1:30 Panel: M-commerce and travel – are you ready for the wireless revolution?

• Kelly McConnell, Senior VP, Sales & Channel Operations, Air2Web

(Moderator)
• Karen Auman, Senior Product Manager Enterprise, BroadVision
• Matt Grandy, VP Business Development, 10Best.com
• Simon Khosla, Director, Program Management Travel & Tourism, Siemens
Business Services
• Alison Kane, VP, Product Strategy and Development, Trip.com
• Rachna Korhonen, Director of Travel Services, Sonera Corporation

KELLE McCONNELL: This session is M-commerce and travel – are you ready for
the wireless revolution? My name is Kelle McConnell. I’m Senior Vice-President of
Sales & Channel Operations, for Air2Web. Air2Web is an infrastructure company that
designs, develops and hosts wireless applications for businesses.

The panel, I am going to first introduce all the people in the panel, and then we will bring
each member of the panel up to introduce themselves, their company and their wireless
strategy. The first person I will introduce is Karen Auman who is the Senior Product
Manager for BroadVision, managing the one-to-one enterprise platform. She has thirteen
years experience in enterprise class software and has spent the last five years working in
Web and wireless enabled solutions. The next person on the panel to my right is Matt
Grandy and he is the Vice President in the Business and Development for 10Best.com.
Next person to him is Simon Khosla and he is Director of Program Management Travel
and Tourism for Siemens Business Services. Next I have Alison Kane and she is Vice
President of Product Strategy and Development for Trip.com, and last on the panel is
Rachna Korhonen, I probably messed that one up, but she is Director of Z Travel, Travel
Services of Sonera Corporation USA. Headquartered in Finland, Sonera Corporation a
leading provider of advanced wireless Internet telecommunications services worldwide.
Miss Korhonen graduated with Bachelor of Computer Science from New York
University, she manages a team of professionals in Bridgewater, New Jersey and serves
on the management board of Sonera Z Travel. So, first up is Karen.

KAREN AUMAN: Thanks, Kelle. I’ll just give a quick over-view. We were talking
earlier, if we all did our sort of standard over-view that would fill the whole time, so will
try not to do that. BroadVision, many of you know BroadVision but some of you do not.
We build a suite of applications for business to business, business to consumer, business
to employee. Some of our customers in the travel industry are Forte Hotels, Air Miles, Air
Lingus, etc, but we are probably best known for our business to consumer sites like
Home Depots, Sears, Stamps Club, etc.

In the area of wireless, we have a number of initiatives. As we were sitting here, I think it
was Matt that muttered, “We are always wireless” and that is sort of our take also. All of
our applications are wireless enabled and it is really a matter of what do you want to do
and which technology you want to use. We have sort of two fronts going. On the
business front we have a number of business partnerships to make sure that wireless runs
smoothly. Ericssons is a big partner of ours developing a scaleable, really robust platform
primarily focused in Europe, not surprisingly, and then we announced a joint venture
partnership with NT Dakomo which is the Japanese arm for the same idea of platforms
and scaleable architecture.

When you look at rolling out wireless on your site, on your travel site, from a technology
perspective there is the area of establishing the pipes, establishing the connection and we
support a wide variety of standards. We have a number of partnerships to do that, to
establish the pipes but we look at it as one step beyond that and the challenges of
wireless. We think they are around performance because you see it at ten times increase
in the demand on your site versus having a Web browser, at least at ten times so we think
performance is important. We think content management, having a very robust content
management solution that is a business process and a technology so that you have just the
right info. When you have such a small screen on your device, you have to have just the
right info. And then the last area is personalization which is really what BroadVision is
known for and we think that those three areas combined are what you really need to have
in an effective wireless strategy. If you are not delivering on that very small screen the
exact right info to the right person at the right time then it doesn’t…..then you site will
not be successful. And with that and in the interests of time I will turn it over to Kelle.

KELLE: Matt is up

MATT: How was that lunch out in the 95 / 95 we have here in the South? I
actually personally had to pass on that. I’ve lived here too long so I know what it is like
in the first week of September.

10Best.com is a….we talk about wireless, we are a wireless data and service company; as
it relates to travel our initial demographic is the frequent business traveler and essentially
what we try to do is deliver local information in a number of categories to people who
travel around the world. Our partners include from a wireless standpoint, we partner with
our three mobile, people of that nature, wireless carriers around the world, location based
companies for example Air Flash, Signal Soft, people like that. Our travel companies
WorldSpan is a equity partner and a very strategic partner with our company and what is
important about 10Best and I know about 10Best is that the delivery mechanism is what
we believe differentiates us from the balance of quote City Guide Information out there
and the fact that we deliver in sets of ten, ten best. We kind of always joke around the
offices, Who would actually ever go and eat at the 11th best or 12th or 13th best restaurant
or hotel or golf course or whatever? So, that is what we do.

