TravelFlash ReportWinter 2018

2 •

Summary

Key TakeawaysMobile Trends in TravelCross-device and Last-minute BehaviorFocus on AppsSeasonalityAppendix

3

Key Takeaways

Criteo’s deep dive into travel data reveals 7 key takeaways:

1. Mobile is still growing steadily, especially for Online Travel Agencies.

2. Tablet usage keeps declining across all travel categories.

3. Combining booking data can help make up for lower mobile performance.

4. Up to 80% of last-minute bookings are made on mobile devices.

5. Mobile is the majority for travel advertisers with a booking app.

6. App sees slightly more booking dollars per transaction than mobile web.

7. The conversion rate on app is 5 times higher than on mobile web.

4

Share of Bookings by DeviceMost travel categories generate more than one-third of bookings on mobile devices.*

25% 17% 20%

33% 23% 30% 33% 28%

7%

9%

5% 13%

7% 22% 5% 6% 4%

6%

66% 78%

67% 60% 56% 65% 61% 68%

86%

Activities Air Apartments Car Cruise Ground Hotel Packages Rail

Total Mobile 34% 22% 33% 40% 44% 35% 39% 32% 14%

YoY Variation -3pts +2pts +4pts +10pts +1pt +6pts +10pts +6pts -3pts

*Share of bookings by device among travel advertisers, worldwide, Q4 2017. Excludes apps and comparators.

Smartphone

Tablet

Desktop

Mobile accounts for 45% of bookings for OTAs.*

45%*Share of bookings by device among travel advertisers, worldwide, Q4 2017. Excludes apps and comparators.

6Key Takeaway As suppliers lag behind, OTAs get the most of mobile bookings

Share of Bookings by DeviceOnline Travel Agencies (OTAs) make the most of mobile bookings.*

*Share of bookings by device among travel advertisers, worldwide, Q4 2017. Excludes apps and comparators.

39%

10%

6%

6%

55%

84%

OTA Supplier

Smartphone

Tablet

Desktop

7

Variation of the Share of Bookings by DeviceComparison between Q4 2016 and Q4 2017.*

*Share of bookings by device among travel advertisers, worldwide, Q4 2017. Excludes apps and comparators

-19%

0%

61%

11%

-21% -15%

42%

-0.5%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70% OTASupplier

Key Takeaway • OTAs grow quicker on Mobile• Smartphone is growing steadily and tablet is declining

Smartphone

Tablet

Desktop

Total Mobile

8

The share of mobile bookings ranges from 28 to 53% by region WORLDWIDE

44%

5%

51%

Middle East33%

3% 64%

Latin America

22%

6% 72%

North America

Europe25%

8% 67%

50%

3%

47% North APAC

41%

4%

55%

South APAC*Detailed country list provided in Appendix. Share of bookings by device among travel advertisers, worldwide, Q4 2017. Excludes apps and comparators.

North America: 2 countries. Latin America: 9 countries. Europe: 25 countries. Middle East: 6 countries. APAC: 14 countries.

Smartphone

Tablet

Desktop

9

28% 32%

Online Travel Agencies Suppliers

Key TakeawayDespite a lower share of mobile bookings, suppliers have a larger share of cross-device transactions, showing that data collaboration between companies could potentially help make up for lower mobile performance.

*Share of bookings by device among travel advertisers, worldwide, Q4 2017. Excludes apps and comparators. Bookings following a click on a Criteo ad. Excludes apps and comparators.

Share of bookings preceded by a click on another device:

Cross-device data lets you understand what happens before booking*

COMBINING DATA

10

Key TakeawayUp to 80% of last minute bookings are made on mobile devices

Source : Criteo Data, worldwide, Q4 2017. Online travel agencies and suppliers. Excludes comparators and applications.

For main travel categories, the majority of last-minute bookingsare made on mobile:

Share of mobile booking by time to departure

37%30%

23%20%21%

80%

54%49%46%41%

72%

38%30%33%31% 35%

16%13%14%16%

<24h1-7 days1-4 weeks1-3 months> 3 months

Share of Mobile Bookings, Days to Travel, By Travel Sub Category

Air Apartment Hotel Packages

Travel players with a booking app make 60% of transactions on mobile devices.

60%*Share of bookings by device, apps included, worldwide, Q4 2017.

12Key Takeaway Travel players with a booking app make 60% of transactions on

mobile devices, up from 41% one year ago.

Focus on AppsApps help make the difference in transactions.

*Criteo data, Worldwide, Travel advertisers, Q4 2017, apps included.

