEVE AROUND 20% 3.1 1.3 OF THE BOOKINGS AND 2 MILLION SUBSCRIBERS IN 2023 PRODUCT GEOGRAPHY CUSTOMER Continue to test and refine core Continue to test and rollout SEGMENTS proposition: iterate around product across geographies duration & price point, trial Starting to test and perio
Slide 38: Continue to diversify & expand revenue
CONTINUE TO DIVERSIFY & EXPAND REVENUE 3.1 Grow Prime subscription program to 2M members in 2023 3.2 Continue to diversify and expand revenue around flights 3.3 Continue delivering most innovative, end-to-end mobile experience 3.4 Reinvest strong free cash flow in strategic M&A 38 INVESTOR DAY 2019
Slide 39: Significant progress to date
3.2 1.3 SIGNIFICANT PROGRESS TO DATE FY2016 FY2019 Additional products Sold per 100 flight 37 72 +23% Bookings (*) CAGR Diversification €124Mn €237Mn +24% Revenue margin CAGR Share of company Revenue from revenue 27% 44% 6pp diversification Annually (*) Product Diversification Ratio 39 INVESTOR DAY
Slide 40: Increasing our competitiveness in flight
3.2 1.3 INCREASING OUR COMPETITIVENESS IN FLIGHT REVENUE DISTRIBUTION ON A € PER BOOKING BASIS 2.4 2.3 Over the recent years we have focused on providing more and 2.1 7.2 3.0 2.7 6.6 better product / service to our 6.2 6.6 customers. 5.8 14.5 This has been instrumented 17.4 through strong investment
Slide 41: Substantial market opportunity: flight ancillaries and activities
3.2 SUBSTANTIAL MARKET OPPORTUNITY 1.3 The Flight Ancillaries market continues to grow for companies who are well-positioned in this space GLOBAL FLIGHT ANCILLARIES MARKET FLIGHT ANCILLARIES MARKET SIZE €81Bn Large and fast growing market Helps us to differentiate vs airlines and increase customer o
Slide 42: Continue to expand ancillaries revenue across touchpoints
3.2 1.3 CONTINUE TO EXPAND ANCILLARIES REVENUE ACROSS RELEVANT TOUCHPOINTS MANY OPPORTUNITIES REMAIN ACROSS KEY CUSTOMER JOURNEY STAGES BOOKING PATH POST-BOOKING CHECK-IN AT-DESTINATION Baggages OPPORTUNITY - Seats - Car hire OPPORTUNITY Transfers, Taxis & VTC OPPORTUNITY OPPORTUNITY Cancellation in
Slide 43: Substantial market opportunity: global packages market
3.2 1.3 SUBSTANTIAL MARKET OPPORTUNITY GLOBAL PACKAGES MARKET DYNAMIC €185Bn PACKAGES (DP) Fast growing market with lower online penetration vs. flight MARKET SIZE Gross sales in 2018 4-5% CAGR expected 2018-22 Our scale in flight provides us with a large advantage Fragmented market with many player
Slide 44: Meaningful opportunity to grow dynamic packages
3.2 WE HAVE A VERY MEANINGFUL OPPORTUNITY TO GROW DYNAMIC PACKAGES We have grown significantly our Dynamic Packages business over the past years and we will grow it further in coming years. We have an opportunity to grow our Dynamic Packages revenue margin by 10x in coming years, driven by an increa
Slide 45: Our customers save money and have access to unique content
3.2 OUR CUSTOMERS SAVE MONEY AND HAVE ACCESS TO UNIQUE CONTENT DYNAMIC PACKAGES TOP AIRLINES TOP AIRLINES AVERAGE TOP 4 OTAS + TOP HOTELIERS + TOP HOTEL OTAS 85% 90% 88% 83% 80% 75% 80% % OF TIMES eDO IS CHEAPER €194 €184 19% €179 18% 17% €153 €153 Average saving €123 15% 15% value (*) ( €) 12% % OF
Slide 46: Continue delivering mobile experience
CONTINUE DELIVERING MOBILE EXPERIENCE 3.1 Grow Prime subscription program to 2M members in 2023 3.2 Continue to diversify and expand revenue around flights 3.3 Continue delivering most innovative, end-to-end mobile experience 3.4 Reinvest strong free cash flow in strategic M&A 46 INVESTOR DAY 2019
Slide 47: Providing comprehensive mobile solution for customer pain points
3.3 1.3 PROVIDING COMPREHENSIVE MOBILE SOLUTION FOR CUSTOMER PAIN POINTS MOBILE OUTGROWS DESKTOP BY 6.5X WITH A CAGR OF 20% FY16-22 VS. 3% IN DESKTOP European Online Travel Market gross APP RATINGS bookings (€ Bn) growth by device Booking.com 4,6 Lufthansa 2,7 Opodo 4,5 Omio 2,7 CAGR +20% GoVoyages
