Global Marketing Partner to the Travel Industry

• Promote the United States as a premier travel destination

• Established by the Travel Promotion Act

• Partner investments matched with ESTA funds (Electronic System for Travel Authorization) required by Visa Waiver Program (not taxpayer dollars)

Roles in the Travel Industry

TRAVEL &

TOURISM

INDUSTRY

ADVOCATE

ADVISE

PROMOTE

Advise the Secretary of Commerce on Issues Affecting the Travel

Industry

Lead the Nation’s global marketing effort

Communicate US entry and security processes

Create a welcoming experience for International tourists

Advocate for policies to remove travel barriers

Communicate benefits of Travel to policymakers

Provide industry networking opportunities

Funding Model• Private sector funding is required to receive ESTA funds

Cash or in-kind investment Minimum cash requirement is 20%, and in-kind can be up to 80%,

but not required

$1 from cash or in-

kind contribution

$1 matching funds

received from ESTA

funds($2 received thru 9/12)

As much as $100M+ could be invested in direct Brand

USA marketing to the USA

• Advertising• Sponsorships• Co-op Marketing• Licensing• Publications• Joint Media Buys• Trade Shows

Funded by $14 fee paid to ESTA by

travelers from 36 visa waiver countries

* 2:1 match through September 30, 2012

The marketing fund created by the

ESTA fee is capped at $100M annually

To Seize the Moment

• Global travel is booming – expected to double to $2.1 trillion by 2020

• Arrivals to the United States expected to increase 36% from 59.7 million travelers in 2010 to 81 million travelers in 2016

• Equates to an additional $88 billion in revenues and 629,000 jobs

33 TRAVELERS

Consumer Advertising Market Launches

6

Current Markets:

Canada

Japan

UK

AustraliaDec 2013 BrazilJun & Sept 2013 CanadaFeb-Mar & May-Jun 2013; ) China July & Oct-Nov 2013 

South KoreaSept 2013 GermanyNov-Dec 2013 JapanMar-Apr & Sept-Oct 2013 MexicoJun 2013 United Kingdom Feb-Mar, May & Sept-Oct 2013

Brand USA will match advertisers cash investment 1:1Travelocity will match Brand USA’s cash investment 2:1 (In-kind Contribution)

Example:

Advertiser cash investment $20,000Brand USA matches this with 1:1 cash investment $20,000Travelocity matches Brand USA 2:1 (In-kind Contribution) $40,000

This media will run on the international site for the advertiser

This media will be solely dedicated to Brand USA

Brand USA Media Planning Overview

Advertiser Requirements

1. Must include the Brand USA logo in ad media2. Must include the Brand USA logo on landing page3. Must only be promoting on International POS (no domestic!)4. Must be a US Travel Supplier, US Travel Seller, US Destination5. If previous Brand USA advertiser with Travelocity, advertiser must

renew at the same investment and use the Brand USA dollar to EXTEND the reach of the marketing efforts (not a subsidy program).

6. Minimum new advertiser campaign is $10,000

Advertiser Media Rules

1. Media must run on International sites to drive US inbound travel2. Advertiser ads must include Brand USA logo3. Advertiser landing page must include Brand USA logo4. If a past advertiser; must renew at the same investment level as they have previously

spent – using Brand USA dollars to EXTEND THEIR REACH vs. SUBSIDIZE THEIR BUY

Brand USA In-Kind Media Rules (NOT TO BE COMMUNICATED TO ADVERTISER)

5. Ads for Brand USA/Discover America must be 100% SOV for DiscoverAmerica6. Ads can link to Brand USA/Discover America landing page7. Brand USA landing page can (and should) merchandise multiple US travel partners

(Brand USA partners of Travelocity) to provide leveraged exposure for those participating in the coop

8. In-Kind should be established a agreed upon fair market value cpm across each of the channels – not at Rack Rate. This must be a verified cpm based on what is usually charged to paid placements

Requirements

Contract Submission

Please submit IO’s to: contracts@thebrandusa.com copy Guy Miller guy.miller@travelocity.com

IO’s must include the line items:• Brand USA Investment• Advertiser Investment• Travelocity In-Kind Contribution to Brand USA (reflecting the 2:1)• IO’s must be signed by advertiser and BRAND USA.

