Dublin Hotel Website Marketing Conference Charlotte Gogstad 17 th February 2009 3 rd Party Partners

AGENDA WHO Who are Expedia Our Global Footprint Access to Demand WHY Evolution in Online Travel Trends in Travel Distribution HOW 5-STEP of Partnering with an OLTA THE OLTA’s investment in demand What does it mean for Irish hotels

WHO

Who are Expedia

Our Global Footprint

Access to Demand

WHY

Evolution in Online Travel

Trends in Travel Distribution

HOW

5-STEP of Partnering with an OLTA

THE OLTA’s investment in demand

What does it mean for Irish hotels

AGENDA WHO Who are Expedia Our Global Footprint Access to Demand WHY Evolution in Online Travel Trends in Travel Distribution HOW 5-STEP of Partnering with an OLTA THE OLTA’s investment in demand What does it mean for Irish hotels

WHO

Who are Expedia

Our Global Footprint

Access to Demand

WHY

Evolution in Online Travel

Trends in Travel Distribution

HOW

5-STEP of Partnering with an OLTA

THE OLTA’s investment in demand

What does it mean for Irish hotels

Expedia holds a leadership position in nearly every geographic market where we are present Unmatched global marketplace of brands No.1 hotel specialist, in 42 countries Leading discount travel site reaching price-conscious travelers Leading online travel service provider in China On-demand, full-service corporate travel agency operating in nine countries No.1 community player with more than 15 million reviews and opinions No.1 OLTA, in 19 countries Operating more than 100 in-market concierge and activity desks © 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. Expedia’s value proposition

Expedia provides access to international demand Highest brand awareness worldwide Leadership position in nearly every geographic market present 3 of top 7 online travel agencies in the Americas, including the #1 agency #1 in UK, Germany, Italy; #2 in France #2 in China More points of sale to be launched

Highest brand awareness worldwide

Leadership position in nearly every geographic market present

3 of top 7 online travel agencies in the Americas, including the #1 agency

#1 in UK, Germany, Italy; #2 in France

#2 in China

More points of sale to be launched

© 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. Expanding internationally

© 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. Expanding internationally

© 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. Expanding internationally

#1 online travel site 20 POS Broadest product offering focusing on “the whole trip” Package-focused Broad, upscale customer mix Longer booking window/longer LOS #1 hotel specialist 40 POS Consumer site focused on user reviews Two-thirds drive Last-minute shoppers Call center heavy Hotel Only Wider and specific distribution Hotel/Package ► longer length of stay Some of our partners: © 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. Reaching diverse customer segments

#1 online travel site

20 POS

Broadest product offering focusing on “the whole trip”

Package-focused

Broad, upscale customer mix

Longer booking window/longer LOS

#1 hotel specialist

40 POS

Consumer site focused on user reviews

Two-thirds drive

Last-minute shoppers

Call center heavy

Hotel Only

Wider and specific distribution

Hotel/Package ► longer length of stay

Some of our partners:

Multiple product categories to maximise demand © 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. More than 730,000 flight shoppers globally, per day More than 55,000 car shoppers globally, per day Nearly 475,000 hotel shoppers globally, per day We have more than 75 million visitors to our sites every month

5.5% overlap Accessing different target audiences We attract a range of consumers with different buying habits UK Traffic per month 20 Million UK Traffic per month 40 Million Average Customer Age: 56% are 25-44 Income: 41% earn £50+ 20% repeat customers Average Customer Age: 63% are 35-65 Income: 67% earn £50+ 20% repeat customers

AGENDA WHO Who are Expedia Our Global Footprint Access to Demand WHY Evolution in Online Travel Trends in Travel Distribution HOW 5-STEP of Partnering with an OLTA THE OLTA’s investment in demand What does it mean for Irish hotels

WHO

Who are Expedia

Our Global Footprint

Access to Demand

WHY

Evolution in Online Travel

Trends in Travel Distribution

HOW

5-STEP of Partnering with an OLTA

THE OLTA’s investment in demand

What does it mean for Irish hotels

WHY work with an OLTA? We are bringing you the world Incremental business: Reach travelers that would not find you any other way Get customers that stay for longer in your hotel and spend more money on it Inspire travelers to find, build and share travel experiences Make your hotel accessible to a Worldwide audience

