BUSINESS TRAVEL

RESEARCH:

RESULTS OF FIRST HALF

2017 VS 2016

ATOM analysis and reports platform was used

in preparing the data

ST. PETERSBURG

MOSCOW VLADIVOSTOK

100+

Aeroclub Group of companies: statistics

Clients

13Years of successful partnership

with BCD Travel

EmployeesCountries covered

1+ mlnTransactions

582

Years on Russian

market

20,2Turnover

Bln. Rubles in 2016

18%Aeroflot sales

Average contract term – 8 YEARS 3,6 BLN – business growth per year 98,5% – clients satisfaction

22+

1000+

Development and implementation of advanced software

products in business travel

Since 2013

Corporate events and private tourism

Since 2004

Business travel

Since 1994

Business travel global operator Corporate events global operator

Aeroclub Group of companies

Over 200 implemented projects per year

9 patent developments

Hotels in Russia and

abroad

Own 24/7 support

service

Building

effective internal

processes

Air and

Aeroexpress

tickets

Visa and migration

Support, insurance policies

Transfers,

car rentals

Developing travel policy

and optimization

programs

DIFFERENT SERVICE PLATFORMS

Universal booking

manager OnlineMobile application

Signing 2 and 3 party

contracts with suppliers

Business travel cost

reduction consulting Trainings for client’s

employees

Expense control: advance,

statistical, accounting

reporting

MANAGING BUSINESS TRAVEL COSTS

COMPREHENSIVE BUSINESS TRIP ARRANGEMENTS

HOTELClient support service

in emergencies

Tourism

Rail tickets

24/7

Arranging group travels

Supporting your business

First IT solutions on Russian marketDEVELOPED SPECIFICALLY FOR BUSINESS TRAVEL INDUSTRY

TIME - ONLINE

PLATFORM

Optimization of services

ordering process

Online tool for arranging

business trips

LINK – MOBILE

APPLICATION

Mobile access to orders

Informational business trip

management

CLICK TO MICE –

ONLINE VENUES

PLATFORM

Online events booking

The largest database of venues

for events

Simple and convenient interface

ATOM – ONLINE

ANALYSIS AND

REPORTS PLATFORM

Interactive visual business

analytics platform

"WHAT IF?“ travel policy

modeling

Expense analysis and forecasting

INTEGRATION HUB –

DATA EXCHANGE

Automation and complete

elimination of manual labor

when transmitting employee

data

Saving time and money

Integration of TIME into

internal company business

processes

Client portfolio structure

Travel policy

In the first half of 2017

there was no massive

cost reduction due to

introduction of travel

policy limits

Significant tightening of limits

happened in FMCG - the average

bill for hotel abroad has declined

↓45%

Energy and mining industries

faced cost reduction for

accommodation abroad

↓11%

In the pharmaceutical

industry the average bill for

accommodation abroad has

declined

↓20%

In the retail sector the average

bill for accommodation abroad

was reduced

↓14%

In the automotive industry segment

the average bill for accommodation

in Russia has increased

↑16%

In the media segment the

average bill for accommodation

abroad has increased

↑13%

Service structure

In the first half of 2017 the

demand for transfer grew by

↑ 49%

Insurance purchases slightly

decreased

↓3%

VIP-service: the number of

orders has declined

↓14%

Total volume of rendered services in the

first half of 2017 rose by

Among business tourists the demand

for exit visas has increased

Minimal change in the demand for

invitations for foreigners

↑ 19%

↓1%

↑ 23%Avia +28%

Rail +7%

Hotels +16%

Domestic air ticketsTHE DEMAND FOR DOMESTIC FLIGHTS AMONG BUSINESS TRAVELERS HAS INCREASED BY 63%

Top 5 domestic destinations: Significant growth of flights

To MoscowTo St. Petersburg

↑ 89% 64%↑

The average bill for flights to St. Petersburg has decreased most significantly among

domestic flights – in one year prices fell by 29%

Moscow

Saint Petersburg

Sochi

Krasnodar

Simferopol

Domestic air tickets

Demand for domestic flights has significantly increased in

segments

Auto industry

The share of business class in domestic

flights has decreased by 1% and now is

↑104%

Retail

↑76%

IT companies

↑ 31%

The average cost of domestic

flights business class tickets

has increased

Domestic economy class

business trips have become

less expensive

The most popular airlines for domestic flights:

Aeroflot

S7

Utair

69%

9%

6%

the average ticket cost is

9216 rubles

↓18%the average cost amounted to

58 900 rubles

↑13% 3%

International air tickets

Share of international destinations has increased by 82%

Cost for economy class air

tickets abroad has dropped by

22%. Average ticket price amounted to 21 038 rubles

Share of business class air tickets

abroad has decreased

by 3% and now is

Average cost for business class air

tickets abroad has dropped by 21%

and amounted to 113 373 rubles

The most expensive ticket in 2017 was a Moscow-San Francisco round trip ticket for

an energy sector representative. The ticket cost 876 thousand rubles.

