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​SURGING CAPACITY AND FALLING PRICES – GLOBAL TRAVEL TRENDS 2017

Press Release   •  Dec 15, 2016 09:00 GMT

Falling ticket prices and surging capacity suggest that 2017 heralds more options to fly to more destinations for lower prices – according to a new global report.

Expedia, Inc. (NASDAQ: EXPE), in partnership with Airlines Reporting Corporation (ARC) and other industry sources, today released a comprehensive study of worldwide air travel trends: New Heights for Air Travel. Expedia and ARC together conducted an original analysis of billions of data points to spot trends that the modern traveller can use to get the most from their travel budget in 2017.

The report is an analysis of worldwide air travel data from January 1, 2016, through October 24, 2016. It presents several key takeaways for travellers:

1. Economy average ticket prices (ATPs) falling worldwide

ATPs for economy round-trip and one-way tickets continued to drop throughout the year, and now are at their lowest point since 2013.

Across much of 2016, intra-regional ticket prices declined in most areas by around 4 percent for economy one-way tickets and 5 percent for economy round-trips. In Europe, intra-Europe average ticket prices (ATPs) declined approximately 4 percent for economy trips for both one-ways and round-trips.

Africa experienced the largest decrease on economy tickets: a decrease of 11 percent for round-trip tickets and a dip of 14 for one-ways.

2. Capacity is expanding

According to a variety of sources, including ARC, air capacity is up about 5 percent globally, which means more airlines are flying more planes to more destinations. According to IATA, in most boom cycles, overall growth typically comes in somewhere around 3 percent.

3. UK hotels benefiting from Brexit

Expedia also revealed that both international and domestic travellers are looking to spend more nights in UK hotels following the Brexit vote. This is driven by the favourable currency exchange for international visitors, which conversely is persuading more UK travellers to stay within the UK.

The study also unearthed a wealth of data on popular locations set to continue their growth in 2017. Out of 500 of the top destinations, Jose Marti International Airport in Havana, Cuba, has shown the greatest percentage change (53 percent) in capacity from 2015 to 2016. At a close second, the airport in Da Nang, the largest city in Vietnam, experienced a 51 percent growth from 2015.

Other popular destinations with expanded capacity included Zhuhai, China (41 percent); Cusco, Peru (39.ercent); and Santiago, Chile (38 percent). Other countries on this list include Ireland, Panama, Uruguay, Peru, Iceland, and Russia.

Other notable observations regarding capacity:

Mexico City is hot. Overall market growth in Mexico City for 2016 hovered around 11 percent, and was expected to continue to grow into 2017. Experts predict Mexico City will be in 2017 a destination to watch.

Dubai continues to grow. Dubai nearly experienced double-digit growth in capacity last year, and the city enjoyed another 6 percent this year.

India is huge. The Indian economy is performing better than it has performed for some time[i], and airlines are responding by bumping capacity to the subcontinent. Capacity to India has grown by 17 percent over the past year.

Another strong year for China. China saw near double-digit growth (9 percent) in airline capacity during 2016, reflecting an expansion of the number of airports and a spike in the number of airlines servicing them.

Finally, the data within the report revealed a number of tips for travellers to save money:

Sunday is best day to book - For travel originating and ending in Europe, Sunday is by far the best day to book a flight, with savings of 30 percent on average ticket prices vs. all other days.

Book flights three weeks out or more - According to the report, purchasing airplane tickets 21 days or more in advance offers the best prices in most domestic markets—especially for trips within the United States and Europe. Some of these itineraries can bring discounts of as much as 30 percent for booking three weeks before the departure date vs. closer to departure. A recent fare search indicated that a ticket from Europe to the United States cost £1558 when booked less than 21 days before departure but cost around £1,027 when booked more than three weeks in advance, saving £531.

Include a Saturday stay - Expedia has concluded that in most parts of the world tickets including a Saturday stay offer the lowest prices and best deals. In Central Europe, average ticket prices for itineraries that include Saturdays are 74 percent less.

Book flights and hotels simultaneously - One critical – but often overlooked – method to drive savings is for travellers to book their flight, hotel and/or rental car on an online travel agency simultaneously. Industry pricing rules permit “bundled,” or “package” bookings to be offered at a steep discount, approaching £140 on Expedia.co.uk[1] and often exceeding it depending on the route in question. Those savings can be lost if travellers book these elements independently, which is common; travellers often book flights immediately, then peruse hotel options and rental cars at their leisure.

For more details on these tips visit the Expedia.co.uk Blog here

Greg Schulze, senior vice president commercial strategy and services, Expedia, said: “For today’s traveller, this confluence of circumstances – more planes, lower prices, more destinations – is exceptional.”

