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Expedia in East Africa


Louise C. Dreisig – Market Manager, East Africa



Nairobi, March 29 - 2012
© Expedia, Inc. All rights reserved. Confidential and proprietary.   Expedia Partner Services Group | 1
Expedia, Inc. Mission and Global Brands
Our Mission: To revolutionize travel through the power of technology


                                        PASSIONATE • INNOVATIVE • ENTERPRISING


              Global
              brands



           Multiple                                            Retail   Package   Opaque    Corporate
           channels



          Multiple                                           Online     Mobile     Tablet   Call Center
          platforms


                                100 localized Expedia, Inc. branded sites in 70 countries
© Expedia, Inc. All rights reserved. Confidential and proprietary.                            Expedia Lodging Partner Services | 2
Expedia in East Africa

                                                                     East Africa hotel sales by region
     18000


     16000


     14000


     12000


     10000


      8000                                                                          Room nights sold 2011

      6000
                                                                                    Room nights sold 2010

      4000


      2000


            0




© Expedia, Inc. All rights reserved. Confidential and proprietary.                      Expedia Partner Services Group | 3
Online travel today
                                                                     Consumers took charge years ago!




© Expedia, Inc. All rights reserved. Confidential and proprietary.                                      Expedia Partner Services Group | 4
There is no such thing as an online customer




                                           But a Multi-channel & Multi-device Customer!


©
5 Expedia, Inc. All rights reserved. Confidential and proprietary.
The purchase process is no longer linear




                           Awareness
                                                              Research
                                                                                    Consideration
                                                                                                            Preference            Purchase



                                                                                                             I’ve shortlisted a   I’m ready to
                                                                                                             couple of hotels     purchase
                                                                                        I know where and
                                                                                                             and now need to
                                                                     I now have short   when, but need to
                                                                                                             find the best deal
                                                                     listed a few       choose a hotel
                           I am thinking of                          destinations
                           going away, but
                           I'm not sure where




                                                                                                                                                 Page 6

© Expedia, Inc. All rights reserved. Confidential and proprietary.
But a more complex environment




© Expedia, Inc. All rights reserved. Confidential and proprietary.   Expedia Partner Services Group | 7
Delivering qualified customers via multiple channels
Use the different channels when thinking Pricing Strategy and Distribution Strategy. But adding
the complexity of devise and Geography.

                                                                       On-site merchandising

                                                       E-mail                                      Social Media




                                                                                                                         Mobile
                  Search engine                                            Your Hotel
                   optimization




                                                  Search engine                                Affiliate partnership
                                                    Marketing
                                                                          Telesales Agent




  © Expedia, Inc. All rights reserved. Confidential and proprietary.                                                   Expedia Partner Services Group | 8
Mobile Technology – So far the King of innovation….




© Expedia, Inc. All rights reserved. Confidential and proprietary.   Expedia Partner Services Group | 9
Massive customer database but tailor made approach




        Business Travellers                                               Fun Seekers                       Style Leaders
                                                                       18-25 year old single fun
      Frequent Travellers, 8+ trips a                                                                   Sophisticated, no children, 25-
                                                                       seekers, travel to top 10
       year, travel to key business                                                                      35, travel on city breaks and
                                                                      student and group holiday
               destinations                                                                                 long haul destinations
                                                                             destinations


                            Family                                              Greys                          Jetsetters
             Active, wealthy families                                Culture seekers, wealthy, over      Very wealthy, typically 35-
             travelling to key (non-                                 8 trips a year travelling to up-   55, stay in 5 star resorts with
              package) destinations                                       market destinations                    high profile




                                                                                                                               Page 10

© Expedia, Inc. All rights reserved. Confidential and proprietary.
Putting It All Together




                                                Travel                 Technology




© Expedia, Inc. All rightsrights reserved. Confidentialproprietary.
  2011 Expedia, Inc. All reserved. Confidential and and proprietary.                Expedia Lodging Partner Services | 11
Conclusion – Is this science fiction for East Africa?

          No! It may be science fiction for most people living in East Africa, but for your
                                feeder market it’s everyday life.

