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TRIPADVISOR INDUSTRY INDEX MID-YEAR REPORT

The TripAdvisor® 2012 Industry Index™ – the largest hotel survey in the world – reveals some startling findings about hotel profitability; which markets have the best and worst economic outlook; and how techsavvy, mobile device-wielding travellers are changing the industry. Conducted by TripAdvisor, the world’s largest travel site*, this biannual survey incorporates responses from more than 25,000 accommodation owners and managers worldwide.

*Source: comScore Media Metrix for TripAdvisor Sites, worldwide, May 2012

UK (22%). Russia (#3). Germany (32%).PROfITAbIlITY In any business. br az il 3. The results tell an interesting story about the global economy. 3. y I 1. A MIXED fORECAST We polled hoteliers on their business outlook for the remainder of 2012.f . 2. with 39% reporting they are extremely or very profitable — followed by Russia (33%). How are property owners worldwide doing in 2012 — and what areas are experiencing more profitability than others? PROfIT bY REGION Hoteliers in Europe and Middle East were much less likely to report being profitable than respondents from North America. MOST PROfITAblE Where have hoteliers enjoyed the most profitable start to 2012? Turkey leads the region in profitability. G 21 . ia 22 20 6. success is invariably measured by the bottom line.S . Proportions of respondents in regions that report being profitable in the last six months. In Europe and the Middle East. Asia Pacific and latin America.G U es 7. Turkey (#6) and Germany (#7) have the most positive outlook. SIZE MATTERS Properties with 50+ rooms are nearly twice as likely to report that they’ve been profitable in the past six months. and Italy (4%). an e ke y ec e nd nc ia m in ly pa ss K re on Tu r er ra ta Ru 19 . Ru ss ia 1 Most Positive Most Negative 2 Global Ranking 3 .I 16 . france (8%). Spain (12%).

lOOKING AHEAD TripAdvisor gathered the input of 25. 46 % The number of respondents who feel the economy will improve in 2012. Turkey (29%). STEADY AS IT GOES 64 HOT JObS In Europe. Coming in last? The UK (8%) and france (6%). 33% feel it will remain unchanged. Germany (19%) and Spain (16%) are the top three countries for hotel job creation from January-June 2012. 60% of North American and 50% of Asia-Pacific respondents. On the opposite end of the spectrum. 59% of Greek properties with 50+ rooms are forecasting that the economy will deteriorate. versus 68% of latin America. .ECONOMIC OUTlOOK GlObAl OPTIMISM 34% of hoteliers from Europe and the Middle East believe the economy will improve during the second half of 2012. on their business prospects… and on what they expect to see in the second half of 2012. WHO’S HIRING? Which hoteliers in the region are most likely to increase staff levels in the next six months? 29% Turkey 19% Germany 16% Spain 16% Russia 10% Greece 8% Italy 7% UK 6% france % of hoteliers plan to keep their staff levels intact over the next six months — and more than 15% plan to add new jobs. More than 50% of all Turkish and German properties with 50+ rooms expect the economy to improve in the second half of 2012.000 hotel owners and managers on the state of the economy.

bOOKING TRENDS b&bs ARE bEHIND ONlINE Across the region. 36 % Across the globe. Here’s how the numbers break down by property type: 53 bIGGEST RATE DROPPERS Which countries in the region are most likely to discount room rates over the next six months? Greece tops the list. b&bs continue to lag behind hotels and inns when it comes to online booking capabilities. 58% 43% 91% Malaysia 36% 91% Mexico 89% Spain 66% Hotels 52% Inns 43% b&bs . properties continue to move towards the standardisation of online booking as an option for travellers. Meanwhile. The top 10 countries for online hotel booking: 98% Japan 97% New Zealand STICK WITH THE PlAN GOING MObIlE 56% of survey respondents worldwide say it’s very important to offer booking via a mobile device. 96% 87% 80% 67% 59% 50% 43% 48% 77% 70% 69% 64% 67% 56% 46% 58% 59% 88% 89% 77% 100% 100% 76% DID YOU KNOW? ONlINE bECOMES THE STANDARD 64% How is the explosive growth of the mobile marketplace changing booking strategies for the hotel industry — and what other trends have come to light in the first half of 2012? HOTEl INN b&b HOTEl INN b&b HOTEl INN b&b HOTEl INN b&b HOTEl INN b&b HOTEl INN b&b HOTEl INN b&b HOTEl INN b&b UK fRANCE ITAlY GREECE SPAIN RUSSIA GERMANY TURKEY of properties that don’t currently offer free in-room Wifi are planning to add that feature in the next six months. with 58% of properties reporting expected decreases in rates. Not far behind are Spain (43%) and Italy (36%). 60% of hoteliers who increased rates for June-August expect to increase rates again for September and beyond. 96% Russia 96% China 94% Canada 94% US 93% Australia % The percentage of respondents worldwide who decreased room rates to attract more guests during the busy June-August travel season and predicted they would decrease rates again heading into September and October.

