BUDAPEST WINTER INVITATION

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1 BUDAPEST WINTER INVITATION The Hungarian National Tourist Office has organised an international campaign each year since 2006 to promote tourism in Hungary in the winter season. Called Budapest Winter Invitation the campaign is implemented with collaborating service providers coordinated by the HNTO and is funded collectively. Outcomes to Date: Over 25,000-70,000 guest nights each year in the period between November and March. Increased tourist flow especially from markets in the UK, Germany, Italy, France, Austria and Russia. Over 4000 air tickets sold in 2009/ key partners each year, including MALÉV, the Hotel Association of Hungary, Budapest Airport, BTH Budapest Tourism Office, the Municipality of Budapest, Budapest Spas and Hot Springs, international travel portals, Legenda Ltd., as well as hotels, restaurants, baths, museums, car rentals, program operators. Access to millions of potential tourists each year. 2=3, 3=4 offers 2011/2012 campaign: Campaign period: 15 November 2011 to 31 March 2012 The Hungarian National Tourist Office contributing HUF 100 million. (The total campaign budget, including the funds contributed by partners, is HUF 275 million.) Target markets:,germany, United Kingdom, France, Italy, Spain, the Nordic countries, Austria, and the Benelux States, the Czech Republic, Slovakia, Romania, Croatia and Serbia A new special package: free pass to spas, one night free + Budapest Card at a discount. Joint promotion with Expedia (and Hotels.com), the leading international travel portal to promote the offers and Budapest to motivate booking. Commercials mainly on online channels and in international printed media. Application of common media surfaces and communication channels. Study tour for international journalists. Revised website:

2 Why join? What's in it for a hotel in 2011/2012? The product: a unique internationally competitive package. Drawing from the experience of past campaigns, the Hungarian National Tourist Office aimed for developing a product with a distinctive sales message. One truly special feature of Budapest is the culture of bathing as historical spas in romantic buildings housing pools with warm waters even in wintertime offer unique pleasures none of our competitors can match. Partners who join the promotion can offer this competitive edge to leisure tourists arriving in response to the campaign for at least 3 nights. The package offers better value for money through additional discount offers, such as Budapest Cards and the free baths. By offering extra value to their guests in the form of free spa passes and other discount services hotels that join the BWI campaign can set themselves apart from non-participating competitors and still continue to pay the same fee for joining as last years. Who is a BWI guest? Participating hotels may develop Budapest Winter Invitation packages between 15 November 2011 and 31 March BWI packages cover 1 night free to guests staying at least 3 nights, voucher for 1 free entry to the spas Széchenyi, Gellért or Rudas plus BWI guest can purchase 1 Budapest Card at discounted rate similar to the hotel offer 2=3 (72 hours card for the price of the 48) Hotels may limit eligibility for the discount package exclusively to accommodation in double rooms. Expedia and Hotels.com will be used as the primary but non-exclusive channel of selling BWI packages, hence hotels may sell packages via other channels. However, hotels may only grant these discounts to guests who purchase the leisure package described above and arrivals responding to other promoted arrangement do not qualify for these discounts. Implementation and settlement: As the organiser of the campaign, the HNTO provides participating partner hotels with Budapest Winter Invitation pre-printed, perforated journal voucher booklets with numbered counterparts of uniform image. BWI guests receive vouchers coupons at hotel reception desks with the following information already filled in by the receptionist: hotel name, guest name, country of residence, mean of transport, date of check-in and check-out, hotel stamp. A BWI voucher contains two detachable perforated sections, including one to be handed over at the spa, and the other coupon forming the discount for Budapest Card entitling the holder to purchase 72-hours

3 Card for the price of the 48-hours Budapest Card.. The HNTO delivers voucher booklets to hotels on a continuous basis as requested. Hotels are required to notify the HNTO of the consolidated number of BWI guestnights at the end of each month and to clear and settle duplicates containing the stubs of issued voucher booklets and the number of remaining coupons at the end of the campaign. Promotion, communication: designed specifically to motivate the sale of Budapest Winter Invitation packages and hence to deliver direct advantages to participating partners. The BWI package will reach out to tens of millions of potential guests via the central promotion of the campaign. The Hungarian National Tourist Office will implement a HUF 240 million international media campaign with its partners. The network of foreign representations of the HNTO will also assist the campaign by mobilising their channels of promotion, which will broaden campaign presentation opportunities. Expedia and Hotels.com, the leading international travel portals will act both as a channel for booking and as a true mentor of Budapest this winter. The travel portal has agreed to double the value of common advertisements, which will allow tens of millions of people to come across with the Budapest Winter Invitation package at the Expedia and Hotels.com sites and also offsite in independent commercials and media messages in our main target markets. These advertisements will offer a direct link to a BWI microsite exclusively dedicated to accessing participating partners. Sales in secondary markets will be promoted by links directing users to the BudapestWinter.com website. Campaign partners may also use their own web pages, newsletters and the community media to deliver campaign messages to wide audiences, and we encourage partners to cooperate actively in doing so. In addition to press communications, an international study tour for journalists, PR actions and the HNTO network of contacts also ensure emphatic media presence. Direct sales promotion will be supported by raffling off prizes to attract interest. Appearance at Expedia and Hotels.com, the leading international travel portal: The general hit list of Expedia and Hotels.com will display both discount offers uploaded by hotels and a highlighted reference to participation in the Budapest Winter Invitation campaign next to the name of participating hotels. The microsite dedicated to the BWI promotion will only provide access to participating partners and a booking engine search filter will only return Budapest Winter Invitation offers.

4 They create a two-tab microsite, where the front page will display editorial content about the destination and the promotional offer. On the other tab a full list of partners with the normal classification (by price, alphabetic order, stars, etc.) will also be available, along with functions to book and search accommodation or flights only as well as dynamically formed packages. The search engine will offer the most favorable accessible flight ticket to the guest choosing the Budapest Winter Invitation package. Appearance at the BudapestWinter.com site The website is being revamped to reflect the message of the campaign through a new image that matches the general creative materials of Budapest Winter Invitation and the Budapestinfo.hu site. The official website of the campaign seeks to inform interested parties who received a promotional offer and to motivate simple and user-friendly booking. To achieve this end, the search engine of Expedia will serve the webpage and the booking window will be filtered to return offers by partner hotels only exactly as at the Expedia microsite. Like the microsite, this page will also display a randomly rotated list of top 10 hotels and will also offer a full list that can be sorted by category and size. Terms of joining: Service providers may joint the Budapest Winter Invitation campaign by agreeing to make discount offers and by paying the following net participation fee, which has not changed since last year: Hotels (Ft/unit) Hotel categories 5 stars 4 stars 3 stars 2 & 1 stars Beyond 200 rooms Beyond 100 rooms Under 100 rooms Groups/Hotel chains: Ft

5 The price covers the contribution to promotion (at 50% of the fee to be paid under a contract with the HNTO) for appearances in international communication channels, for the promotion of the campaign in over 15 countries and for appearance on the pages of the official website of the campaign, The price also covers a contribution towards product development (at 50% of the fee to be paid under a contract with Budapest Spas) which grants free access to historical spas in Budapest for guests arriving in response to the campaign. Please your letters of intent to join the campaign to nyerges@itthon.hu by 7 October 2011*. Campaign participation is subject to the conclusion of a contract. For further questions, please contact us personally or at one of the addresses shown below. Hungarian National Tourism Office Nyerges Ildikó Phone: Fax: nyerges@itthon.hu; *= appearance during the full campaign period is only ensured for parties signing up before this date, but participation requests will be accepted until 31st October.

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