SIMON: It is always a bit difficult for me to explain Siemens in the US

because I think most of you know the company from power stations and medical.
Actually we are the third biggest supplier of GSN technology. Every third GSM
application etc is from Siemens, so particular to the wireless scenario we go from the
portable phone through the complete mobile infrastructure networks etc and we now
entering the application business and looking at various verticals that we want to target
and one of them is travel, and maybe why travel, it’s the other part of the story. We have
the second biggest travel budget in the world; it is over $1 billion on flights, hotel and air
alone not withstanding the public transportation. So, you know, Siemens is in a position
to see both sides of the fence. On the one side, the technical side and the other one of
course as the company itself is a user for those but we will talk about that a bit later on.
Thank you.

ALISON: Hi, there everyone. My responsibility at Trip.com is to look at what the

market needs are and then determine how we can provide products and services that meet
our target customer group. Trip.com is the number one Internet site and travel agency
serving the mobile profession, or better known as the Road Warrior. We all know that the
road warrior are the true travel experts, they’re the folks who change their travel
reservations multiple times, whose offices are more often on an airplane that actually
somewhere on the ground and they are the people who are more demanding but also they
have an increased propensity to actually transact online, which is something that we are
all very interested in. But also we know that the road warrior appreciates value,
convenience and control, the ability to actually control their travel destiny and because of
these things and listening to what Trip.com’s target customer is really interested in, we
obviously realize the opportunity to leverage our products and services through wireless
devices.

Through our relationship with Galileo International who acquired Trip.com in early
spring of this year, we launched a very robust mobile offering that was really the first of
its kind to truly put the power of the Internet and a full service travel agency in the hand
of the road warrior. This product and its related services are very complimentary to the
focus that Trip.com has on becoming a customer advocate, for being there every step of
the way through an individual’s travel experiences. We believe that investing long term
in mobile solutions is the key to the success of not only the travel industry but also other
industries that are applicable to that type of customer interest and need.

One of the things that we are looking at for the future is continuing to evolve this product.
I think that the key is, is that it is not going to be a short-term monetary gain but really a
longer term strategic playin growing customer loyalty and reducing customer service
costs. Thank you.

RACHNA: Hi Everybody, I guess first of all I am going to correct the pronunciation

of my name; it is Rachna Korhonen. Rachna is actually an Indian name and Korhonen is
a Finnish name, so I have an interesting names for people who pronounce all the time; if
they can do the Indian, they can’t do the Finnish, so Rachna Korhonen. I work for a
company called Sonera Corporation. If you haven’t heard about us, you will. If you have
every lived in Europe, you probably already have. We are the leading wireless provider in
Europe, in Scandinavia, 70% penetration in Finland with mobile users. We are the
leading wireless company in Finland, in Turkey and about to do the same all over Asia
and we are looking to be providing value added services here in the US. We are starting
out with a couple of initiatives. One is a travel portal that I am responsible for and
another one called….just the mobile portal called Zed, which there is a whole team of
other people responsible for and hopefully we will be seeing you guys in our enterprise
going forward. Thank you.

KELLE: OK, What I am going to do is introduce the session now. We had

several questions and several focus points that we discussed as far as putting together this
panel and for the panel to speak to and we are going to add some to that based on
conversations I have had with some of the panelists. And so the area that was supposed to
be is a total focus really on the WAP environment, but we want to now open that up to
SMS, both one-way and two-way SMS. We do have two-way SMS in the GSM networks
here, there are 7 million users in the Untied States whereas most of the rest of the planet
has standardized on the GSM network which we have other than NTD Dokamo in Japan
which is a whole other service. So we are going to talk about, you know, a variety of
different protocols and putting applications, if you will, in the travel space and just to
throw up some applications that you might find on some of the these services that you
might have, you know, property locator services in the hotelling space or reservations and
bookings, upgrade notifications, late flight notifications and cancellation notifications and
re-booking might be another, schedules or other areas that are focused, loyalty program
management, flight status and gate change notifications types of services that you might
find in here. And then you also have different location based services and then we want
to also talk to and speak to security issues surrounding doing bookings across these
different protocols because they are much….they are vast differences as far as security
within a certain protocol environment.

So I am going to open up the questioning and then we will turn over after we finish the
series of questions and discussions here, I am going to turn it over to the audience to ask
questions and you will see that there are mikes set up in the middle here for you guys to
come up and pose a question to this panel.

I am going to pose the first question and then we will go down the panel and get a
response to that. The first question is: How will WAP change the way you sell your
travel product? Karen.

