Hotel Booking Category Overview

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1 Hotel Booking Category Overview Yandex International Business Development

2 Segment Volumes Query dynamics User interest growth in hotel booking User interest growth in regions Category growth forecast

3 Search Seasonality in Travel Category Queries related to traveling varies from 0,5 to 1,7% of total Yandex queries. The July seasonal peak for traveling queries was less pronounced in 2013, although the total share of queries for the year stayed the same. 1.8% Travel Query Market Share by Month 1.6% 1.4% Growth in Queries 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Yandex, Apr 2014 wordstat.yandex.ru

4 Distribution of Queries in Travel Category Queries on hotel booking made approximately 35% of total amount queries related to traveling in % 35% 43% Hotels Air tickets Package tours 17% Other 4 Yandex, Apr 2014 wordstat.yandex.ru

5 Growth of Queries in Hotel Category 20,000,000 Apr 2012 Mar 2013 Apr 2013 Mar ,000, % 16,000,000 14,000,000 Impressions 12,000,000 10,000,000 8,000,000 6,000, ,702, ,832, 975 4,000,000 2,000,000 0 Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 Feb Mar Yandex, Apr 2014 wordstat.yandex.ru

6 Growth of Queries with Hotel Booking Intent Growth rate of queries connected with user intention to book a hotel online exceeds the generic query growth more users within Travel category are ready to book online. 900,000 Generic Queries on Online Hotel Booking +27% 800, , ,000 Impressions 500, , ,000 5,451,72 7 6,905, , , Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 Feb Mar 1 2 Yandex, Apr 2014 wordstat.yandex.ru

7 Hotel Category Searches by Region 160% Search Volume by Region 140% Growth in Queries 120% 100% 80% 60% 40% Russia CIS Russia (regions excluling Moscow and Saint- Petersburg) 20% 0% / / /2013 (Q1) 7 Yandex, Apr 2014 wordstat.yandex.ru

8 Search Volume for Hotels by Region Number of queries on hotels increased by 11% in CIS during Q (compared to Q1 2013), by 8% in Russian regions, by 3% in central regions of Russia 300% Hotel Search Volume by Region 250% Hotel Query Growth, % 200% 150% 100% 50% Moscow + St-Petersburg Russia (regions excluling Moscow and Saint-Petersburg) CIS 0% Yandex, Apr 2014 wordstat.yandex.ru

9 Search Volume in Regions vs Large Cities Share of queries from users of the regions with the highest internet penetration (Moscow and Moscow region, St. Petersburg and the Leningrad region) is gradually reducing. The audience is gradually being reallocated in favor to the regions. The total share of Moscow and St. Petersburg has dropped from 53% to 47%. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 47% 48% 50% 52% 51% 52% 53% 53% 53% 53% 53% 52% 50% 48% 49% 48% 47% 47% 47% 47% Russia (regions excluling Moscow and Saint-Petersburg) Moscow + St-Petersburg 9 Yandex, Apr 2014 wordstat.yandex.ru

10 Regional Popularity of Hotel Booking Share of queries from CIS declined, while share of Volga region increased. North-West: 13% of queries Saint Petersburg: 9% of queries Reg.popularity 145%,146% Moscow: 32% of queries Reg.popularity 161% Central region: 43% of queries Reg.popularity 146% Ural: 7% of queries Reg.popularity 102% Siberia: 6% of queries Reg.popularity 70% Far East 2% of queries Reg.popularity 129% South: 6% of queries Reg.popularity 109% Volga region: 13% of queries Reg.popularity 86% North Caucasus: 2% of queries Reg.popularity 92% CIS: 8% of queries Reg.popularity 46% 10 Wordstat.yandex.ru, data March 2014

11 Hotel Booking Category Audience Locations 40% 350% Share of booking hotel queries by cities 35% 30% 25% 20% 15% 10% 5% 300% 250% 200% 150% 100% 50% Affinity Index 0% 0% People from Moscow and St. Petersburg make 47% of queries with a clear intention to book a hotel. 11 Wordstat.yandex.ru, data March 2014