        That’s why we bring East Africa to this new reality through our local suppliers:

                                                                              Rates to publish

                                                                              Inventory to sell

                                  Information for creating accurate and attractive descriptions

                                                                     Photos to display and market hotels

                                          Promotions to help attract additional demand to Africa

                  Marketing and banners on our sites to benefit from our global visibility




© Expedia, Inc. All rights reserved. Confidential and proprietary.                                         Expedia Partner Services Group | 12
Working Together We Can Drive Profitability
Playing to the Booking Window                                                    Utilize Promotional Technology and Merchandising
                                                                                       Day of Week
   Short: Opaque, Mobile
                                                                                      Length of Stay                 }   }   Booking Windows

   Medium: Retail, Corporate                                                          International
                                                                                      Points of Sale                           Weekends

                                                                                      Mobile Only                             Room Types
   Long: Packages, International Travel


  Increase Customer Engagement with Your Online Brochure
                                                                                                            Partial
                                                                       Double your
 Double your                                                                                           description to full
                                                                        number of
photos = 4.5%                                                                                          description = 5%
                                                                      reviews = 3%
higher take-up                                                                                          higher take-up
                                                                     higher take-up
   & $3.50                                                                                                   & $3
                                                                          & $2
 higher ADR.                                                                                             higher ADR.
                                                                       higher ADR.




       Communication is key to a successful & profitable long-term partnership!
© Expedia, Inc. All rights reserved. Confidential and proprietary.                                                             Expedia Lodging Partner Services | 13
Thank you
                                                                         Louise Dreisig
                                                                     ldreisig@expedia.com

                                   We are committed to delivering you global opportunities and
                                      relevant market insight to increase your profitability.




© Expedia, Inc. All rights reserved. Confidential and proprietary.                          Expedia Lodging Partner Services | 14

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Expedia Nairobi 2012

  • 1. We bring you the world Expedia in East Africa Louise C. Dreisig – Market Manager, East Africa Nairobi, March 29 - 2012 © Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 1
  • 2. Expedia, Inc. Mission and Global Brands Our Mission: To revolutionize travel through the power of technology PASSIONATE • INNOVATIVE • ENTERPRISING Global brands Multiple Retail Package Opaque Corporate channels Multiple Online Mobile Tablet Call Center platforms 100 localized Expedia, Inc. branded sites in 70 countries © Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Lodging Partner Services | 2
  • 3. Expedia in East Africa East Africa hotel sales by region 18000 16000 14000 12000 10000 8000 Room nights sold 2011 6000 Room nights sold 2010 4000 2000 0 © Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 3
  • 4. Online travel today Consumers took charge years ago! © Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 4
  • 5. There is no such thing as an online customer But a Multi-channel & Multi-device Customer! © 5 Expedia, Inc. All rights reserved. Confidential and proprietary.
  • 6. The purchase process is no longer linear Awareness Research Consideration Preference Purchase I’ve shortlisted a I’m ready to couple of hotels purchase I know where and and now need to I now have short when, but need to find the best deal listed a few choose a hotel I am thinking of destinations going away, but I'm not sure where Page 6 © Expedia, Inc. All rights reserved. Confidential and proprietary.
  • 7. But a more complex environment © Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 7
  • 8. Delivering qualified customers via multiple channels Use the different channels when thinking Pricing Strategy and Distribution Strategy. But adding the complexity of devise and Geography. On-site merchandising E-mail Social Media Mobile Search engine Your Hotel optimization Search engine Affiliate partnership Marketing Telesales Agent © Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 8
  • 9. Mobile Technology – So far the King of innovation…. © Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 9
  • 10. Massive customer database but tailor made approach Business Travellers Fun Seekers Style Leaders 18-25 year old single fun Frequent Travellers, 8+ trips a Sophisticated, no children, 25- seekers, travel to top 10 year, travel to key business 35, travel on city breaks and student and group holiday destinations long haul destinations destinations Family Greys Jetsetters Active, wealthy families Culture seekers, wealthy, over Very wealthy, typically 35- travelling to key (non- 8 trips a year travelling to up- 55, stay in 5 star resorts with package) destinations market destinations high profile Page 10 © Expedia, Inc. All rights reserved. Confidential and proprietary.
  • 11. Putting It All Together Travel Technology © Expedia, Inc. All rightsrights reserved. Confidentialproprietary. 2011 Expedia, Inc. All reserved. Confidential and and proprietary. Expedia Lodging Partner Services | 11
  • 12. Conclusion – Is this science fiction for East Africa? No! It may be science fiction for most people living in East Africa, but for your feeder market it’s everyday life. That’s why we bring East Africa to this new reality through our local suppliers: Rates to publish Inventory to sell Information for creating accurate and attractive descriptions Photos to display and market hotels Promotions to help attract additional demand to Africa Marketing and banners on our sites to benefit from our global visibility © Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Partner Services Group | 12
  • 13. Working Together We Can Drive Profitability Playing to the Booking Window Utilize Promotional Technology and Merchandising Day of Week Short: Opaque, Mobile Length of Stay } } Booking Windows Medium: Retail, Corporate International Points of Sale Weekends Mobile Only Room Types Long: Packages, International Travel Increase Customer Engagement with Your Online Brochure Partial Double your Double your description to full number of photos = 4.5% description = 5% reviews = 3% higher take-up higher take-up higher take-up & $3.50 & $3 & $2 higher ADR. higher ADR. higher ADR. Communication is key to a successful & profitable long-term partnership! © Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Lodging Partner Services | 13
  • 14. Thank you Louise Dreisig ldreisig@expedia.com We are committed to delivering you global opportunities and relevant market insight to increase your profitability. © Expedia, Inc. All rights reserved. Confidential and proprietary. Expedia Lodging Partner Services | 14

