Taking on The Big Guns of Australian Travel

Arthur Hoffman,
Managing Director Expedia.com.au
1996
Expedia timeline
Launched Expedia.com within Microsoft (agency air, car, hotel)

1999 Expedia IPO (Microsoft remained controlling shareholder)

2000 Acquired Travelscape, entering merchant hotel business

Launched dynamic packaging (initially air + hotel)

2001 Launched destination services offering

IAC acquired Microsoft’s controlling stake in Expedia

2003 IAC takes Expedia private and also purchases Hotels.com

2004 Expedia invests in eLong

2005 “New Expedia” spins out of IAC, including Hotels.com & TripAdvisor
Expedia.com.au launch (Global Hotel and Activities & Attractions range)

2006 Expedia.com.au goes full service, adding Flights, Holiday Packages, and Car Hire
Expedia distribution channels
13 Branded websites 22,000+ Affiliates 40+ Private Labels
 Travel planning:
historically a complex, inefficient process

Consumers Suppliers
Television
Leisure Airlines
Travelers CRS
Travel
Publications Sabre,
Galileo, Switch:
Car Hire
Amadeus Pegasus
Worldspan
Hotels

Travel Holiday
Business Agent Packages
Travelers Wholesaler

Cruises

Corporate
Travel Attractions
Manager
 The Expedia global travel marketplace:
making travel planning easier

Consumers Suppliers

Leisure Traveler Airlines

Car Hire

Hotels

Holiday
Business Traveler Packages

Cruises

Attractions
 Australian Travel Market
• Travel is the most popular product purchased online

• Total market size estimated to be AU$ 83billion of which 5~10% is online

• Resurgence in overseas travel by Australians due to economic prosperity,

strong currency, cheaper international fares and packages – and the
“prestige” factor

• International trips forecast to grow by 38.5% from 2005 to 2015 vs 3.7%

growth in domestic visitor nights

• More people travelling more frequently – staying away for shorter period

• Domestically:
– Australians use online travel sites with a clear destination, timeframe
and ballpark cost in mind

• Internationally:
– Australians want to be inspired about the international region /
destination of choice
 Offline to online challenge
Booking Channel for Last Holiday
90%

80% Overseas Holiday

73%
Domestic Holiday
70%

60%

50%

40%
32%
28%
30% 25%
18%
20% 15%
11%
10% 6% 6%

0%
Travel Agent Airline directly Accomodation Online-only Didn't book
directly Company

Source: Roy Morgan Single Source Australia, Jul – Dec 2006

 Competitive landscape

OLTAs

Niche
online
players

Suppliers
 Traffic analysis
15.0%
15.0%

+0.8%

10.0%
10.0%

5.0%5.0%

0.0%0.0%
Feb-06Mar-06
Feb-06 Mar-06 Apr-06
Apr-06 May-06
May-06 Jun-06
Jun-06 Jul-06
Jul-06 Aug-06
Aug-06 Sep-06
Sep-06 Oct-06
Oct-06Nov-06 Dec-06
Nov-06 Jan-07Jan-07
Dec-06 Feb-07 Feb-07

www.flightcentre.com.au www.webjet.com.au www.au.lastminute.com www.expedia.com.au

www.travel.com.au www.bestflight.com.au travel.ninemsn.com.au www.zuji.com.au
www.lastminute.com www.expedia.com

Monthly market share in ‘Travel-Agencies’, measured by visits,

based on Australian usage. Created on 28/03/07, source : Hitwise Pty. Ltd.
 Traffic analysis
15.0%
15.0%

+0.8%

10.0% +27.5%
10.0%

5.0%5.0%

0.0%0.0%
Feb-06Mar-06
Feb-06 Mar-06 Apr-06
Apr-06 May-06
May-06 Jun-06
Jun-06 Jul-06
Jul-06 Aug-06
Aug-06 Sep-06
Sep-06 Oct-06
Oct-06Nov-06 Dec-06
Nov-06 Jan-07Jan-07
Dec-06 Feb-07 Feb-07

www.flightcentre.com.au www.webjet.com.au www.au.lastminute.com www.expedia.com.au

www.travel.com.au www.bestflight.com.au travel.ninemsn.com.au www.zuji.com.au
www.lastminute.com www.expedia.com

