ISHC The OTA perspective Michael Reichartz VP Market

ISHC The OTA perspective Michael Reichartz VP, Market Management

Expedia as a data source © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 2

We have a unique view into the industry… 58 M+ 30 M+ $21 B 2 M+ visitors/month traveler opinions on Trip. Advisor gross bookings calls with partners packages sold 5 M+ 67 M+ 25 M+ 35 M+ cars rented activities sold Source: Expedia, Inc. Feb 2010 © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary. roomnights booked air tickets sold calls with customers Expedia Partner Services Group | 3

…And a unique view into consumer behavior More than 850, 000 flight shoppers globally, per day Nearly 864, 000 hotel shoppers globally, per day Source: Omniture Data 2009; Packages from Expedia Data Warehouse, Feb 2010 © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary. More than 78, 000 activity shoppers globally, per day Nearly 6, 800 packages sold per day We have more than 58 million visitors to our sites every month Expedia Partner Services Group | 4

Our view covers multiple segments… #1 online travel agency globally, with a presence in 19 countries Leading hotel specialist globally, with over 70 localized sites Agency model providing hoteliers a geographically diverse source of demand. Leading value-based travel provider The leading online travel planning site for booking hotels and flights in China #1 online travel community, operating in North America, Europe & APAC Business-to-business / private label brand Full service travel management company operating in 24 countries Expedia holds a leadership position in nearly every geographic market where we are present © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 5

US UK Germany Canada Italy Netherlands France Australia Japan India Sweden 09 20 08 20 07 20 20 06 05 20 04 20 01 20 20 00 99 19 98 19 19 96 …And our perspective is global Mexico Belgium Norway Austria Denmark Ireland New Zealand Spain Source: Expedia. com as of February 17, 2010. © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 6

US 09 20 08 20 07 20 06 20 05 20 04 20 03 20 02 20 01 20 19 91 73 Hotels. com sites worldwide Canada¹ Taiwan Venezuela Russia Turkey Ukraine Thailand Switzerland¹, ², ³ South Africa Israel Poland Iceland Slovakia Malaysia Sweden Singapore Chile Hungary Lithuania Uruguay Spain Portugal Argentina Greece Latvia Suriname Norway Philippines Czech Republic Estonia Peru Netherlands UK New Zealand Croatia Paraguay Italy Ireland Mexico¹, ² Nicaragua Korea India Japan Honduras Hong Kong Guyana Colombia French Guyana China Guatemala Brazil El Salvador Germany France Finland Denmark Panama Belgium¹, ², ³ Austria Australia Ecuador Costa Rica Canada² Bolivia Source: Hotels. com as of February 2010. ¹ , ², ³ Indicates multiple languages of the same site. Belize © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 7

We offer 124, 000 hotels from across the globe Americas 50, 000 EMEA 61, 000 APAC 13, 000 Source: Expedia Inc. Tolgamart June 2009 © 2009 Expedia Partner Services Group. All rights reserved. Confidential and proprietary. | 8

What we see as an OLTA © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 9

We see a lot of visitors from international origins… APAC to AMER 11 Mill Impressions in last 6 months EMEA to AMER 49 Mill Impression in last 6 months

…And exchange rates alter travel patterns USD value in flux; 1 USD in foreign currencies YOY; January 2007 -August 2010 2007 2008 2009 2010 Pound 36% Canadian Dollar 23% Euro 8% EUR, 10% GBP, 6% CAD, -4% JPY, -10% Japanese Yen -19% Source: Oanda FX Data © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 11

Exchange rate influence on purchasing power A family of four takes a vacation from London to Orlando 4 air tickets and 1 room for 3 nights American supplier receives in USD… Jun 2009 Var Jun 2010 Air $2, 102 +48% $3, 116 Lodging $224 0% $225 Spend $2, 326 +44% $3, 341 British family spends in GBP… Jun 2009 Var Jun 2010 Air £ 1, 286 +65% £ 2, 116 Lodging £ 137 +11% £ 153 Spend £ 1, 423 +59% £ 2, 269 © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary. FX +11% Expedia Partner Services Group | 12

Leisure visitors to the US from the US, EU & UK are trading down, while visitors from APAC are trading up 1 - 2 Star 3 Star 4 Star 5 Star Domestic US +2% -4% 0% EU +7% 0% -6% -1% UK +4% +2% -4% -2% Australia 0% -4% +2% Japan -2% +2% % = Change in room nights share Yo. Y Booking made in May – August for stays in September - December Source: Expedia future stay data (booking made in May – August 2010 for stays in September – December 2010 vs. May – August 2009 for stays in September – December 2009

Despite economic uncertainty, a recent survey suggests a cautious recovery in business travel… Are you planning to increase or decrease your travel budget in 2011? Source: Survey of over 300 Egencia clients, conducted August 2010 | Survey of over 100 Egencia clients, conducted October 2009

…The recovery is reflected in the industry numbers “Airlines in North America are adding a few extra seats this month for the first time since 2007, according to an aviation industry research firm. ” Source: ATA, Smith Travel Research,

Corporate travel is leading with lower ADR while Leisure travel is seeing higher price increases Source: Expedia inc. Internal Data

…Encouraging leisure travelers to cut their vacations short… Yo. Y Average Length of stay; by stay month Source: Expedia stayed data year-to-date (Jan– Aug 2010); Excluding Hotwire

…And spend more time shopping around Yo. Y Air Searches 37% more searches to Cancun 39% more searches to Las Vegas 21% more searches to San Francisco 17% more searches to Orlando Source: Expedia inc. Internal Data Jan – Aug 2010 (Xlogs)

In leisure markets, travelers are booking further ahead Yo. Y Growth in Booking Window Stay Month Source: Expedia stayed data year-to-date (Jan– Aug 2010); Excluding Hotwire

For leisure the deal remains “King”… Example: Fort Lauderdale Packages Transaction Mix % 70% of packages have at least a 20 % savings Source: Expedia inc. Internal Data 7 - 2010 (Booked)

…And promotions make a difference… Example: Hotels in Phoenix Property Grouping Average Promotion Mix Yo. Y Room Nights Top 5 Winners 80% 103% All Other 37% -10%

…With travelers cautious about their purchases Example: Hawaii – Big Island User Review Score Yo. Y Room Nights 4. 0 and Above +39% Below 4. 0 +4% Scores 4. 0 and higher convert 2 X better Source: Expedia inc. Internal Data Q 2 2010 (Booked)

Word of mouth makes a real difference in travel marketplace “ 87% of travelers found traveler-generated reviews from people they didn’t know influential in deciding where they would purchase their leisure travel”. (Pho. Cus. Wright Inc) Impact of traveler reviews on purchase conversion 8% 4% 4% 5% Traveler Opinion Score -5% Low High Source: Expedia, Inc. ; The Pho. Cus. Wright Consumer Travel Trends Survey 10 th Edition © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 23

Value of user reviews. . +1 point in a review = 9% increase in ADR +2 points in a review = +. 5 star rating plus moving one mile closer to city center 2 x as many people strongly agreed that they took recommendations from total strangers on travel advice websites over and above those made by family and friends (Hotels. com study)

Thanks! © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 25