Welcome to Expedia Group

Midwest Booking Trends: Top Tips to Leverage OTA Data in your Destination

Jami Uher Area Manager, Midwest North

Expedia for Properties @ExpediaLPS Expedia for Properties @expediaforproperties Who is Expedia Group? We are the world’s travel platform. Our purpose is to bring the world within reach. $1.6B 1M+ technology investments Properties on core lodging platform2 1.8M+ $5.7B HomeAway online bookable listings marketing investments 500+ 352M airlines room nights up 13% YoY 175+ 750M+ car rental companies monthly site visits1 35K+ unique activities 82M+ loyalty members Dozens cruise lines

2 Source: Expedia Group data shown as of 12/31/18. 1 Monthly visits based on data for Brand Expedia, Hotels.com, Orbitz, Travelocity, Wotif, HomeAway, trivago and Hotwire combined during 2018. 2 Includes more than 370,000 integrated HomeAway listings. Portfolio of leading travel brands

3 Expedia Group brands attract diverse travelers

Searching multi-products

Last minute With different booker

booking Long term Luxury behaviors planner Budget

BOOK Across

devices BOOK

BOOK BOOK

4 Expedia Group: Moving Beyond Distribution

DATA + DISTRIBUTION TECHNOLOGY INNOVATION OUR ROOTS WHERE WE ARE GOING + MARKETING

5 Worldwide reach, teamed with local knowledge Building for you through a local approach

40 +200 Languages Sites 70+ Countries

With local Consultative teams across multi-lingual offices in market experts 55 countries

Source: Expedia Group results shown for 2018 as of 12/31/18. 6 Online travel trends The pace of innovation is transforming online travel

8 The travel industry Then and now

30 years ago 22 years ago 10 years ago NOW

9 Technology adoption: changing the world at an exponential rate 50 No. YEARS 45 ELECTRICITY TO ACHIEVE 40 TELEVISION 35 46 25% 30 26 CELL PHONE HOUSEHOLD 25 P.C. PENETRATION 20 13 16 INTERNET 15 SOCIAL MEDIA 10 7 5 5 0 1867 1877 1887 1897 1907 1917 1927 1937 1947 1957 1967 1977 1987 1997 2007 2017

Source: The Economist (12/15), Pew Research Center (1/17)* Social Media Adoption based on founding date of MySpace (2003) and Social Media Penetration calculated by Pew Research Center 10 Online travel has become travel

Bubble size reflects ANNUALPERCENTAGEDIGITAL GROWTH SHARE OF RATES TRAVELERS FOR ONLINE TRAVEL relative digital market size in US$ WHOOF GROSSDO ANYTHING BOOKINGS TRIP BY-RELATED REGION, ONLINE 2017 35% 60% 100% 50%25% 80% 40% 60%15% 30% 40% 20% 5% 20% 10% 0% 0% EUROPE U.S. & APAC MIDDLE EAST EASTERN LATIN CANADA. EUROPE AMERICA

2014Online-2017 leisure/unmanagedCAGR FOR SELECT DIGITAL business TRAVEL travel MARKETS

Source: Phocuswright 11 TRAVEL INDUSTRY IN 2018 44% $1.6 TRILLION ONLINE

12 Latest Technology For travelers

How may I help?

I’d like to book a holiday

Mobile Voice Chatbots Machine learning A.I.

13 How is technology driving traveler behavior?

14 Today’s Travel Landscape is Complex Consumers are faced with millions of combinations

English Social French Meta Korean Email Spanish 10+ App 7k+ Online Chinese Channels Arabic Languages Offline Search Engine

Lodging ? Korea Air UK Cruise Japan 7+ Car ? Mexico 195 Products Package Canada Activities Singapore Countries Insurance Germany

Credit/Debit Desktop Consumers Installments Laptop 5 7+ PayPal Tablet Devices Payment IBP Mobile Apple Pay Wearable types Cash Cryptocurrency

15 Source: Digitaltrends.com, Conde Nast Traveler 2016

Consumers utilize multiple devices Mobile dominates booking & during trip

21 What are the booking trends in the Midwest?

22 2019 Global Travel Outlook +5.1% +5.2% AIR HOTEL +7.3% +4.0% RAIL CAR

Source: PhocusWright - Global 2018 expected vs 2019 Gross Bookings (USD) growth forecast © 2018 Expedia, Inc. All rights reserved. Confidential and proprietary23 2019 – 2020 US Forecasts Lowered 2019 2020 STR +1.6% +1.1% RevPAR RevPAR Growth Growth CBRE +0.9% +1.2% RevPAR RevPAR Growth Growth

