Priceline.com would like to remind you that this presentation contains forward looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed, implied or forecasted in any such forward-looking statements.
Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward looking statements. For a list of factors that could cause Priceline.com’s actual results to differ materially from those described in the forward-looking statements, please refer to the risk factors in Priceline.com’s most recent filings with the Securities and Exchange Commission. Unless required by law, Priceline.com undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
This presentation should be read in conjunction with priceline.com’s audited financial statements and the notes thereto filed with the Securities and Exchange Commission on Form 10-K and quarterly financial statements filed with the Securities and Exchange Commission on Form 10-Q.
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Recent Online Travel Stock Performance
Indexed Stock Price Performance: Last 3 Months
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Online Travel Gross Bookings Performance
Gross Bookings Growth (Yr/Yr)
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Why is Priceline the Fastest Growing Full Service Online Travel Business?
1. Online Travel Market Dynamics
2. Products and Markets
3. Brand Strength
4. Financial Strength
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Online Travel Market Dynamics
• Large market opportunity
• Total travel market $200 billion +
• Online travel penetration estimated at 27% in 2004
• Drivers of Online Travel Growth
• Continuing growth in broadband adoption drives use and commerce
• Investment in product and advertising
• International expansion
• Market growth estimates of up to 25% for 2005
Source: Goldman, Sachs Research; PhoCusWright estimates
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• What drove purchasing decisions during hyper-growth phase (2000-2003)?
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• What drives purchasing decisions today?
• Price: | | 52 | % |
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• Trust: | | 14 | % |
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• Ease of Use: | | 13 | % |
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• Convenience: | | 10 | % |
Source: Goldman, Sachs Research
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Products and Markets – Airline Tickets
Your Trip: | Depart: | Return: |
New York City, NY to Miami, FL change cities | Thu, March 24 | Sat, March 26 |
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[GRAPHIC] Name Your Own Price and Save More | [GRAPHIC] New Flight Search |
| | [GRAPHIC] | | [GRAPHIC] | | [GRAPHIC] | | [GRAPHIC] | | [GRAPHIC] | | [GRAPHIC] | | [GRAPHIC] | |
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| | Name Your
Own Price | | All Flights | | Multiple
Carrier | | American
Airlines | | Spirit
Airlines | | Delta
Airlines | | Airtran
Airways | |
Non-Stop | | | | from $252 | | from $252 | | from $252 | | from $269 | | from $292 | | N/A | |
| | Best Deal | | | | | | | | | | | | | | | | | |
1 Stop | | Name Your | | from $294 | | from $294 | | from $296 | | N/A | | from $345 | | from $296 | |
| | Own Price | | | | | | | | | | | | | | | | |
2+ Stops | | | | from $324 | | from $324 | | N/A | | N/A | | from $372 | | N/A | |
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Show More Airlines >
Departure Time: | Return Time: | Departure Airport: | Return Airport: | Airline Preference: | |
Anytime | Anytime | All Airports | All Airports | All Airlines | Sort |
Lowest Price | Shortest Flight | Non-Stop Flights | Back to original search results |
Round-Trip Price
(Per Ticket) | | Airports | | Airline | | Trip
Duration | | Flight Times | | Stops | |
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Name Your Own Price® | | New York City, NY to Miami, FL | | Priceline Partner Airline | | — | | Exact flight times are shown after purchase | | 0-1 Stops | |
[GRAPHIC]Best Deal | | | | | | | | | | | |
| | Miami, FL to New York City, NY | | Priceline Partner Airline | | — | | Exact flight times are shown after purchase | | 0-1 Stops | |
| | | | | | | | | | | |
$252 | | New York City, NY (LGA) to Fort Lauderdale, FL (FLL) | | American Airlines Flight 2045 | | 3h 07m | | Departs: 3:59p
Arrives: 7:06p | | Non-Stop | |
Choose | | | | | | | | | | | |
(incl. taxes/fees) | | Fort Lauderdale, FL (FLL) to Newark, NJ (EWR) | | Continental Airlines Flight 600 | | 2h 45m | | Departs: 7:30a
Arrives: 10:15a | | Non-Stop | |
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Products and Markets – Hotels
Priceline Retail Choice
Viewing Top Neighborhoods
| | * | | ** | |
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Midtown East map | | from $33 | | from $45 | |
Midtown West map | | | | | | | |
Uptown Manhattan map | | from $36 | | from $49 | |
Financial District map | | from $45 | | | | |
Greenwich Village/Tribeca map | | | | | from $52 | |
New York Airports map | | from $39 | | from $50 | |
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Hotels - Europe
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Products and Markets – Packages
Hotel Details
[GRAPHIC] | | COUNTYARD By Marriott Briarcliffe |
| | Myrtle Beach, South Carolina
Hotel Rating: * * 1/2
Check-In: Thu, March 24
Check-Out: Mon, March 28
Nights: 4 Nights Rooms: 1 Room |
Package Price:
$379/person
Total Price for 2 people: $758
(Price includes taxes and fees)
[GRAPHIC] Hotel Details | | [GRAPHIC] View Map |
Hotel amenities: Pool - indoor, Whirlpool/Hot tub, fitness facility, Spa Facility/Services (nearby)... Hotel Details
Hotel Description: Courtyard surrounds travelers with the conveniences that make business and pleasure travel easy. Relax in one of our 152 spacious rooms, which feature a comfortable seating area, spacious work desk,... Hotel Details
Airfare Details - This is a special discount airfare. Details
The airfare option shown below is the best value for your vacation. Your return trip requires an off-peak flight, which will start any time after 6am and arrive before 2am the next day. Your exact flight times and airline will be shown to you after your purchase is complete.