KAREN: Actually we have a market team focused just on the channel group so I
posed this question to them to get their opinion also and they said, well, WAP isn’t really
so much the issue as just wireless is the issue in selling your travel service and what it
will allow you to do is really segment even more closely the business traveler, the
frequent businesses traveler from the infrequent traveler in that you would be offering
them, you can offer them different services, different level of service and support for the
frequent business traveler, the one who needs that update of changes, the ability to
reschedule flights etc. so really providing a higher level of service and segmentation
which whenever you segment gives you an opportunity to sort of re-package your
services.

MATT: I would agree and just to add, I think what it allows you to do is
touch the customer every way that he or she needs to be touched. One of the beauties of,
we believe of wireless, is that the consumer will drive the technology, the consumer will
drive exactly what they want across their device and it will need to be personalized to
them. Locations are going to be very, very important, especially as it relates to m-
commerce but as it relates to travel and how it will change it, I think what it gives most of
us the ability to do is just constantly be in touch with our customer and our client base
and be able to personalize their services and their needs and their wants in a way that has
never been done before.

SIMON: I think I would add to that, so you have got two categories, one is
the direct access which would be WAP and one the SMS, not direct access to the Internet
whereby SMS could be useful. I mean there is a lot of models or business models…I
would like to recall one in Germany where you have the ‘Joke of the Month’,. We have a
company Dr Materna putting in around 5 to 6 million people actually recording the Joke
of the Month. They are paying for this. We haven’t found what it is but I mean if you talk
about….it is a simple example of SMS technology actually also not being fully utilized at
the moment. OK the drawbacks are it could be delayed by about 24 hours but if you look
at information that could be passed through with SMS where a time factor is not crucial,
it could add value. The question is of course if somebody would be prepared to pay for
that and WAP on the other hand is real-time but associated with everything that happens
with that……with the direct access inter-hosts systems etc. which is in our area of
business, quite complex at this stage.

ALISON: I agree with everyone. I guess I would like to add is that mobile
commerce is really nothing more in my opinion than a marketing and a distribution
medium. It really increases the penetration and broadens the customers that you can
reach. As somebody mentioned earlier, it is obviously, it is integral into the product
service offering to companies like Trip.com because it gets your products and your
services in the hands of your customer when they need your product most. For us that
includes a re-book capability. The estimates are that over 300 flights are cancelled on a
daily basis by the major domestic carriers and how often have you been in a meeting and
thought “Oh, my gosh, I am going to miss my flight, what am I going to do?” or you are
sitting on the ground and you are thinking “Oh I am going to miss my next flight.” With
our products you can actually re-book yourself and take that control of your travel destiny
in your own hands. One of the things that …….I’m sorry we got moved around here…
….that someone mentioned earlier, is that mobile technologies will increase the traffic to
your site. One of the things that we have done to overcome that is to actually connect
directly into the GDS so that the re-books that you make on our technology is directly
into the GDS and therefore you have much faster response time but also our site is not
getting inundated.

RACHNA: I have a little bit different viewpoint than I guess everybody else on the
panel. We don’t really have an Internet business for this service that we do. We basically
come at it from truly purely wireless point of view, that is what we do as a business so we
are actually not selling wireless with a travel product but taking the travel product and
seeing how we can best make it wireless and that is the business we’re in. So whether you
are standing at an airport and wanting to buy a coke, can you do that off your cellphone?
Yes, you can, you just punch a couple of numbers, it gets charged to your account and out
drops the can of coke. We’re capable of doing that so why can’t we re-book as Alison
was just saying, with the same two clicks. And that is really….it is not a change the way
we do business, it is more a change of the mindset of the consumer out there and I think it
is really hard for the average person to go out there and really think “Hey, with my
cellphone I can re-book, with my cellphone I can buy a coke at the airport”, yes you can,
you can also buy a toy when you are walking through terminal C in Atlanta over there.
So I think it is really a change in the consumer that we have been looking at and how the
consumer is getting educated, how they are getting more involved with the wireless
products and it is not the way we sell services. We are really actually creating more
services to sell through WAP.

SIMON: I would like to add something there on the side of a company like us with
a lot of… hundreds of thousands of frequent flyers. I would agree with you completely.
The adoption rates I have heard of, of corporate booking systems, on-line corporate
booking systems in the US I think is about 20 –30%. If you look at…..and the online
corporate booking system is actually static. In other words as soon as you have got your
ticket, you start a completely new process and this is the on-trip phase. So this….the
mobile solutions that we are sort of looking at would support this on-trip phase with all
the applications you were saying and the key question is if we got 20 – 30% static in the
office where I am sitting in front of a PC and I have got this on-line tool, how do we
actually deal with the adoption of a mobile instrument with all the little goodies of being
able to pay or re-book or even check in. There is a case in Zurich with Swissair where
you can actually check in, very sophisticated application, not always fully utilized but I
think this is the key in the end besides being a business model.

