Leisure visitors to the US from the US, EU & UK are trading down, while visitors from APAC are trading up Star3 Star4 Star5 Star Domestic US+2% -4%0% EU+7%0%-6%-1% UK+4%+2%-4%-2% Australia0%-4%+2% Japan-2% +2% % = Change in room nights share YoY 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… Source: Survey of over 300 Egencia clients, conducted August 2010 | Survey of over 100 Egencia clients, conducted October 2009 Are you planning to increase or decrease your travel budget in 2011?
…The recovery is reflected in the industry numbers Source: ATA, Smith Travel Research, 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.
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… Source: Expedia stayed data year-to-date (Jan– Aug2010); Excluding Hotwire YoY Average Length of stay; by stay month
…And spend more time shopping around YoY Air Searches Source: Expedia inc. Internal Data Jan – Aug 2010 (Xlogs) 37% more searches to Cancun 39% more searches to Las Vegas 21% more searches to San Francisco 17% more searches to Orlando
In leisure markets, travelers are booking further ahead Source: Expedia stayed data year-to-date (Jan– Aug2010); Excluding Hotwire YoY Growth in Booking Window Stay Month
For leisure the deal remains King… Source: Expedia inc. Internal Data (Booked) Example: Fort Lauderdale Packages 70% of packages have at least a 20 % savings Transaction Mix %
…And promotions make a difference… Property Grouping Average Promotion Mix YoY Room Nights Top 5 Winners80% 103% All Other37% -10% Example: Hotels in Phoenix
…With travelers cautious about their purchases Source: Expedia inc. Internal Data Q (Booked) Scores 4.0 and higher convert 2X better Example: Hawaii – Big Island User Review ScoreYoY Room Nights 4.0 and Above+39% Below 4.0+4%
Value of user reviews.. +2 points in a review = +.5 star rating plus moving one mile closer to city center +1 point in a review = 9% increase in ADR 2x 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)