Slide 48: Our approach
3.3 1.3 OUR APPROACH PROVIDE INNOVATIVE LEADING SEARCH COVER ALL PRODUCT MOBILE SOLUTION FOR EXPERIENCE AND RELATED NEEDS CUSTOMER PAIN POINTS CONVERSION FLIGHT TRACKING BAG CHECKER GOING BEYOND FLIGHT ONLY RELATED FEATURES ENSURE OUR USERS CAN EASILY SELECT AND MOBILE PURCHASE THE BOARDING MOST REL
Slide 49: Covering the whole customer journey
3.3 1.3 COVERING THE WHOLE CUSTOMER JOURNEY: CUSTOMER PAIN POINTS AND NEEDS After the booking, we manage the check in: Planning the Convenient fast booking perfect trip: process and receive all Price alerts, week- your boarding passes in end deals, travel Book one place independent of anniversary, e
Slide 50: Reinvest strong free cash flow
REINVEST STRONG FREE CASH FLOW 3.1 Grow Prime subscription program to 2M members in 2023 3.2 Continue to diversify and expand revenue around flights 3.3 Continue delivering most innovative, end-to-end mobile experience 3.4 Reinvest strong free cash flow in strategic M&A 50 INVESTOR DAY 2019
Slide 51: A business model that has proven strong cash generation
3.4 1.3 A BUSINESS MODEL THAT HAS PROVEN A STRONG CASH GENERATION (IN EUROS MILLION) FY15 FY16 FY17 FY18 FY19 1. EBITDA - Capex annual cash flow improved by RECURRING EBITDA 90,5 95,8 107,3 118,3 119,6 €36m between FY15 and FY19 from €55m to €91m. CAPEX (35,2) (30,5) (29,5) (28,9) (28,8) REC. EBITDA
Slide 52: Strong growth potential from strategic M&A
3.4 1.3 STRONG GROWTH POTENTIAL FROM STRATEGIC M&A: SCALE AND PRODUCT SEVERAL TARGETS WOULD SELECTED POTENTIAL ALLOW US TO FURTHER TARGETS WOULD ALLOW INCREASE OUR SCALE US TO GATHER GROWTH THROUGH NEW We have identified many potential targets that PRODUCTS would allow us to reach There are currentl
Slide 53: Our financial policy
3.4 1.3 OUR FINANCIAL POLICY 1. Our overriding objective is to generate value for our shareholders, through both share price appreciation and eventually by returning cash to shareholders. 2. We expect that the business will continue to generate robust cash flow. 3. We also believe that EDR is well p
Slide 54: Proven High-margin, FCF-generating Business Model
Proven High-margin, FCF-generating Business Model 1 Global OTA in attractive market, with leading position in flights 2 Sustainable scale advantages relative to competition 3 Large growth opportunities capitalizing on position 4 Proven high-margin, FCF-generating business model 5 Strong growth outlo
Slide 55: Solid revenue, EBITDA and FCF generation
4 1.4 SOLID REVENUE, EBITDA AND FCF GENERATION REVENUE MARGIN ADJUSTED EBITDA Recurring FCF (*) (€ in millions) (€ in millions) (€ in millions) 5% +4-7% +9-12% 35% CAGR 7% 65.5 CAGR CAGR 533 509 118.3 119.6 487 55.3 463 107.3 436 49.3 95.8 90.5 17.9 14.7 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17
Slide 56: Resilient business model: consistent revenue margin growth
4 1.4 RESILIENT BUSINESS MODEL: CONSISTENT REVENUE MARGIN GROWTH OVER TIME DESPITE EXTERNAL HEADWINDS Economic crisis China devaluates currency Air Berlin Rusia intervenes Syria bankruptcy Arab Spring ISIS 4 Terrorist Attacks Greece Malaysia Airlines Flight 370 Economic Disappears Crisis and Bailout
Slide 57: Increasing diversification contributing to resiliency
4 INCREASING DIVERSIFICATION CONTRIBUTING TO RESILIENCY EVOLUTION OF REVENUE BY GEOGRAPHY EVOLUTION OF REVENUE BY PRODUCT % of Total RM 5% 5% Advertising & Meta TOP6 15% 14% Classic Supplier -4% Classic 37% CAGR Customer 53% +19% 44% Diversification ROW 27% CAGR FY15 FY19 FY15 FY19 Note: CAGR Revenu
Slide 58: Strong balance sheet and returns
