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Experience. Insight. Advantage. www.abacus.com.sg

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China Online Agency Round-upChina Travel Distribution Summit December 3rd, 2009

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Hi. I’m Brett Henry.

@BrettHenry

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You Already Have a Social Media

Strategy

Travel, Communication and

Marketing

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Who is Abacus?

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We bring to the industry an unrivalled

network :

About Abacus

Asia-Pacific’s leading travel & leisure facilitator with more than 15,000 agency locations in 24 markets

• More than1,200

employees region

wide

• 24 markets with

more than 100

sales and

marketing offices

with local support.

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Our partners include Sabre Holdings, a world leader intravel commerce, retailing travel products and providingdistribution and technology solutions for the travel industryand 11 of the world’s leading airlines serving Asia.

Our Partnership

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• Amadeus had YOY decrease of 2+M

• Galileo had YOY decrease of 4+ M

• Worldspan affected by decline of 5+ M

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*Source: MIDT,

YOY Air bkgs change by GDS

Abacus and Sabre #1 GDS with the top 4 OTA’s

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I am going to talk about online travel distribution in

China

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Everything I am about to say could be wrong

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1. China’s online travel market is experiencing substantial tailwinds

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Online travel market has grown through the Global Financial Crisis to $8B in 2009

6.9 8.2 10.5 13.0

54.2 50.1 51.152.3

2008 2009 2010 2011

Online Offline’08-’11 CAGR

-1%

24%

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2. Online travel agencies are capitalizing on weak

supplier direct capabilities and hotel market

fragmentation

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Online Agencies are and will continue to be the dominant force in the online market

4.4 5.5 6.78.3

2.52.7

3.7

4.7

2008 2009 2010 2011

OTA Supplier Direct ’08-’11 CAGR

23%

24%

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3. Significant efficiency gains are still available – and could

turbo charge OTA growth business advantages in the

medium term

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Marketing and acquisition are automated but operation still largely manual

Traveller

Website Call Center

Airline / Hotel

25% 75%

Phone & fax

Manual

Automated

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4. MetaSearch is working – managing the marketing and

acquisition without the operational complexities

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Something here about size of metasearch market

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Something here about size of metasearch market

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5. Ctrip is an investors dream

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For internal use only

Ctrip downturn performance...

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RevenueNet

Income

+47%

Marketshare

+80% ~60%

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For internal use only

…Valuation shows strong investor growth confidence

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+$7B +$5BMarket Cap

Revenues

(2008)

+$2.9B

+$217M

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6. Expedia is focusing… leading in travel UGC…

and positions in metaseach and full

service online

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Major travel brands unique visitors per month

2,00

0-

5,00

0<

2,0

005,

000

-10

,000

>1

0,00

0

Full Service Online Travel Agency

Hotel Only Website

Metasearch AirlineTravel Content Hotel Chain

CtripCtrip

QunarQunar

KuxunKuxun

OYESGOOYESGO

eLongeLong

MangocityMangocity

SunnyChinaSunnyChina

AoyouAoyou

MangocityMangocity

SunnyChinaSunnyChina

AoyouAoyou

Hotels.comHotels.com

5booking5booking

AgodaAgoda

5booking5booking

AgodaAgoda

daodao.comdaodao.com

YododoYododo

Mipang.comMipang.com

51766.com51766.com

Air ChinaAir China

China SouthChina South

China EastChina East

China SouthChina South

China EastChina East

7 Days Inn7 Days Inn

Home InnsHome Inns

Motel168Motel168

7 Days Inn7 Days Inn

Home InnsHome Inns

Motel168Motel168

TRANSACTION INTERMEDIARY SUPPLIER-DIRECT

MEDIA INTERMEDIARY

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For internal use only

Expedia downturn performance...

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RevenueNet

Income

$852M

Asia Hotel Growth

+80% 60+%

,酷讯 旅游搜索引擎

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What to expect in China

– Investment focus in China over the next 2 years ($50M USD)

– Media - DowDow + Kuxun target to be the largest user review site in China with 10 mil users

– Booking - “eLong is Expedia in China and will continue to be our only transactional play”, CEO

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7. Don’t try to be Ctrip

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Are hotel focused sites trying to emulate Ctrip?

Local hotel-focused sites have expanded their offering

Non-Hotel LOBs

Hotel-Focused Sites Flights Car Tickets

24-Hotel

12580.com

1rest.com

China-Hotel.com.cn

SinoHotel

www.17u.cn

Cmbtrip

366Hotel.com

Global hotel-only players are pushing into China

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8. Ctrip (or Qunar, or Dao Dao) is unstoppable

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Abacus on Social Media

Connect to us on Facebook!www.facebook.com/AbacusIntl

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Experience. Insight. Advantage. www.abacus.com.sg

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Thank You