ALISON?: I think that something Karen said earlier is absolutely key in that you to
make sure that you’re targeting the right customers. If you target obviously an infrequent
traveler that is not that compelling to them to be able to actually have that travel agency
so to speak in the palm of your hand; it doesn’t matter but when you travel all the time
and your life is impassed by the hassles of travel, you want to be able to control that as
much as you possibly can.

KELLE: OK, we’ll start down at the other end with Rachna. Let’s talk a little bit
about personalization. How do you differentiate between WAP and Web?

RACHNA: Oh, man, it feels like the same answer again. We don’t really have to
differentiate between WAP and Web. We are really building services for the wireless
market and again, WAP is just a nomenclature for a technology so whether it is PDA’s or
pagers or new 3G technology or Blue Tooth, whatever is coming out, we are looking to
build services for the mobile customer, somebody who is not sitting in front of their
computer all the time and therefore it really hasn’t made any difference to us as to how
we build our services. We really have been concentrating on the wireless and things like
check-in that Simon just mentioned is just another add on. As you go on you are looking
at how people do their daily travels and when I am walking out of my house I have got a
limo picking me up or a car picking me up and sometimes I travel with my baby, a car
has got to know….I have got to have a car seat, they have got to know that I usually sit
on the bulk head and when I get off the plane I need a ……right away, you know, a little
indicator telling me, your car is ready, parking spot 2B and you know this parking lot. I
want to walk out of there, it’s giving me directions to Bukhead and then I want to get
over here and it is telling “great vegetarian restaurant, just down the way over here,”
giving me directions to get there, makes the reservations for me, if that is what I am
looking for. Those are the kinds of services we are looking to build and they are not Web
related unfortunately, have nothing to do with the Web.

ALISON?: I think if you look at whether it is wireline or wireless, I would agree with
you that it is really…..it doesn’t really matter. What matters is, is that it is relevant to
what the customer really needs. Regarding personalization, I think it is really important
to tie in that individual’s profile and preferences so that what is being presented to them is
of interest to them and that they are able to tailor that presentation to their own personal
needs and desires.

SIMON: I’m trying to figure out what to say. What else? When we looked at…..
actually we looked at the priorities of our frequent flyers, what did they actually want?
Did they really want to check in? Do they really want to re-book and let me tell you what
the first……so I’ll give you the first three. The very first one and one that they were
prepared to may pay most was actually the possibility of being able to communicate via
mail, via data OK, somehow, whether it is to initiate the presentation or whatever it is.
That was number one. Number two is the re-booking and with the re-booking number
three was that if some things delayed and would re-book, it would automatically initiate a
message, an e-mail to send to the people that were actually lined up for the next meeting.
These are the three and looking at the actual travel related application is just….that was
just one and so I also think it is……if it is personalized it’s the saturation rate of mobile
instruments or devices is a hundred percent I would say for business travelers Europe,
US. So you have got the absolute top opportunity to treat each single customer as a
known distribution channel, meaning suppliers with their airline and then we could
couple with the ten best, well what do you want?

MATT: Thank you very much. The only thing I would add……I would go
back to what Alison said earlier about the Web interacting with wireless. We believe that
the desktop is just a marketing tool for you as a user of your desktop or your laptop, you
can personalize through it and through technology it can…it will send all that
personalization into your WAP phone and back and forth so if you are at your desk you
can do the things that you need to do as you are planning your trip and it actually loads it
into the places it needs to load and it remembers where you are, you can put destination
guides. Unfortunately for most of us, not like Sonera there they are wireless carriers so
they have a network that they can carry all of their things across. Right now, unless you
have a deal with a wireless carrier and can get to their network, directions are a little bit
tough on the phone because people have to inter a key pad or do some things of that
nature. There are technologies that allow you to book mark sites that you can ask where
the nearest this is or the nearest that. One thing that I would tell you is Sonera is a
fabulous company and I have been fortunate enough to visit with them in Helsinki,
Finland, and it is very cool to go up to a coke machine and dial a number and get a coke.
The second coolest is when you can go to the driving range and get a bucket of golf balls,
right, (Interjection: and a car wash)….and a car wash, so the check-in things, the….
Finland and the folks at BroadVision, these guys are the beach-head of technology and if
any of you every want to really see what we all read about and hear about and all the
things that are going on, they are actually making it happen and all the things you read
about, walking down the street and a…..we all use the example of Starbucks, you are
going to walk by a Starbucks and when you within a hundred meters it sends you a
coupon, you walk in and you deliver it through an infra-red device into their cash register.
It’s here. If you know where to go and get it, it is here and it is available and the
technology is very cool and we look really forward to the next three or four years as this
all comes together to really find what consumers really want to use across our whether it
be our Palm 7 or our Sign device or a web enabled phone.

KAREN: That’s a good point that a lot of it is the technology. You can do things
today that maybe people don’t really want to do or aren’t used to doing so the question is
not so much what can you do but what maybe makes sense and you know, where is the
business case around it.

