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1 How online guest reviews influence the on distribution landscape

2 o o o o o TripAdvisor where we are today Stats and trends on The Netherlands Key findings from Global TripBarometer What is new at TripAdvisor Take-aways

3 TripAdvisor in 2002

4 Helping travelers plan and have the perfect trip

5 million unique monthly visitors * million TripAdvisor members million reviews and opinions user contributions every minute *Source: Google Analytics, average monthly unique users, Q3 2014; does not include traffic to daodao.com

6 The World s Largest Travel site TripAdvisor is the World s largest travel site with 73.8m Unique Users in December 2014 NORTH AMERICA - Desktop* 17.2m +37% NORTH AMERICA - With Mobile 27.4m EUROPE 26.4m +24% EUROPE - With Mobile 29m LATAM % MIDDLE EAST & AFRICA 2.8m +22% APAC 19.9m +58% +67% Change YoY (%) Source: comscore December 2014

7 TripAdvisor - Europe o o TripAdvisor remains the second largest travel site in Europe behind only Booking.com and well outperformed the market growth average Skyscanner again showed good year over year growth as compared to others Booking.com TripAdvisor Media Group TripAdvisor Trivago Sites Expedia Ryanair edreams Hotels.com 50,000 Skyscanner Sites HolidayCheck EasyJet 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Source: comscore December 2014

8 Top 20 Markets Viewing The Netherlands United Kingdom United States 11.7% Germany 10.6% France 8.6% Italy 8.5% Belgium 4.2% Spain 3.5% Canada 2.3% Australia 1.9% Brazil 1.8% Switzerland 1.7% China 1.5% Russia 1.4% Ireland 1.2% Israel 1.2% Japan 1.0% Norway 1.0% Turkey 0.8% Sweden 0.8% India 0.8% Top 10 TripAdvisor Market* Top 20 TripAdvisor Market *In terms of total TripAdvisor page views in 2014 Source: 8 TripAdvisor Internal Site Data 23% o o o 74% 26% In the last 12 months The Netherlands made up 26% of views of The Netherlands content on TripAdvisor The United Kingdom is the largest European market viewing The Netherlands destinations, followed by Germany and France The United States, Canada and Australia are the largest non- European markets viewing The Netherlands destinations The Netherlands All Others

9 Source TtipAdvisor site data March 2015 Seasonality for The Netherlands Jan 2014 Feb 2015

10 Top Other Destinations Viewed The data below reflects the top 10 Countries and top 10 Cities viewed by users who also viewed The Netherlands Countries Domestic Cities Int l Cities 16.6% United States 47.5% Amsterdam, NL 4.5% Paris, FR 10.2% France 3.3% Rotterdam, NL 3.7% London, UK 9.4% Italy 3.2% The Hague, NL 3.0% Brussels, BE 8.2% United Kingdom 2.3% Maastricht, NL 2.2% Bruges, BE 7.2% Germany 1.8% Utrecht, NL 2.1% Berlin, DE 5.0% Spain 1.4% Eindhoven, NL 2.0% Rome, IT 2.8% 2.5% 2.3% 2.1% China Canada Australia Belgium 1.3% 1.1% 1.0% 0.9% Haarlem, NL Delft, NL Lisse, NL Zandvoort, NL 1.9% 1.6% 1.3% 1.1% Barcelona, ES Prague, CZ New York City, US Antwerp, BE o o The country viewed most by users who also viewed The Netherlands content was the United States, followed by France and Italy Likewise, the international city viewed most by users only who also viewed The Netherlands content was Paris, followed by London and Brussels 10 Source: TripAdvisor Internal Site Data, Last 6 Months

11 Top Other Destinations Viewed The data below reflects the top 10 Countries and top 10 Cities viewed by users who also viewed Amsterdam Countries Domestic Cities Int l Cities 13.9% United States 11.1% Rotterdam, NL 7.5% Paris, FR 10.8% United Kingdom 8.8% The Hague, NL 6.2% London, UK 9.8% Italy 7.7% Zaandam, NL 4.0% Brussels, BE 9.0% France 7.1% Haarlem, NL 3.3% Berlin, DE 7.0% Spain 6.3% Lisse, NL 3.2% Rome, IT 6.3% Germany 5.6% Utrecht, NL 2.8% Barcelona, ES 5.0% 2.9% 1.8% 1.7% Belgium Greece Switzerland Turkey 5.6% 5.5% 3.3% 3.2% Schiphol, NL Hoofddorp, NL Delft, NL Badhoevedorp, NL 2.7% 2.4% 1.8% 1.6% Prague, CZ Bruges, BE New York City, US Venice, IT o o The country viewed most by users who also viewed Amsterdam content was the United States, followed by the United Kingdom and Italy Likewise, the international city viewed most by users only who also viewed Amsterdam content was Paris, followed by London and Brussels Source: TripAdvisor Internal Site Data,

