Abacus, Airline Distribution Director, Ho Hoong Mau, shares on how airlines can best harness the potential of ancillary services to boost profitability, gain market share and enter new markets at the Travel Distribution Summit Asia 2010.

1. Ancillary Revenue Ho Hoong Mau, Director, Airline Distribution Abacus International

5. Ancillary Revenue Is Not The Top Priority For Asian Airlines’ Leadership Team For 2010

6. Most Of The Asian Airlines Surveyed By Abacus Had Tied The Contribution Of Ancillary Sales To A Nominal Amount Of Less Than 5% Of Their Total Sales. What do you estimate your carrier percentage of sales would be from Ancillary Sales?

9. Even In Asia – Slow But Increasing Focus On Ancillary

10. Travel Insurance 40% Advertising 20% Airlines Have Implemented These Strategies

11. Airlines Have Implemented Travel Insurance 40% Advertising 20% Image source: Tiger Airways

12. Our Track Record Travel Insurance 40% Advertising 20% Image source: Singapore Airlines

13. Branded Fares 53% Advance Seat Assignment 42% Airlines Are Considering Implementing The Following: Premium Seat Assignment 40%

14. Branded Fares 53% Airlines Are Considering Implementing : Advance Seat Assignment 42% Premium Seat Assignment 40% Image source: Malaysia Airlines

15. Branded Fares 53% Airlines Are Considering Implementing : Advance Seat Assignment 42% Premium Seat Assignment 40% Image source: AirAsia

16. Branded Fares 53% Advance Seat Assignment 42% Airlines Are Considering Implementing : Premium Seat Assignment 40% Image source: JetStar Asia

18. A Vital Strategy

20. Opportunities – B2B Channel is under Leveraged Rental Cars Vacation Packages ‘ Window Shopping’ (On-line Stores) On-line Gambling Business –to-Consumer Business –to-Business Source: L.E.K Analysis Internet on-board In-Flight Entertainment F&B On Board Upscale Amenities Unbundled Choices (eg, Bag check, seat selection) Lounge Access Advertising Mileage Redemption Hotel Partnerships Financial Services Surveys/Data Collection

21. Shifting Zone of Play Low Cost Carriers DIY Price Sensitive Leisure Segment Full Service Carriers Managed Corporate Segment

22. Shifting Zone of Play Low Cost Carriers DIY Price Sensitive Leisure Segment Full Service Carriers Managed Corporate Segment

26. Consumer Tipping Point Now, I have to pay extra for everything! My Elite status is being diluted by all comers who pay a small price to “ buy” status…

27. Customers’ preference and choices Consumer Tipping Point

28. Email Email Ancillary Revenue 1. A ncillary services adoption is patchy and uneven 2. Battle of the two forces 3. Time is right to get onboard…..with the right partner Summary

29. Evolution Travel Insurance Pay for 2nd checked bag Pay for 1st checked bag Premium seat assignments Advance seat assignments Branded Fares Meals Lounge access Inflight entertainment Elite flyer status Call center reservation Advertising Web booking fee Oxygen Luggage stow space Using the toilets Leg rest Reading materials Internet access Transfer to gate Amenities, eg, toothbrush Late check –in/boarding Special meals Reading light Current Future

30. Thank You