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1 AN EVOLVING CTRIP

2 Chinese Tourist Market Ctrip Introduction San Francisco Market Data How to Promote Your Hotel?

3 Chinese Tourist Trend Growth Trend for Chinese Outbound Traveler Bloomberg Business Chinese Tourists Are Headed Your Way With $264 Billion They are already the most prolific spenders in the world by Enda Curran March 11, :57 AM EDT

4 Chinese Tourist Market Growth Trend for Chinese Outbound Traveler There were just 10 million Chinese outbound tourists in 2000 (*BOA) 174 million Chinese tourists are tipped to spend $264 billion by 2019 compared with the 109 million who spent $164 billion in 2014 (*BOA) How much is $264 billion? It's about the size of Finland's economy and bigger than Greece's Japanese Tourists 30 years vs. Today s Chinese Tourists: Chinese tourist is going to be bigger and will last longer given China s population of 1.3 billion vs. Japan s population of 127 million

5 Chinese Tourist Market Outbound Market Millennial, or 25- to 34- year olds, are expected to make up the bulk of Chinese tourists at 35% of the total, followed by 15- to 24- year olds accounting for around 27% Only about 5% of China's 1.3 billion populace are thought to hold passports, meaning the potential for outbound tourism is vast

6 Outbound Market America will become Chinese tourists preferred In America, California is one of the most popular tourist destination China. CNN commented that, with more and more Chinese visitors to USA for their holiday "optimal choice", "Disney Park queues will be longer"

7 Chinese Tourists In US Outbound Market 3.1 million visitors from China to the States in 2019; 172% increase over 2013 figures; China behind only Mexico and Canada More than 17% of experienced Chinese travelers ranked the U.S. as their top vacation choice For first time travelers, the U.S. is the second most popular vacation spot In 2014, 1.8 million Chinese tourists visited America and spent a whopping $21.1 billion. That number could top $80 billion by 2021 *US Travel Association **the US Department of Commerce

8 Chinese Tourists In US Outbound Market The new B-category non-immigrant visa can now be issued for up to 10 years for business or tourist travel for either US citizens going to China or Chinese travelers coming to America Many of these travelers are drawn to the United States: Chinese Tourist: $7,200 per visit Foreign Tourist $4,500 *US Travel Association **the US Department of Commerce

9 Chinese Tourist Market Ctrip Introduction San Francisco Market Data How to Promote Your Hotel?

10 Ctrip Introduction Founded in 1999 Listed in NASDAQ in 2003 Market value : 6.18 Billion US$ More than 27,000 employees More than 250,000,000 Ctrip members Market position: China s leading OTA The 1 st largest Tourism Group of China The 3 rd largest global online travel services company and the largest in China in terms of market value

11 International Hotel Business Hotel Coverage 200 Countries & Districts 528,145 Hotels Orders Coverage in 2014

12 Scale of Hotel Business Registered members 250,000,000 Ctrip APP downloads 600,000,000 Call center seats 15,000 APP booking ratio 50% Daily RNs in peak time 500,000 CAGR: 41%

13 International Hotel Business Multiple Supplier Platform Stand Alone Hotels OTA 441,076 hotels 81,581 hotels Hotel Group

14 International Hotel Business Channel Manager Ctrip

15 Ctrip Introduction Scale of Hotel Business San Francisco Market Data How to Promote Your Hotel?

16 International Hotel Business Outbound Market Demography (San Francisco) Age or below 0.42% 0.75% 19~ % 3.40% 26~ % 56.60% 40or above 40.34% 39.25%

17 International Hotel Business Outbound Market Customer Behavior Peak Season Average LOS and Lead time Chinese Holidays: Spring Festival (Feb.) Summer Holiday (Jun.~ Aug.) National Holidays (Oct.)

18 International Hotel Business Outbound Market Trend 2: Mobilization Target 70% Ctrip APP Downloads 600,000, % Booking Channel Leadtime Leadtime RN% App % Call Center % Online % APP Booking Ratio 30%

19 Ctrip Introduction Scale of Hotel Business San Francisco Data How to Promote Your Hotel?

20 How To Promote Your Hotel Flexible Payment Ctrip offers hotels with payment options to meet whatever they like. OR Pre Pay Pay By Guest

21 How To Promote Your Hotel? Outbound Market Important Content Hotel Content Local Address Applied credit card Hotel Contact Transportation and surroundings Room Content Room facilities Smoking/Nonsmoking Bed type/width Room Area Image Hotel image Room image

22 How To Promote Your Hotel? Priority Hotel Ranking : Conversion and Commission rates True and favorable customer reviews Rate Competitiveness Instant confirmation, allotment/free sale/no reject booking Payment on time

23 How To Promote Your Hotel Outbound Market Marketing Opportunity Promotion Category Destination (e.g.: Americas, etc.) Seasonal (e.g.: Festival, Summer Holidays, etc. ) Brand Way of Promotion Price deal (Flash sale, Early Bird, Stay 3 Get 1 free, etc..) Value added Promotion Channel Online/APP banner EDM Retargeting Membership

24 How To Promote Your Hotel? Chinese Preferred Hotel Program: Enhance hotel recognition by Chinese customers Standard Minimum Requirements

25 How To Promote Your Hotel? Chinese Preferred Hotel award

26 Outbound Market How the U.S. Travel Industry Is Adapting to a Growing Wave of Chinese Tourists Marriott has stationed 20 sales representatives in China and teaches employees in the U.S. to speak basic Mandarin phrases like hello and thank you The Marriott Marquis in New York City has even replaced room numbers on the 44th floor with names because the number four is considered bad luck in many Asian cultures Hilton Hotels offers a service at 27 of its US hotels that specifically caters to Chinese travelers. Known as Hilton Huanying

27 Outbound Market How the U.S. Travel Industry Is Adapting to a Growing Wave of Chinese Tourists Starwood, which owns Sheraton, Westin and W hotels, has revised its amenities and services: In-room tea kettles, Slippers, translated restaurant menus and welcome brochures, on-site translation services and comfort food such as congee (rice porridge) and noodles *USA Today

28 Q&A

29 THANK YOU

30 Chinese Online Travel Market Growth Trend for Chinese Outbound Traveler % 20.4% 22.4% 18.4% 18.0% 16.6% 16.6% 16.6% 16.6% Growth Trend of Chinese Outbound Traveler (10 thousand) Growth (%)

31 Chinese Tourist Market

32 Scale of Hotel Business China s leading OTA: 50% market share The largest business part in Ctrip : 42% of total revenue 16 million customer reviews in 2014 over 200 million customer volume in 2014 Sales channel: online, offline, mobile

33 Ctrip Introduction Ctrip Introduction One-Stop Online Travel Platform Flight Ticket Hotel Reservation Main Product Line Relevant Products Car Rental Train Ticket Attraction Ticket Vacation Corporate travel Monetary Product Travel Community

34 International Hotel Business Outbound Market Trend 1: OTA to OTP One hotel product can be displayed over 10 channels at the same time. And about 20 times exposure. Distribution Platform Distribution Channel Mobile Hotel Hotel Website Group Buying Call Center Vacation Wechat Business Travel

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