Mobile devices are increasingly used for travel-related purchases and research. By 2014, mobile and tablet users are projected to outpace PC users. Many travelers now use their mobile devices to research and book travel arrangements like hotels. Younger consumers under 30 are more likely to use mobile devices for travel purchases and to consult user reviews. Mobile commerce for travel has shifted further into the actual trip, with many travelers now booking hotels and making arrangements on the same day. Social media and user-generated content are also playing a larger role in travel planning and decision making. While many travel brands have mobile apps, there remains significant opportunities for new mobile experiences that better meet consumer behaviors and expectations.

1. The Mobile Consumeranytime, anywhere and always last minute Beth Murphy about.me/bethmurphy

2. Mobile and Tablet will overtake PC users by 2014 Source: Morgan Stanley, Global Internet Trends, April 12, 2010 2

4. 52% read user reviews on device

5. 69% check on order info

6. 52% share product information with othersMobile commerce no longer early adopter, it’s mainstream Source: ROI Research & Microsoft study, March 2011 3

8. 42% plan to check-in

9. 35% intend to book travel, up +16% YOYIntend to book on mobile phone (35%) Check-in, check itineraries (42%) Total Online Travelers (103MM) Mobile bookers spend $3,861 annually - $1,300 more than non-users (representing $170 Billion) Source: PhoCusWright 2010 Traveler Technology Survey 4

11. Less brand loyal

12. Device agnostic

13. UGC important

15. Pragmatic and time constrained

16. Expect highly relevant experiencesAnytime, Anyplace Under 30s Pragmatic Under 40s Total ‘Online Traveler’ Population Design product solutions for core targets Source: Internal Qualitative Groups May & June 2011, PhoCusWright 2010 Traveler Technology Survey

18. 39% of all travelers will research travel on their phones

19. Majority using search, maps and more for just-in-time itinerariesIntend to book mobile phone (35% or 36MM) Check-in, check itineraries (42%) Location-based functionality and time-sensitive offerings drive purchase Source: Travelocity Survey, March 2011, n= 1,253 internal data. 6

20. All platforms are relevant, with heavy shoppers orienting towards apps over web Source: Amadeus U.S Air Travel Survey, April 2011, n =1,000 Age 18-34

22. 32% are influenced by social reviews

23. 30% share travel experiences on social networks

24. 20% solicit tips and advice on social networks

25. 19% are fans of travel companies

26. 13% use social networks to shop for travel Dream & Discover Shop & Book Share & Play Social media & user generated content are must-have experiences to engage shoppers Source: PhoCusWright 2010 Traveler Technology Survey 8

27. Mobile represents opportunity to acquire new users Not just cannibalizing desktop transactions or a loyalty play Source: Internal, May 2011

28. Competitive Landscape across trip lifecycle – large unmet needs & opportunity for differentiation OTA Traditional OTA Meets Well Meets Niche Somewhat Meets Some Features Does not meet 10

30. One-stop mobile app experiences vs. individual best of breed desktop experiences – opportunity to move beyond transactional experiences

32. Mobile media vehicles still evolving, don’t despair!

33. Your obvious assets can be the biggest drivers of App downloads

34. Combat high App churn by extending product relevancy