Trends in Travel Distribution Europe online travel continues to grow and gain market share from offline channels European Leisure/Unmanaged Business Travel Market 2006-2010 Gross Booking (€B), Growth (%) and as a Percentage of Total Travel Market Note: 2008-2010 projected Source: PhoCusWright´s European Online Travel Overview 4 th Edition The European online leisure/unmanaged business travel market is projected to nearly double, from €48 billion in 2006 to €90 billion in 2010 Online bookings in 2007 increased 24% over the previous year vs. 6% growth for the overall European travel market (€59 billion out of €237 billion total), and is expected to continue to see healthy growth over the next few years In comparison, the US online travel market ($90 billion out of $265 billion total) also saw growth of 12% in 2007 this is expected to slow to 7% by 2010

The European online leisure/unmanaged business travel market is projected to nearly double, from €48 billion in 2006 to €90 billion in 2010

Online bookings in 2007 increased 24% over the previous year vs. 6% growth for the overall European travel market (€59 billion out of €237 billion total), and is expected to continue to see healthy growth over the next few years

In comparison, the US online travel market ($90 billion out of $265 billion total) also saw growth of 12% in 2007 this is expected to slow to 7% by 2010

Trends in Travel Distribution Lack of consolidation and economic environment favour online distribution channels The large number of geographically dispersed small chains and independent properties are not likely to see major consolidation, therefore the supplier direct online distribution channel is not forecasted to increase significantly in importance for Hotel With the economy softening, online distribution channels have increased access to inventory and can offer a broad range of products for easy comparison shopping by consumers who are increasingly value conscious European Supplier Web Site Booking Share Leisure/Unmanaged Business Note: 2008-2010 projected Source: The European Online Travel Market: 2006-2010

The large number of geographically dispersed small chains and independent properties are not likely to see major consolidation, therefore the supplier direct online distribution channel is not forecasted to increase significantly in importance for Hotel

With the economy softening, online distribution channels have increased access to inventory and can offer a broad range of products for easy comparison shopping by consumers who are increasingly value conscious

Trends in Travel Distribution Despite the economic environment, online travel will continue to grow The negative macro economic outlook, driven by the global financial crisis, is expected to have a negative impact on European travel spend However, an economic downturn is expected to have an upside for online travel – just as it already has in the US, where travelers are increasingly shopping for bargains online After September 11 th , 2001, Expedia hotel transactions grew 120% in 2002

The negative macro economic outlook, driven by the global financial crisis, is expected to have a negative impact on European travel spend

However, an economic downturn is expected to have an upside for online travel – just as it already has in the US, where travelers are increasingly shopping for bargains online

After September 11 th , 2001, Expedia hotel transactions grew 120% in 2002

Trends in Travel Distribution Participating with an online travel agent provides media value IMPRESSIONS 7,743,507 – £154,870 4,222,803 – £84,456 2,337,650 – £46,753 Cost of a banner such as the one displayed above is approximately £20 per 1,000 impressions The cost of Top 5 position head term on a major search engine such as ‘London Hotels’ is estimated at £1.15 per click PLACEMENT Top Hotel Average Low CLICKS 130,874 - £150,505 62,713 – £72,120 42,786 - £49,203

IMPRESSIONS

7,743,507 – £154,870

4,222,803 – £84,456

2,337,650 – £46,753

PLACEMENT

Top Hotel

Average

Low

CLICKS

130,874 - £150,505

62,713 – £72,120

42,786 - £49,203

© 2008 Expedia, Inc. Confidential & proprietary. All rights reserved. For every 2 transactions on Expedia, our shoppers also make 1 transactions direct with you Resulting in significant reduction of the effective cost per transaction on Expedia We help drive your growth Driving direct sales Cost per transaction spread over 3 transactions 25% 15% Direct cost per transaction Effective cost per transaction including “Billboard Effect”

For every 2 transactions on Expedia, our shoppers also make 1 transactions direct with you

Resulting in significant reduction of the effective cost per transaction on Expedia