4 1.3 STRONG BALANCE SHEET AND RETURNS Net leverage reduced by 30% and Adj. Net Income doubled in only 3 years ROBUST DELEVERAGING PROFILE … AND DELIVERING STRONG RESULTS (**) NET DEBT (€M) ADJUSTED NET INCOME (€M) 329.1 -13% +100% 285.3 282.7 40.2 253.8 FY16 FY17 FY18 FY19 31.6 32.3 NET LEVERAGE RA
Slide 59: Strong Growth Outlook With Substantial Optionality
Strong Growth Outlook With Substantial Optionality 1 Global OTA in attractive market, with leading position in flights 2 Sustainable scale advantages relative to competition 3 Large growth opportunities capitalizing on position 4 Proven high-margin, FCF-generating business model 5 Strong growth outl
Slide 60: Robust growth outlook
5 1.3 ROBUST GROWTH OUTLOOK FY15 -FY19 FY20 FY20 -FY23 CAGR Actual Guidance vs FY19 CAGR Outlook Bookings 2% 4-7% High single digit to double-digit growth Revenue margin 5% 4-7% Growing somewhat less than Bookings, as we expect less revenue per booking from suppliers EBITDA 7% 9-12% Relatively stabl
Slide 61: eDO's growth strategy
5 1.3 eDO’S GROWTH STRATEGY To continue to innovate and be best-in-class in online flights and leverage that strategic position to grow organically and through M&A, driving strong profitable growth in the medium term (three years), while creating an option for substantial long-term growth FROM TO VI
Slide 62: Strategic priorities
5 1.3 STRATEGIC PRIORITIES Vision “YOUR TRUSTED TRAVEL COMPANION” Vision Strengthen and grow online Leverage strong travel Goals flights offering to build strong travel relationships relationships to serve customers’ full travel needs Goals #1 #2 #3 #4 Expand Prime Deliver most Diversify and Reinves
Slide 63: Substantial growth upside and optionality to base case
5 1.3 SUBSTANTIAL GROWTH UPSIDE AND OPTIONALITY TO BASE CASE OUR PLAN DRIVERS OPTIONALITY Taking advantage of a growing market. Strong position in Metas. Increase in offer of in-destination services Bookings Virtual interlining (VIN) development with in-house resources. Further VIN investment Invest
Slide 64: Large Value Gap Relative To Peers
Large Value Gap Relative To Peers 1 Global OTA in attractive market, with leading position in flights 2 Sustainable scale advantages relative to competition 3 Large growth opportunities capitalizing on position 4 Proven high-margin, FCF-generating business model 5 Strong growth outlook with substant
Slide 65: Large value gap relative to peers
6 1.3 LARGE VALUE GAP RELATIVE TO PEERS 16x CLEAR VALUATION 15x gap vs. key peers 14x Market Cap / FCFE (*) CY2020E 13x 12x 11x 10x 9x 8x FCFE (*) CY2019-2021E CAGR 7x 0% 5% 10% 15% 20% 25% 30% 35% 40% Source: eDO analysis based on market data (*) FCFE = Operating Cash Flow – Capex – Net Interest Ex
Slide 66: Financial Model & Outlook
FINANCIAL MODEL & OUTLOOK 66 INVESTOR DAY 2019
Slide 67: Strong track record on delivery
B 1.3 STRONG TRACK RECORD ON DELIVERY eDO HAS A STRONG TRACK RECORD, MANAGING GROWTH, DELIVERING STRONG MARGINS, CONVERTING FCF REGARDLESS OF CHANGING INDUSTRY DYNAMICS AND ACHIEVING OUR GUIDANCE TO INVESTORS BOOKINGS (IN MILLIONS) REVENUE MARGIN (IN €M) ADJUSTED EBITDA (IN €M) 11.7 11.7 533.0 118.3
Slide 68: More detail on growth model
B 1.3 MORE DETAIL ON GROWTH MODEL DRIVER KPI FY21 FY22 FY23 Market growth Basis for growth is an OTA flights Volume market growing at 1-2% plus our own growth on top of that based on eDO growth market share gains within OTAs (superior end-to-end customer Revenue experience, more loyalty and repeat d
Slide 69: Why invest in eDreams ODIGEO?
B WHY INVEST IN eDREAMS ODIGEO? GLOBAL OTA IN LARGE GROWTH SUSTAINABLE SCALE ATTRACTIVE MARKET, OPPORTUNITIES ADVANTAGES RELATIVE WITH LEADING CAPITALIZING ON TO COMPETITION POSITION IN FLIGHTS POSITION STRONG GROWTH PROVEN HIGH-MARGIN, OUTLOOK WITH LARGE VALUE GAP FCF-GENERATING SUBSTANTIAL RELATIV
Slide 70: Welcome to eDreams Prime!