Monthly market share in ‘Travel-Agencies’, measured by visits,

based on Australian usage. Created on 28/03/07, source : Hitwise Pty. Ltd.
 Traffic analysis
15.0%
15.0%

+0.8%

10.0% +27.5%
10.0%

5.0%5.0% -12%

0.0%0.0%
Feb-06Mar-06
Feb-06 Mar-06 Apr-06
Apr-06 May-06
May-06 Jun-06
Jun-06 Jul-06
Jul-06 Aug-06
Aug-06 Sep-06
Sep-06 Oct-06
Oct-06Nov-06 Dec-06
Nov-06 Jan-07Jan-07
Dec-06 Feb-07 Feb-07

www.flightcentre.com.au www.webjet.com.au www.au.lastminute.com www.expedia.com.au

www.travel.com.au www.bestflight.com.au travel.ninemsn.com.au www.zuji.com.au
www.lastminute.com www.expedia.com

Monthly market share in ‘Travel-Agencies’, measured by visits,

based on Australian usage. Created on 28/03/07, source : Hitwise Pty. Ltd.
 Traffic analysis
15.0%
15.0%

+0.8%

10.0% +27.5%
10.0%

5.0%5.0% -12%

+63.2%

0.0%0.0%
Feb-06Mar-06
Feb-06 Mar-06 Apr-06
Apr-06 May-06
May-06 Jun-06
Jun-06 Jul-06
Jul-06 Aug-06
Aug-06 Sep-06
Sep-06 Oct-06
Oct-06Nov-06 Dec-06
Nov-06 Jan-07Jan-07
Dec-06 Feb-07 Feb-07

www.flightcentre.com.au www.webjet.com.au www.au.lastminute.com www.expedia.com.au

www.travel.com.au www.bestflight.com.au travel.ninemsn.com.au www.zuji.com.au
www.lastminute.com www.expedia.com

Monthly market share in ‘Travel-Agencies’, measured by visits,

based on Australian usage. Created on 28/03/07, source : Hitwise Pty. Ltd.
 Traffic analysis
15.0%
15.0%

+0.8%

10.0% +27.5%
10.0%

5.0%5.0% -12%

+63.2%
-4%
+3.3%
+40%
+3.4%

0.0%0.0%
Feb-06Mar-06
Feb-06 Mar-06 Apr-06
Apr-06 May-06
May-06 Jun-06
Jun-06 Jul-06
Jul-06 Aug-06
Aug-06 Sep-06
Sep-06 Oct-06
Oct-06Nov-06 Dec-06
Nov-06 Jan-07Jan-07
Dec-06 Feb-07 Feb-07

www.flightcentre.com.au www.webjet.com.au www.au.lastminute.com www.expedia.com.au

www.travel.com.au www.bestflight.com.au travel.ninemsn.com.au www.zuji.com.au
www.lastminute.com www.expedia.com

Monthly market share in ‘Travel-Agencies’, measured by visits,

based on Australian usage. Created on 28/03/07, source : Hitwise Pty. Ltd.
Expedia makes planning & purchasing travel easy
• Breadth & depth of global inventory

• Rich editorial, visual & user-generated content

• Powerful technology

• Focus on “the whole trip”

The Webby Award, May 2006

Rich content - hotels
Rich content – virtual tours
Rich content – user reviews
Rich Content - TripAdvisor Integration
TripAdvisor Integration
Powerful technology – dynamic packaging
“The whole trip” - activities
Tailored marketing along purchase funnel

Offline (TV, Radio,

Print), Sponsorships
Web Advertising, viral

Travel blogs, travel

shows, inspirational
sites

Integrated
Relationships
Travel Sites, News
Letter, Search

Search
Buttons and text
Links, last minute
deals

Reach, ROI,
Performance
Sydney Swans Sponsorship
 Merchandising
• Launch promo with $150 discount coupon
Merchandising - Launch promo activity
Merchandising - Europcar $50 free fuel
Merchandising – home page offers
Merchandising – air shopper email
• Triggered by air
shopping activity

• Deployed 3 days
after customer shops
 How will Expedia reach the top spot?
• Best of breed technology
• Product and platform innovation
• Global scale / global travel marketplace
• Focus on the “whole” trip
• Rich content
• Customer centric
• Service quality
• Excellence in marketing & merchandising
The Expedia global travel marketplace