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Galileo Presentation
Paolo Boni, President & CEO
VFM Interactive Inc.
CONFIDENTIAL
Agenda

Brief Overview of VFM

New Galileo-VFM Hotel Image & Rich Media Partnership

Putting the Partnership into Perspective:

 The
importance of hotel visual content
 The
importance of distributing hotel visual content on all channels
Q&A
About VFM

VFM is a leading producer and distributor of hotel rich visual content (still
images, virtual tours, videos and Flash presentations)

Vscape® - VFM’s online digital still image and rich media distribution
platform - allows hotels to manage and distribute their visual content on
thousands of travel sites and major travel intermediaries from a single
point
– Growing distribution network includes all major travel sites such as
Travelocity, Orbitz, Expedia, TripAdvisor, Yahoo!, Priceline, SideStep, Google
and Kayak as well as GDSs and Pegasus

New VFM-Galileo partnership will allow Galileo-connected hotels to
better leverage their digital visual assets to market their properties more
effectively across Galileo-connected channels as well as thousands of
other websites
New Galileo-VFM Partnership
Partnership provides significant benefits to Galileo partner hotels:

Free use of Vscape image management and distribution platform for Galileo
hotels:
– Hotels can use Vscape to store, manage and distribute their images not only to
Galileo but to VFM’s other distribution partners
– Galileo is first GDS to offer its connected hotels with a free, comprehensive image
management and distribution tool that simplifies the distribution of hotel images
across all electronic channels
 Reduces costs, increases control over hotel visual displays across electronic
channels & gives hotels ability to better leverage their visual assets to drive
increased bookings

Galileo hotels can now also distribute richer media (videos, virtual tours and
Flash) through VFM to thousands of Galileo (and Worldspan) connected travel
agents worldwide
– Gives agents a new tool to help them make hotel selections for their clients
– Allows hotels to market their properties more effectively to them
About the Vscape Tool

Web-based hotel digital image and rich media management &
distribution platform

Hotels can upload, store, manage, edit and distribute their still images
and related metadata (captions, categories, short written descriptions)
to thousands of VFM distribution channels

Sophisticated but intuitive and easy to use

Functionality includes:
– Automated property matching to distribution channels
– Automated image conversion/reformatting to each distribution channel’s
specs
– Quality control
– Automated image de-duping
– Ability to view exactly what images are distributed on what channels –
allows for the identification and deletion of “rogue” images (outdated images
that are still being displayed by some channels)
About the Galileo Free Vscape Service

Vscape Lite:
- Galileo Chains can upload and distribute up to 10 images per
property at no cost
- Each Chain can have up to 3 registered Vscape users
- Chains can select to either distribute their images via Vscape to:
- Galileo and Galileo-connected agencies and channels only; or
- Galileo as well as all other VFM distribution channels
Implementation of Vscape

Galileo has sent out a notification to all its Hotel chains with instructions
on how to register for, and access, Vscape

Galileo properties have been loaded into Vscape based on data in
Galileo database for each Chain (ideally please send us your master
property list)

Have commenced migration of all images currently on Galileo image
servers to Vscape
– Once migration complete will be able to view all images through Vscape
– In meantime, can add new images in Vscape as required

If you have more than 10 images per property, existing images will be
“grandfathered” until you wish to add new ones

For Chains utilizing Leonardo, Leonardo will continue to feed your
images to Galileo via Vscape on your behalf

If you select to distribute to all VFM channels, distribution to channels
beyond Galileo will be rolled out in 4-6 weeks
A few screen shots – Login page
A few screen shots – Property Tree
A few screen shots – Property Media Page
A few screen shots – Image Source/Rogue Images
Distributing Richer Media to Galileo

