corrected transcript Mark D. Okerstrom, Chief Finan Chief D. Okerstrom, Mark Participant Unverified Participants Corporate MANAGEMENT DISCUSSION SECTION MANAGEMENT DISCUSSION PARTICIPANTS here. be to It’s great youyear guys. for of time busy a always this is it. I know appreciate really takingtime, the for thanks Mark, today. us with here Expedia, of CFO ahe we’ll go so Great, D. Okerstrom Mark

www.CallStreet.com • • www.CallStreet.com

– ad and get started. Really excited to be able to welcome Mark Okerstrom, the Okerstrom, Mark welcome to be toable excited Really started. get and ad

Chief Financial Officer & Executive Vice President, Expedia, Inc. Expedia, President, Vice & Executive Financial Officer Chief Expedia,Inc. cial Officer & Executive VicePresident Executive & Officer cial Company▲ 1 - 877

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EXPE

• • Copyright © © Copyright Technology & Internet & Internet Technology Goldman Sachs Sachs Goldman

Event Type▲ Conference 2001 - 2014

Feb. 11, 2014 Feb. 11, CallStreet Date▲

1 corrected transcript QUESTION ANDANSWER SECTION QUESTION is es is mobile markets emerging of these in some we’re finding what and penetration, Internet broadband and PC penetration been has historically penetration online to barriers the big of oneis that thing interesting theAnd world. the around happening that’ tailwind online to offline great this you’ve got then GDP.And of ahead slightly clip that’s a at grows usually industry travel overall The high. very which is Korea South like exceptions some it call and countries, on the depending Europe in 35% to45% from anywhere it call U.S., the in 60% 50% to it, is, call Online penetration A in a third li a trillion, $1 it’s about industry, : an that’s we think and years ago, 10 travel leisure todid Expedia what travel corporate to doing they’re and player, largest the fifth become to years really ago 10 outnothing of really that came there in player largest dollar trillion this of third a travel’s Corporate Egencia. you’ve got then And U.S. into the coming now and rates healthy incredibly at growing Europe in predominantly opportunity for a huge just that’s and in China, OTA two number which is the eLong, got the market. We’ve longer other these we’ve got then And glo expand execute, down, heads it’s I mean, mode. execution in just is really business core that And business. private our EAN, specialist. standalone world, the around in70 over countries Hotels.com world, re the around countries 31in different it’s And global. that’s truly OTA service full only remaining the our view, in is really, which Expedia, brand we have obviously, business, leisure core In the in brands leading havemulti a way. deliberate We verya in it we approach And it. in leader a we’re and tailwinds big with industry big it’sSo a 95%. to up technically penetration, of the true potential customers, at our corporate we look when And only 60%. market’s mature most the U.S., the in world, even the around penetration at online youlook If great tailwinds. a absol in leader a all,we are of is, first :

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Mark Okerstrom Okerstrom Mark Okerstrom Mark For people in the audience that primarily know Expedia through your Expedia.com brand or yourExpedia.com through Expedia know primarily that audience the in people For Yeah. I mean, you touched on this a little bit. I mean, we all tend to get bogged down in sort sort in down bogged get to tend we all I bit. mean, little a onyou this touched Yeah. I mean, www.CallStreet.com • • www.CallStreet.com - platformed the business, it’s on it’s modern business, the platformed - bally, world bally, Pac, Latin America combined. America Pac, Latin - to

us in the long term. You’ve got trivago, which is the leading hotel metasearch player metasearch hotel leading is the which trivago, You’vegot term. long in the us t the market as a whole, where is penetration in the U.S., in Europe, in Asia? How Asia?How in Europe, in U.S., the in is penetration where whole, a as t the market - quarter metrics of ADRs and room nights and all of that. But I mean if you step if Imean But that.of all and nights room and ADRs of metrics quarter

travel. incredibly exciting long exciting incredibly - class online marketing, great supply. great online marketing, class Expedia,Inc. – –

Expedia, Inc.>: Inc.>: Expedia, Inc.>: Expedia,

Company▲ ttle bit north of that now, a third in the U.S., a third in Europe, about about Europe, in a third in U.S., the a third now, that of north bit ttle - brand strategy and we have, what we think, are really some of the of are really some wethink, what we have, and brand strategy sentially enabling leap enabling sentially

