Presentation For Media Agency

Icelandair UK/Ireland Media brief 30. October 2006

Product information % allocation between markets London 70% to Iceland / 30% to US Glasgow 70% US / 30% Iceland Manchester 100% going to Iceland

5 million

Hull

17 million 23 million Southham pton Brighton

2

Campaign Objectives ■

London and Glasgow ◆ ◆ ◆

■

Last minute City breaks Longer breaks

– People with high disposable income – 25+ (4 to 5 day trips) – 40+ (7 day tips +)

Manchester ◆

Short breaks

– 25+ (4 day trips)

3

Target Audience Groups/ Students

Business Traveller

Visit Friends & Family

Linda Jones Age: 35+

Church School Age: 14-18

Bill McMillan Age: All

Sigga Smith Age: All

Generally prefers long tours with her family or friends and wants to see the real Iceland or Booking USATrend

Visit destination s of special interest to fulfil study requiremen ts and are price sensitive

Travels to Iceland and/or USA with work, wants flexibility and luxury but not at any cost

Booking Trend

Booking Trends

Wants to go to Iceland 4 times a year with her family at the cheapest price and convenient Booking schedule Trend

City Breaks

Destinatio n Enthusiast

Stuart Banks Age: 25+ Likes short breaks and doesn’t want to spend too much money or time on a weekend in Reykjavik or New Booking Trend York Last minute

3 months +

6 months +

Last minute

1 month +

4

Target audience

TRADE Tour Operator s

Consolidato rs & Online

Front Line Agents

Corporate, Conference & Incentives

Internet based City Breaks

Destination Enthusiast

Groups & Students

Business Traveller

Visit Friends & Family

CONSUMER 5

Distribution of sales

All markets distribution split 30,00% 25,00% 20,00%

YBLY

15,00%

LY Current year

10,00% 5,00%

nt er ne t

Ice la

nd air I

Sa le s Ow n nd air Ice la

Tr av el Ag en ts To ur O pe ra tor s Co ns ol id a to In rs te rn et Co m pa nie s

0,00%

6

Market Info – Direct competitors BA both VIA and TO Competition – To Iceland

7

BA-Adverts

8

Market Info – Low Cost Carriers

9

Market info - Scotland Via competitors

■

Edinburgh

■

Glasgow

10

Market Info - London Via Competitors ■

Heathrow

■

Gatwick

■

Stansted

11

Via Competition

12

Via price comparison ■

FI are on average 10% higher on Via

■

All other fares are non-stop flights

13

Market info – Other destinations

14

Market Info – Cruise development

Number of passengers 1.200.000

1.000.000

800.000

600.000

400.000

200.000

0 1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Cruise liners are increasing in popularity each year. Growth has been on average 11% for the last 10 years

15

Market Info – Trains

Standard

•Excellent value for money •30-minute check-in •Bar-buffet serving light meals, snacks and drinks

Leisure Select

•Dedicated carriages for exclusive Leisure select use •30-minute check-in •Choice of full service ‘at seat’ dining and drinks •Newspapers and magazines on-board •Power sockets at your seat

Business Premier

•Fast track check-in London, Paris and Brussels •Dedicated Business Premier carriages •Power sockets at seat, both UK and European compatible •Exclusive business lounge access in London, Paris and Brussels •Choice of full service ‘at seat’ dining and drinks •‘Express breakfast’ option •Newspapers and magazines 16

Market Info - Whaling issues

17

Differentiate as the specialist on Iceland with a strong Icelandair branding!

18

Market info

19

Market info

20

USA ADs

21

Adverts - Colors

22

Market info

Dedicated Iceland

60 Tour Operators selling Iceland in the UK Scantou rs

new in 2006

City Breaks

Long/Adventure tours

Students

23

Some of our Online partners Consumer / Trade

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Online - Analytics ■

■

A quick overview show a rise YTD for Visit, Hit and Page View trends vs LY With an increase in traffic but a decrease in online conversions especially ex LON this highlight the increased trend in price checking to Iceland in the UK market due to the competition.

25

Flights / Packages being sold in Supermarkets Supermarkets and partners 260 stores 752 stores

First-Choice pod in ASDA

367 stores

182 stores

In association with expedia

1.897 stores

Total: 3.458 stores

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Homeworkers

Expanding!

■

■

Travel agents are moving from the highstreet shops and working from home Travel counsellors were named UK’s best TA in 2006 by The Guardian

Over 650 employees Over 600 employees

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How do we do our campaigns London ■

◆ ◆ ◆

■

Glasgow ◆ ◆ ◆ ◆

■

Newspapers Magazines Radio Outdoor

Manchester ◆ ◆ ◆ ◆

■

London Underground Outdoor posters Newspaper/Magazines, mainly to support features

Newspapers Magazines Radio Outdoor

We can bever use pricing in our adverts both for TO and VIA

28

Timing ■

When, why and how we run our Ad campaigns: ◆

January and February ◆ ◆ ◆

◆

April and May ◆ ◆ ◆

◆

Late winter/early spring Selling tickets Feb through Easter What kind of pictures? (Winter) Late spring/summer Selling tickets may through august What kind of pictures? (Summer)

September, October and November ◆ ◆ ◆

Autumn winter breaks Selling tickets Oct through March What kind of pictures? (Autumn)

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Budget allocation ■

London

= 50%

■

Glasgow

= 30%

■

Manchester

= 20%

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Success criteria ■

We measure the success of our activities with: ◆ ◆

Inflow numbers Number of visitors to icelandair.co.uk

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PR partners - Print

Travel Trade

Consumer Press

Customer Magazines

“Glossy” Magazines

32

PR partners - Broadcast

Radio

TV

All PR partners have an online element

33

PR and Sponsorships

■

We are very active in PR activities: ◆

◆

■

Sometimes PR supposrts other activities Other times PR stands alone

Sponsorships ◆ ◆ ◆ ◆

Pure Iceland Lazy Town Rohan clothing Reyka Vodka

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Iceland Naturally launched

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