Vscape also allows you to distribute richer forms of media (video, virtual
tours, Flash presentations) to Galileo:
Putting the VFM-Galileo Partnership into Context:
- The Importance of Hotel Online Visual Content
STRICTLY CONFIDENTIAL
Key Drivers for Consumers’ Hotel Booking Decisions
Location
Price
Expected
Experience
Perceived
Value
Source: YPB&R 2004
STRICTLY CONFIDENTIAL
How Consumers Determine “Expected Experience”
What factors other than Price and Location are most
important when selecting one hotel over another:
Very Important
Very Important
Important
Written Descriptions
23%
Visuals (Photos, 360s, Video)
48%
28%
41%
17%
Destination Information
44%
14%
Star Rating
45%
11%
Hotel Brand
Customer Reviews
42%
13%
Loyalty Programs
8%
0%
31%
23%
10%
20%
30%
40%
50%
60%
70%
Source: Harris Interactive, Nov. 2005
By the way…

A significant portion of consumers are not happy with the amount
and quality of visual content currently offered by hotels online:
Source: Harris Interactive
Why Are Visuals Important?

Consumers increasingly expect/demand it:
– On your website:
“Photo tours are now used by 1 out every 4 HWS site visitors. Photos were viewed 384 million
times in 2006, equating to 4.7 million hours of photo tour viewing by our customers.”
“Customers have told us that hotel photography is the #1 most important determinant in
making the final selection of a hotel on the web. Photos sell your hotel.”
Michelle Haas, Marriott eCommerce Hotel Web Sites Project Manager
– Even more so on third-party websites: 50%+ of third-party travel site
hotel shoppers look at hotel images
– Traditional travel agents now also increasingly looking at visuals as
part of their hotel research for clients

Visual content:
– Addresses rational concerns, increases consumer confidence and conveys
value – “the features and amenities justify the price”
– Conveys the experience and creates desire - “I’m going to have a great stay at
this hotel”
– Helps hotels compete on value rather than solely on price
– Supports higher ADR
STRICTLY CONFIDENTIAL
Most importantly…
Visual content increases bookings and the
richer the content, the higher the impact on
look-to-book conversion rates:

Recent study showed that consumers who view hotel rich media
are significantly more likely to book than those who do not :
– Viewed virtual tours only 36% more likely to book
– Viewed video only  120% more likely to book
– Viewed video and virtual tours  147% more likely to book
* Based on results of Media Usage and Booking Tracking Study completed by VFM and a US Hotel Brand in June,
2007 – 10 upscale hotels with video and/or virtual tours (over 120,000 consumers tracked over one month period)
Putting the VFM-Galileo Partnership into Context:
- The Importance of Ensuring Your Hotel Visual Content is distributed
to All Electronic Channels
STRICTLY CONFIDENTIAL
It’s a Crowded World Out There…
40% of consumers use search to
research hotels… then what?
STRICTLY CONFIDENTIAL
The Online Travel Consumer
Online travelers are brand agnostic – 77% who go online
to find a hotel don’t have a particular hotel or brand in
mind (Jupiter Media)
75% of online travel research starts on a third-party travel
site or search engine (ComScore)
Consumers visit 3+ sites when researching & booking
travel (PhoCusWright)
44% of travel website visitors then go to another travel
website (Hitwise)
 Consumers are entrenched in a supermarket mindset:
They like to shop and compare hotels on a number of sites
before making a booking decision
STRICTLY CONFIDENTIAL
Where Consumers Shop for Hotels…
STRICTLY CONFIDENTIAL
What are they looking for and comparing?
*50%+ of consumers look at hotel visual content
STRICTLY CONFIDENTIAL
The True Value of Third-party Websites
75% of travel research starts on a third-party travel site or search
engine (ComScore)
+
3+ out of 10 online travelers shop at online travel agencies but then
buy direct from the supplier (PhoCusWright, 2007)
+
42% of consumers who research hotels online then book offline
(usually, directly with the hotel) (Forrester, 2006)
=
Third-party
sites are a key customer
acquisition channel
STRICTLY CONFIDENTIAL
Why Visual Content Distribution is Critical
Ensuring that your hotels’ images and rich media is available for
viewing by consumers on all electronic channels will:
 Help your hotels stand out in
the hotel online “Supermarket
isles” - impacting consumers
where and when they are
researching
 Differentiate your hotels from
their competitors based on
value, not price
 Support higher ADR
 Drive more bookings – not only
on third-party sites, but on your
own site and direct offline
STRICTLY CONFIDENTIAL
Vscape Distribution Channels
Q&A
Thank you!