1 - in the 20%s in most Asian and Latin American regions with regions American Latin Asianand most in 20%s the in term brands that are out there addressing different parts of of parts different addressing there are out that brands term utely huge industry. It’s a trillion dollar industry, travel, with travel, industry, dollar a trillion It’s industry. huge utely - 877

- term bet for us. bet for term

Well, I think as a company, the right way to think about it about think to way right the a as company, I think Well, Yeah. So again, if you just look at the overall travel travel atoverall the you look just if again, Yeah.So

y in this room has at some point or another. What’s the pointanother. What’s or at has some room y this in - FACTSET

Ticker▲

EXPE technology and really firing on all cylinders. on firing really and technology

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• •

Copyright © © Copyright Technology & Internet & Internet Technology industry, and we’ve got the fifth got fifth the we’ve and industry, Goldman Sachs Sachs Goldman

Event Type▲ Conference 2001 - 2014

online online -

Feb. 11, 2014 Feb. 11, label CallStreet s

Date▲

2

corrected transcript inventory. broader supply much to aperture the which opens Program, Preference Traveler Expedia the of the rollout Expedia, reall that’s And product. effective anas not or have focused less are that people those better than traffic to convert you It enables your brands. of the focus core becomes that and product a with great you start when gre has that inventory car air and and hotel having navigate, to easy use, to are easy websites that Having product. a great having with starts acquisition Kayak buying Priceline market, their evolving since doing been they’ve what and TripAdvisor it’s whether develop to tried they’ve that products the other of some and Finder Hotel through offering travel search change : opportunity. a big creates into. That tap else thatcan no one traffic into to tap ability thewith y when opportunity consumer unparalleled is an that something that’s and free are those components of lot a cases, in many package, in same that trips and scuba car hotel and bundle cases, many you in can, and airwith that starts you when Andwethink platform. Expedia new the on available become now only really that’s opportunity It’s an there. the opportunity of early stages in very the We’re cross state really building into aggressively invested perhaps counterintuitively we’ve actually that something It’s intermediaries. for industry the across profitable less been historically has that product airthe we have which is asset incredible is an Expedia in brand we have whatBut et cetera. metasearch, in Google inhotel space, the traffic acquire to veryexpensive be it can And it. after are going Metasearch hotel space. in the competition of lot a you have therefore, So, hotel. been has secret no been it’s industry, this in the profits of the bulk is that thing interesting the opportunity, OTA service full that’s and Expedia, brand to itAs relates business. Inc. Expedia, the with synergy big one that’s So theywant to. market the of pocket any really hit to able be in conversation one to value tremendous of it’s globally, corpo the Egencia hotel, standalone opaque, with Hotwire product, packages the with Expedia brand across breadth our and brands, leading of our selection with foremostly, and Firstly family. Inc. Expedia, the part of : industry. in single the eve And leader. the market industry. trillion We’re $1 that 4%of that’s so bookings, gross of billion $40 around we did 2013, ourselves, like at a player you look and great tailwinds, with industry huge it’sSo a

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- - Mark Okerstrom Okerstrom Mark Okerstrom Mark of Okay. You mentioned that in a lot of ways you guys ar youguysways a lot of in that You mentioned Okay. So you touched on customer acquisition. The last couple of years you’ve just seen dramatic seen dramatic you’ve just years of couple last acquisition. The onyou customer touched So sell hotel. into that www.CallStreet.com • • www.CallStreet.com and offering travel their evolving Google it’s whether your channels, primary a lot of in s - the

- - art platforms. And enable that art platforms. digits. So I think we’re in the very early stages of the online revolution of the travel the travel of revolution online the of early stages we’revery in the I think So digits. y were we started with thewith re wey started were n in the U.S. where we are the strongest and we’re the strongest brand, we’re still we’re brand, the strongest we’re and strongest the we are where U.S. in the n rate product. For a supplier who’s looking to access the whole travel market market wholetravel the to access looking who’s a For supplier product. rate

Expedia,Inc. – –

Expedia, Inc.>: Inc.>: Expedia, Inc.>: Expedia, ndpoint? Company▲

1

- 877 Well, there’s a coupl there’s Well, Well, for us, the real strategy for a great customer customer agreat for the strategy real us, for Well, s us to access a whole different source of traffic and then traffic of source wholedifferent a access to us s ou couple something, which is an unbeatable product, product, unbeatable is an which something, ou couple

- platforming of Hotels.com, the re Hotels.com, of platforming - FACTSET Ticker▲

EXPE players are going after it, big OTAs like ourselves ourselves like OTAs it, big after aregoing players