When you look at differentiating the Web from wireless or personalization around that,
again, just to beat a dead horse, it is the same kind of content, the difference being that
when you have a wireless device……when you are the Web and if you get a
personalization and you get one item wrong on that big screen, you get one little thing
wrong, it doesn’t matter that much because people can still click around and find what
they want to find, but on a mobile device, if you get one…….if you have four lines of
text and you get one of them wrong, then you have really wasted everybody’s time and
you create…..it is possible to create a dis-satisfied customer. So that is why
personalization, I think, is a little more important on the wireless world and just because
of the things that we have talked about, it is just so critical to not waste people’s time and
not make them use those irritating key pads where you have ABC and 123 and everything
to try and punch something in. So, that is really the difference there, it is the same info, it
is just really targeted and how it is presented.

MATT: I would argue that as a saying info…..

KAREN: You are right I mean there are different services because it is more timely,
probably than on the Web, but the same core data base

MATT: ……….but the habits of the people want a wireless device versus
on the desk top, you have got 45 minutes of average surfing to multiple pages to where a
wireless device, you want it right then and you want it right there and where am I, give it
to me……..that’s

KAREN: Sure, I guess I agree, the only thing, I know one of our customers they’re
an airline and they put on their Website, you know, you go check that when you are
leaving the office, see if they are on, they put on their road conditions for getting to the
airport that you are going to. Well that is an example of this same info going to two
different displays, you know, on the browser it is a map and it’s you know flags and
yellow lights and things like that and on your phone or your WAP device, it is just the
directions.

KELLE: As a follow up question to personalization. How do consumers feel about

privacy issues surrounding personalization?

KAREN?: It depends. That is always the right answer. It’s funny, I was recently in
Canada and somebody asked about the Canadian psyche of privacy and I thought, ‘I don’t
think I’m the right person to comment on Canadian psyches,’ but there are definitely
issues around that. We have a lot of technologies that are available to ensure very secure
transactions so the reality versus perception are two different things. We were talking
beforehand on the secure transactions for banking etc. The reality is that you can have
very secure transactions, probably more secure than handing your card to the waiter at the
end of a meal, but that is not always people’s perceptions, so we do things through
initiatives, through communications, through…..just through sort of traditional marketing
techniques, things up on your phone to encourage people, but I think it is a short term
thing. I think it is just a matter of people getting used to it.

MATT: I agree, it is just a new medium. What strikes me about

privatization is, this may be a little off base, is that our Federal government’s mandate at
locating on October 1st 2001, every cellphone within 50 metres, maybe 100 metres, and it
is supposedly the freest country in the world, our government is going to be noticed
where every phone is. The carriers already know but they now have to be able to do it, it
is called E911 compliant, and when you go to Europe the big deal about personalization
and privatization is, is location going to be or going to be very big in Europe because they
don’t have to tell you where you are and so, I wonder about privatization and what people
really understand about it because it is such a new medium. If you have every used your
credit card and bought from a catalogue, you have no privacy left, so I don’t really know
why there is a whole lot of…..or there hasn’t been a….. the technology will take care of
it. There is bright people all around the world that will create things that are encrypted up
to billions of….well that’s our view of it and the people we talk to. I maybe wrong.

KELLE: Yes, I think it was where the Internet was if you remember, you know five
years ago and “Can I securely, you know, type in my credit card and then it is also an opt
in, you know, in the US it is going to be an opt in service so that the industry will accept
that. Simon, do you want any other comments?

SIMON: Yes, we’ve got this privatization issue when ….actually creating the
profiles in the corporates online stuff that, you know, that people use so automatically we
are getting our people to actually define what areas of this profile would they be…..
would they like on a mobile instruments device so you can actually customize it on the
one hand and on the side of the privatization is how secure actually are the transactions
on the phones itself from the communication type of area.

Interferance ….
RACHNA: Got the right audience at least. So I think from a technology perspective
those things are coming. However, I do think that there are people who are going to give
out information if they believe they are going to get something in return. So security is
going to be very much less of an issue. If you know, Hey if I tell them I have a two-year
old daughter, they are going to bring the car seat that fits, OK. If you tell them that, you
know, the guy is 6.7” and he needs to have a bulk head, if you tell them that I like
vegetarian food, it is recommending me vegetarian restaurants, so to give something in
order to get something useful, great. However, I don’t want to hear advertisings for
restaurants in Dublin when I am really here in Atlanta. So, you know, those are the things
we have to watch out for our service and application providers but I think our ordinary
consumer business, you know non-business, if you give something in order to get
something I think security really doesn’t matter at that point and you are not really
cognizant that you are giving out something from that perspective.

