Company ProfileCompany Profile

• Online travel service company- Provide information on scheduling , pricing and availability of flight, hotel and rental car- One-stop travel shopping & reservation services

• Start with operationing unit of Microsoft- Expedia went public in 1999- Interactive crop buy expedia stock in 2003 - Become indepentdent public company in 2005

• Largest player in online travel service - $2.7 billion in 2007 (38.57%) of total online market share

VisionVision

“ To create a global travel marketplace, enable travel service suppliers to extend their marketing reach, and giving consumers the ability to research, plan, and purchase travel services ”

Value proprositionValue proprosition

• Reduce searching cost for trip information• One stop service for traveling • Offer lower price than traditional method

Customer

Supplier

• Offer market opportunity to fill vacant rooms ,rent idle car etc.

Young people, families Young people, families (+kids), seniors, groups(+kids), seniors, groupswith specific needs on: special trips (sightseeing, Disney Land,adventures, romantic, etc), activities (sport, wellness), hotels and prices

Business peopleBusiness peoplewith specific needs on exclusive deals,(business-) hotels, check-In

Customer SegmentationCustomer Segmentation

Business

travelersBusiness

travelers

CustomerCustomer

Holiday

travelersHoliday

travelers

Business modelBusiness model

Merchant modelMerchant modelMerchant modelMerchant model

Agency modelAgency model

Advertising revenue model

Agent modelAgent model“ Act as traditional agency , Expedia receive revenue from commission orFlat fee of each transaction from travel supplier.”

Travel Agency

• Commission and transaction fee

• Low margin

Merchant modelMerchant model“ Purchase inventory from supplier at discounted wholesale prices and resells it to consumer at a retail price that it sets it self.”

Wholesale

• Revenue from price difference

• High margin

retail

Advertising revenue modelAdvertising revenue model

Business Strategy AnalysisBusiness Strategy Analysis

Portfolio of Travel Brands expands into foreign market

Business Strategy AnalysisBusiness Strategy Analysis

Localization of Expedia websites

BusinessBusiness Strategy AnalysisStrategy Analysis

Breadth of Product Offering

Customer satisfaction

CompettionCompettion Strategy AnalysisStrategy Analysis

Direct competitor

CompettionCompettion Strategy AnalysisStrategy Analysis

Indirect competitor

TechnologyTechnology StrategyStrategy

Social and Legal ChallengesSocial and Legal Challenges

Strategy Summary

Opaque

Retail

Package

Corporate

Media

Priceline

OrbizTravelocity

Kayak

ExpediaHotwireEgencia

Etc.

Sources: U.S. Online Travel Overview 8th Edition Update: 2009 – 2010 (April 2009); U.S.Corporate Travel Distribution 4th Edition (July 2009); European Online Travel Overview 4th

Market opportunity and Financial analysis

CONSOLIDATED STATEMENTS OF OPERATIONSCONSOLIDATED STATEMENTS OF OPERATIONS

Revenue by product & Geography

Suggestion