Connecting people with the world’s greatest travel possibilities.

Confidential

A Business Case for WellnessSabre’s Success Story

2 Confidential

Our businesses

• Transacted $70 billion in gross travel sales in 2005 though 50,000 travel agency locations in 113 Countries

• Travelocity sold $7.4 billion of travel in 2005

• We run reservation/operation systems for more than 100 airlines

• 200+ airlines use our decision support products

• The Best Team in Travel: 8,800 people in 45 countries

3 Confidential

Wellness is a competitive issue

• Financial• Unsustainable US health care cost trend

• Need top talent at the top of their game when at work• Physical and psychological readiness

• Keep Texas and the US competitive globally• Globally distributed company with access to global talent pool

4 Confidential

Call to action: Financial healthIs the current model sustainable?

National Inflation (BLS)

$723

$878

$596

$663

$796

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2002 2003 2004 2005 2006 Proj 2007 Proj

PE

PM

Me

dic

al/R

x C

laim

s

National Inflation (BLS)

$523

National Trend Applied to 2002 Claims

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Call to action: US lifestyle choicesIs Texas producing top athletes?

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Call to action: Psychological healthAre our people playing at the top of their game?

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A holistic solution

• Benefit plan cost management• Plan design• Smart purchasing• Condition management • Consumerism

• Wellness program

• Employee engagement initiative

• and more…

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Wellness Program Components

Get Their Attention

Make It Personal

Tools & Resources

Make It Fun

Create Accountability

Change the Culture • Leadership, language, lifestyle

• Tie participation/results to premiums

and other rewards

• Challenges, committees, clubs

• On-line resources, wellness fairs,

on-site services, seminars,

programs

• Personal health awareness and

preventive care incentives

• Promotion, education, listening

9 Confidential

Extraordinary Results

• $10.5M per year cost avoidance in both 05 and 06 (38% of 06 budget)

• $46M cumulative cost avoidance over 5 years (175% of ave annual budget)

• Employee health risk factors dropped significantly

$796

$663

$596

$878

$723

$575

$498 $521 $505

$607$523

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2002 2003 2004 2005 2006 Proj 2007 Proj

PE

PM

Med

ical

/Rx

Cla

ims

National Inflation (BLS)

Sabre Actual

What Sabre’s claims would be with nat’l avg trend and Sabre’s 2002 plan design

What Sabre’s claims would be with nat’l avg trend and Sabre’s 2002 plan design

Sabre’s actual claims with 2006 and 2007 claims

forecast

Sabre’s actual claims with 2006 and 2007 claims

forecast

10 Confidential

Other indicators look good

Inpatient Utilization Metrics

2004Actual

2005 Actual

% Change

Number of Days

3,035 2,511 -17.27%

Days per 1000

315 264.7 -15.97%

Net Paid per Day

$2,018 $2,426 20.22%

Number of Admissions

627 538 -14.19%

Admissions per 1000

65.1 56.7 -12.90%

Net Paid per Admission

$9,770 $11,321 15.88%

Healthcare Cost Category Metrics PMPM

2004 Actual

2005 Actua

l%

Change

Facility Inpatient

$29.85 $23.3

8 -

21.68%

Facility Outpatient

$33.68 $25.0

7 -

25.56%

Physician - Primary Care

$11.62 $9.17 -

21.08%

Physician - OB/GYN

$5.33 $3.13 -

41.28%

Physician - Specialty

$28.40 $23.3

0 -

17.96%

Allied Health $4.38 $3.06 -

30.14%Note: High cost claimants (>$100,000 in paid claims) are included.

11 Confidential

Lessons learned

• Wellness pays

• Need a holistic, integrated solution

• Too many options, too many choices• Information overload and inaction

• Wellness resources are ubiquitous but often rudimentary• What’s next?

• Need greater integration and alignment of external systems • Integrated wellness model versus fragmented disease model• Reinforcement at home and in the community

• Stakes are rising• Most people need something at stake to act• Personal accountability and compliance is the next big hurdle

12 Confidential

Travelocity’s Roaming Gnome is in the program…