In-Kind Submission FormWe are responsible for submitting a monthly In-Kind Submission Form. This form must include:The name of each Brand USA Advertiser, IO#, Impressions, CPM, Value of each media drop. I will be asking you all to provide detail for this so I can submit a single report for the whole company.

Process Workflow

PaymentALL invoices to Brand USA must be sent with proof of performance to accountspayable@thebrandusa.com LOA Partners: Full Amount• Advertiser Name: Brand USA/xxx Advertiser COOP• Billing: 1725 Eye Street, 8th Floor Washington, DC 20006• Send via email: accountspayable@thebrandusa.com Non-LOA Partners: • Bill 50% of Cost to Brand USA *as listed above• Bill 50% Direct to Advertiser (separate IO)

Invoices Brand USA now requires "proof of performance" in order to pay each invoice received from publishers. Please send final creative of all Brand USA co-op advertising and delivery report, with each invoice sent to the Accounts Payable address.

Billing Information

LOA Partners?

What is an LOA partner?An LOA partner is US Travel Industry Member or US Travel

Seller that has contributed cash to Brand USA to use towards International Marketing Initiatives.

To find out if you are selling to an LOA partner, please email contracts@thebrandusa.com before putting together your IO so you know how to create the IO (one IO with 100% billing to Brand USA) or for NON-LOA (two IO’s – one direct to advertiser and one for Brand USA). In-Kind media allocation will be listed for NON-LOA customers on the Brand USA IO showing a 2:1 In-Kind match on the Brand USA investment.

Reporting Requirements:Monthly Reporting per Point Of Sale will be required in specific format that will be distributed to all publishers. A set of brief, but strict, instructions will be provided with the reporting tool to all publishers. Reporting will include:Ad and Online Media Performance:# Co-op Impressions - Advertiser + BUSA # Co-op Clicks - Advertiser + BUSA CTR Co-op Impressions - Advertiser + BUSA Total Co-op Spend - Advertiser + BUSA CPC Co-op - Advertiser + BUSA In-Kind Impressions - Advertiser + BUSAIn-Kind Impressions - BUSA onlyIn-Kind Clicks - BUSA onlyCTR In-Kind BUSA only ImpressionsTotal In-Kind Cash Value - BUSA onlyCPC In-Kind BUSA only # Paid BUSA Impressions (non-co-op)# Paid BUSA Clicks (non-co-op)CTR Paid BUSA Impressions (non-co-op)Total Spend Paid BUSA (non-co-op)CPC Paid BUSA (non-co-op)BUSA Landing Page TrafficTime on Landing PageCost Per Visit ($ invested Brand / # of visits)Post Impression Activity Data to DA.com# number of US Content searches % Change YOY of US Content Searches

Distribution Production:Total Passengers (air + hotel + vacation)Prior Year Total Passengers (air + hotel + vacation)YOY Total Passengers Change (air + hotel + vacation)Total Bookings (air + hotel + vacation)Prior Year Total Bookings (air + hotel + vacation)YOY Total Bookings Change (air + hotel + vacation)Total Revenue (air + hotel + vacation)Prior Year Total Revenue (air + hotel + vacation)YOY Total Revenue Change (air + hotel + vacation)Average # of People Traveling Per BookingAverage LOSBooking Window AirBooking Window HotelBooking Window Vacation PackageLook to Book WindowMarket Share of Total International BookingsPrior Year Market Share of Total International Bookings Ad Reporting:Coop Ad Delivery ReportIn-Kind Ad Delivery Report

Production Reporting: Booking, Passenger, Revenue, Length of Stay, Booking Window Per Product Type (air, hotel, package)– Per Point of Sale with YOY Measurements / Change.

Reporting provided at corporate level

Report Month

OTAs Complete Raw Data incl.Ad Performance AND Revenue Results

DUE 2ND WEDNESDAY OF FOLLOWING REPORTING MONTH

January 2013 Feb 13 2013February 2013 Mar 13 2013

March 2013 Apr 10 2013April 2013 May 8 2013May 2013 Jun 12 2013June 2013 Jul 10 2013July 2013 Aug 14 2013

August 2013 Sep 11 2013September 2013 Oct 9 2013

October 2013 Nov 13 2013November 2013 Dec 11 2013December 2013 Jan 8 2014

Due dates for Travelocity for reporting on overall coop participation and production