WELCOME TO WELCOME TO eDREAMS PRIME! 70 INVESTOR DAY 2019
Slide 71: Welcome to eDreams Prime
Welcome to eDreamsPrime 1 Great for Customers! 2 Great for eDO! 3 How is Prime Performing? 4 What is coming next? 71 INVESTOR DAY 2019
Slide 72: Why Prime? Great for Customers!
WHY PRIME? Great for Customers! 1 Great for Customers! 2 Great for eDO! 3 How is Prime Performing? 4 What is coming next? 72 INVESTOR DAY 2019
Slide 73: 90% of the time Prime is cheaper than anyone else
90% of the time Prime is cheaper than anyone else 73 INVESTOR DAY 2019
Slide 74: Prime offers very attractive flight discounts
1 PRIME OFFERS VERY ATTRACTIVE FLIGHT DISCOUNTS… Value of the discount increases with the basket value of the booking GROSS BOOKING AVG. DISCOUNT VALUE RANGE VS. NON-PRIME (*) 0-150 € 25 € 150-300 € 47 € 300-900 € 79 € 1.000-2.000 € 104 € > 2.000 € 122 € Note (*): Discount table varies per markets g
Slide 75: Making Prime prices the best in the market
1 ...MAKING PRIME PRICES THE BEST IN THE MARKET Prime price is cheapest in +90% of cases % OF TIMES eDO HAS A LOWER PRICE 97% 96% 95% 93% 91% 90% 82% Airline A Airline B Airline C Average OTA A OTA B Average Top Airlines Metas Source: based on 25k datapoints collected between October 10th and Octobe
Slide 76: New benefit: Hotels
New benefit: Hotels 76 INVESTOR DAY 2019
Slide 77: New: we have launched hotels for Prime members
1 NEW: WE HAVE LAUNCHED HOTELS FOR PRIME MEMBERS Prime members get highly discounted hotel rates % OF TIMES PRIME PRICE BEATS OTHER OTAS PRICES (*) 94.4% 98.3% 93.3% A B C NEW: We are now offering our Prime members very % AVERAGE -13.9% -12.9% -12.5% attractive prices on Hotels which can go up to 50
Slide 78: Example of a hotel search in NYC
1 EXAMPLE OF A HOTEL SEARCH IN NYC Members will have special Member-only deals, as well as always-on vouchers SEARCH PAYMENT PAGE LEADING HOTEL OTA PRICE RESULTS PAGE AFTER APPLYING PRIME10 VOUCHER (10% EXTRA DISCOUNT) SAME DATES, SAME HOTEL, SAME ROOM… WE ARE 275€ CHEAPER XXX OTA 78 INVESTOR DAY 20
Slide 79: Prime customers have higher NPS vs. average travel websites
1 PRIME CUSTOMERS HAVE HIGHER NPS VS. AVG. TRAVEL WEBSITES Ranking high among industry comparables 36 +100% 18 Avg. Travel Prime Websites Source: NICE Satmetrix (co-developer of Net Promoter®), internal NPS survey (Last 3 months average across Prime markets, measured at confirmation) 79 INVESTOR DAY
Slide 80: Why Prime? Great for eDO!
WHY PRIME? Great for eDO! 1 Great for Customers! 2 Great for eDO! 3 How is Prime Performing? 4 What is coming next? 80 INVESTOR DAY 2019
Slide 81: More repeat bookings
More repeat bookings 81 INVESTOR DAY 2019
Slide 82: Prime members are more engaged and better converting
2 PRIME MEMBERS ARE MORE ENGAGED AND BETTER CONVERTING CUSTOMERS Prime members are more likely to revisit (+50% in visits) and have higher CVR (+100%) PRIME MEMBERS RETURN AND CONVERT MUCH MORE OFTEN TO OUR SITES MORE WHEN THEY VISIT NUMBER OF SESSIONS PER USER CONVERSION RATE PER SESSION (INDEXED T
Slide 83: Prime changes customer behaviour
2 PRIME CHANGES CUSTOMER BEHAVIOUR It isn’t self-selection of heavy users, it actually generates incremental bookings for all cohorts UPLIFT IN 12 MONTH REPEAT BOOKINGS - COHORT ANALYSIS (INDEXED TO 1x) NEW USERS LIGHT USERS HEAVY USERS NO PURCHASES OF ANY KIND IN THE ONE NON PRIME PURCHASE IN THE +
Slide 84: Prime members repeating more than non-Prime over lifetime
RESULTING IN PRIME MEMBERS REPEATING MORE THAN NON-PRIME OVER THEIR LIFETIME 2 2x more bookings in first 12 months 12M BOOKINGS 24M BOOKINGS (INDEXED TO 1x) (INDEXED TO 1x) 2.57x 2x 2.6x 2.0x 1x 1x Non Prime Prime Non Prime Prime Source: Opodo France data. Extrapolation from Data Science team based
Slide 85: Lower marketing costs
Lower marketing costs 85 INVESTOR DAY 2019
Slide 86: Repeat Prime bookings are made mostly in cheap channels
REPEAT PRIME BOOKINGS ARE MADE MOSTLY IN CHEAP CHANNELS 2 Share of cheap channel repeat 2x more vs. non-prime; share of app repeat 3x vs. non-prime REPEAT IN CHEAP CHANNELS REPEAT IN APP (INDEXED TO 1x) (INDEXED TO 1x) 3.40x 2x 3.4x 2x 1x 1x Non-Prime Prime Non Prime Prime Source: Internal BI, FY 20
Slide 87: Higher lifetime value
Higher lifetime value 87 INVESTOR DAY 2019
Slide 88: Much higher lifetime value for Prime members
WHICH LEADS TO A MUCH HIGHER LIFETIME VALUE (LTV) FOR PRIME MEMBERS 2 Prime members are up to 4.4x more profitable in 36 Months EXPECTED 36M 12M MARGIN PROFIT 24M MARGIN PROFIT MARGIN PROFIT (INDEXED TO 1x) (INDEXED TO 1x) (INDEXED TO 1x) 4.42x 3.6x 4.4x 2.3x 2.32x 3.6x 1x 1x 1x Non Prime Prime Non
Slide 89: How is Prime performing?