AGENDA WHO Who are Expedia Our Global Footprint Access to Demand WHY Evolution in Online Travel Trends in Travel Distribution HOW 5-STEP of Partnering with an OLTA THE OLTA’s investment in demand What does it mean for Irish hotels

WHO

Who are Expedia

Our Global Footprint

Access to Demand

WHY

Evolution in Online Travel

Trends in Travel Distribution

HOW

5-STEP of Partnering with an OLTA

THE OLTA’s investment in demand

What does it mean for Irish hotels

5-STEP EVOLUTIONARY ON-LINE MARKETING – Partnering with Online Travel Agents (OLTA’s) 1. Get your product into OLTA Shelves + 2. Promote deals on OLTA shelves + 3. Run ad campaigns with OLTA’s + 4. Be active on UGC sites + 5. Upgrade your site for ancillary revenues Consumer Relevance Long-term Brand Value OLTA capturing demand through Marketing Investment

1. Get Your Product on OLTA Shelves Online distribution provides flexible options for both consumers and suppliers

1. Content Management 95% of leisure Bookers & 92% of Lookers say descriptive content is important to them Info sites Traveller Reviews Virtual Tours Room details Photos

2. Promote Deals on OLTA Shelves

3. Run ad campaigns and build your brand

4. The Power of User Generated Content The Web Site Content That Matters To Travelers Forester Research Expedia has more than 1.5 million traveller reviews in 9 languages 14.5% of customers posted reviews globally

Expedia has more than 1.5 million traveller reviews in 9 languages

14.5% of customers posted reviews globally

Hotel Conversion vs User rating Score (1-5) 1–2.9 3.0–3.9 4.0–5.0 % User Ratings Source: NYC, Hotels.com, Nov 2008 4. Manage your reputation on User-generated content sites, it will help you in the long-run 100 170 220 % Total ratings Conversion Index

4. Manage your reputation globally

5. Upgrade your site for ancillary revenues Expedia – Pegasus co-branded hotel partnership will help Pegasus expand its consumer offering with minimal investment

$1 billion in marketing spend in 2008 We drive demand through investing in a wide range of marketing channels

We drive demand through investing in a wide range of marketing channels

Full service online travel agency… …more than just a transactional website Content Telesales Agents Search Optimization Promotions Email marketing Merchandising Offline Advertising

Expedia Inc in Ireland Strong YoY growth in domestic searches and transactions – The Irish seems to be staying closer to home this year

New Distribution Channels Expedia has been achieving significant growth into Dublin Despite the weakening macro economics, 21% room night growth was achieved in Dublin in 2008 YOY Growth * Compared against same period last year

Despite the weakening macro economics, 21% room night growth was achieved in Dublin in 2008

New Nationalities Visiting Dublin Expedia’s significant and growing international reach Expedia’s customer base is becoming increasingly diverse internationally and the large European markets continue to grow. In particular shift towards customers coming from Scandinavia, France and Spain

Expedia’s customer base is becoming increasingly diverse internationally and the large European markets continue to grow.

In particular shift towards customers coming from Scandinavia, France and Spain

Recap Who will win in this economic environment ? The travel suppliers who will win will be those who: Display rich content Actively manage rates and inventory Take advantage of marketing and merchandising opportunities Provide a quality product Offer excellent service

Who will win in this economic environment ?

The travel suppliers who will win will be those who:

Display rich content

Actively manage rates and inventory

Take advantage of marketing and merchandising opportunities

Provide a quality product

Offer excellent service

Final Words: The ‘right’ Mindset ... can help you make the right decisions Be curious and open minded Look cross-industry Try ‘stuff’ out Test, Optimise and Adapt

Thank you and Hope to see you online!

Summary Despite the economic downturn, online travel will continue to grow and gain market share from offline channels Global Intermediaries will have a bigger role in the distribution of the hotel product due to the fragmented lodging landscape The negative macro economic situation means that new distribution channels with pan European and global reach will become more important than ever

Despite the economic downturn, online travel will continue to grow and gain market share from offline channels

Global Intermediaries will have a bigger role in the distribution of the hotel product due to the fragmented lodging landscape

The negative macro economic situation means that new distribution channels with pan European and global reach will become more important than ever