12 Brand query dynamics Query dynamics Variation of interest in brands Brand searching context

13 Most Popular Hotel Related Brands Queries 400, , , , , , ,000 50,000 Search Queries by Brand per Month Booking.com Tripadvisor Hotels.com Ostrovok Agoda Trivago HRS.ru Oktogo Roomguru (Hotelscombined) HROS.RU Hotel-Scanner 0 Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 Feb Mar 13 Yandex, Apr 2014 wordstat.yandex.ru

14 Variation in User Interest towards Brands 4,000,000 3,500,000 3,000,000-25% Change in Search Volume per Brand Apr 2012 Mar 2013 Apr 2013 Mar 2014 Queries 2,500,000 2,000,000 1,500,000 1,000, , % 17% 20% -5% 213% -15% 55% 109% -15% 101% 14 Yandex, Apr 2014 wordstat.yandex.ru

15 Destination popularity Country rating Seasonal variations Seasonal fluctuations structure The leading cities Russian cites rating

16 The Most Popular Destination Countries Top-20 throughout the year 30,000,000 Queries per Destination Country for Hotels Queries 25,000,000 20,000,000 15,000,000 Package destinations Other countries 10,000,000 5,000,000 0 Queries on hotels in Russia made up 33% of total, queries on hotels in CIS countries made up 40% of queries. Top-5 countries accounted for 68% of all queries. 16 Wordstat.yandex.ru, data March 2014

17 Change in Hotel Queries by Destination Country 30,000,000 25,000,000 13% Apr 2012 Mar 2013 Apr 2013 Mar ,000,000 Queries 15,000,000 31% 10,000,000 5,000,000-2% 1% 23% 44% 17% 22% 30% 17% 24% 15% 13% 15% 13% 69% 57% 16% 33% 44% 0 17 Wordstat.yandex.ru, data March 2014

18 The Most Popular Destination Countries: Non-package destinations (excluding Russia) 4,000,000 3,500,000 3,000,000 Queries 2,500,000 2,000,000 1,500,000 1,000, , Wordstat.yandex.ru, data March 2014

19 The Most Popular Regions: Non-package destinations North America: 1% Europe: 23% Summer resorts: 10% Winter resorts: 1% Other European countries 12% Middle East 1% CIS-countries: 69% Asia: 4,5% Caribbean: 1% Africa 0,2% South and Central America: 0,2% Australia 0,1% 19 Wordstat.yandex.ru, data March 2014

20 The Most Popular Countries: Clear Intention to Book Online 120,000 Top 30 Destination Countries for Queries with Clear Intent to Book 5.0% Number of queries with clear intention to book online 100,000 80,000 60,000 40,000 20, % 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Share of queries with clear intention to book a hotel 20 Wordstat.yandex.ru, data March 2014

21 Seasonal Popularity of Destinations 1,400,000 Summer Destinations 1,200,000 Queries 1,000, , , ,000 Ukraine Greece Bulgaria Cyprus Spain Tunisia Italy Montenegro Abkhazia 200,000 0 Summer 2012 Autumn 2012 Winter Spring 2013 Summer 2013 Autumn 2013 Winter Wordstat.yandex.ru, data June 2012 February 2013

22 Seasonal Popularity of Destinations 400,000 Off-season destinations 350, ,000 Queries 250, , , ,000 Czech Republic Belarus France USA China Israel Germany Kazakhstan Poland 50, Summer 2012 Autumn 2012 Winter Spring 2013 Summer 2013 Autumn 2013 Winter Wordstat.yandex.ru, data June 2012 February 2013

23 Seasonal Popularity of Destinations 2,500,000 Winter Destinations 2,000,000 Queries 1,500,000 1,000,000 UAE Vietnam India Dominican Republic Finland Egypt Thailand 500,000 0 Summer 2012 Autumn 2012 Winter Spring 2013 Summer 2013 Autumn 2013 Winter Wordstat.yandex.ru, data June 2012 February 2013