• • e the only global full service OTA left. left. OTA full service global only e the at availability and great prices. And And prices. great and availability at Copyright © © Copyright e of pieces of the synergy story that’s that’s synergy story the pieces of of e

Technology & Internet & Internet Technology spinning out from Expedia and from out spinning Goldman Sachs Sachs Goldman

Event Type▲ take a travel experience experience a travel take Conference 2001 - platforming of brand of platforming

- product. It’s a It’s a product. 2014

Feb. 11, 2014 Feb. 11, CallStreet

Date▲

3

corrected transcript still single we’re U.S., eventhein market, hotel overall the versus at our penetrations you look and is in hotel the market travel this, the : : now. experiences mobile amazing arepretty wethink what building in aggressively so invested we’ve why that’s and in mobile about excited be to things of lots there’s think desti of selling in more do much to us allows trip that owning downloaded, app the having Expedia, a multi with tobut fruition they’ll if come tell early to too it’s Again, w that there out things other some there’s then And a that’s long if see to difficult it’s So anyways. activity of type see that You might loyal customers. most your are app Expedia brand the peopledownload to first the is that expect we what and early it’s still Again, signsthere. encouraging are seeing directly. We you with repeat them having and app the going to them having and website the into someone wedo is secondly, then, And opportunity. incremental an that’s that we think So system. navigation intothe app right the bringing actually forwardto look is doing, i the hotel up to right driving and road the down driving orsomeone hotel the to telephone the to guide Europe the Let’s Go from go used to that business this is incremental of some thatleast at think we do So site five OTA traditional on a same for were on smartphone same of lot i profile booking different dramatically seea we do One is areencouraging. seethat already we can that things are afew But that. there of a as P&L result the custo the with direct relationship more a much just will provide mobile that have people many that thesis the do have we course, of and, signs encouraging some have we do But thesis. the out prove : essentially. going that youget flywheel and the market, of parts other thein happening be could that inflation the CTC of to some immune abit little become you to start then capabilities, world and that, you’vegot once and product, great a having with all starts it again, And your directly. website orto app mobile the through either cheaper channel yourto pro customers bring here isto game And the traffic. really more acquire and more to spend beand able channels marketing variable in effective more be much to us enabled That better. and better and websi wedo have where a in spot we’re nowAnd

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mer, and that could bring customer efficiencies and all of the good things that can happen on happen can that things the good of all and efficiencies customer bring and that could mer, Mark Okerstrom Okerstrom Mark Okerstrom Mark Okerstrom Mark Thought that might be the answer. the be might that Thought And so if you think about the last few years, almost everyone in travel’s sole focus has been has focus sole travel’s in everyone years, almost last few the about you think if so And There that? change mobile does how And www.CallStreet.com • • www.CallStreet.com s now coming through either our apps or some of the cool things we’re doing, Hotels.com doing, Hotels.com we’re of thethings cool orsome our apps either through now coming s - duct, give them a great experience and next time, come back to you for free or through a orthrough you free to back for come time, next and experience a great give them duct, - in that you get with apps on all of these devices? these of on all apps with you get in that day, next nation services type activities. And again, that’s something down the road. But we But road. the down something that’s again, And typeactivities. services nation - day bookings, 50% to 70% of our bookings the last time we disclosed them them wedisclosed time last the bookings our 70% of to 50% bookings, day Expedia,Inc. – – –

Expedia, Inc.>: Inc.>: Expedia, Inc.>: Expedia, Inc.>: Expedia,

years ago would be much more like 30 days. like more would be much years ago believe that we do have some customer economics value, getting economics customer some have we do that believe - Company▲ day,next

1 - - 877 a much larger portion of the profit pool is in hotels. Again, Again, hotels. in is pool profit the of portion larger a much day. And that compares with an average booking window window booking withaverage an compares that And day. Well No, I mean, listen, if you look at the opportunity, a third of of a third opportunity, at the youlook listen, if mean, No, I hotels. International

- FACTSET , like for everyone, it’s still very early for us to us really veryearly for it’s still for everyone, , like Ticker▲

are those of us who sort of or believe in the idea the in orbelieve of who us sort of those are EXPE tes where conversion is getting better and better better and better is getting where conversion tes e can perceive that would be opportunities. opportunities. be would that perceive e can

n Western markets on the smartphone, a smartphone, on the markets n Western

riority? • • -

term trend but it is pretty exciting. is pretty it trend but term Copyright © © Copyright