QUESTION: I’m with Sonera. This morning I was with a panel that talked about the
power of online buying in travel and my question to you is based upon what I heard.
What was given out during that panel session was that there is going to be inevitably a
shake-down or shake-out rather, of travel agencies. Only the very good and sophisticated
will survive and the vast majority will fall to the wayside. The power that you have with
broadband videos on the Internet, it seems to me that travel agents who take advantage of
that particular kind of promotion or information service will be categorized more readily
as a good quality travel agent. The fact remains we heard that travel agents will be around
for some time in the environment, the e-environment, so now my question is to you: Is
there a strategy designed specifically for travel agents who need to survive with the kind
of technology which you offer.

KELLE: I’m going to open it up for the last fifteen minutes of the session to
the audience for questions. Anybody? Just step up to the mike and pose a question. Go
ahead.

QUESTION: I guess the basis to my question is really wireless interaction, if you will,
is different from what we were talking about as Web interaction and you have all sort of
said that pretty significantly. Now since there is a difference, I guess, you know, users
are going to want to have an interface that is different where you don’t have to re-enter it
if you called that stroke, because you are a wireless customer and therefore you expect
different service, a different value.

SPEAKER: Right, and that will occur if you have actually said, “Re-book me, Yes”
and you click through, then it will go through and complete that. Let’s say that you get
dropped before you get your confirmation number back, then you could go back in, if you
pull back, if you pull up your itinerary, it will show what your confirmation is and what
flights you have been changed to.
MATT?: That’s really…I want to interrupt because I think you are exactly right, but
that is more of an application than a technology issue. It’s not Trip.com or would it be…
…..

QUESTIONER: No, no, I know it..

MATT?: I think until it goes to the GPRS or you are always to the Internet and we
are all at the mercy of technology - I called Delta Airlines and in the middle of booking,
well it drops you. They don’t have the ability when I get back to a different operator to
bring right back up where I was.

SPEAKER I was just going to say the same thing. Why is the wireless phone
experience any different than when you call up an airline or you call up a travel agency or
office and you get a ‘Call holding, call waiting’ you know, my daughter is calling “Pick
up the phone, forget the travel agency” and do that first.

SPEAKER: I think somebody mentioned up here that, you know, on a screen if you get
one thing wrong it’s fine, but on a phone you have only got four lines. So there is a
difference.

MATT: The personalization issue on that is interesting because I

don’t know if you do it properly with your technology and data like a lot of companies
put up, that you ever could really be wrong because you would give them an option of
five or six to choose from and they just won’t choose the other one. But going back to
the drop and the phone call question. I think when we talk about wireless and I know
that……I have had meetings with a couple of the people up here before or their
companies – wireless connection, everybody can be a voice over wireless. I mean let’s
not forget that it has to be interactive touching the phone. With the travel group that we
decided to go with, they have a call center that if you don’t want to touch and use your
key pad you can talk to a person because we want to be able to have our consumers and I
think consumers are going to want to be able to use wireless devices however they want
to use them whether it be over the Internet or talking to a call center just so that they can
get the different things done. Eventually one of these…three of these groups, they are
going to come up where calls don’t get dropped and then I think that is when we get real
technology, I think that is probably two years from now.

SPEAKER: That one would definitely carry your problem..

KELLE: She’s a carrier.
SPEAKER: Yes, but it’s not our network, so.

SIMON: From the user’s standpoint, we address this issue and actually what we
discovered was of course, if you are on a trip, you have already got a booking. The
problem there is the re-booking, there is a bigger issue from the sort of time development
side of things that we aren’t making our actual booking and it is about 75% re-booking,
25% ……….
MATT: A lot of people on the re-booking side too aren’t going to use their
phones because they get automatically re-booked because of their frequent flyer program.
We are talking about the Road Warriors or people that have corporate accounts. I know
most of you all sitting there, if you dealing with it and you flight is cancelled in Chicago,
you can call your 800 number and they probably already got four or five set up for you
and you are ready to go and I’m sure Trip has that mechanism within their offering, so I
think a great question would be: What are people going to use for travel over their Web
phones? I don’t know, I’m not going to book a cruise anytime soon, I don’t think.

SIMON: One thing is sure. It has got to be underlined to be corporate policies. The
rules and regulations have to be of the companies to underlie everything. In other words
if I make a booking here in the US, it has to have the same conditions as if I was at home.
It is one of the pre-requisites. The other one that is…has been found out to…perhaps the
priorities, to try and integrate the T&E afterwards, the paying when you get back home
after a two-week trip having to, you know, do your accounting and your expense policies,
is there a methodology of incorporating all that?

