5th October 2018

The Impact of the

Digital EconomyHow this is shaping and changing consumer behaviour

Market Manager - Edinburgh

Graham Urquhart

2

An Introduction To Expedia

Digital Trends

Consumer Behaviour Shifts

Questions

Agenda

3

We are the world’s travel platform. Our purpose is to bring the world within reach.

Who is Expedia Group?

312Mroom nights up 16% YoY

675M+ monthly site

visits

69M+loyalty members

$1.3Btechnology investments

$5.2Bmarketing investments

150+ car rentals

25k+tours and activities

Dozenscruise lines

590K+ properties and

1.5M vacation rentals

550+ airlines

Source: Expedia Group results shown for 2017 as of 12/31/17.

4

Building for you through a local approach

Worldwide reach, teamed with local knowledge

+200Sites

75+Countries

40

With localteams across

offices in

countries

Consultative multi-lingual

market experts

35Languages

Source: Expedia Group results shown for 2017 as of 12/31/17.

5

The world travelled more in 2017

than ever before.

The travel industry was worth $1.6

trillion, up 6% year on year

6

Source: Phocuswright

0%

10%

20%

30%

40%

U.S. &

CANADA.

APACEUROPE EASTERN

EUROPE

LATIN

AMERICA

MIDDLE EAST

DIGITAL SHARE

OF GROSS BOOKINGS BY REGION, 2017

50%

60%

Online leisure/unmanaged business travel

0%

20%

40%

60%

80%

100%

PERCENTAGE OF TRAVELERS

WHO DO ANYTHING TRIP-RELATED ONLINE

5%

15%

25%

35%

ANNUAL GROWTH RATES FOR ONLINE TRAVELBubble size reflects

relative digital market size in US$

2014-2017 CAGR FOR SELECT DIGITAL TRAVEL MARKETS

Online travel has become travel

7

0

5

10

30

35

25

20

15

TOTAL FUNDING (US$B)

By year, 2010-2017

2010-12 2013-14 2015 2016-2017

Source: Phocuswright’s The State of Startups Travel Since 2017

Since 2005

Digital travel startups

1,500

IN FUNDING Almost half of which in

the last 2 years alone

$62B

As the pace of innovation

in the travel industry accelerates

Consumer behavior is changing and

expectations are rising

9

Understanding the traveler journey

10

Discover: content is king

92%OF TRAVELERS are more

likely to book a property

with a detailed description

and photos

Source: Tnooz, 2011

11

Discover: personalisation

12

Shop and book: visibility matters

140Travellers visits at least 140

travel sites before making

a booking

Source: Tnooz, 2011

13

Shop and book: new ways to book

14

40%MORE LIKELY TO RETURN

Source: Local Measure, 2016 APAC Hotel Study

ENGAGED GUESTS are

returning guests – they are

Experience: improve the guest experience

15

Source: Phocuswright, 2013 Independent Study for TripAdvisor

62%

6-12 Reviews

seeing a management

response to reviews

Reflect: set the stage for future travelers

16

Expedia Group

Bringing the world within reach