13. Private label distribution channel has grown impressively and
represents significant growth opportunity
U.S. Private Label Distribution Channel Room Nights
2 year CAGR
55%
2009 2010 2011
18. Third Party Bookings Remain Consistent
2010 Actual 2012 Estimated
37% 37%
63% 63%
Source: PhoCusWright, Global Online Travel Overview Second Edition
19. Less Than Half of OTA Shoppers Actually Book on OTAs
OTA 47%
Supplier.com 31%
Supplier Call Center 7%
Retail Agency Website 5%
Retail Agency Call Center 4%
Other 6%
Source: PhoCusWright, 2010
SLIDEGUIDANCE: Be sure to adjust according to the topics you plan to address.
SLIDEGUIDANCE:$11.5 billion annual gross bookings (TTM 3/31/12)18M visitors/mo. based on March 2012 comScore dataGlobal brands with global reach:Leisure and managed corporate travelStandalone and full serviceEvery major continentBy the numbers in 2011:16M+ visitors avg. per month$11.3B in bookings 1,500+ employees140+ countries16 languages
SLIDEGUIDANCE: These are origination/source markets but all brands have global reach. Please note that all numbers are based on FY 2011 data. Orbitz.com:Primary NA point of saleFull service OTA 8.7M U/V per monthCT.com:Deal-focused brandValue Oriented Marketing message Full Service OTA 3.8M U/V per monthOFB:Primary managed corporate travel brand. Expanding globally through GlobalStar partnership1M+ business travelersStrong FY11 performance
Attractive and increasing mix of revenue coming from higher growth international markets
Slide guidance: This is to illustrate that we completed the industry’s first and only migration to a global technology platform, thus streamlining our technology to be faster, more user friendly and allow for quicker innovation and speed to market.
Launched in 2002 as the first OTA to deliver full-service travel management capabilities 1M+ individual business travelers across the globe98% client retention rate90% online adoption rateOrbitz for Business Overview: A leading, full-service global Travel Management CompanyDelivers full service, cost effective travel management solutions, including 24/7 customer support and expense reporting and policy management toolsHundreds of customers with travel spend ranging from $10K to $50M annually1M+ individual business travelers across the globe98% client retention rate90% online adoption rate
OFB Room Night Growth:Four consecutive quarters of strong double-digitroom night growth
Orbitz for Business Business Advantage Program:Officially launched in Q1 2011 – offers preferred visibility to hundreds of thousands of travelers in exchange for refundable rates (at least 24-hours in advance) and business amenitiesPremium placement in corporate search resultsBusiness Advantage rates shown only to Orbitz for Business users and not in the presence of negotiated rates175+ hotels in the U.S., Canada, the UK and Mexico with ongoing expansion. Every major market in the U.S. Business Advantage hotels have seen a 60% YOY increase in total bookings for Q1 vs. 7% for those that didn’t participate in the program.
Orbitz Worldwide Distribution and Private Label Overview:Orbitz Worldwide Distribution offers a range of private label solutions for partners of all sizesSingle provider for stand-alone bookingsand dynamic packagingHotel inventory provided to these distribution partners, increasing Orbitz Worldwide consumer reach. 6 of the leading airlines, the largest LCC in the Americas (SWA) and the largest rail provider in Europe (Eurostar) are just a few examples of our partners.
SLIDE GUIDANCE: This includes only leisure and unmanaged business travel on a global basis. No recent data is available to accurately size the corporate travel market. If you need the latest corporate travel market sizing information, please download and review the PhoCusWright Global Online Travel Overview Second Edition, published April 2011. Global Online Penetration:Global travel as a whole (focusing on Europe, US, APAC, LATAM) was valued at $860 billion in 2010, and is projected to increase by 6 percent in both 2011 and 2012Among those four regions, US and Europe represent three-quarters of all online sales but less than two thirds of total travel salesThe global online travel segment, valued at $256 billion in 2010, represents 30 percent of the total travel market. Over the next two years, global online bookings will accelerate twice as fast as the market as a whole, to reach $313 billion. Among the 18 individual markets analyzed in this study, only three – US, UK and Scandinavia – are above 35 percent online penetration. LATAM continues to accelerate its online adoption from a relatively low base, growing from 11% in 2008 to 21% in 2011.