Technology & Internet & Internet Technology - cl -

product business like brand like business product ass online marketing marketing online ass Goldman Sachs Sachs Goldman Event Type▲

Conference 2001 -

2014 - trip cross trip

Feb. 11, 2014 Feb. 11, CallStreet -

Date▲

4

corrected transcript the platforms, Andwith platform. travel global is a built we’ve what importantly, But years.really over the contexts in different used we’ve that is something platform word the I think listen, And, up performing and and it is standing platform Expedia brand the on sitting is now U.S. their traffic of all that Essentially platform. new an with entirely them provided essentially and Canada and U.S. the in leader that we’ve built. W platforms technology to the testament a is really scenario Travelocity The scenario. Travelocity the than scenario different a that’s And us. thing for good a to be going that’s tha time any And opportunity. interesting very be a it could we think out to what turns so onthat TBD with them, mode learn and test : a the market of more made and the aperture up opened we’ve think just we really standpoint, a future but from the today from standpoint metrics interesting again, really want t that Suppliers there. barrier no there’s or agency, the best merchant want book to when consumers now have We the platform. from friction removed we’ve So got that. we’ve essentially, nowAnd et cetera. York, London, New like markets market tertiary and secondary predominantly was that Venere of part as we got that inventory had agency model. We merchant the werepredominantly we which friction, embedded theOn con adoption. more creates that so and share gaining to be they seem peers, their versus So they’re seeing. growth incremental of points basis 1,000 really 10% so about of an average of to after the program th in an acceleration seeing They’re results. great seeing are program the part of are that hotels year. The the of the end of as up signed 45,000 hotels over got platform. We’ve the on adoption broad had positive. very We’ve been has hotel response : now. years from it five of part a big willbe hotel international and is there the opportunity we But think feat. small no that’s and course, thin I again, And Egencia. with travel business corporate the in with trivago, space metasearch the in business, OTA inthe core time long a very for our business for opportunity provide to continue going to is hotels international that we think So, our vo of much you’re too hey, say, would where they scenario aheadroom near still nowhere we’re have, we already that hotels existing even the within then And side. ondemand the headroom of tons side, the supply 7 over there’s now, right on trivago you look If 260,000. got we’ve platform, the Expedia of aremembers or that listed we have hotels of that number you at the look If there. headroom of tons 4%. There’s it, again, call market the travel of penetration at our overa a look you take there. If room tons of There’s business. total hotel the of digits

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Mark Okerstrom Okerstrom Mark Okerstrom Mark No, that makes sense. When you look at the partnerships that you’ve signed this year, this you’ve signed that atpartnerships theyou look sense. When makes that No, Yeah. A big part of your investment in international international in investment your of A part big Yeah. o work with us, merchant and agency, we’ve got options there as well. And we’re seeing we’re seeing well. And as there options we’ve got agency, and merchant us, with work o www.CallStreet.com • • www.CallStreet.com

sumer side, listen, we recognize that in our existing business model, we have some we have some model, business existing in our that we recognize side, listen, sumer very well. very Expedia,Inc. – –

Expedia, Inc.>: Inc.>: Expedia, Inc.>: Expedia, lume.

Company▲

1 - 877

t we can offer something to our consumers that they want, that they our consumers to something offer we can t Well, we’ve been very pleased with it. Firstly, Ithi Firstly, it. with verypleased been we’ve Well, Well, I think HomeAway is still very early days. We’re in days. earlyWe’re very is still HomeAway I think Well,

- FACTSET k we’re in the early innings. We’ve got to execute, of of execute, got to innings. early the We’ve in we’re k Ticker▲ EXPE

00,000. So, we’ve got tons of headroom on headroom of tons we’ve got So, 00,000. eir growth rates from before they were on on were before they from rates growth eir e have taken what used to be the market market the to be used what e have taken hotel has been Expedia Traveler Traveler Expedia been has hotel se kind of relationships? of kind se

• • Copyright © © Copyright Technology & Internet & Internet Technology Goldman Sachs Sachs Goldman ddressable to us. to ddressable Event Type▲ Conference 2001