Wifi) fREE NIGHT’S STAY lOCAl DEAlS fREE TRANSfERS fREE PARKING REWARD POINTS fREE NEWSPAPERS NO SPECIAl OffERS 12% 77% 61% 60% 51% 51% 48% 20% 16% 16% 14% 11% 14% 13% 10% 37% 32% 27% 16% 10% 7% 21% 19% 13% 24% 18% 16% . and more than 78% invite travellers to share opinions and write reviews on sites like TripAdvisor.MARKETING MARKETING GOES SOCIAl The rise of social media as a marketing tool is a global phenomenon: nearly two-thirds of all respondents worldwide use some form of social media to help attract guests. With more than 25. of all properties worldwide invite feedback from guests. TripAdvisor wanted to know how hotel owners and managers are marketing their properties to travellers.g. Spain 5. Turkey 3. What are the most common special offers from hoteliers — and who in your region offers them the most frequently? ROOM DISCOUNTS SPECIAl AMENITIES (e. China 43% 41% 38% 36% 34% 18% 18% 13% 83 WHO ARE THE SOCIAl MEDIA EXPERTS? Turkish. 21. 22. Hotels with 50+ rooms are twice as likely to use social media as smaller properties.000 responses. UK Caribbean france 82% Turkey 78% Russia 78% Greece 74% Spain 69% Italy 58% Germany 53% UK 50% france SPECIAl OffERS Many hotels across the globe choose to create and market special offers to help them stand apart from competitors and drive bookings. we were able to identify some important trends. United States 20. A breakdown by hotelier user percentage: 2. Mexico % 4. Room discounts are the most commonly offered booking incentive worldwide (55%). Russian and German hoteliers come top in the region at using social media to engage with current or potential guests. MObIlE MARKETING Which countries engage the most with travellers using mobile devices? 1. As the world’s largest online travel community.

hotels in france (85%) and Italy (83%) are most likely to have eco-friendly practices in place. inns and b&bs across the globe?* * Figures based on % of respondents with at least one eco-friendly practice in place.000 participants worldwide – feel it’s important to bring eco-friendly practices into their businesses. compared to those in UK (78%). The vast majority of respondents to the TripAdvisor 2012 Industry Index survey – a full 88% of 25. 69% TURKEY 2. 80% CARIbbEAN 5. 85% fRANCE 3. 91% CANADA 4. 93% NEW ZEAlAND 8. 87% bRAZIl 10. MARKETING GREEN PRACTICES Over one-third of hoteliers worldwide (34%) said they don’t communicate their eco-friendly practices to travellers. 79% ENERGYEffICIENT lIGHT bUlbS 62% lINEN & TOWEl RE-USE 56% ENERGY EffICIENCY PlAN 52% ECOClEANING 52% WATEREffICIENT TOIlETS 22. 78% UK 7. Germany (72%) and Spain (66%). 72% GERMANY 9. 83% INDONESIA 16. ECO-fRIENDlY PRACTICES HOW ECO-fRIENDlY ARE PROPERTIES IN YOUR COUNTRY? In Europe. 80% INDIA 21. 80% AUSTRAlIA 18. RUSSIA . 83% ITAlY 11. 50% Green programmes are a win-win for guests and hoteliers alike. 81% US MOST COMMON ECO-fRIENDlY PRACTICES WORlDWIDE Which eco-friendly practices have been the most widely embraced by hotels. 69% GREECE 19. 66% SPAIN 6.1.

Mexico (151). 2012 and was sent by email to a random sample of global accommodation owners and managers.com . Data analysis and other survey consultation were performed by brainbox Research. Please note that sample sizes for the following countries were low compared to other countries surveyed: China (188).517 responses worldwide.TRIPADVISOR® 2012 INDUSTRY INDEX: METHODOlOGY The latest instalment of the TripAdvisor 2012 Industry Index was conducted June 7-14. please contact TripAdvisor at mediarelations@tripadvisor. ltd. for more information. Malaysia (129). and Russia (64). The survey generated 25.