RESULTS SO FAR! How is Prime performing? 1 Great for Customers! 2 Great for eDO! 3 How is Prime Performing? 4 What is coming next? 89 INVESTOR DAY 2019
Slide 90: The programme is growing strongly and accelerating
THE PROGRAMME IS GROWING STRONGLY AND ACCELERATING 3 Member base now has reached 450k TOTAL MEMBERS - 450k ALL eDO BY MARKET 389k 275k 165k 79k 38k 13k 25k 3k Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4'19 TD Source: Central platform database, Q3 To Date is up to 30/10 Note: Info disc
Slide 91: Prime share of total eDO bookings
SHARE OF BOOKINGS: PRIME SHARE REACHED 8.7% 3 OF TOTAL eDO BOOKINGS (+140% YOY) PRIME SHARE OF TOTAL eDO BOOKINGS . +140% YoY % Source: Internal BI, shares as of October 25th 91 INVESTOR DAY 2019
Slide 92: What is coming next?
LOOKING TO THE FUTURE What is coming next? 1 Great for Customers! 2 Great for eDO! 3 How is Prime Performing? 4 What is coming next? 92 INVESTOR DAY 2019
Slide 93: Our ambition is to grow Prime to 2M members in 2023
4 OUR AMBITION IS TO GROW PRIME TO 2M MEMBERS IN 2023 We have reached 450k members since launching 2 years ago Launch of Launch Launch of 450k 2M 1st pilot in of Prime Spain and MEMBERS MEMBERS France in Italy Germany 2017 2018 2019 2020 2023 1st renewals France Launch of Hotels in France 2 YEARS +2
Slide 94: Key highlights of what is coming next
4 KEY HIGHLIGHTS OF WHAT IS COMING NEXT PRODUCT GEOGRAPHY CUSTOMER Continue to test and refine core Continue to test and rollout SEGMENTS proposition: iterate around product across geographies duration & price point, trial Starting to test and periods, etc Potential next launches: UK, develop more s
Slide 95: Product: display and retailing
4 PRODUCT: DISPLAY AND RETAILING Refining the core proposition: duration, pricing, display TESTING FOR THE OPTIMAL DURATION AND PRICING TESTING FREE TRIAL IN THE FUNNEL WE WILL CONTINUE TO TEST AND LEARN ON THE OPTIMAL WE WILL TEST OFFERING PRIME FREE FOR 1 MONTH, TO DURATION AND PRICING OF THE CORE
Slide 96: Prime is a good opportunity for our airline partners
4 PRIME IS A GOOD OPPORTUNITY FOR OUR AIRLINES PARTNERS Prime customers bring higher revenues to airlines HIGHER VALUE CUSTOMERS FOR AIRLINES Through Prime, airlines PRIME VS. NON-PRIME CUSTOMERS HAVE: can tap into a closed user group, with dedicated communication channels +23% +10% higher +14% high
Slide 97: Your pass to unlimited travel discounts
Your pass to unlimited travel discounts
Slide 98: Revenue Diversification
REVENUE DIVERSIFICATION 98 INVESTOR DAY 2019
Slide 99: We successfully diversify our revenue
We successfully diversify our revenue 1. Improve the customer journey 2. Delivering high business value 3. Ancillaries 4. Dynamic Packages 99 INVESTOR DAY 2019
Slide 100: Improve the customer journey
Improve the customer journey 1. Improve the customer journey 2. Delivering high business value 3. Ancillaries 4. Dynamic Packages 100 INVESTOR DAY 2019
Slide 101: We want to improve the customer journey
1 WE WANT TO IMPROVE THE CUSTOMER JOURNEY CUSTOMERS TRAVEL-PURCHASE ...WE WANT TO ADDRESS THESE JOURNEY IS TOO COMPLEX... CUSTOMER NEEDS WHILST FURTHER DIVERSIFYING OUR REVENUE 80% of customers 45 touchpoints find it helpful to be on average to able to book on one purchase a travel single website We
Slide 102: Delivering high business value
Delivering high business value 1. Improve the customer journey 2. Delivering high business value 3. Ancillaries 4. Dynamic Packages 102 INVESTOR DAY 2019
Slide 103: We have grown significantly our revenue diversification