KAREN?: One quick thing on your question about what happens if the line drops.
Well, as we have said, that is the same as if you are on the phone but one thing that is a
little bit different for a wireless device is that usually you are doing something very
specific and concise on the device; you are re-booking to get out of Atlanta now kind of
thing, as opposed to when you are on the phone. You may be checking fares, you may be
doing more activities, so you have a greater probability of actually successfully
completing that transaction because it is a shorter transaction. They are just pushing your
know ‘Yes, go do it’ and that is all you have to do. So you have a greater opportunity
with the wireless world for actually completing a transaction because you have less
variables usually.

MATT/KELLE? Yes, but a quick ……… but if the technology works properly, and I
know it does with Trip, they were already pre-loaded, the offerings that they can have for
your trip that has been changed because they know it has been changed. So from a hot
key stand point you should be able to just …exactly what Karen said, just one, two, three.
So maybe you are not on it for five minutes trying to re-book the trip or whatever the re-
booking, the hotel reservation whatever.

QUESTION: I have two questions. First of all I want to respond that the difference is
when you call your travel agent there isn’t no difference between being on a ‘hold’ or
getting your call dropped and being on wireless, when you are on wireless you are getting
charged per minute. But I have two questions. The first one is for Rachna. She had
explained that she was heading Sonera’s Travel xxxx initiatives and I want to know if she
can expand a little bit on that as to what your plans are and then the other question was
for Alison and Matt. Both of your companies, I think your company, Matt, received an
equity investment from WorldSpan and your company was outright bought by Galileo,
what were the pros and cons of such a relationship (Interjection Matt: Cash, real simple.
I know him) but as opposed to being a company that is starting up and partnering with a
large travel industry player, you know, what difficulties did you….did you come across
any and when it came to your wireless initiatives, did you have to adopt to your GDS’s
wireless initiatives or did you have your own and did they have to compliment theirs. I
just wanted to know a little bit about the relationship.

RACHNA: I’ll go first I guess. Sonera is attempting and has been in the process of
building a mobile travel portal which we call Zed Travel and basically acquiring content,
hooking up with all the GDS’s, going through pretty much each and every segment of the
travel business and providing it on your wireless cellphone, so you are not going to find a
site out there. There are talks about this, there is a site that kind of gives you an idea but
there is no where you can go sign up on the Internet right now. Currently we are offering
the services in Finland, in the UK, in France, in Singapore and here in the United States
to a certain extent and the difference, the biggest difference between doing it here and
overseas happens to be that we are attempting to talk to each and every carrier to try and
negotiate deals and we have one major carrier that is coming up for announcement pretty
quickly, so we will be offering services on as many of the networks as possible where it
deals with the carrier not just basically providing email and SMS through them without
having any deals with them and we are working with like all the GDS’s and we will do
booking, re-booking, check-in. We are working with individual airlines to do check-in
processes with them. We have built the system where you can automatically check
through your cellphone, also automatically pay parking. So when you walk out of the
airport, your parking is paid. It reminds you where you are parked, which spot your are
in, go and get your car and as you walk through…….that is probably the hardest for me
because I am actually really good with directions but I do them by remembering which
car is parked next to mine, which is horrible because when you walk out, it is not the
same one usually, so in that sense that is one of the better ideas we have had, I guess,
from my perspective. So really taking your travel experience and managing it as a one-
on-one business. So not really, you know, taking from one person to the next person.
Knowing that I have a baby, I need a car seat, knowing that, you know, he comes from
Sabre so he actually knows all the good prices, so give him the higher prices in that case
to start off, just, you know, making sure that we understand your business, your travel,
your trip and not just the generic what is going on out in the market place. So, from the
time that you actually think about doing the trip to the time you get home, we are looking
to manage the travel for you and that is really what the portal is about. That is what we
are trying to do and the biggest difference I guess between some of the others and you
might have heard about, and us happens to be that we are global. We have global content
so it is not just here in the US. I have got content for about nine countries in Europe right
now and about four in Asia and we are looking to expand on a daily basis as to feet on the
ground going after every airline, every airport. One of the majors once that was just
announced was a deal with one very recently. We are also working with different content
providers like 10Best over here to use their services to provide you information like, you
know, but I know I need on a daily basis; where is the closest vegetarian restaurant, as a
man, can I get some Indian food over here somewhere? Finnish food is really hard to
find, so I don’t usually go after that one but those are the kinds of things that we are
looking to do and is that…..where you looking for anything more specific. OK.
ALISON: And the second part of your question. Yes Galileo did acquire Trip.com in
the spring of this year and as Matt said it was great from a financing perspective. Getting
acquired was a lot less painful than going public. It has been a very positive thing. It has
really given us the opportunity to leverage the strengths of both companies, leveraging
the technology that Galileo has invested in and integrating that into the products and
services that Trip already had. It has been a very positive thing. I have to say that
initially when Galileo acquired us I was concerned that it would impact our ability to
remain nimble and I am happy to say that has not happened particularly in the wireless
space, I think that it has only been a very positive thing.

