Looking Aheadthe Recovery of Hotel Commission Recovery Big

Looking Ahead…the Recovery of Hotel Commission Recovery Big League Users Group September 22, 2010 Commtrak Corporation Roger Miersch

Snapshot… 2010 vrs 2009 The U. S. Based Hotel Marketplace…* Room occupancy 2008= 60. 4% 2009= 52. 7% down 8. 8% from 2008 2010= 57. 1% projected up 4. 4% from 2009 2011= 57. 9% projected up 1. 4% from 2010 ADR - Average Daily Rate 2008= 2009= 2010= 2011= $106. 54 $97. 84 down 8. 7% $97. 74 projected down 0. 1% or flat $101. 55 projected up 3. 9% *Smith Travel Research

Snapshot… 2010 vrs 2009 The Agency Marketplace… Statistical Source…Commtrak: Commtrak customers attending 2009 BLUG meeting = 20 agencies Note: remember that Commtrak statistics reflect hotel/agency data aged at about 6 -18 months earlier than the current time period. For 20 Big League Agencies: % Increase/decrease of collected $ commissions by calendar period: Q 1 2010 compared to Q 1 2009 = -29% Q 2 2010 compared to Q 2 2009 = - 8% % Increase/decrease of collection rate (% of total billed items resulting in payments to Commtrak): Q 1 2010 compared to Q 1 2009 = -11% Q 2 2010 compared to Q 2 2009 = - 4%

Snapshot… 2010 vrs 2009 Interpretations & Forecasts… Interpretations: While the 2008 -2009 decline hurt everybody, the impact on Commtrak’s recovery results was not felt until late 2009 and early 2010 (6 to 12 months after travel dates). Diminished hotel commissions were/are obviously a result of: -Serious reductions in both commercial and leisure hotel bookings. -General reductions in hotel rates. We of course suspect (note page #3 - the decline in the collection rate) that “other” factors contributed to the decline in commission payments: -Tighter hotel management controls on commission payments. -Cash flow issues and delays in payments, mostly by independents & franchise operators. -Expanded definitions of net rates.

Snapshot… 2010 vrs 2009 Interpretations & Forecasts… Forecasts: Note the difference in collected commissions in Q 2 compared to Q 1(page #3, increase/decrease in collected commissions and collection rate). Commission payments and recovery rates appear to be trending in a positive direction. An improved agency commission environment will result mostly from a continued drive towards pre-2009 levels of hotel occupancies, and pre-2009 ADRs (more people traveling…spending more…). The “other” factors (hotel payment controls, delays, and expanded net rate programs) will be slower to relax…if at all. While hotels will continue to pay agency commissions, there will be continued efforts by many to minimize the impact without jeopardizing the distribution channel.