2 WE HAVE GROWN SIGNIFICANTLY IN A SHORT PERIOD OF TIME OUR REVENUE DIVERSIFICATION Our teams have demonstrated a track record of consistently creating value in the area of ancillaries. This has been achieved by a combination of optimising existing products and launching new products that our custom
Slide 104: Built a unique range of products for our customers
2 IN A SHORT PERIOD OF TIME WE HAVE BUILT A UNIQUE RANGE OF PRODUCTS FOR OUR CUSTOMERS AVAILABLE PRODUCTS VERSUS COMPETITORS eDREAMS ODIGEO OTA 1 OTA 2 AIRLINE 1 AIRLINE 2 Baggages Seats Car hire Transfers, Taxis & VTC Cancellation insurance Cancellation & medical assistance Customer premium service
Slide 105: We have used our scale, technology and retailing skills to win
2 WE HAVE USED OUR SCALE, TECHNOLOGY AND RETAILING SKILLS TO WIN WE USE OUR SCALE AND TECHNOLOGY ...WHICH, COUPLED WITH BEST-IN CLASS RETAILING TO BUILD A UNIQUE SET OF PRODUCTS CAPABILITIES PROVIDE US WITH A UNIQUE ASSET AND CONNECTIVITIES... Unique BAGGAGES SEATS products built CANCEL FOR ANY REAS
Slide 106: Ancillaries
Ancillaries 1. Improve the customer journey 2. Delivering high business value 3. Ancillaries 4. Dynamic Packages 106 INVESTOR DAY 2019
Slide 107: Increase convenience for customers to attach ancillaries
3 WE INCREASE CONVENIENCE FOR OUR CUSTOMERS ALLOWING THEM TO EASILY ATTACH ANCILLARIES % OF CUSTOMERS ATTACHING More and more ANCILLARIES customers attach ancillaries when +16% booking a flight with us and drive higher revenue per booking versus customers 1H FY19 1H FY20 that don’t attach ancillarie
Slide 108: We lead the industry in attaching ancillaries
3 WE LEAD THE INDUSTRY IN ATTACHING ANCILLARIES SEATS ATTACHMENT RATE FY19 WE SUCCEED WHERE OTHERS FAIL +57% Sourcing and offering multi-airline seatmaps is technically one of the most difficult Ancillary projects WE LEAD THE WAY we implemented earlier than our competitors WE CONTINUE TO WIN The gro
Slide 109: Innovative products: flex booking vs airline (1)
3 THROUGH OUR SCALE WE CREATE INNOVATIVE PRODUCTS FOR OUR CUSTOMERS Our customers can add products to give them flexibility if they later need it FLEX BOOKING ON eDreams WEBSITE BOOKING MADE ON A LEADING GDS AIRLINE Prices (*) Prices Ticket 632 € 632 € Airfare Service Charges 8€ 0€ Service Charges -
Slide 110: Innovative products: flex booking vs airline (2)
3 THROUGH OUR SCALE WE CREATE INNOVATIVE PRODUCTS FOR OUR CUSTOMERS Our customers can add products to give them flexibility if they later need it FLEX BOOKING ON eDreams WEBSITE BOOKING MADE ON A LEADING GDS AIRLINE Prices (*) Prices Ticket 632 € 818 € Flex Airfare Service Charges 8€ 0€ Service Char
Slide 111: We enable our customers to save time
3 WE ENABLE OUR CUSTOMERS TO SAVE TIME Even against our strongest competitors in airline ancillaries, our technology and customer focus win 9 secs x4 BEST IN CLASS BECAUSE COMPETITORS STRUGGLE ANCILLARIES ARE CORE… TO COMPETE WITH The ancillaries in our funnel OUR TECHNOLOGY EDGE are constantly bein
Slide 112: Large opportunity to expand ancillaries revenue across touchpoints
3 1.3 WE STILL HAVE A LARGE OPPORTUNITY TO EXPAND ANCILLARIES REVENUE ACROSS RELEVANT TOUCHPOINTS MANY OPPORTUNITIES REMAIN ACROSS KEY CUSTOMER JOURNEY STAGES BOOKING PATH POST-BOOKING CHECK-IN AT-DESTINATION Baggages OPPORTUNITY - Seats - Car hire OPPORTUNITY Transfers, Taxis & VTC OPPORTUNITY OPPO
Slide 113: How we plan to grow ancillaries revenue in the next 3 years
