The document discusses challenges facing the travel industry such as declining markets, increasing costs, and seasonal fluctuations. It proposes using unsold hotel rooms and event tickets for bartering advertising instead of discounting, which can damage brands and start a downward pricing cycle. Bartering advertising allows travel providers to maintain marketing budgets without spending cash and access new markets through guaranteed sales and interest-free financing.

1. WHO WILL YOU BILL FOR YOUR UNSOLD SPACE, EMPTY HOTEL ROOMS OR SEATS?

2. Shrinking market Competitors discounting rooms Price-sensitive customers shopping around Constant upgrade costs Competing destinations Maintenance Seasonality Natural disasters ISSUES FACING THE TRAVEL INDUSTRY

3. YOUR CHALLENGE Find new customers Maximize occupancy Grow income Increase profitability Enhance brand image / value Remain competitive

4. UNSOLD TIME = LOST REVENUE Every unsold hour represents an opportunity to earn revenue that you will never recover Your occupancy rate is limited by the number of people who see you or hear about you

5. DISCOUNTING IS NOT THE ONLY ANSWER

6. If everyone discounts then the overall perception of the market price will go down FACT #1

7. Competitors with bigger pockets could ‘out-discount’ (and out-last) you FACT #2

8. Once you become known for discounting it is very difficult to increase your price FACT #3

9. USING YOUR UNSOLD SPACE TO BUY ADVERTISING

10. WHAT IF YOU COULD SWAP YOUR EMPTY ROOMS FOR ADVERTISING IN … Television Expos and Events Radio Public Relations Newspapers Magazines Internet Websites Billboards & Indoor

12. BARTERING … Conserves your cash Allows you to maintain advertising budget regardless of cash sales Lets you test new markets where putting cash on the line may be a risk

13. You want them but they do not want you You want a lot of what they have, they only want a little of what you have You want to buy now, they want to buy later Unfortunately direct barter can be extremely difficult to organise by yourself

14. ORMITA IS INDIRECT BARTER Retail Shop Radio Station Hotel Manufacturer Hospital Accounting Firm

15. ORMITA CAN PROVIDE YOU WITH A GLOBAL ADVERTISING CAMPAIGN WITHOUT YOU NEEDING TO SPEND CASH Canada China Hong Kong India Jordan Mexico Poland Thailand Turkey USA

16. GET NEW CASH PAYING CUSTOMERS! By bartering your unsold hotel rooms, event tickets, entertainment or space for advertising you can position your brand to reach desirable corporate, group and leisure accounts. You pay for your advertising using your own unsold capacity – not cash .

17. OTHER BENEFITS

18. BARTER REPRESENTS A GUARANTEED SALE When you make a purchase using cash you have no guarantee that you will get a new customer to buy from you When you buy using barter credit then there is a guarantee that someone else in the network will buy from you When you buy using cash you may not get any cash customers back

19. YOU KEEP THE DIFFERENCE The difference between the voucher and the room cost is called “breakage” E.g. You barter a $100 gift voucher but a one night stay may be worth $90. No refund is given on an unused portion of a voucher Customers will often pay you extra cash if the voucher is slightly less than the total bill E.g. You barter a $100 gift voucher but a one night stay may be worth $110.

20. PROVIDES MORE REFERRALS Creates more credibility than advertising alone Travellers often view referral information before making online bookings Builds consumer trust May lead to additional cash business (and often - repeat business)

21. INTEREST FREE FINANCE Bartering offers finance without interest (buy now – repay with barter) Banks offer finance with interest (buy now – repay with cash)

22. ORMITA : Finds you media on barter and negotiates on your behalf Lets you buy media now and repay using your hotel rooms later Records the value of each transaction when it takes place

23. TYPICAL CONCERNS ABOUT BARTERING

24. DO I HAVE TO SELL FIRST? No : You can buy media first and sell later Our line of credit is interest-free

25. WILL I LOOSE CASH CUSTOMERS? Contractual provisions to only send guests during certain times of year (e.g. when you are less busy) If one of our customers has stayed with you in the past 12 months then you have the right to decline them on barter

26. WHAT TYPE OF GUESTS WILL YOU SEND ME? Ormita operates a “ business to business ” barter exchange network so guests will typically be corporate business travellers and/or company owners & managers who are on vacation Contractual provisions can be put into place regarding quality of the guests

27. WHAT HAPPENS TO THE EXTRA THINGS THESE PEOPLE WANT? Extra expenses on a customers bill are settled directly by the customer with cash or credit (room service, phone calls, gift shop purchases etc)

28. IS IT DIFFICULT FOR MY STAFF TO MANAGE? No : You can send end-users electronic or printed gift vouchers to present at your reception Typically: a minimum 7 days advance notice is given to you for guest bookings

29. IS RECORD KEEPING EASY? Yes: You receive a monthly statement which shows all purchases and expenses Works just like a bank account! You set up a “barter” bank account Expenses paid using barter dollars are debited from this account Sales made on barter are credited to this account

30. ARE THERE TAX ISSUES? No more than there would be for cash: Income tax is paid on profit If you spend all the barter income that you earn you have no barter profit (and therefore no income tax) Sales tax / GST / VAT must be paid according to your government regulations

31. Present in 21 countries and growing Customers from 54 countries More than $2.6 billion USD in barter deals Visit our website at: www.ormita.com THANK YOU! Australia +61 7 3149 3152 Canada +1 514 700 0180 Cina +86 755 3301 1789 Egitto +20 16 777 1 222 Germania +49 931 3069 99280 Grecia +30 211 198 2720 Hong Kong +852 5808 2688 Indonesia +62 817 345 516 Iran +98 218 850 2193 Italia +39 015 952 6193 Messico +52 55 5293 8500 Nuova Zelanda +64 9 974 9159 Pakistan +92 300 845 2403 Polonia +48 32 444 9155 Sud Africa +27 10 500 9060 Svezia +46 8 4083 9907 Turchia +90 542 786 5969 UK +44 203 355 1381 USA +1 412 346 6142 Zambia +260 97 789 5034