Digital

Digital landscape trends MOBILE SOCIAL VIDEO DATA STACKS Mobile is the fastest growing space for both travel searches and travel sales Social Media is constantly looking for ways to improve their offering New creative units that drive engagement and allow for lower funnel actions TV is no longer linear. With new technologies there are a myriad of ways to target and build a connection with consumers With the level of data available staying on the edge of technology is crucial to brand success

Search Trends Trend #1 Trend #2 Trend #3 Mobile Search continues to grow and is more important than ever Search advertisers can target the right audiences like never before Search engines are increasingly monetizing hotel search results

Trend #1 – Audience targeting Advertising can be targeted to audiences like never before We can control messaging to audiences, devices, geographic locations, decision stage/funnel, and more. Desktop or mobile devices Interested in or physically near Points of Interest Existing CH customers vs new customers Targeting allows us to control the efficiency of our spend and optimize our ROI. Customer CRM Look-a-like 1 on 1 conversations Business vs. Leisure Messaging Landing page

Trend #2 - Mobile growth Mobile channel importance cannot be understated Today, 40% of U.S. travel site visits come from mobile devices. 60% of searches for destination information come from mobile devices. 46% of travelers with smartphones say they make their decision on mobile, but then book on another device.

Trend #2 - Mobile growth 3 of 4 travelers who shop hotels on mobile book elsewhere

Trend #3 – Search monetization Search engines are increasingly monetizing hotel search. Search engines send 54% of all traffic to Hospitality websites – 47% from Google alone. Because of this dominance, Google and others are monetizing traffic by increasing the space given to paid advertising and creating their own premium products, like Googles Hotel Product Ads. Google Desktop Paid Search Google Local/HPA Local/Maps (3-Pack) HPA Organic Search

2010 – Majority of traffic free Paid Search Natural Search

2016 Paid Ads Dominating Shelf Space Click share goes towards local 3-pack and Paid Search Competing directly with OTA’s for shelf space Driving traffic to internal products where comparison shopping is prevalent

CHERP

CHERP Overview Answers 600,000 questions daily Live on +1M keywords and quickly growing, supporting 5500+ properties Answers 600,000 questions daily Operates in 100+ source markets and 2 languages (FRA/ENG)

CHERP overview Pay-for-performance program built to compete against hoteliers and OTA’s to drive growth in key digital acquisition channels A strong contributor to CH.com bookings Strong alignment with Choice Hotels book direct strategy No risk, all benefit Economies of scale World class subject matter expertise State of the art technology platforms Strong strategic partnerships with global travel empires

Strategic partnerships

Strategic approach Awareness Awareness and consideration Meta growth Non-brand Mobile Audience targeting Consideration Intent Purchase

CHERP evolution SMARTER BIDDING CONTENT TAILORED TO YOU CHANNEL GROWTH 3 4 CONTENT TAILORED TO YOU SMARTER BIDDING 5 CHANNEL GROWTH 2 6 REACHING THE RIGHT CUSTOMER REAL-TIME MEASUREMENT 7 INTL. GROWTH 1 MOBILE FOCUS

Our ask Leverage the Digital Performance team! digital_performance@choicehotels.com

Our ask Work together to avoid duplication in search advertising campaigns Complement our efforts by considering a richer website experience for your property

Questions?