eDistribution Hotel Strategies

 Improve Occupancy  Improve ADR  Lower Distribution Costs GDS Internet Help hotels and other travel suppliers improve revenue from electronic distribution channels.

Meeting Hotel’s Needs Competitive Data Hotelligence, Internet Hotelligence, RateView Enabling Capabilities Web Booking Engine GDS Connectivity Call Center Reservations Channel Management Electronic Marketing Centre E-Marketing Sabre, Galileo, Worldspan, Amadeus, Orbitz, Hotwire, USAToday Services Website Design Call Handling Search Engine Optimization Search Marketing Local Advice

Putting it all Together To Improve Performance in Electronic Channels Competitive Data E-Marketing Enabling Capabilities Services

Why the Focus on Electronic Channels? 2005 Hotel Revenue Forecast ($Billions) Travel Agent GDS $12.4 B Web Direct to Property/Chain Sites $7.8 B Retail/Net Rate/Opaque Third Party Web Sites $5.9 B Expected to deliver over $26 billion in room revenue in 2005

Hotel e-commerce is becoming increasingly important for the hospitality industry CRO distribution continued to shift in 2004 toward the more cost- efficient electronic channels Based on TravelCLICK’s eTRAK Industry Report for 2004

Global Distribution Systems began in the early 1980’s Over $250 billion of travel sold through these systems Largest e-commerce marketplace, far surpassing total business transacted on the Internet Originate about 700 million inbound travelers a year worldwide The World’s Largest e-Commerce Marketplace

Source: TravelCLICK’s Proprietary Database $12.1 USD Billion GDS Marketplace GDS Hotel Bookings GDS Hotel Booking Revenue Increased by 14.3% in 2004

Internet channels are still growingly rapidly, and have become relevant Hotel Revenue From the Internet ($Billions) Consumer Online Spending - Hotels TravelCLICK estimates that six out of ten households now consult the Web for travel

Internet Use on the Rise Consumer utilization of the Internet to plan some aspect of a trip continues to rise YPB&R/Yankelovich Partners 2004 National Leisure Travel Monitor

Lookers to Bookers The rate at which consumers are using the Internet to book travel services is growing even faster YPB&R/Yankelovich Partners 2004 National Leisure Travel Monitor

Importance of e-Commerce Bookings % of Contribution to Rooms Revenue Downtown Property 20-30% 4-10% 10-15% 47-65% Property Direct CRO Voice GDS Internet Suburban Property 47-63% 9-12% 5-10% 25-35% Property Direct CRO Voice GDS Internet Source: Business mix derived from samples of TravelCLICK”s database and other market information Typical North American Hotels Internet revenue consist of revenue contributed by chain website, as well as internet retail sites. Property direct channel is comprised primarily by group business, but also includes revenue from calls made directly to the property, the property’s own web site and walk-ins.

Airport Property 40-50% 32-48% 5-12% 6-10% Property Direct CRO Voice GDS Internet Resort Property 51-75% 5-15% 7-14% 12-20% Property Direct CRO Voice GDS Internet Typical North American Hotels Importance of e-Commerce Bookings % of Contribution to Rooms Revenue Internet revenue consist of revenue contributed by chain website, as well as internet retail sites. Property direct channel is comprised primarily by group business, but also includes revenue from calls made directly to the property, the property’s own web site and walk-ins. Source: Business mix derived from samples of TravelCLICK”s database and other market information

Data Solutions For managing performance and competitive benchmarking in electronic channels

GM VIEW: Summarizes Pricing, Rate Parity, Best Rate GTD Isolate dates where pricing is out-of-sync with the competition Identify dates with increasing demand in advance Monitor best rate guarantee program and rate parity

Quick VIEW - Simple One-Page View of Competitive Market Displays the lowest overall rate across all channels, enabling users to quickly gauge cross-channel competitive positioning Shows a complete picture of pricing by channel for auditing purposes. Easily identifies both rate parity problems as well as failures to meet best rate guarantee programs

Daily VIEW: A complete daily picture for all channels and competitors Users define Price Watch criteria that will generate visual indicators when pricing for a competitor is higher or lower than an acceptable variance.

Multiple Length of Stay VIEW: One page view of multiple LOS

Channel VIEW: A more detailed view of pricing by channel If a price has changed from the previous week, the amount of the variance is printed in blue or yellow font below the current price.

Supporting Detail: Provides rate descriptions from each site Identifies Merchant and Retail Rates

Corporate RateVIEW Group properties together by area, region or brand Diagnostic “alerts” help manage rate parity across each property

Competitive Benchmarking

GM Summary An overview of Market Penetration Performance Know your hotels rank and market penetration for the current period vs. prior year in a glance. Identify top performing agencies in your market for future sales opportunities.

Performance Summary: Key Measures by GDS Monitor market share and penetration by GDS compared to prior year Choose monthly or year-to-date data Visual alerts indicate when your market penetration is less than 100%.

Performance Summary: Key Measures of Electronic Distribution Understand 12-month market penetration and average rate trends Compare ADR trends vs. competitive set and identify opportunities for growth. Evaluate trend of market penetration for room nights and revenue.

