ISHC The OTA perspective Michael Reichartz VP, Market Management

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

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

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

Our view covers multiple segments… © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary.Expedia Partner Services Group | 5 #1 online travel agency globally, with a presence in 19 countries Leading hotel specialist globally, with over 70 localized sites Leading value-based travel provider #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 Agency model providing hoteliers a geographically diverse source of demand. The leading online travel planning site for booking hotels and flights in China

…And our perspective is global © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary.Expedia Partner Services Group | 6 Source: Expedia.com as of February 17, AustraliaFranceCanadaGermanyUKUS Belgium India Netherlands Italy Spain New Zealand Ireland Austria Denmark Norway Japan Sweden Mexico

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

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

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

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

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

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 Jun 2009Var Jun 2010 Air $2,102+48%$3,116 Lodging $2240%$225 Spend $2,326+44%$3,341 © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary.Expedia Partner Services Group | 12 American supplier receives in USD… Jun 2009Var Jun 2010FX Air £1,286+65%£2,116 Lodging £137+11%£153 Spend £1,423+59%£2, % British family spends in GBP…

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%

87% of travelers found traveler-generated reviews from people they didnt know influential in deciding where they would purchase their leisure travel. (PhoCusWright Inc) Word of mouth makes a real difference in travel marketplace Source: Expedia, Inc.; The PhoCusWright Consumer Travel Trends Survey 10th Edition LowHigh Traveler Opinion Score Impact of traveler reviews on purchase conversion © 2010 Expedia, Inc. All rights reserved. Confidential and proprietary.Expedia Partner Services Group | 23

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)

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