Product(&(Technology(Update(

James(Kea8ng(Aug(9,(2013(Brown(Bag(Lunch(

PURCHASE PATH

HIGH LEVEL VIEW OF PROJECT

PHASE 1: Q3 / USER INTERFACE (UI) UPDATES –  Not changing our offers –  Re-Structuring the way we present information to the consumer

PHASE 2: Q4 / OFFER UPDATES –  Evaluating broad usage of Auctions

•  Dates-Not-Guaranteed performed better with consumers than Auctions

–  Add new features •  Electronic Confirmation on Buy Now •  Travel Insurance •  Regional Day Trips

PHASE 3: OPTIMIZE PRICES

IMPROVING CONVERSION RATES

PURCHASE PATH CONVERSION RATES

LUXURY BRANDS NORMALLY ACHIEVE 16% OF THE INDUSTRY AVERAGE FOR CONVERSION RATES *

* http://luxurysociety.com/articles/2012/01/critical-considerations-for-luxury-brands-launching-ecommerce

Conversion Rate Spectrum

Pure Media

Pure Direct Response

LL 2013

.25% .32%

LL 2016

.45%

Luxury Travel

potential

2.8%

OTA Industry Average

UI UPDATES WEEKLY SCHEDULE

TESTS CONDUCTED IN THREE PHASES: 1.  DES: UI/graphical design (Product) 2.  ENG: Engineering / coding (Technology) 3.  MSR: Measure test against control (whole team)

OTHER WORK 1.  Hotel Client survey on Auctions 2.  Major overhaul of transactional code 3.  Kapow intelligence for AMs to make package recommendations

Project( TEST(

22-Jul(

29-Jul(

5-Aug(

12-Aug(

19-Aug(

26-Aug(

2-Sep(

9-Sep(

16-Sep(

23-Sep(

30-Sep(

7-(Oct(

14-Oct(

21-Oct(

28-Oct(

4-Nov(

LisCng( Retest(old(offer(row( ENG( MSR( MSR(LisCng( Redesign(Offer(Row,(Lge(image,(single(price( DES( ENG( ENG( MSR( MSR(LisCng( Search(reorder(with(conversion(rate( ENG( ENG( ENG( ENG( MSR( MSR(PDP( UI(Cleanup(of(PDP(package(offers( DES( DES( ENG( ENG( MSR( MSR(PDP( Filter(All(packages(based(on(master(date(selector( DES( DES( ENG( ENG( MSR( MSR(PDP( Add(Auc8on(/(Buy(Now(filter( DES( DES( ENG( ENG( MSR( MSR(PDP( Refine(and(Update( DES( DES( ENG( ENG( MSR( MSR(PDP/CO( Change(PDP(layout(to(start(with(only(one(price( DES( DES( DES( ENG( ENG( MSR( MSR(Home(Page(Search(Bar(presenta8on( DES( DES( DES(Home(Page(Merchandising(Modules( DES( DES( DES(General( Site(Width( DES( DES(General( Display(Ad(Placement( DES( DES( DES(General( NewsleWer(sign(up(prominence( DES( DES(General( Family(Vaca8on(Sec8on((FG(Offers)( DES( DES( DES( DES( ENG( ENG( ENG( ENG( MSR(

UI UPDATES

TESTED OLD LISTING PAGE AGAINST A SIMPLER PAGE TEST CONSTRUCT "   GOAL: ENCOURAGE MORE CONSUMERS TO VISIT HOTEL PDP

WITHOUT SACRIFICING OTHER METRICS "   PAGE DIFFERENCES

–  Single, low price –  Feature savings (Percent Off) –  Consistent offer row height

TEST CONDUCTED: "   50% OF VISITORS RECEIVED OLD LISTING PAGE "   50% OF VISITORS RECEIVED TEST

LISTING PAGE TEST 1

UI UPDATES LISTING PAGE TEST 1, ORIGINAL (CONTROL) & TEST

UI UPDATES

SITE PERFORMANCE AND ECOMMERCE SUMMARY

LISTING PAGE TEST 1 RESULTS

Site(Health(Visits( Pages/Visit( Pageviews( Bounce(Rate( Time(on(Site( PDP(CTR(

Lis8ng(Page(Control( 28,009( 6.55( 183,561( 19.18%( 7:55( 61.35%(Lis8ng(Page(Test( 28,018( 7.03( 196,945( 17.37%( 7:58( 65.26%(Variance( 0.03%( 7%( 7%( b9%( 0.6%( 6%(

E-Commerce(BBCR( ASP( #(Trans.( Revenue(

Lis8ng(Page(Control( 0.40%( ($1,127(( 111( ($125,111((Lis8ng(Page(Test( 0.43%( ($1,354(( 120( ($162,582((Variance( 8%( 20%( 8%( 30%(

Total(Popula8on( (409((Sample(Size( (231((Confidence(Level( 95%(Confidence(Interval( (4.26%((

StaCsCcal(Analysis(BBCR( ASP( #(Trans.( Revenue(

Upper(Interval,(Control( 0.42%( ($1,175(( 116( ($130,441((Lower(Interval,(Test( 0.41%( ($1,296(( 115( ($155,656((Variance( b1.3%( 10%( b0.7%( 19%(

ECOMMERCE LOOKS GOOD ON SMALL SET OF TRANSACTIONS …. IS IT STATISTICALLY TRUE?

UI UPDATES

TEST RECENT WINNER AGAINST A MORE LUXURY FEEL PAGE TEST CONSTRUCT "   GOAL: PRESERVE ENGAGEMENT GAINS AND INCREASE

ECOMMERCE CONVERSION RATES "   PAGE DIFFERENCES

–  Large hotel image –  Feature prominent savings (Percent Off) –  Restores Hotel description snippet –  Arrows to help consumer flow to call to action –  Roll over effects make page “feel alive”

TEST IN PROGRESS AS OF AUG 7: "   50% OF VISITORS RECEIVED OLD LISTING PAGE "   50% OF VISITORS RECEIVED TEST

LISTING PAGE TEST 2

UI UPDATES COLLECTING DATA NOW…

ROLL THE CREDITS!

PRODUCT & CREATIVE RICH ROTZANG

MATTHEW COGSWELL ANTHONY BROWN

TECHNOLOGY & QA JEREMY WOODS

RACHEL SPRAGUE

OLD LISTING PAGE: –  http://www.luxurylink.com/5star/new-hotels/deals?

landing=0

SUCCESSFUL LISTING PAGE, TEST 1: –  http://www.luxurylink.com/5star/new-hotels/deals?

landing=2

CURRENT LISTING PAGE (LGE IMAGE), TEST 2: –  http://www.luxurylink.com/5star/new-hotels/deals?

landing=3

LINKS TO TESTS