- 2014 s, not the big big the not s,

Feb. 11, 2014 Feb. 11, CallStreet ll nk the nk Date▲

5

corrected transcript at you look if And is amazing. product trivago is the One trivago. with things learned a few We’ve what TripA youwatch as space the in developments lots of : verylong a for harmoniously can coexist and Google businesses that transactional we think So, example. for business, Amazon’s of likes on the dent dramatic a have they made products consumer nor in and change transformational a huge made haven’t They averylong time. for products at consumer been They’ve time. long very a for travel space the at been they’ve inthat the comfort fact some do take veryclosely. it We watch we again, But tha the direction what that’s we’ve seen, from far so And relationship. fruitful and a very long having we’re I think ownership business, customer andthe not business channel acquisition customer the in stays business, advertising the stays in extent to the And metasearch. in performance to great ourselves lends inventory great and prices great with player that global think being a verywell. It performs traffic. We metasearch look do They the funnel. down further moved have they and player a as real dominant at them we look hand, other theOn built. they’ve the model of beauty the exactly but that’s is crazy, which with them, volume get more spend we do how out figure to trying constantly we’re andus : possible. what’s of stages early very the we’re at wethink again, And more much waya that’s in brand the with engagement more create to opportunity just interesting it’s an we think So, tablet. their with television their of front in are sitting people adverti run television you when Interestingly, seen. otherwise have wewouldn’t that devices mobile on happen activity definitely seeshopping real. very it but isWe yet perfected to trackingbe is platform cross because : going forward. us for that’sopportunity an think I and that about talking in interested be we’d there, out Travelocities more were there If that. on in executing our teams by job a great we see. Just We is encouraging. the deal Travelocity we think So, industry. this on skill begets And skill your consumers. to you attractive more makes That inventory. new to acquire demand you more have to It allows goodthi overyou them, flow volume can more

– – –

Mark Okerstrom Okerstrom Mark Okerstrom Mark Okerstrom Mark How do you think about Google, it’s role in travel? Obviously, there’s a huge source of traffic traffic of source huge a there’s Obviously, travel? in role it’s Google, about you think do How Yeah. Now, that makes sense. We talked talked sense. We makes that Yeah. Now, Yeah. So, on that metasearch front, you obviously now are pretty meaningful and now in in now and meaningful pretty are now youobviously front, metasearch onSo, that Yeah. www.CallStreet.com • • www.CallStreet.com hink the market around sort of the line between OTA and metasearch changes over the the over changes and metasearch OTA between the line of around sort the market hink time, provided that they continue on the same path on. they’re the same on they that continue provided time,

sements, oftentimes, you can see some reaction in tablet traffic because because traffic tablet in reaction yousome see can oftentimes, sements, Expedia,Inc. – – –

now like a metasearch player. The good news is that we’re fine withwe’re fine is that news good The player. anow metasearch like Expedia, Inc.>: Inc.>: Expedia, Inc.>: Expedia, Inc.>: Expedia, Company▲ 1 - 877 Well, it’ll be interesting to watch and, obviously, there’s there’s obviously, and, watch to interesting be it’ll Well, for new customers of source a great they’re I think Well, Yeah. No, it’s very real. I veryit’s Yeah. real. No,

- t they’re going. t they’re FACTSET ngs happen. You become more relevant to suppliers. suppliers. relevant to more become You happen. ngs Ticker▲ to the travel industry beyond the media business yet business media the beyond industry travel the to a little bit before about sort of mobile. I’d be really really be I’d mobile. of sort about before a littlebit EXPE

• • dvisor is doing to evolve their model. model. their evolve to doing is dvisor

Copyright © © Copyright more with Google. I mean how do we how do mean I Google. with more Technology & Internet & Internet Technology t’s difficult to measure precisely precisely measure to difficult t’s

ort of building out products products out building ort of Goldman Sachs Sachs Goldman

