Expedia Traveler Preference Early Testing Shows Increased Revenue to Participating Hotels

Bellevue, Wash., October 4, 2012 - Expedia, Inc. (NASDAQ: EXPE), the largest online travel company in the world, announced preliminary results from early phases of testing its Expedia® Traveler Preference (ETP) program.* The preliminary results confirm that in addition to better serving our valued customers, participating hotel partners are benefiting from significant revenue increases through increased booking volumes and increased booking values making ETP a “win-win” for travelers and hoteliers alike.

The ETP program is designed to better serve travelers by offering them the choice to pay either at the time of booking (called Expedia Collect) or upon check out at the hotel directly (called Hotel Collect). For participating hotel partners, early testing shows significant improvement in two areas:
• More bookings: Participating hotels are receiving more bookings when a traveler is offered a choice of how they would like to pay (Expedia Collect or Hotel Collect) compared to non-participating hotels where travelers are only presented with a single option.
• Bookings with longer length of stays: Offering a choice to travelers of how they would like to pay is improving the value of the bookings that Expedia, Inc. provides its hotel partners. ETP bookings in our initial tests were of greater value, in many cases due to an average length of stay increase of approximately 5%.
“Our research showed that travelers prefer to have a choice of whether they pay for their reservation up front or pay at the hotel at the time of stay, which is why we developed the Expedia Traveler Preference program. In addition to better serving our travelers, early test results indicate that the hotels in the program receive more bookings at greater value, which ultimately leads to more revenue,” said Melissa Maher, senior vice president, Expedia, Inc.

Another benefit realized by participating hotels is improved placement in hotel search results giving them greater potential exposure to more than 50 million unique visitors that shop for and book travel on Expedia and Hotels.com sites each month. Search result placement is driven in part by conversion rates (the measurement of how often a shopper viewing a hotel books that hotel) as well as booking volumes. Given the consumer preference towards choice of payment options as demonstrated in early tests, hotels participating in the ETP program are not only getting a greater share of bookings from those travelers exposed to their hotels but they are moving up in the search results, providing them with exposure to even more travelers, which in turn leads to even more bookings.

Hotel Collect-style bookings are more commonplace in Europe and, perhaps not surprisingly, during testing, Expedia, Inc. found that the ETP program was particularly popular with European travelers. For North American and non-European hoteliers, this increased appeal with Europeans could mean a higher mix of valuable international bookings via Expedia, Inc. websites. Tests show that in general, when provided a choice of how they’d like to pay, Europeans generally prefer Hotel Collect and North American travelers generally prefer Expedia Collect. By offering both models, Expedia, Inc. is unique in its ability to appeal to travellers around the globe regardless of their booking style preferences. Expedia, Inc.’s industry leading dynamic packaging product will remain bookable through the Expedia Collect model.

At this early stage, Expedia, Inc. has more than 13,000 hotels signed up for the ETP program, including large global and regional chains as well as many independent hotels.

*The test reflects results from more than 1,400 participating hotels located in Spain, Italy and Germany, and features customers booking from Hotels.com® sites around the world, including those in Germany, Ireland, Italy, Spain, U.S. and other countries.

About Expedia, Inc.
Expedia, Inc. is the largest online travel company in the world, with an extensive brand portfolio that includes some of the world’s leading online travel brands, including:
• Expedia.com®, the world’s largest full service online travel agency, with localized sites in 30 countries
• Hotels.com®, the hotel specialist with sites in more than 60 countries
• Hotwire®, a leading discount travel site that offers opaque deals in nine countries on its eight sites in North America and Europe
• Egencia®, the world's fifth largest corporate travel management company
• eLong™, the second largest online travel company in China
• Venere.com®, the online hotel reservation specialist in Europe
• Expedia Local Expert®, a provider of in-market concierge services, activities and experiences in 18 markets worldwide
• Classic Vacations®, a top luxury travel specialist
The company delivers consumers value in leisure and business travel, drives incremental demand and direct bookings to travel suppliers, and provides advertisers the opportunity to reach a highly valuable audience of in-market travel consumers through Expedia® Media Solutions. Expedia also powers bookings for some of the world’s leading airlines and hotels, top consumer brands, high traffic websites, and thousands of active affiliates through Expedia® Affiliate Network. (NASDAQ: EXPE) For corporate and industry news and views, visit us at www.expediainc.com or follow us on Twitter @expediainc.
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