Presentation by Diego Lofuedo of Expedia at the E-Tourism Africa Summit 2010

1. E-Tourism Africa Summit
October 26th 2010
CPT International Conference Centre
©2008Expedia,Inc.Confidential&proprietary.Allrightsreserved.

2. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |1
AGENDA
1. How the Internet is evolving as a distribution and marketing
channel for travel products
• Growth in online adoption
• Effects of the internet on consumers
• Effects of the internet on hotels and travel suppliers
• Effects of the internet on intermediaries
2. How to profit from online distribution (focus on OLTAs)
• Effects of the online shift to hotels and travel suppliers
3. Results in South Africa
4. Expedia – More than just Transactions
5. Questions & Answers

3. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |2
How to profit from online distribution
1. Expedia?
2. Basics for working with OLTA´s … and YOUR own
web

4. Our mission remains the same…
At Expedia,
we create the best marketplaces around the world
for travelers to plan, book and manage their trips.

5. American Express
4
2009 “… was the year that online travel agency, Expedia,
displacedAmericanExpressastheindustry'slargestselleroftravel.”
-Travel Weekly Power List 2010
20082009
29.121.8
Expedia
27.821.5Carlson Wagonlit
21.321.4
HRG 1616
BCD Travel 1414.6
Orbitz 10.810.1
Travelocity 10.610*
Priceline 7.49.3
Source: Travel Weekly Power List 2010; Annual Earnings in billions (US$)
* Estimated as did not return figures

6. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |5
How to profit from online distribution
1. Expedia?
2. Basics for working with OLTA´s … and YOUR own
web

7. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
6
230 grams of competing inputs1. large blade
2. small blade
3. corkscrew
4. can opener with small screwdriver
5. cap lifter with screwdriver
6. wire stripper
7. reamer
8. punch
9. key ring
10. inox tweezers
11. toothpick
12. scissors
13. multi-purpose hook / parcel carrier
14. wood saw
15. fish scaler
16. hook disgorger
17. ruler (cm + inches)
18. nailfile
19. metal file
20. nail cleaner
21. metal saw
22. screwdriver
23. 2.5mm chisel
24. pliers
25. wire crimping tool
26. wire cutters
27. Philips screwdriver
28. magnifying lens 5x
29. pressurized ballpoint pen
30. pin
31. mini-screwdriver
32. sewing eye

8. Online Strategic Building Blocks
7
Focus on Consumer Relevance
GrowthDriversEnablers
Improve Rate
quality
Increase
Conversion
with
Availability
Content
&
Reviews
efficiently
Connectivity Technology
Standard
Content
Customer
Centric
Grow
Profitably
Extremely
Focused
Simplistic
Agile
Test
& Learn
Innovate where
it matters
Performance
culture
Guiding
Principles

9. © Expedia Inc. Confidential and proprietary. All rights
8
Focused design, intuitive, highly usable

10. © Expedia Inc. Confidential and proprietary. All rights Expedia Partner Services
Back to basics RATE & ROOMS
Do you have:
The right rate plans 2011 2012?
The right 18 month Calendar?
The right yielding methods ?
The right plan ?
The right people and IT?
The right... Everything!

11. There are 295 hotels in Cape Town
30% with no Internet?
Expedia continued content enhancement optimisation

12. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |
Provide excellent service – Read and Reply
Hotel Conversion vs User rating Score (1-5)
1–2.9 3.0–3.9 4.0–5.0
% User Ratings
100
170
220
% Total ratings
Conversion Index

13. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |12
AGENDA
1. How the Internet is evolving as a distribution and marketing
channel for travel products
• Growth in online adoption
• Effects of the internet on consumers
• Effects of the internet on hotels and travel suppliers
• Effects of the internet on intermediaries
2. How to profit from online distribution (focus on OLTAs)
• Effects of the online shift to hotels and travel suppliers
3. Results in South Africa
4. Expedia – More than just Transactions
5. Questions & Answers

14. 13
AGENDA
1. How the Internet is evolving as a distribution and marketing
channel for travel products
• Growth in online adoption
• Effects of the internet on consumers
• Effects of the internet on hotels and travel suppliers
• Effects of the internet on intermediaries
2. How to profit from online distribution (focus on OLTAs)
• Effects of the online shift to hotels and travel suppliers
3. Results in South Africa
4. Expedia – More than just Transactions
5. Questions & Answers

16. ©2008Expedia,Inc.Confidential&proprietary.Allrightsreserved.

17. © 2007 Expedia. Confidential and proprietary. All rights reserved. Expedia Partner Services Group |16
1. This shifting online is impacting consumers, intermediaries, and travel suppliers.
Internet is changing the way people buy and sell travel (i.e. Cape Town or Cairo
sold as a long weekend city break!).
2. Revenue Management is key to maximize profits. Moreover in times of economy
slowdown. Every single penny counts 
3. Wear online hat when doing business with online Tour Operators. Wear offline
hat while doing business with offline tour operators. Think selling price while @
4. Expedia is your best option to maximize revenue, reach worldwide audience,
learn about e-commerce and benefit from our vast online experience.
5. Expedia is the ONLY OLTA that can offer you Transactions, Media Value and
Billboard effect. No other competitor can close the circle this way!.
6. Online is not the future. It is the present. And it is happening now in Africa. We
are bringing the e-commerce to Africa and Africa to the e-commerce. Join us!
7. The Offline Travel Trade is not left aside. Join www.agentrez.com and start
earning $$!
Summary

18. ©2008Expedia,Inc.Confidential&proprietary.Allrightsreserved.©2008Expedia,Inc.Confidential&proprietary.Allrightsreserved.
Thank you!
ANY QUESTIONS?
Diego J. Lofeudo
diegol@expedia.com
Ross Kata
rkata@expedia.com
17