Slide Guidance: Reiterate the importance of promotions! OWW Marketing contribution/budget Consumers are looking for valueBased on the graph: 38% of the business in the America’s was transacted with a promotion in place 56% for ASPAC 41% EMEAHighlight the algorithm benefitsMerchandising exposure and opportunities
Slide Guidance: This slide is designed to underscore the value of packaging and Orbitz as an innovator in the search and display of packages. Highlight the pkg mix for your market if relevant (by POS) Reiterate the sort algorithm and placement benefit of aggressive promotions Highlight the LOS and increase in AP for pkgs. Highlight for International POS the LOS for International travelers and increased spend in ancillary outlets.
Slide Guidance: This slide is designed to underscore the value of packaging and Orbitz as an innovator in the search and display of packages. Highlight the pkg mix for your market if relevant (by POS) Reiterate the sort algorithm and placement benefit of aggressive promotions Highlight the LOS and increase in AP for pkgs. Highlight for International POS the LOS for International travelers and increased spend in ancillary outlets.
Leverage our Global Platform and Reach: Remind them of the below info as these are all areas that we provide benefit and exposure above what they are able to do locally. 16M+ unique visitors per month to OWW propertiesDelivers scaleExpands product portfolioSupports multiple languages and currenciesLeverages multi-channel deliveryCreates new efficiencies for OWW and its partners
Flexible, multi-channel merchandising strategy:Our merchandising team is focused on finding a unified way to effectively merchandise your products and services across increasingly diverse array of customer audiences, product mixes and distribution channels. Flexibility, agility and scale are critical components to our success.
Closed Loop Program:Introducing Insider Steals /Flash Sales as a members-only program to stimulate demand and compete with private sale sites by offering deeply discounted promotional rates from our hotel partners to our customers.Improve value to existing customers, promote retention and generate incremental room night growthInsider Steals Hotel Sourcing Requirements:Sales to run 72 hours (Tues. noon – Fri. noon)Launch with 6-10 total deals per week in top tier marketsTarget 4-star customer choice hotels (3.5> customer review score)Offers of 50% off existing rates, exclusive to OWWInsider Steals Customer Engagement:Customers enter via email linksDrive to a landing page and/or hotel details pageLogged in members will also see offers within search resultsUtilize Facebook Connect to promote sign-inSocial Media:Integration of the new Facebook Send button within its hotel property pages, now making it quick and easy to share hotel options with specific people or groups on Facebook or via email. Orbitz is among one of the first online travel companies to offer the new Facebook Send button to consumers.50 Faves Facebook game back again this year, launchedin late Feb. 2012Twitter as a vehicle for time-sensitive giveaways
Talking Points:Orbitz "Mobile Steals," are exclusive, mobile-only discounts of up to 50% on hotels worldwideavailable across all mobile channels, including the optimized mobile website and the latest versions of the Orbitz iPad, iPhone and Android apps.Available on Orbitz, Cheaptickets, ebookers, and eventuallyHotelClub/RatesToGoGreat offers good for tonight-only as well as others for further out - How we are getting deals, general stats about how many, key cities, etc. - Talk through any performance anecdotes or ebookers onboarding that is happening - Other great examples:Swiss hotel Berlin 5 stars, 4.6/5 – 20%Peninsula New York 5 stars, 4.8/5 – 20%Windham Orlando Resort 4 stars, 3.1/5 – 30%
SLIDE GUIDANCE: Please feel free to tailor as appropriate to prioritize specific hotel call to action or areas of opportunity, however, be sure to underscore these other broad areas as well.