Schulze continued: “It means that the barriers to booking a dream trip are lowered. It also means that everyday travel – flights to see the family, work trips – are likely to be easier to book at a lower price. Expedia and ARC enjoy access to a wealth of data. Together, we are showing travellers that the travel possibilities for 2017 are almost limitless.”

ENDS

Contact

Chris Blackwood

Third City

T: 020 3657 9773

chris@thirdcity.co.uk

The data and partners behind New Heights for Air Travel

Every time a customer comes to any Expedia, Inc. site and checks an itinerary, Expedia leverages millions of pieces of information to show the most optimal search results. On just Expedia.com, we have created more than 335 million itineraries in our first 20 years; sending people to 1,820 cities within 203 countries. Additionally, Expedia’s partners at ARC have information on more than 12.5 billion passenger flights. This enormous pool of data yields a precisely detailed view of air travel trends.

New Heights for Air Travel represents Expedia’s analysis of data powered by ARC, utilizing data from other industry sources such as IATA, Diio Mi, and the Airline Tariff Publishing Company (ATPCO).

About Expedia

Expedia® is one of the world's leading full-service online travel agents offering access to hundreds of thousands of hotels including boutique hotels as well as major hotel brand names and access to over 400 airlines along with a wide selection of car hire and destination experiences. By combining choice with specialist tools to help refine these options, Expedia.co.uk helps travellers to find and create the trip that best matches their individual requirements. Now with the award-winning Expedia mobile app you can plan and book flights and hotels on the move. The Expedia app offers helpful tools to manage your trip including: airport terminal maps; hotel check out time and flight status notifications; maps to your hotel and a host of other features. Expedia.co.uk partners with loyalty programme Nectar in the UK enabling its customers to collect 200 Nectar points on flight only, hotel or car hire bookings and 1000 points on package purchases through www.expedia.co.uk.

For travel inspiration and tips visit our Facebook page www.facebook.com/expedia.co.uk

Expedia.co.uk is owned and operated by the Expedia Group. The Expedia Group delivers consumers value in leisure and business travel, drives incremental demand and direct bookings to travel suppliers, and provides advertisers the opportunity to reach a highly valuable audience of in-market travel consumers through Expedia Media Solutions. Expedia also powers bookings for some of the world's leading airlines and hotels, top consumer brands, high traffic websites, and thousands of active affiliates through Expedia(r) Affiliate Network. (NASDAQ: EXPE) For corporate and industry news and views, visit us atwww.expediainc.com or follow us on Twitter @expediainc. Trademarks and logos are the property of their respective owners. (c) 2016 Expedia, Inc. All rights reserved. CST: 2029030-50 . For more information, please contact Expedia Press Office on 0203 668 6910 or email at expediaukpress@thirdcity.co.uk.

About Airlines Reporting Corporation (ARC)
ARC powers the U.S.-based travel industry with premier business solutions, travel agency accreditation services, process and financial management tools, and powerful data analytics. In 2014, ARC settled $89.6 billion worth of carrier ticket transactions for more than 9,400 travel agencies with 13,000 points of sale. By providing world-class business services and products, ARC enables participating agencies and 200 carriers to focus on what's important—increasing their revenue. Established in 1984, ARC is headquartered in Arlington, Virginia. For more information, please visit www.arccorp.com.

About Expedia

Expedia is one of the world's leading full-service online travel agents offering access to hundreds of thousands of hotels including boutique hotels as well as major hotel brand names and access to over 400 airlines along with a wide selection of car hire and destination experiences. By combining choice with specialist tools to help refine these options, Expedia.co.uk helps travellers to find and create the trip that best matches their individual requirements. Now with the award-winning Expedia mobile app you can plan and book flights and hotels on the move. The Expedia app offers helpful tools to manage your trip including: airport terminal maps; hotel check out time and flight status notifications; maps to your hotel and a host of other features. Expedia.co.uk partners with loyalty programme Nectar in the UK enabling its customers to collect 200 Nectar points on flight only, hotel or car hire bookings and 1000 points on package purchases through www.expedia.co.uk.

For travel inspiration and tips visit our Facebook page www.facebook.com/expedia.co.uk

Expedia.co.uk is owned and operated by Expedia Inc. The company delivers consumers value in leisure and business travel, drives incremental demand and direct bookings to travel suppliers, and provides advertisers the opportunity to reach a highly valuable audience of in-market travel consumers through Expedia Media Solutions. Expedia also powers bookings for some of the world's leading airlines and hotels, top consumer brands, high traffic websites, and thousands of active affiliates through Expedia(r) Affiliate Network. (NASDAQ: EXPE) For corporate and industry news and views, visit us at www.expediainc.com or follow us on Twitter @expediainc. Trademarks and logos are the property of their respective owners. (c) 2015 Expedia, Inc. All rights reserved. CST: 2029030-50

For more information, please contact Expedia Press Office on 020 7395 7181 or email at expediaukpress@expedia.co.uk

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