MATT: It was strictly cash. No, I say that jokingly but that is the truth.

One point to what you said before on the data users which are hooked up to the Internet.
AT&T services is actually a packet data network so that is how they differentiate from
spreads and bras and you pay $4.95 or $14.95 and you do not pay for while you are
hooked up to the Internet, that is how they hope to be a little bit different as it was for…..

I think very much like Alison just said, as a small company we were grow and we were
concerned that it would take away our creativity and move quickly but contrary to that,
they have given us plenty of rope and they are just actually a small investment in our
company and don’t have that greater percentage but they have been a terrific partner so
far. From a technology standpoint, I believe they would answer this and there is
probably somebody here from Worldspan in the room that it has been a 50/50 share.
They believe that the technologies and the applications and data services that we have
provided will enhance their ability to provide that, hate to use it, end-to-end solution to
that consumer.

KELLE: OK, I will take one last question.

QUESTION: A lot of the ……. I’m Mike Lameer from Mobilocity in New York. A lot
of the conversation has gone around the mobile service side as opposed to purely mobile
commerce like yet to anyone in the panel, How do you see the monitization of the
services on wireless networks evolving in any region or, you know, any type of service
and who stands to capture most of that?

SIMON: I’m very glad this question was asked because we got all these
beautiful applications that we direct through carriers or we direct them straight to the
airlines, the key question is…we mentioned briefly before is: Who is going to pay? Are
they going to pay and the question here is the strategic part right at the beginning and this
is the area that we are looking at now is to say, it is not so much of being able to check in
or be able tore-book a flight or the technicalities involved, it is looking at the value chain,
looking at the players that are there. One of the players are the corporates accounts. I am
quite surprised now, it’s quite late in the afternoon already, we have talked about all these
players, the travel agents. We have talked about networks, stuff like that. Companies
like us that have a huge volume of travel that these companies are procuring together or
forming partnerships with other big corporate accounts, we are talking about global
players only, and these companies will be looking at setting standards also in this area
because we are directly affected xxxxxx and this is a very strategic question, is to say: If
you ask me personally to say as a user, I will not pay a single cent for the service. I
expect it to go further down the line of the travel suppliers. So who is going to pay, is it
going to be the carriers, is it going to be the actual, the airline or the supplier at the end of
it plus all the others that we have got, the little mini content hydro gauges, the GDS’s?
All these players here plus the players like us as well that is why we have a bit of the
value chain, the WAP gateway people, the servers, all the stuff that remote access people,
everybody wants to score part of it and if we look at what is being paid through this
chain, how much is $5 now or the distribution fee? How much is it going to cost? What
is the churn rate? We now this from carriers because that is……it’s clear there, what is
the churn rate from an airline, let me just ask you a question. How much does it cost
America United, Delta, whatever airline to lose a passenger? What are the retention costs
here? And then from our side, how much is it important that Simon actually book his
flight or does he wait an hour until he is back in the office? And this is a strategic
question right at the beginning.

We have partnered with a company, it so seems we have partnered with a company that
are experts in strategic consulting because we found out it is not the applications that are
important, the beginning is strategic. Where do you place this?

KELLE?: Who is going to pay?

SIMON: Who is going to pay?

KELLE?: Who is going to pay for it? I would think that the consumer I think will
pay for things that we opt in and want to use for ….. In America and I believe the same
way in Europe, the location is going to drop in commerce and what I mean by that is if
you are standing in a Wal-Mart and the DBD player you’re looking at is a $179 and you
pop up on your screen that you can buy it at Best Buy around the corner for $169 that
Wal-Mart is a strategic partner, they know you just did that, they immediately through
your service send you a wireless coupon that discounts at $15 so you don’t ever leave that
store and you have got a better buy. Those are the kinds of things we see as being a play.
Now who pays for that service, I don’t know, I am going to want a little piece of it
somewhere and you are going to be the advocacy and get a little piece, it’s going to be
your first customer, so we are just going to share and consolidate together and the people
that really give the best consumer end experience, I think in the end wins. Not being a
travel person, I think that is where the travel business has a very unique opportunity like
no other industry in the world as I see it because of your touch to the consumer, that you
can control that consumer from top to bottom, where he eats, sleeps, plays, flies and goes,
you can virtually become their remote control to their life or their personal system.

KELLE: OK, thank you very much for attending.

PETER: Welcome back. The next session is a case study: Integrating call centers in
your online strategy and it gives me very great pleasure to introduce to you a gentleman
Tom Verna who is Director of Marketing at Chordiant Software. Chordiant Software’s
mission is to provide e-business infrastructure to managing customer interactions in
extreme situations. Tom’s background, 20 plus years in direct marketing and technical
translation across all industry sectors not just that of the travel industry providing high-
tech solutions for primarily customer based e-businesses. Tom the floor is yours.