12 The Netherlands Growth of Page Views by Servlets 2013 vs 2014 * In terms of total TripAdvisor page views in 2013 vs 2014 Source: 12 TripAdvisor Internal Site Data

13 13 INSIGHTS THAT DRIVE BUSINESS

14 What motivates us to travel? Enhancing perspective drives 71% of global travelers to vacation. Here s what sets us apart: NORTH AMERICANS want to strengthen relationships with close ones. LATIN AMERICANS travel to meet new people. AFRICANS want to feel special and pampered. EUROPEANS want to brag about enviable experiences. MIDDLE EASTERNERS go away to experience local life. ASIANS really fall for exhilarating experiences. AUSTRALIANS seek out memorable moments.

15 Overview: TripBarometer March 2015 Fieldwork: 16 th January 2 nd February 2015 Consumer survey sample size: 34,016 Interviewed 32,158 Via a pop-up on TripAdvisor website 1,858 From the Ipsos panel Business survey sample size: 10,261 Interviewed 44,277 interviews in total, with the data weighted to represent the markets online population 15

16 Proportion of travelers taking trips in 2014 Amongst the top 10 nationalities to take international leisure trips in 2014, it was more aspirational for Russian travelers than others, with a difference of 15% between those who intended to travel and those who did in The nationalities least likely to have taken an international trip in 2014 are Turkish, South African and Indian (40% in each market took an international trip). International Leisure % (Top 10) Domestic Leisure % (Top 10) Austria Actually took in Planned to take in Indonesia Actually took in Planned to take in Switzerland Thailand Germany China UAE US Ireland Brazil Israel India UK Japan Canada Mexico Russia Malaysia France New Zealand CQ2 (2015). How many trips where you have stayed away for one night or more have you taken in the last 12 months? International Leisure CQ6 (2014). How many trips where you will stay away for one night or more do you expect to take in the next 12 months? Base: All consumer respondents (34,016) 16

17 Proportion of travelers taking trips: international leisure Retirees are the group most likely to have taken international leisure trips over the last two years, and to have done so most often: they plan to maintain this over Each year more travelers plan to take international trips than do eventually take them. If international travel follows 2014 s pattern then we should see similar proportions of millennials and retirees traveling abroad. However families intention to travel abroad is significantly down year-over-year, implying that half or less of families will take international trips in International Leisure % Actually took a trip in 2013 Mean trips taken in 2013 % Planned to take a trip in 2014 Mean trips planned to take in 2014 % Actually took a trip in 2014 Mean trips taken 2014 % Plan to take a trip in 2015 Mean trips planned for 2015 Global Average Millennials Families Retirees (2014) CQ5. How many trips where you have stayed away for one night or more have you taken in the last 12 months? (50,637) (2014) CQ5. How many trips where you have stayed away for one night or more o you expect to take in the next 12 months? (50,637) (2015) CQ2. How many trips where you have stayed away for one night or more have you taken in the last 12 months? (34,016) (2015) CQ3. How many trips where you will stay away for one night or more do you expect to take in the next 12 months? (34,016) 17

18 Proportion of travelers taking trips: business One-third of travelers took a domestic business trip in 2014, with families taking the greatest number. Estimations for next year s business travel is closely aligned to their actual behavior in Domestic Business International Business % Actually took a trip in 2014 Mean trips taken 2014 % Plan to take a trip in 2015 Mean trips planned for 2015 % Actually took a trip in 2014 Mean trips taken 2014 % Plan to take a trip in 2015 Mean trips planned for 2015 Global Average Millennials Families Retirees (2015) CQ2. How many trips where you have stayed away for one night or more have you taken in the last 12 months? (34,016) (2015) CQ3. How many trips where you will stay away for one night or more do you expect to take in the next 12 months? (34,016) 18