Mobile Web

App

Desktop

33%

27%

40% 35%

65%

Share of Bookings by Environment, for travel players with a booking app, worldwide.

Share of Bookings by device, all travel players, excluding apps, worldwide.

Apps account for 41% of last-minute traffic.*

41%Source: For travel advertisers who generate bookings on both mobile web and in-app. Criteo, worldwide, Q4 2017.

14

48%

41%

11%

Focus on AppsShare of traffic by browsing environment forlast-minute bookings.

Source: Criteo Data, worldwide, Q4 2017. Online travel agencies and suppliers with a booking app. Last-minute bookings are made less than 24h before check-in or departure.

Key Takeaway41% of last minute traffic and touchpointsare made on apps. 89% are made on mobile devices.

Mobile Web

App

Desktop

15

Key Takeaway33% of one-night stays are searched on Applications

Focus on AppsShare of traffic by browsing environment by numberof nights, for hotel players with a shopping app:

Source: Criteo Data, worldwide, Q4 2017. Online travel agencies and suppliers with a booking app.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1234567891011121314151617181920

Mobile Web

App

Desktop

16Key Takeaway The conversion rate on apps is 5x higher than on mobile web,

and the difference keeps growing.

Focus on AppsTravel Advertisers see much higher conversion rates on apps – more than in retail* - and more than ever.

*Criteo Data, worldwide, Q4 2017 and Q4 2016. CR = Buyers / Product Page Viewers. Online travel agencies and Travel Suppliers.Excludes comparators. In Q4 2017, the average conversion rate on app for retailers is 17% worldwide, for comparison.

Mobile Web App Desktop

Travel, Q4 2017 4% 23% 11%

Travel, Q4 2016 7% 22% 13%

YOY -3pts +1pt -2pts

17

Focus on AppsAverage Booking Value per browsing environment, when 100 is spent on desktop (index).

Source: Criteo Data, worldwide, Q4 2017. Online travel agencies and Travel Suppliers. Excludes comparators.

73 77

100

0

10

20

30

40

50

60

70

80

90

100

Mobile Web App Desktop

Key TakeawayApp remains behind desktop in terms of average booking value, but it sees slightly more booking dollars per transaction than mobile web.

Travel generates up to +65% daily bookings in Q1.*

65%*Criteo Data, US, 2016-2017. January 2017 compared to average in November 2016. Excludes comparators.

19

Key TakeawayThe booking season is just getting started.

AppendixSeasonality - Winter bookings in the US.

In Q1, Travel generates up to +65% daily bookings compared to average in November

Source: Criteo Data, US, 2016-2017. Excludes comparators.

20

Key TakeawayThe booking season is just getting started.

AppendixSeasonality - Winter bookings in the UK.

Source: Criteo Data, UK, 2016-2017. Excludes comparators.

In Q1, Travel generates up to +80% daily bookings compared to average in November

21

AppendixShare of Bookings by Device, for select countries and regions.*

Country Desktop Smartphone Tablet Total MobileJapan 54% 41% 5% 46%Canada 56% 37% 7% 44%Sweden 59% 32% 9% 41%France 61% 33% 6% 39%Spain 62% 31% 6% 38%Australia 63% 28% 9% 37%Brazil 63% 34% 3% 37%Denmark 64% 23% 13% 36%United Kingdom 65% 25% 10% 35%Netherlands 67% 22% 11% 33%Austria 68% 25% 7% 32%Switzerland 69% 25% 6% 31%Italy 70% 25% 5% 30%Belgium 72% 20% 8% 28%United States 72% 21% 6% 28%Germany 77% 15% 8% 23%RegionLATAM 64% 33% 3% 36%North America 72% 22% 6% 28%North APAC 55% 41% 4% 45%South APAC 51% 44% 5% 49%Middle East 47% 50% 3% 53%Central Europe 75% 18% 7% 25%Northern Europe 65% 25% 10% 35%Southern Europe 64% 30% 6% 36%

*Share of bookings by device Among Travel Advertisers, worldwide, Q4 2017. Excludes apps and comparators.

22

Methodology

Individual browsing and booking data analyzed:

How can marketers use this data?

• Over 1,800 Travel advertisers globally.

• More than 3b bookings per year across desktop, mobile sites and applications.

• 59 countries in North America (2), Latin America (9), Europe (25), Middle East (6), Africa (4) and APAC (14).

Benchmark your performance on relevant KPIs for your mobile browser, mobile app and cross-device channels.

Thank youTo learn more about how the Criteo Commerce Marketing Ecosystem drives sales and profits for thousands of brands, retailers, and publishers worldwide, visit criteo.com/about.