| | Airports | | Airline/Type | | Stops | | Flight Times |
Departing Flight
Thursday, Mar 24, 2005 | | Newark, NJ (EWR) to Myrtle Beach, SC (MYR) | | Priceline Partner Airline help Jet aircraft | | Up to 1 connection help | | Departs: Any time between 6am - 10pm help |
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Returning Flight
Monday, Mar 28, 2005 | | Myrtle Beach, SC (MYR) to Newark, NJ (EWR) | | Priceline Partner Airline help Jet aircraft | | Up to 1 connection help | | Departs: Any time including off-peak hours help |
[GRAPHIC] | | See More Discount Airfare Options | | [GRAPHIC] | | Choose Exact Flights and Times |
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Products and Markets – Rental Cars
Save Even More. | Name Your
Own Price | [GRAPHIC] | [GRAPHIC] See More Rates & Companies |
Prices shown are per day.
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Economy
Car Details | | $19.99/day | | $19.99/day | | $19.99/day | | $19.99/day | | $19.99/day | |
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Compact | | $19.99/day | | $19.99/day | | $19.99/day | | $19.99/day | | $19.99/day | |
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Mid-size | | $19.99/day | | $19.99/day | | $19.99/day | | $19.99/day | | $19.99/day | |
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Full-size | | $19.99/day | | $19.99/day | | $19.99/day | | $19.99/day | | $19.99/day | |
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Products and Markets
• Full array of disclosed product with competitive inventory and pricing
• Opaque savings:
• Airline tickets: | Up to 30% savings off published |
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• Hotels: | Up to 40% savings vs. Expedia, Hotels.com, Travelocity |
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• Packages: | Save up to $200 |
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• Rental Cars: | 25% savings off published |
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Brand Strength
[LOGO] Name Your Own Price® and Save
• High Awareness
• Brand Attribute: Best Deal
• [Roll Shatner/Nimoy Ad]
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• Ownership of the Value Category
[GRAPHIC] You’ll Never Roam Alone | | [GRAPHIC] Don’t Think Twice |
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[GRAPHIC] Hotel Experts |
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[GRAPHIC] Everything for Your Trip |
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[LOGO] | | |
[GRAPHIC] Two Great Ways to Save
Choose Your Flights & Times or Name Your Own Price® |
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[GRAPHIC] Best Hotel Prices Guaranteed!
Save up to 40% over leading online sites!* More Info |
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Best Rental Car Prices Guaranteed! [GRAPHIC]
Save up to 25% over leading online sites Details |
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• Transition to Value and Choice
• [Roll Shatner Your Fired Ad]
• Opportunity in 2005 to Expand and Strengthen Value/Choice Position
• New Hotel Product
• New Unified Ad Campaign
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Financial Strength – Investing in the Business
• Income Statement – Pro Forma EPS doubled in 2003 and 2004
• Ad spend up $18M in 2004
• Built new air, hotel, package and rental product offerings
• Balance Sheet
• $225M convertible debt financing
• Acquisitions of Travelweb, Active Hotels and retail URLs
* See Priceline.com’s 8-K filed with the Securities and Exchange Commission on February 23, 2005 for a definition of pro forma net income per share.
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Summary – Drivers of Growth
• Online Travel Market Dynamics
• Products and Markets
• Brand Strength
• Financial Strength
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