Online Travel in China – a Western Perspective Matthew Crummack Expedia ® Hotels.com ® Hotwire.com TM Tripadvisor.com ® Expedia ® Corporate Travel eLong.com TM Classic Vacations ®

Expedia: Four Major Consumer Brands Broadest product offering of any travel site Broad, upscale customer mix Largest number of visitors per month and highest brand recognition of any online travel site 7 global points of sale; #1 or #2 in every geographic market fully served The hotel experts, for everyone from the browser to the power booker Broad customer base, with heavy mix of drive-to customers Large number of offline sales via skilled telesales reps with destination expertise 31global points of sale Largest brand- shielded channel to profitably sell discounted inventory Solely focused on discount shoppers Respect for the opaque model and how it helps meet supplier needs A leading online travel service provider in China, offering a full-line of travel products Serves emerging class of Chinese frequent independent travelers Modern call center and web-based technology Local agents in 50 major Chinese cities

Broadest product offering of any travel site

Broad, upscale customer mix

Largest number of visitors per month and highest brand recognition of any online travel site

7 global points of sale; #1 or #2 in every geographic market fully served

The hotel experts, for everyone from the browser to the power booker

Broad customer base, with heavy mix of drive-to customers

Large number of offline sales via skilled telesales reps with destination expertise

31global points of sale

Largest brand- shielded channel to profitably sell discounted inventory

Solely focused on discount shoppers

Respect for the opaque model and how it helps meet supplier needs

A leading online travel service provider in China, offering a full-line of travel products

Serves emerging class of Chinese frequent independent travelers

Modern call center and web-based technology

Local agents in 50 major Chinese cities

Expedia, a global business meeting local needs Expedia around the world Expedia is the largest online travel company in the world Leading online travel agency in UK, Germany and Italy; Second largest in France and China (eLong) Almost 3 million people visit our sites every day

Expedia around the world

Expedia is the largest online travel company in the world

Leading online travel agency in UK, Germany and Italy;

Second largest in France and China (eLong)

Almost 3 million people visit our sites every day

Creating the Global Travel Marketplace A vision for consumers of travel Global Cooperation • helps our consumers • helps our supply partners Developing technology • WWTE and Air China • Localising great content

Centralised control Fragmented US/EU China Well-developed Hotel - none Air - Travelsky Mainly electronic Physical delivery Air ticket distribution Fragmented, manual Centralised, automated Fare systems Routing P2P, Hub & spoke Mainly P2P Internet usage Adults, families Young Adults Booking method Mainly online Call center Payment method Credit Card Mainly Cash Airlines China – a developing Travel Marketplace Centralized reservation systems

Reaching the consumer Online vs. offline sales Payment and ticket delivery Selling Air Tickets in China

Reaching the consumer

Online vs. offline sales

Payment and ticket delivery

Rotating images – rooms, views and public areas Domestic and international hotels Enhanced booking / selection experience Over 140 key destinations Rich content and imagery More room type selection Expedia benefits: 60,000 hotels worldwide negotiated rates International Hotels 360 Virtual Tours Customer Experience: Better selection

Rotating images – rooms, views and public areas

Domestic and international hotels

Enhanced booking / selection experience

Over 140 key destinations

Rich content and imagery

More room type selection

Expedia benefits:

60,000 hotels worldwide

negotiated rates

Customer Experience: Check out B4 Check in eLong Virtual Hotel Tours Available in 12 major Chinese cities

eLong Virtual Hotel Tours

Available in 12 major Chinese cities

Customer Experience: Sheraton Nanjing Map of the hotel Photos and virtual tours

Map of the hotel

Photos and virtual tours

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