Event Type▲ Conference 2001 - 2014

convenient. convenient. that Google Google that

Feb. 11, 2014 Feb. 11, CallStreet like whatlike Date▲

6

corrected transcript doing they’re that knows us with business does or that site on our lands that ultimately customer the acquisition channel, a customer from traffic we buy when is that us for thing the important I think : up.way pl : channel. variable the reaction unlike to quick itself lends go you’ve that channels those of one it’s So, in 2014. again it’sup heat expect going to 2013. up in We heated It really now. right travel online in advertising in television action of lot a there’s And doing. th in those are good how it’s your placements, are good howand your creative is how good just not is it’s advertising television with theAnd challenge in. beyou’ve got that it that, we do where we that find and it to approach analytical a pretty to take you have do But effective. very becan it done if correctly, we think, And advertising. television of face the changed hasn’t DDR quickly. : story. Expedia the of part a very exciting You’ verywell. executing is Trivago with consumers. well it think resonates is fantastic. We model that metasearch the we think But us. to veryimportant and that’s customer, the we own as long as be fine that could goi up end orTripAdvisor trivago that extent is tocut the gets line where the that’s So,think I problem. a we’ve got well, now ownership channels, customer theyWhen acquisition channels. customer great are again, ours, is these thatas customer it. does it trivago and does TripAdvisor anas OTA. with that are fine we honest, to Andbe on metasearch. button booking and almighty the book branded about totalk you start when is land into OTA over blur to start things works. Where actually model So med the better. the they around, shop more the tohey, trivago after, back comes consumer the long as as that, such listen, works economics the And things. experiment and often gocan marketplace are afree they that sure is by making that do they way the And price. the lowest always and availability of set the full always by showing consumers to value best the deliver believe they they is that the reason And bookings. hotel not hotel searching, on very focused they’re And resonates. it and traction gets just that product a great it’sSo, globally. TripAdvisor of rates the exceeding share taking They’re Google. from share taking they’re operating, they’re country every major in business the trivago

ease feel free to raise your hand. We’ve got got your hand. We’ve raise to feel free ease t to be pretty responsive and quick to react to. Unfortunately, it’s not one of those channels that that channels those of one notit’s Unfortunately, to to. react quick and responsive pretty be t to – –

Mark Okerstrom Okerstrom Mark Okerstrom Mark How do you do How Yeah. Yeah. So, we do have some microphones around the room. If anybody has a question, a question, anybodyhas If room. the around microphones have some we do So, Yeah. Yeah. brand and the television of some trivago from of more lot see a to starting we’re So, www.CallStreet.com • • www.CallStreet.com

–

in response to your question about owning the customer with regard to regard to with customer the owning about your question to response in other channels marketing of a complement of one it’s But veryeffective. be can

from every other metasearch player. They’re growing faster at rates, much much rates, at faster growing They’re player. every metasearch other from essentially, where everyone can come in and participate and consumers consumers and in participate and come can where everyone essentially, Expedia,Inc. – –

re going to see a lot more of trivago in the U.S. this year, and we think it’s we think andyear, this U.S. thein trivago of a lot more see going to re Expedia, Inc.>: Inc.>: Expedia, Inc.>: Expedia, Company▲ 1 - 877

Well, I would just just would I Well, That’s probably a bit more detailed detailed bit amore probably That’s

ink about the effectiveness of television as a channel? a as channel? television of effectiveness the about ink - FACTSET

– Ticker▲

grab the one in the back just to be efficient on the the toon be just efficient in back the one grab the EXPE e context of what all of your competitors are your of competitors what all of context e

ng all the way down the booking funnel, funnel, booking the down way all the ng

• • say it’s an evolving landscape very very landscape anit’s evolving say Copyright © © Copyright xample, if the customer information information customer the if xample,

Technology & Internet & Internet Technology Goldman Sachs Sachs Goldman there’s a reason for that, and and that, for a reason there’s Event Type▲ Conference 2001 than I want to get into. into. getwant to I than - 2014

Feb. 11, 2014 Feb. 11, CallStreet As long long As ia Date▲

7

corrected transcript year?this w of sort call, the on out called you guys that investments of sets the you see as do what there. One, two questions guess Maybe I : : driver. important most single the being as out call I could broad pretty wasit well. But sequential on a the team by execution good was It working. things a of was lot it thing, one wasn’t just itthat call, the we on gave really commentary was the that And basis. a pretty broad onit feel gotreally to ours, as large as a business you on tell would just I And hard comp. a pretty on an acceleration it’s So, the company. for is a record which 33%, of Q4 last of a comp on 25%. toThat’s accelerated it 20%,was Q4, night growth room Q3 Again, based. : growth... : : at Hotwire. assets the isof befitting think that I long the again once to create business that on reinvigorating really working is a is Hotwire that asset So, the great brand. a has Hotwire And else. anyone than prices better to having itself lends model opaque the And prices. great is having things important the most of one hotel space, thein And wh hotel space, in the is it is that Hotwire about thing great theAnd Sanin Francisco. here isnow record track great a got just has and business Pacific our Asia to run now. Hotwire at team great a got 2014. stable We’ve broadly a will have it that do expect we And its footing. : : us. for principle fundamental the But it. that’s of outside the around andin gray re a direct we have that veryimportant it’s so And booking. that willbe servicing we happens, booking the once is that wedo know What happening. what’s on updates them give to are able a They Expedia. with business