Source: http://hotelnewsnow.com/Articles/297651/2019- 2020-US-forecasts-down-but-recession-not-expected © 2018 Expedia, Inc. All rights reserved. Confidential and proprietary24 Expedia Group Midwest Trends Strong demand in H1 2019 continues into H2 2019 H1 +8% +0% Demand ADR H2 Demand ADR

25 Which channels are driving growth?

International Mobile Package Flight + Hotel

27 International travelers

INTERNATIONAL are on the rise to the Midwest INBOUND DEMAND Canada Japan #1 UK #3 1.5x #2 GROWTH VS DOMESTIC Mexico China #4 #5 8% of EG bookings to the Midwest Benefits of a strong international mix Expedia Group Midwest Trends

SPEND BOOK CANCEL STAY $15 21 50% 1.5 MORE IN DAYS LESS DAYS ADR FURTHER OUT LONGER

29 Take advantage of booking behaviors

Canada Mexico UK Japan DOMESTIC BW: 29 days BW: 39 days BW: 44 days BW: 33 days BW: 17 days ADR: $152 ADR: $184 ADR: $177 ADR: $158 ADR: $141 SA LOS: 2.0 SA LOS: 2.9 SA LOS: 2.8 SA LOS: 2.3 SA LOS: 1.5 days PKG LOS: 2.9 PKG LOS: 3.7 PKG LOS: 4.0 PKG LOS: 3.5 PKG LOS: 2.5

Expedia Group Midwest Top Feeder Markets 30 Package demand trends Expedia Group packages

Bundle your rooms with HELP GENERATE other travel products Hotel A 3X + CLICK-THROUGH RATE Hotel B and

+ Hotel C 2X CONVERSION WITH + + BRANDED DEALS Hotel D

32 Source: Expedia Global Package Search Data, Sept, 2017 Package Share - Midwest (USA) PACKAGE DEMAND GROWTH 9% 2x Package vs. 91% Standalone

33 Attract premium travelers that tend to… Expedia Group Midwest Trends

Book Cancel Stay 18 50% 1.5 DAYS LESS DAYS FURTHER OUT LONGER

34 International Package stays are PACKAGE on the rise DEMAND From Japan to Midwest 8x GROWTH vs STANDALONE

35 Mobile demand trends TREND

EXPECTED 84% to continue 83% 82% Mobile share of 81% global Internet usage:

2018 2019 2020 2021

Source: eMarketer, Nov 2017 Expedia Group drives mobile demand

1in3 50%

Global Of traffic transactions

Source: Based on Expedia Group transactions in 2017 and mobile traffic stat based on Brand Expedia, Hotels.com, Orbitz, Wotif, CheapTickets, ebookers and HomeAway mobile traffic in Q4 2017. 38 MOBILE DEMAND

+36% App +11% Web

Mobile Growth vs. Desktop

39 MOBILE Booking Window (MOBILE) - Midwest (USA) (Txs) BOOKING 91+ Days 61 - 90 Days 4% 3% WINDOW 31 - 60 Days 7%

21 - 30 Days 36% Same day 5% 0 (Same Day) 15 - 20 Days 38% 32% 7+ days 4%

19% 21+ days 8 - 14 Days 9%

Mobile is not just a 4 - 7 Days last minute channel 10%

anymore! 1 - 3 Days 20% 40 Redefining the meaning of partnership

41 The insights you need to drive demand

Research AnalyticsLorem ipsum Market Reports

42 Co-Op Media Solutions Campaigns Campaigns

CVB/DMO Hotels Expedia $1:$1

Expedia Match

43 Merchandising Merchandising Campaigns Campaigns Global Local Seasonal Free To any hotel partner

44 Data & Insights

Market Trends

New Supply

Special Event

Super Bowl

45 Key Takeaways

Latest technology Generate incremental Global Reach and travel trends + demand + Local Relevance Expedia Group is moving Diverse channels & platforms Leverage our local teams and beyond distribution Package destination specific reporting to Data/Reporting International gain valuable insights Technology Mobile Marketing

46 Thank you [email protected]