Thank you for joining us for the Expedia PSG Partner Conference 2011! Dear Partners, Thank you for joining us for the 12th annual Expedia Partner Summit. International demand and mobile were among the most significant themes of the day, and we’ve pulled together a summary of the highlights for your reference. Above all we hope you came away from the event knowing that Expedia, Inc. is committed to delivering you global opportunities and relevant market insight to increase your profitability. We hope you found the conference valuable and informative, and we look forward to seeing you again next year! All the best, The Expedia Partner Services Group team

P.S. Check out some of the media coverage from hotel reporters who attended the conference:  Dec. 8, 2011—Hotel Business: “Expedia conference stresses global reach and mobile apps” (http://bit.ly/s5pZbe)  Dec. 12, 2011—HotelNewsNow.com: “Expedia touts global reach” (http://bit.ly/sulaEg)  Dec. 13, 2011—Hotel Management: “Expedia execs detail booking numbers” (http://bit.ly/sm90t6)  Dec. 14, 2011—Hotel Interactive: “Expedia 3.0: Driving guest delight” (http://bit.ly/sR6eRQ)

© Copyright Expedia, Inc. 2011

International Demand

International

186%

Key Statistics  International visitors to the U.S. represent 4% of total travelers, but 19%

Growth

of total travel spend1.  On Expedia, Inc. sites, 20% of customers booking travel to North America are international inbound travelers.  1 in 3 Expedia customers are booking a flight to another continent.

Year over year transaction growth on Expedia, Inc. sites

124%

____________________ 1U.S.

82%

55%

47%

60%

Department of Commerce

“Globalization is about doing business around the globe.” - Gary Fritz, co-president, Expedia Partner Services Group

Japan

Australia

Italy

Sweden

China

Brazil

Source: Expedia, Inc. internal data

Year-over-year transaction growth for travel to U.S. on Expedia, Inc.. Sites

Many US cities attracting significant international demand on Hotels.com sites worldwide International demand

International customers...

Domestic demand

33.0%

 Pay 29% higher ADR

39.0%

 Stay one day longer  Book 28 days further out than domestic travelers2  Spend on average approximately $940 USD per person3, which includes

Las Vegas

U.S. Cities experiencing growth in number of international travelers: Honolulu +36%

New York +36%

Chicago +36%

Los Angeles +33%

Miami +44%

______________________ 2LB

Cubes, International PoSa to NA Department of Commerce

51.5%

New York

Yosemite National Park

gifts ($398), food and beverage ($358), and entertainment ($186).

Boston +27%

44.0%

San Francisco

Grand Canyon

60.3% 46.7%

Orlando +30%

27.0% Miami Honolulu Hawaii

3U.S.

Year-over-year growth in international demand for travel to U.S. destinations on Hotels.com sites

© Copyright Expedia, Inc. 2011

Mobile

“Let’s work together to co-create the future of travel.” - Scott Durchslag, president, Expedia Worldwide

$1 Trillion: The value of mobile transactions in 2015 . 4

By 2015, more U.S. Internet users will access the Internet via mobile devices than with PCs . 5

680: Number of different combinations of languages & operating systems used by Hotels.com for mobile devices

70%: Percentage of Hotels.com mobile bookings that are made same-day. 2 million: Number of times Expedia and Hotels.com mobile apps have been downloaded since launching earlier in 2011. ______________________ 4

Yankee Group September 12, 2011

5 IDC,

Four of the Biggest Distribution Challenges in a Mobile and Social World 1. Localizing content into multiple languages

3. Targeting the customer by social media platform, friend set, or app set

2. Tailoring mobile apps and content to various technology platforms

4. Managing rates and inventory across platforms and channels

© Copyright Expedia, Inc. 2011

Customer Profiles: Hotel “The number one thing hotels can do to increase bookings on Hotels.com is to ensure your content is perfect.” - David Roche, president, Hotels.com Worldwide

When They Book 36%

Did you know…

The booking window is broadening

Hotels typically achieve a 23% 17% 14%

13%

13%

15% 12%

+42% +90 days

10-13 weeks

6-9 weeks

4-5 weeks

3 weeks

2 weeks

1 week

Same day

Increase in sales on Hotels.com sites when they offer a deal

Growth by AP Window © Expedia Inc. Confidential and proprietary. All rights reserved.

11

Different Expedia Channels Deliver Different Customers6 Booking Window

Length of Stay

Average Daily Rate

Gross Bookings Value

Weekend stay

Package

46 days

4 nights

$133

$536

71%

Opaque

10 days

1.8 nights

$86

$157

39%

Call Center

20 days

2.1 nights

$119

$244

68%

Leisure

22 days

2.1 nights

$122

$256

56%

Corporate

12 days

2 nights

$144

$293

14%

Mobile

1.2 days

1.1 nights

$94

$95

54%

____________________ 6

Data based on bookings on all Expedia, Inc. sites worldwide

© Copyright Expedia, Inc. 2011

Customer Profiles: Air Expedia Offers Airline Partners Unique Opportunities to Deliver Increased Ticket Sales

Expedia Media Solutions

Recent Media Solutions campaigns have resulted in

+20%-40% Increase in tickets sales on Expedia sites

International Opportunities are Vast At any given time, 1 in 3 Expedia customers are booking a flight to another continent.

Expedia growth by region 3 yr. Annualized Growth of Air Tickets on Expedia

11%

Opaque

+25%

6%

49%

Increase in air tickets sold on Hotwire sites during 2011

59% 32% Sustained

Air Packages

+10%-15% Growth in tickets sold as air package on Expedia sites over past 3 years

Source: Expedia Booking Data

© Expedia Inc. Confidential and proprietary. All rights reserved.

11

3 year annualized growth rates for air tickets sold on Expedia sites

“The fact remains that air is awesome, and there is great opportunity out there.” - Julie Kyse, vice president, Transport, Expedia Partner Services Group

© Copyright Expedia, Inc. 2011