– – –

Mark Okerstrom Okerstrom Mark Okerstrom Mark Okerstrom Mark One here. [ph] Paul (25:49). [ph] here. One Thank you. You mentioned eLong as sort of one of your more interesting long interesting your of more one of sort as eLong you.You mentioned Thank middle. the in Question Correct. you just Can quarter. past this night growth room hotel youimpressive really a had just Mark, and t in back the a question Got Okay. you Have stabilized? it Is the Hotwire? you can address Mark, www.CallStreet.com • • www.CallStreet.com

basis. It was a little bit of return to normality in the TripAdvisor channel, was a help as as a was help channel, in TripAdvisor the normality to return of bitlittle a was It basis.

A gentleman named Henrik Kjellberg who’s been with us for I think 12 years. He used years. used He 12 Ithink for us with been who’s Kjellberg Henrik named gentleman A

Expedia,Inc. – – –

Expedia, Inc.>: Inc.>: Expedia, Inc.>: Expedia, Inc.>: Expedia, - based and I don’t think there would be a particular region or brand that that or brand region particular be a there would think don’t I based and

hat do those investments entail in eLong maybe in the first half of half of first the in maybe eLong in entail investments those do hat re an Expedia customer in that we have their e their we have in that customer Expedia an re Company▲ pretty great asset, and Henrik and the team are going to be be aregoing to team and the Henrik and asset, great pretty nced on a geographical basis or on a platform basis? platform a oron basis geographical a nced on

1 lationship with the customer. And there’s tons of areas of of areas of tons And there’s customer. the with lationship - 877 ...acceleration? Yeah. I would say it was pretty was it say would Yeah. I ...acceleration? night room hotel the the around question Sorry. Was Yeah, we’re happy to say that Hotwire has, call it, found found it, call has, Hotwire that say happy to Yeah,we’re

hen one in thein middle. one hen - FACTSET

Ticker▲ EXPE

to get that type of acceleration, you’ve acceleration, of type that to get

• • Copyright © © Copyright Technology & Internet & Internet Technology

ich is where all the action is. action the all where ich is – Sachs Goldman is there is there Event Type▲ Conference - term growth trajectory term 2001 - mail address, and we and address, mail more challenges challenges more

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Feb. 11, 2014 Feb. 11, CallStreet

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corrected transcript Unverified Participant Unverified a lot. to join Thanks us. time your the taking Iappreciate really Mark, okay. Great, forward. going that do to continue to will look we and us of ahead we have that opportunities of the set over but responsibly aggressively, not capital deploying t we like So, leverage. financial over pure, just versus dividend acquisitions, buyback, across our capital of deployment long the over aregenerally, our returns that think at the glob look we when But capacity. debt excess got cash. We’ve verywell a we’re said, That in 2014. capital working some be to again there capi working of outflow possible at the looking Just cash. : and opportunity interesting a it’s pretty we think So, that. harness to our business of economics the fullof benefit the has eLong and gowant to towill travelers there’s that market, of part an evenbigger becomes travel outbound and further even to develop starts China as market, in that emerge to starts when rationality is that else everyone versus has eLong it worth it’s but road long a on. It’s focused very is much what eLong And that’s products. best the building really business, our of the rest a veryprice outway from the and us for out way theAnd that for driver is a huge world and the in anywhere is really it than faster China in is growing mobile because product mobile a differentiated we have that sure making product, inve the where really and there position the And via mobile. online, ahotel for to placego best the being on focusing around been has really angle eLong’s And angle. own their It’s got now. Baidu of part Qunar is t really as a great position from starting Ctrip’s Obviously, can. they that base consumer broadest the up and build consumer the own to really trying Everyone now. right China and consu the traffic a long it’s butspiral

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Mark Okerstrom Okerstrom Mark Okerstrom Mark Mark, from a balance sheet perspective, how do you think about particularly as you see some you see some as particularly about you think do how sheet perspective, a balance from Mark, www.CallStreet.com • • www.CallStreet.com Chinese the where places all the in inventory hotel global best the has that Expedia mother

o have the flexibility of a little bit extra cash. We think we’ve got a good track record of of record track good we’vea got think cash. extra bit littleWe a of flexibility the o have

