TripAdvisor 2011 Annual Report Download - page 9

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Table of Contents
Brands developed internally and launched as of December 31, 2011 include:
Industry
We operate in the online advertising sector of the global travel industry. As a result, we are impacted by trends in the global travel industry,
the online travel market and online advertising.
Global Travel Industry
According to the 2011 PhoCusWright Global Online Travel Overview (April 2011), gross bookings in the worldwide travel market are
expected to be greater than $900 billion in 2012. Recent historical trends show that, each year, an increasing percentage of global travel spending
has been conducted online through supplier websites and online travel agencies. We believe that this trend will continue as online penetration
continues, as more consumers gain broadband access to the Internet, as smartphone and other mobile computing devices continue to proliferate,
and as travel grows along with an expanding middle class in certain developing countries like China and India.
Online Travel Market
According to a 2011 International Data Corporation, or IDC, study, the travel industry represents half of all global e-Commerce
transactions. On the other hand, only 16% of the approximately $39 billion spent on travel advertising is spent online. We believe that the
Internet will continue to become even more integral to the travel-planning process due to increasing worldwide online penetration, particularly
given the capabilities that the Internet provides travelers, including the ability to refine searches, compare destinations and view real-time
pricing.
Online Advertising
According to the same 2011 IDC study, the global online advertising market is growing and is projected to exceed $100 billion by 2013, as
more and more advertisers continue to shift their spending from offline to online channels, mirroring the trend in consumer media consumption
generally. For travel specifically, IDC estimates that annual expenditures for global online travel advertising in 2012 will be close to $6 billion.
Given the size of the travel market, we believe that travel providers and travel related advertisers are, and will continue to be, motivated to
devote significant resources to advertise their travel products and services. In addition, as more and more travel transactions are conducted online
generally, we believe that an increasing amount of travel advertising spending will migrate from traditional offline advertising channels to online
advertising opportunities.
Key Strengths
Just over a decade ago, travel research and planning was largely conducted with the assistance and guidance of a personal travel agent or
advice from friends and family. Consumers had no single resource to access recent and comprehensive destination, lodging, restaurant and
attraction feedback and information. We were founded
5
Website
Date Launched
Key Focus
sniqueaway.com
September 2010
U.S.-based members-only flash sale website, providing exclusive limited time access to
deals on top hotels at deep discounts. This members-only website offers limited-time
discounts exclusively on traveler-endorsed properties that have received a minimum four
out of five
-
star rating (or its equivalent for smaller properties) on tripadvisor.com.
familyvacationcritic.com
June 2009
Reviews of family
-
friendly hotels, resorts, destinations and attractions, written by
experienced family travel experts.