3 HOW WE PLAN TO GROW FURTHER ANCILLARIES REVENUE IN THE NEXT 3 YEARS IMPROVE THE INCREASE NUMBER CUSTOMER EXPERIENCE OF TOUCHPOINTS Build a faster, easy ancillaries booking funnel Develop new ancillaries traffic acquisition Increase bundling and channels (e.g. promotions capabilities Check-in, Mytr
Slide 114: Dynamic Packages
Dynamic Packages 1. Improve the customer journey 2. Delivering high business value 3. Ancillaries 4. Dynamic Packages 114 INVESTOR DAY 2019
Slide 115: Meaningful opportunity to grow dynamic packages
4 WE HAVE A VERY MEANINGFUL OPPORTUNITY TO GROW DYNAMIC PACKAGES We have grown significantly our Dynamic Packages business over the past years and we will grow it further in coming years. We have an opportunity to grow our Dynamic Packages revenue margin by 10x in coming years, driven by an increase
Slide 116: Uniquely positioned to capture hotels demand
4 WE ARE UNIQUELY POSITIONED TO CAPTURE HOTELS DEMAND SCALE IN FLIGHT IS A KEY COMPETITIVE 2 ADVANTAGE TO FURTHER ATTACH HOTELS 1 ● 70% of customers start with booking a flight before booking a hotel 2 ● 1 month on average between the reservation of a flight 1 and the reservation of a hotel ● Hotels
Slide 117: Our customers save money and have access to unique content
4 OUR CUSTOMERS SAVE MONEY AND HAVE ACCESS TO UNIQUE CONTENT DYNAMIC PACKAGES TOP AIRLINES TOP AIRLINES AVERAGE TOP 4 OTAS + TOP HOTELIERS + TOP HOTEL OTAS 85% 90% 88% 83% 80% 75% 80% % OF TIMES eDO IS CHEAPER €194 €184 19% €179 18% 17% €153 €153 Average saving €123 15% 15% value (*) ( €) 12% % OF A
Slide 118: We drive value to customers that book a dynamic package
4 WE DRIVE VALUE TO OUR CUSTOMERS THAT BOOK A DYNAMIC PACKAGE WITH US Our customers CUSTOMER RATING (*) attaching hotel with flight have a >10% higher customer satisfaction and drive higher revenue per Flight bookers Dynamic Packages bookers booking versus customers that don’t attach hotels AVERAGE
Slide 119: Hoteliers are willing to incentivise us for high value customers
4 HOTELIERS ARE WILLING TO INCENTIVISE US FOR HIGH VALUE CUSTOMERS Our Dynamic Packages customers book more in advance and drive low cancelation... 52% Book with Cancel their more than 31 4% Dynamic Package days in advance booking VS … compared with the average in 35% Book with the hotel industry 19
Slide 120: Successfully grown share of hotels sourced directly
4 WE HAVE SUCCESSFULLY GROWN SHARE OF HOTELS SOURCED DIRECTLY Since the launch In only 2 years, our hotel Increasing the share of own inventory hotels has allowed of our own inventory, inventory has grown us to significantly increase our price we have signed to represent ~30% competitiveness in Dyna
Slide 121: How we plan to grow dynamic packages revenue in the next 3 years
4 HOW WE PLAN TO GROW FURTHER DYNAMIC PACKAGES REVENUE IN THE NEXT 3 YEARS IMPROVE THE CAPTURE CUSTOMER EXPERIENCE MORE DEMAND Build a faster, easy booking funnel that includes any features needed Improve existing for the best customer experience cross-sell touchpoints and innovate with Enhance hote
Slide 122: Investor Day 2019
a 5 N > x a a fo) sa wn Ww = Es eDreams ODIGEO
Slide 123: Customer Experience - Mobile First
CUSTOMER EXPERIENCE - MOBILE FIRST 123 INVESTOR DAY 2019
Slide 124: Mobile is the future
E MOBILE IS THE FUTURE MOBILE OUTGROWS DESKTOP MOBILE IS BECOMING MORE BY 6.5X WITH A CAGR OF 20% AND MORE IMPORTANT FY16-22 VS. 3% IN DESKTOP MOBILE BOOKING SHARE % ONLINE GROSS BOOKINGS GROWTH BY DEVICE 38% 36% CAGR 31% 34% +20% 28% In Q2-FY20 24% 45% of 21% our flight bookings CAGR done via +3% m
Slide 125: Mobile offers more personalisation opportunities