- term gain. China is a huge market right now. And in our business, he who owns who owns he business, in our And now. right market huge gain.is a China term mer ultimately wins the spoils and that’s essentially what you see going on in on you going see what essentially that’s and spoils wins the ultimately mer stments are going in eLong is making sure that we have a differentiated hotel hotel a differentiated we have that sure is making eLong in aregoing stments Expedia,Inc. – –

Expedia, Inc.>: Inc.>: Expedia, Inc.>: Expedia, - capitalized business. We got $1 billion revolver, well over $1 billion in billion $1 over well got revolver, billion $1 business. We capitalized Company▲ been very active in buying back your own stock in past. the your stock own back buying in active very been 1

- 877 Well, I would say that we were carrying a little bit of extra extra of bit a little we carrying were that say would I Well, Yeah. No, listen, there is absolutely a way out of that of outway a absolutely is there listen, Yeah.No, . China’s a massive market and the real advantage that that advantage real and the market massive a . China’s

- FACTSET Ticker▲

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- tal associated with ETP. We do expect We ETP. with associated tal he huge gorilla in the market. You’vegot market. the in gorilla huge he centric competitive situation is like it is for is like situation competitive centric

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we’re willing to bewilling topatient. we’re al opportunity ahead of us, we us, of ahead opportunity al Goldman Sachs Sachs Goldman Event Type▲ of that sort of spiral for the the spiral for of sort that of Conference 2001 market.

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corrected transcript Mark D. Okerstrom, Chief Financial Officer & Executive VicePresident Executive & Officer Financial Chief D. Okerstrom, Mark NRNEET T TE AIU ETN PRITD Y PLCBE A, ETE FCST CALLSTREE FACTSET NEITHER LAW, APPLICABLE BY PERMITTED EXTENT MAXIMUM EXPR THE SAME, TO THE INFRINGEMENT. TO RESPECT WITH WARRANTIES ALL DISCLAIM ANY LIMITATION MERCHANTABILITY, IMPLIED AINCLUDING FITNESS PARTICULAR OF FOR PURPOSE, WITHOUT ACCURACY, COMPLETEN WARRANTIES SUPPLIERS FactSet AND LAW, ASSOCIATES APPLICABLE BY BUSINESS PERMITTED EXTENT LICENSORS, MAXIMUM ITS THE TO AND AND IS," "AS PROVIDED IS HEREUNDER YOU TO PROVIDED INFORMATION THE securities the he of any discussed employees its of more or one or LLC, CallStreet, FactSet LLC. CallStreet, FactSet of beliefs or opinions the represent not do no without change to subject is date this on herein expressed information Any illegal. be would solicitation or offer an such othe orfinancial as construedbe to not is and purposes, forsolely information published t of timeliness or integrity, use accuracy, be to intended completeness, the guarantee safety completeness, or accuracy, the on reliance any endorse including hereunder, provided information any of warrant, use the with, associated not do we such, As data. available sources on based is herein information The Disclaimer LLC CallStreet, FactSet Copyrighted All LLC. othertrademarks trademarks mentionedCallStreet, are their of respectiveAll companies. rights are reserved. report this of appearance and contents The CONSE POSSIBILITY SUCHUNDER LOSSES,ARISING OF CONNE ORIN SPECIAL, INCIDENTAL, INDIRECT, ANY FOR A IS PARTIES ANY SUCH OF EVEN IF COMMERCIAL LOSSES DAMAGES, OR MALFUNCTION, INTANGIBLE OTHER USE,OR COMPUTERDATA OR FAILURE LIABLE BE WILL SUPPLIERS OR OR DAMAGES PROFITS LIMITATION LOST FOR PUNITIVEINCLUDING DAMAGES, WITHOUT LICENSORS ASSOCIATES, BUSINESS AFFILIATES, PARTNERS, here. Thanks. be to (32:40). Great [ph] Jim Thanks,

www.CallStreet.com • • www.CallStreet.com d as the primary basis of investment decisions. It should not be construed as advice designed to meet the particular investme particular the meetto designed advice as construed be not should It decisions. investment of basis primary the as d rein.

Expedia,Inc. we believe to be reliable but is not guaranteed by us and does not purport to be a complete or error or complete a be to purport not does and us by guaranteed not is but reliable be to believe we Company▲ 1 - 877 CTION WITH THE INFORMATION PROVIDED SUBJECTOTHER CTION ANY HEREOF. OR HEREIN WITH MATTER

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