19 Factors impacting decisions when booking accommodation Price is, unsurprisingly, the most important factor in the booking decision for nearly all travelers; a fact that businesses understand too, with 95% thinking that price is important. However, businesses are overstating the importance of hotel amenities to travelers and understating the importance of proximity to transport options. Consumer (Top 2 boxes %) Business (Importance %) Business (Yes %) Price Ratings of accommodation on a review site Online review s and posts on TripAdvisor Previous experience Proximity to key attractions Photos/videos posted online N/A Proximity to transport options Recommendations from friends and family Travel distance or time Proximity to many dining options N/A Accommodation amenities N/A Hotel promotions/discounts 76 N/a 8 Proximity to beach/w aterfront Online review s/posts on other travel review w ebsites Eco-friendly and sustainable travel Brand name of the accommodation Business (Yes %) Special offers Loyalty program Avios points (air miles) 35 N/A 33 Very important to 39% CQ10. Thinking generally about your vacations, how important are each of the following in your final decision to book your accommodation? Base: All consumer respondents (29,251) BQ12. How important do you think each of the following listed below are for guests when they re deciding to book your accommodation? Base: All business respondents (10,261) 19

20 Impact of amenities on booking decisions Businesses should look to change their focus from room service to free shuttle and taxi services. Free in-room Wi-Fi connection 74 Free breakfast 60 In-room amenities 58 Free shuttle or taxi services 35 Staff can speak my language 35 King size bed 33 Free parking 32 Hotel restaurants 26 Super-fast Wi-Fi 24 Room service 21 Gym 12 Spa/beauty treatment 12 Kids Club 5 Babysitting service 2 Consumer (Importance %) % businesses offer for free % businesses charge extra N/A N/A N/A N/A CQ17. Which of the following amenities are important to your decision making for accommodation? BQ7. Which of the following amenities or services are you currently offering? Base: All consumer respondents (28,461)/ All business respondents (10,261) 20

21 Impact of amenities on booking decisions: Business Travelers These business travelers also value room service and King-size bed more than general consumers do in their booking decision. Top 10 for business travelers (Importance) % Free in-room Wi-Fi connection In-room amenities Free breakfast King-size bed Free shuttle or taxi services Staff can speak my language Free parking Superfast Wi-Fi Room service Hotel restaurants CQ17. Which of the following amenities are important to your decision making for accommodation? Base: All business traveler respondents (4,979) 21

22 Planned investment in 2015 We see the overall increase in optimism about profitability in 2015 coming through in businesses intentions to invest more in many aspects of their business. Change since 2014 (%) N/A -4-3 N/a -3 N/A N/A NET: SPEND LESS % Investment in Online reputation management Small scale renovations Marketing/Advertising (not search engine optimization or marketing) Traffic acquisition (search engine marketing or optimization) Staff training Improving broadband & mobile connectivity for guests Providing technology amenities in rooms NET: SPEND MORE % Change since 2014 (%) N/A N/a +10 N/A N/A Large scale renovations Back office N/A 2 Room distribution 32 N/A -5 7 Staff hiring BQ20. Looking at 2015, are you planning to invest more, about the same or less in the follow ing? Base 2015: All business respondents (10,261) 2014 : All business respondents (10,370) 22

23 Room rates in 2015: hotels Accommodation types with 100+ rooms are most likely to be increasing room rates, with 71% increasing rates in 2015; 54% by between 3-10% Within the accommodation sector, it is only amongst inns/b&bs where prices are more likely to be going down (47%) than up (45%). Expected change in room rates in 2015 (%) Hotels W W Increase Stay the same Decrease Increases in room rates are also high for: Resorts 58% (58% in W1 2014) BQ25. Are you planning to increase, maintain or decrease room rates in 2015? The room rates w ill Hotels 2014 (2,156), 2015 (1,919) 23

24 Positive impacts on profitability in 2015 Local events are enabling approximately 10% of all businesses to increase their prices, but their impact goes further than this with two-thirds of businesses citing local events as having a positive impact on profitability in Positive impacts on business profitability in 2015 (%) Net positive impact (%) Decrease in flight fares Local events, congresses Changes in tourist attractions in the area Press coverage Changes in the number of restaurants, shops, etc. in the area Changes in transport connections in the area National economy Changes in the types of restaurants, shops, etc. in the area The weather Global economy Current exchange rates Changes in the types of hotels in the area Changes in number of hotels in the area Increased flight fares Change since 2014 (%) N/A N/A BQ28. Thinking about 2015, do you think any of the follow ing w ill have a positive or negative impact on your business profitability? Base: All business (10,261) 24

25 25 ONLINE REPUTATION

26 Overall Reputation Management Impacts your Bottom Line Guests are visiting TripAdvisor more frequently prior to booking Properties with stronger reputations across all channels perform better overall Higher review scores on OTA sites allow hotels to charge up to 11.2% more while maintaining occupancy rates Source: The Impact of Social Media on Lodging Performance. Chris K. Anderson, The Center for Hospitality Research. Cornell University. December 2012.