E MOBILE OFFERS MORE PERSONALISATION OPPORTUNITIES 4x Higher logged-in users in mobile allow for much higher personalisation LOGGED IN USERS We have a higher return and logged in users share than on desktop We can offer better, smoother and personalised experience on mobile vs. desktop Catering for
Slide 126: Continuous learning and fast iterations for a smooth funnel
E CONTINUOUS LEARNING AND FAST ITERATIONS TO DELIVER A SMOOTH AND INTUITIVE FUNNEL EXPERIENCE INDUSTRY LEADING FLIGHT FUNNEL DOUBLED Implementing newest PERFORMANCE technologies reduces time OF DP MOBILE to market and increase FUNNEL site speed by 25% Increased Significant reduction in conversion by
Slide 127: Delivering superior customer experience solving pain points
E DELIVERING SUPERIOR CUSTOMER EXPERIENCE SOLVING PAIN POINTS AND CUSTOMER PROBLEMS DURING THE JOURNEY Automated check-in for Flight status Mobile hassle free tracking and boarding journey notifications pass Peace of mind Post booking funnel for last minute changes 127 INVESTOR DAY 2019
Slide 128: Mobile app shows strong performance in user engagement
E MOBILE APP SHOWS STRONG PERFORMANCE IN USER ENGAGEMENT MONTHLY ACTIVE USERS (MAU) WE SEE 2X RETURNING USERS RATIO IN APP GREW 2X OVER PAST 2 YEARS VS. DESKTOP USERS UNDERPINNING THE MAU EVOLUTION IN MOBILE APP ENHANCED EXPERIENCE IN OUR APP RETURNING USERS 2x Desktop Mobile APP Source: eDO BI and
Slide 129: Users repeat more on the app
E USERS REPEAT MORE ON THE APP It isn’t self-selection of heavy users, it actually generates incremental bookings for all cohorts UPLIFT IN 18 MONTH REPEAT BOOKINGS - COHORT ANALYSIS (INDEXED TO 1x) NEW USERS EXISTING USERS NO PURCHASES OF ANY KIND IN THE 18 ONE OR MORE NON APP PURCHASE IN THE MONTH
Slide 130: Marketing cost per booking is dramatically lower on the app
E MARKETING COST PER BOOKING IS DRAMATICALLY LOWER ON THE APP MARKETING COST PER BOOKING BY CHANNEL FY20 YTD (INDEXED TO 1x) 1x -3.7x 0.27x Non App App Source: eDO BI and Internal analysis 130 INVESTOR DAY 2019
Slide 131: Higher LTV for app customers
E THIS RESULTS IN A HIGHER LTV (*) FOR APP CUSTOMERS UPLIFT IN 18 MONTH LTV - COHORT ANALYSIS (INDEXED TO 1x) NEW USERS EXISTING USERS NO PURCHASES OF ANY KIND IN THE 18 ONE OR MORE NON APP PURCHASE IN THE MONTHS BEFORE CONTROL PURCHASE 18 MONTHS BEFORE CONTROL PURCHASE 1.89x +89% +44% 1.44x 1x 1x N
Slide 132: AI powers personalised experiences across the funnel
E AI POWERS PERSONALISED EXPERIENCES ACROSS THE FUNNEL PERSONALISED PERSONALISED FLIGHTS SORTING HOTEL SORTING 60 million times a day Our internal hotel our sorting algorithm sorting algorithm has evaluates in real time outperformed an industry 50+ criteria in less leading hotel sort solution than 1
Slide 133: Propensity based models deliver customised experiences
E PROPENSITY BASED MODELS DELIVER CUSTOMISED EXPERIENCES Our AI capabilities can predict the Through analysis of the performance Our product recommendations purchase propensity for individual and usage of C4AR we are able to are personalised to suit the customers in real-time and then proactively ch
Slide 134: Next 12 months: build leading retailing platform for in-trip and in-destination
E IN THE COMING 12 MONTHS WE WILL BUILD OUT THE LEADING RETAILING PLATFORM FOR IN-TRIP AND IN-DESTINATION WE ARE MOVING FROM INDIVIDUAL … TO A PERSONALISED TRAVEL PRODUCT/SERVICE OFFERING… COMPANION FOR OUR CUSTOMERS Ground Expand the Personalised Transportation Tours & Activities product range, tri
Slide 135: Customer Experience - Mobile First
CUSTOMER EXPERIENCE - MOBILE FIRST 135 INVESTOR DAY 2019