Top 5 international

destinations:

Paris

Istanbul

London

Amsterdam

Minsk

Demand for flights abroad has grown

in segments

Pharmaceutical

companiesAuto industry

↑61%

Retail

↑65% ↑35%

The most popular airlines for

international flights:

Aeroflot

S7

Lufthansa

68%

4%

3,5%

8%

Domestic rail tickets

Demand for domestic rail tickets among business tourists has increased by 5%

The number of purchased tickets has increased

To Nizhniy NovgorodTo EkaterinburgMoscow

Saint Petersburg

Nizhniy Novgorod

Ekaterinburg

Novosibirsk

Rail tickets prices to the largest Russian

cities have changed insignificantly

Representatives

of the following

sectors choose

rail more often:

Pharmaceutical

companies

FMCG

IT

Retail

The most expensive domestic rail ticket in 2017 cost 27 335 rubles. It was issued for a trip from Moscow to Tuapse

Top 5 domestic destinations:

↑10%

↑32% 17%↑

International rail tickets

The number of purchased rail tickets abroad has increased by 13%

The most popular rail destinations abroad:

Change in demand for rail tickets to

destinations

↑ 18%

Helsinki Minsk Kiev

↓ 25% ↓ 49%

Cost of rail trips abroad has declined for a few

most popular destinations:

Paris

Helsinki

Minsk

↓ 35%↓ 23%↓ 22%

The most expensive rail ticket abroad in 2017 cost 79 000 rubles. It was issued for a trip from Moscow to Nice.

Paris

Helsinki

Minsk

Domestic hotels

In the first half of 2017 compared to the same period last year, the number of nights

booked in Russia has increased by 37%

Among the largest cities, the greatest demand increase

was for hotels of

Vladivostok Moscow Saint Petersburg

There were 19% less bookings in the

first half of 2017 compared to the

second half of 2016. Russian hotels

were booked more in the second half

of the year

The most popular Moscow

hotels are:

Holiday Inn Moscow Sokolniki

Novotel Moscow Center

Holiday Inn Moscow Sushchevskiy

The most expensive hotels among

those booked are:

Astoria Rocco Forte

Renaissance St. Petersburg Baltic

Four Seasons Lion Palace

Cost of stay in these hotels varies from

25 to 30 thousand rubles per night

Preferences in hotels brands when booking in

Russia:

Holiday Inn

Hilton Garden Inn

Courtyard by Marriott

Park Inn by Radisson

Novotel

Share of the largest national hotel operators in

Russia is less than 7% from the total number of

bookings

Superior room at the W hotel in St. Petersburg cost 740 000 rubles

for 4 nights. It was the most expensive hotel booking in 2017.

↑100% ↑41% ↑32%

International hotels

The number of booked nights in hotels abroad has increased by 36% compared to

the first half of 2016

London

Munich

Paris

Demand for accommodation in CIS hotels has

decreased:

MinskKiev

↓18% 12%↓

Most nights were booked in these

European cities:

Top 5 largest international hotel chains in Russia:

French Accor Hotels

Carlson Rezidor Hotel Group

Hilton Worldwide

Marriott International

Intercontinental Hotels Group

37 hotels

35 hotels

24 hotels

23 hotels

17 hotels

7 brands

2 brands

5 brands

9 brands

6 brands

Carlson Rezidor Hotel Group

French Accor Hotels

Hilton Worldwide

Marriott International

Intercontinental Hotels Group

7,9%

7%

5,5%

4%

3,6%

About 28% of all bookings is a share of 5 largest international

hotel operators

Preferences in hotel brands when booking abroad

Novotel Marriott Mercur Hyatt Hilton

Business travelers choose 5-star hotels abroad more often

as they are over two times more affordable than Russian

hotels of a similar category

Thank you for your attention