TripAdvisor 2012 Annual Report Download - page 15

Brands developed internally and launched as of December 31, 2012 include:
Website Date Launched Key Focus
tingo.com March 2012 The first hotel booking site that automatically rebooks hotel rooms
at a lower price if the rate drops and automatically refunds the
difference to the travelers’ credit cards.
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.
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 PhoCusWright, gross bookings in the global travel industry are expected to be greater than
$1.1 trillion in 2013. 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, tablets 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 the International Data Corporation, or IDC, New Media Market Model, the travel industry
represented half of all global e-Commerce transactions in 2012. On the other hand, only 19% of the
approximately $41 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 IDC New Media Market Model, the global online advertising market is growing and is
projected to exceed $130 billion by 2014, 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 mobile internet travel advertising in 2013 will be close to $15
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
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