24 Seasonal Popularity of Destinations 7,000,000 Turkish and Russian Dynamics 6,000,000 5,000,000 Queries 4,000,000 3,000,000 Russia Turkey 2,000,000 1,000, Summer 2012 Autumn 2012 Winter Spring 2013 Summer 2013 Autumn 2013 Winter Wordstat.yandex.ru, data June 2012 February 2013

25 Seasonal Popularity of Destinations Spring 2013 Summer 2013 Autumn 2013 Winter Russia Russia Russia Russia Turkey Turkey Turkey Turkey Egypt Ukraine Egypt Egypt Ukraine Greece Thailand Thailand Greece Egypt UAE UAE Bulgaria Tunisia Ukraine Ukraine Thailand Cyprus Czech Republic Greece Spain Bulgaria Greece Bulgaria Cyprus Spain Tunisia Spain Italy Thailand Cyprus Italy Tunisia Italy Italy Czech Republic UAE UAE Belarus Belarus Czech Republic Belarus Vietnam Vietnam Belarus Czech Republic India India France France Spain France Montenegro Montenegro France Cyprus USA Abkhazia Bulgaria Tunisia Vietnam Vietnam Dominican Republic Dominican Republic China USA China USA Abkhazia CroaDa Germany Israel 25

26 TOP-20 Hotel Queries by Destination City 5,000,000 Top 20 Hotel Destination Cities 4,500,000 4,000,000 Package destinations Other countries 3,500,000 Queries 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Among Top 20 cities only 6 are not Package destinations. 26 Wordstat.yandex.ru, data March 2014

27 TOP-30 Hotel Queries by Cities: Clear Intention to Book Online 40,000 Top 30 Hotel Destination Cities for Queries with Clear Intent to Book 35,000 Queries 30,000 25,000 20,000 Package destinations Other countries 15,000 10,000 5, Queries on hotels in St-Petersburg and Moscow made up 34% of all queries with clear intention to book online. Wordstat.yandex.ru, data March 2014

28 TOP-30 Russian Cities for Hotel Booking 5,000,000 Top 30 Hotel Destination Cities within Russia 4,500,000 4,000,000 3,500,000 3,000,000 Queries 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Queries on hotels in Moscow made up 19% of all hotels in Russian cities, St- Petersburg made up 14%. 28 Wordstat.yandex.ru, data March 2014

29 TOP-30 Non-Package Cities for Hotel Booking Non-package destinations (excluding Russian cities) 900,000 Top 30 Non Package Hotel Destination Cities (excluding Russia) 800, , ,000 Queries 500, , , , , Wordstat.yandex.ru, data March 2014

30 Most Popular Hotel Networks Hilton Carlson Marriott Intercontinental Accor Starwood Wyndham Hyatt Best Western Four seasons Fairmont Choice hotels Monthly Queries for Most Popular Hotel Networks , , , , ,000 Wordstat.yandex.ru, data March 2014

31 Most Popular Hotel Brands Monthly Queries for Most Popular Hotel Brands Hilton (Hilton) Radisson (Carlson) Marriott (Marriott) Ibis (Accor) Holiday Inn (IHG) Sheraton (Starwood) Park Inn (Carlson) Ramada (Wyndham) Hyatt Best Western (Best Western) Renaissance (Marriott) Novotel (Accor) Crowne Plaza (IHG) Intercontinental (IHG) Ritz Carlton (Marriott) Le Meridien (Starwood) Four Seasons (Four Seasons) Doubletree (Hilton) Swissotel (Fairmont) Westin (Starwood) 0 50, , , , , Wordstat.yandex.ru, data March 2014

32 Conclusions: User interest in category has increased by 15% during the last year Interest growth is being driven by the regions (areas outside of Moscow and St. Petersburg) Interest in online booking is growing faster than both the hotel and travel category in general Queries on domestic hotels in Russia made up 33% of total Queries on hotels in Moscow and St-Petersburg made up 34% of all queries with clear intention to book online 32

33 Yandex International Business Development Thank you! 33

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