Distribution Summary: Account Performance in Your Market Subscribers may request up to 150 total agencies View monthly and year- to-date information Defined Criteria Identify which travel agencies book your hotel and your competition, identify target accounts to solicit for business opportunities. Totals appear at top for easy viewing

Distribution Summary: Top Producing Cities and Countries View monthly and year- to-date information Select competitors top cities and countries

Revenue Management Summary Lead Time Statistics identify booking patterns at your hotel and the competitive set.

Revenue Management Summary Lead Time Statistics identify booking patterns at your hotel and the competitive set.

Revenue Management Summary Understand customer stay patterns in your market

A platform from where hoteliers can manage inventory and rates across multiple retail and merchant sites

Channel Manager Coverage The top sites (and their affiliates) capture ¾ of the total on-line visits Travelocity.com, WorldRes and iHotelier to be added by June 2004

Lodging.com Expedia Orbitz The Way It Works Today Hotel Property Proprietary Extranet Proprietary Extranet Proprietary Extranet Proprietary Extranet Proprietary Extranet Proprietary Extranet Net Rates & Inventory Manual input

The Way It Will Work with Channel Manager Manual Input into ONE Location New Rates & Inventory Manual Input into ONE Location New Rates & Inventory Reservation Count Proprietary Extranet Proprietary Extranet Proprietary Extranet Proprietary Extranet Proprietary Extranet Proprietary Extranet Emulation Merchant.comRetail.com Reservation Count Destination.com Hotel Property Channel Management Platform

ChannelManager’s Economic Value $50k salary x 20% of the RM’s time=$ room 70% ADR generates $918,759 in revenue a 2% increase due to better Revenue Management would yield incremental revenues of=$18,375 4 Suites per month $200 (2 night stays)= $1,600 3 new sites to the distribution portfolio 4 reservations from each $150 (2 night stays)=$3, $24,408 * per month $292,896* incremental revenues per year What’s the value of CHM to this hotel?

Electronic Marketing For increasing business in electronic channels

Consumer Media Network Travel Agent Media Network

Travel Agency Media Network

C O N S U M E R S An Increasingly Complex Maze Retail Distribution Through Travel Agents Travel Agent Pegasus Chain GDS EST. CHANNEL 15-40% Local Hotel Wholesaler Distribution NEW CHANNEL 1-20% Direct Distribution Chain/ Rep Co. Chain/Rep Co. Distribution Expedia Hotels.com Chain Internet Travel Site Pegasus or GDS Retail Distribution Through Internet NEW CHANNEL 2-25% NEW CHANNEL 0-10% Priceline Chain Auction Distribution NEW CHANNEL 0-8% NEW CHANNEL 1-3% Local Hotel

We Focus on the Two Most Profitable Channels $ $ Travel Agent Pegasus Chain GDS Local Hotel GDS Chain/ Rep Co. Local Hotel Priceline Chain Local Hotel Expedia Hotels.com Local Hotel Brand Website Merchant Opaque $ $ Local Hotel Property Website Booking Engine Provider

Reaches 87% of all Travel Agents worldwide – Over 640,000 Terminals Statistics provided by each GDS Our Travel Agency Media Network Number of terminals worldwide Sabre/Abacus 218,094 Galileo 158,917 Worldspan 52,297 Amadeus 211,809

Traditional media response rates Direct mail3.0% Print ads0.2% 59% Source: NFO Plog Agent Survey 6/03Source: Hilton Agent Survey 8/03. Independent Research Shows GDS Media Significantly Outperforms Other Media Options

Ad Serving – How Does it Work? Ad serving is the process of dynamically delivering targeted electronic advertisements (i.e. “serving ads”) into a variety of electronic mediums. An ad server houses an advertisement and delivers it when the parameters for that particular ad are met. Travel Agent GDS Amadeus Galileo Sabre Worldspan Travel Agent enters search criteria into GDS GDS sends request to Ad Server for an ad that meets criteria Ad Server locates ad and serves it back to the GDS GDS delivers ad to Travel Agent

GDS Marketing One to One Real Time Targeting Travel Agent Traveler Targets Ad Period Promo Period Point-of-sale Option Agent Sign-In Messaging Agent Broadcast Messaging Destination Air Shopping Destination Air Booking Destination Hotel Shopping Destination Weather Messaging TravelCLICK’s GDS Advertising Products Hotel Advertises on GDS Hotel Booking

First Screen Exposure- Hotel Availability

Detail Screen Display

Targeting Capabilities

Consumer Media Network

Our Consumer Network

Results Page 2 Skyscraper ads are available on the Results Page Banners & Badge ads are available on the Results Page

Landing Page

Hotel Detail / Show All Rates Page Skyscraper ads are availableon the Hotel Detail Page andShow All Rates Page

Destination Page Advertising Page Sponsorship

Destination-specific banners are available on hotel, air, car and package research result screens

Banner & Badge ads are available on Deals & Destination pages

Customer Reach ,000-2,000 Daily Newspaper Travel Trade Print TravelCLICK Media Potential Customers Reached Through $20K Expenditure 175, ,000 Direct Mail 1,000-8,000