27 500 million people view our content on sites other than TripAdvisor each month #TTE15

28 TripAdvisor reviews are largely positive 48% 30% 5% 5% 12% Average Review Score: 4.12 Source: TripAdvisor. Percentage of all ratings, January 2014

29 29 The Netherlands Ratings January February March April May June July August September October November December Attractions January February March April May June July August September October November December Accommodation January February March April May June July August September October November December Restaurants

30 Travellers read between 6 to 12 reviews on average Looking for consistent feedback to make hotel decisions

31 Reviews matter 89% of global travelers say reviews are influential when choosing where to book of global hoteliers say reviews are 96% influential in generating bookings Source: TripBarometer by TripAdvisor, April 2014

32 Key factors that influence your popularity 1) HOW RECENT REVIEWS ARE 2) QUANTITY and 3) QUALITY

33 If you are not yet managing your page Country % listed properties with Registered Owner % Reviewed Last 30 Days % Management Response Last 30 days The Netherlands 42% 39% 6%

34 Importance of images 73% of TripAdvisor users use photos from other travellers to help them make a decision Source: PhoCusWright s Custom Survey Research Engagement, prepared for TripAdvisor. December 2013

35 WHAT IS NEW WITH TRIPADVISOR

36 Hotel Question and Answers Allow hotels and potential guests to interact pre-trip

37 Travel Guides Expert and user generated guides oriented by theme

38 Big Photo Layout Drive more engagement with rich photos

39 Personalisation Surfacing the most relevant content through explicitly provided / implicitly derived understanding of the consumer

40 Personalisation Tags + User provided interests = Just for you

41 MOBILE: In-destination use is huge 91% Use mobile while travelling 45% looking for restaurants 32% Reading Source: TripAdvisor TripBarometer, reviews October % looking for things to do

42 Impressive growth on Mobile 160 Million Monthly unique visitors 27 languages 150M app installs 92 city guides 100% Year on year ~50% of overall traffic The Most Downloaded Travel App in 2014

43 Integration of restaurant booking capability

44 Integration of attraction of booking capability

45 45 NEW PRODUCT FOCUS IN 2015: INTRODUCING TRIPCONNECT TM INSTANT BOOKING

46 Instant Booking Ability to book within TripAdvisor environment through partner hotels

47 TripConnect Cost-per-Click Campaigns

48

49 Introducing TripConnect TM instant booking o o o Ease of booking For the first time ever, travelers can book without leaving the world s largest travel site Commission-based model Cost-efficient, measurable way for hotels to share rate & availability information and capture a share of these bookings Low risk Hoteliers pay only when travelers stay o Direct booking benefits Allows hoteliers to own the relationship from the start

50 TripConnect TM instant booking How travelers book directly on TripAdvisor

51 The Book on TripAdvisor button Every button appearance = 1 traveler view

52 Cost-per-click advertising Bottom two buttons are exclusively CPC

53 TripConnect instant booking Top placement gets majority of clicks

54 Certified Connectivity Partners we re adding more every day! 54

55 How can hotels take advantage? ONLINE DISTRIBUTION PARTNERS 55 55

56 56 Own the customer profile

57 Early results on mobile and desktop Travelers are more willing to book when they know they can book on TripAdvisor than when they know they need to leave the site to complete their booking. Source: TripAdvisor internal data

58 August 2014 one in every 16 people online visited TripAdvisor! Source: comscore December 2014 #TTE15

59 Finally few key take-aways Manage your online reputation, 315+ million travellers visit TripAdvisor every month and you can access free tool though Upload images & videos: 73% of travellers check photos prior booking Respond to reviews: 77%: management response shows that the property cares 87% : response to bad review improves their impression Respond to hotel Q&A Win the client and ensure their stay is a perfect as possible = better reviews Mobile is increasingly important, sounds simple but it is vital to make sure your property is easy to book using mobile devices Use the free data and resources available: TripBarometer: TripInsights: Travellers twice as likely to increase rather than decrease travel spend in 2015

60 THANK YOU Helena Egan Director of Industry Relations - Global hegan@tripadvisor.com

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