Editor's Notes

  1. Key Takeaway: In 15 years we have grown to become the world’s single most popular travel booking company, generating more leisure and business bookings combined than any other travel agency – on or offline. We are a publically traded company whose internet birthplace makes us a travel and technology company with an established history of delivering value to our consumers and partners through our world class global brands. Our employees are passionate about travel, we are innovative and we are enterprising! The Expedia, Inc. brands continue to innovate how travelers plan, purchase and share their travel experiences. We are investing in technology to improve the experience for travelers around the globe, and to help you profitably reach those travelers. We currently have 100 localized Expedia, Inc. branded websites in 70 countries.Details on each brandExpedia - The world’s largest and best known travel brand. Full service travel agency, offering hotels, flights, vacation packages, rental cars, cruises and in-destination activities, attractions, and services.Hotels.com – The world’s leading hotel booking site, with offering the widest selections of lodging and accommodations from traditional hotels to vacation rentals. Expedia Affiliate Network - Powers booking engines for some of the world’s leading airlines and hotels, top consumer brands, high traffic websites, and more than ten thousand active affiliates. Hotwire - Leading discount travel site that negotiates deep discounts from its suppliers to help travelers book unsold hotel rooms, airline seats and rental cars. Egencia - The world’s fifth largest corporate travel company offering truly integrated corporate travel services. By combining a powerful offline and online service, Egencia delivers a corporate travel offering supported by global market expertise and best-in-class technology platformVenere – One of Europe’s leading providers of online hotel reservations, features real-time rates, availability, special offers and the best deals on the web on its more than 72,000 properties, all with the help of more than 810,000 hotel reviews. eLong – A leading provider of travel bookings and services in China, offers great deals on more than 17,000 hotels in over 600 cities around China and 130,000 properties in more than 100 countries globally, as well as flight bookings on all major airlinesLocal Expert - A leading provider of activities and destination services, both on and offline. Local Expert offers face-to-face personalized recommendations and assistance in booking events, activities, tours, attractions, and other services that travelers seek in their destinations. (As of December 2010, Local Expert in market concierge desks are available in 24 leisure destinations worldwide.)
  2. We connect customers to your inventory at the prices that they are looking for. We continue to innovated and find ways to match customers to the right product at the right time in order to increase conversion and optimize the inventory that we display and the millions of visitors that wee it. Our tools include, surfacing the right hotel, room type and rate plan and differentiating it through content, available in more than 35 languages.Merchandising: Beyond air, hotel, and car—from helicopter tours to scuba lessons…E-mail Marketing:Designed to trigger immediate purchaseDrives high site revisit percentageCustom emails with relevant content and specialsPromotions:-Site specials integrated with e-mail, focused on destination- Flexible, last-minute promotions to help move inventoryDrives incremental volume and capacity utilization for youSearch Optimization:- External search drives to applicable pageOn-site search functionality and flexibility continually increasingConstant re-evaluation to identify optimal configurations Affiliates:- Our reach is multiplied by offering travel inventory through partnerships with more than 10,000 affiliates globallyTelesales Agents:- Approximately 18M calls fielded in 2010- Toll-free booking numbers- Calls routed by lines of business to improve conversion- Assists Internet-insecure customersMobile: Access a new generation of shoppersReach last minute bookingsADD NUMBERS!!!Content2.5M guest reviews showcase high-quality properties
  3. Key Takeaway: One of the key benefits of partnering with Expedia is that our multi-channel and multi-platform structure allows you to capture customers when you want them at various points in the booking cycle. Additionally our promotional technology (or DRR technology) allows you to target specific customers or need dates. This technology allows you to get as pin pointed as necessary to achieve your goal. As an example if you are a hotel located in Cancun and want to target customers from the UK, booking more than 30 days in advance, traveling in March, you can do that using our promotional technology! Customers shopping and purchasing travel online visit multiple websites as they navigate through the online travel planning process. As a result, customer interaction and engagement with your property is highly dependant on your online brochure. This includes your descriptive content, images and traveler opinions. All of these factors are important to both consumers who decide to book with Expedia as well as to those consumers who first see your hotel on Expedia and choose to book elsewhere. In an effort to take advantage of everything Expedia, Inc. has to offer your hotel, communication is key. Once I know your goals we can work together to build a profitable, long-term partnership.
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