January , 2004

1. Leveraging Rich Media Content Such as 360 Images and Video to Drive More Bookings for Your Hotel: January , 2004

2. The Opportunity It starts with the Internet… • In 2004, hotels will generate 15% of their bookings directly on the Internet. Since 50% of Americans who research travel online book offline (PhoCusWright), another 15% of hotel bookings will be generated offline from consumers who researched online. • On average, leisure travelers visit 4 to 7 websites when researching properties online with business travelers visiting 3 to 5 websites • Travel sites such as Travelocity and Expedia not only account for almost 50% of hotels’ online bookings but also play a key role for driving traffic back to the hotels’ own sites: for every person who books a hotel on one of these sites another one “discovers” the hotel on those sites and then goes back to the hotel’s own website to make the booking www.vfmii.com

3. Why Interactive Content? “The travel category has been entirely transformed by online marketing — of all product categories surveyed, interactive marketing has impact, and often the greatest, at every stage of the purchase process.”- DoubleClick, March 2003 Most Influential Media on Learning Stage of Purchase Process (DoubleClick): www.vfmii.com

4. Why Rich Content? (cont’d) It’s about what drives the online traveler’s booking decision…. • Location • Expected Consumer • Experience Perceived Value • Price www.vfmii.com

5. What’s Rcich Content Got To Do With It? (cont’d) It’s about what communicates a hotel’s “Consumer Experience” to the online traveler… • Rich Content: • Still Images • 360 Virtual Tours • Flash • Audio Clips • Slide Shows • Video Clips • Etc. Branding (the Brand’s “Message”) Merchandising (the Hotel’s “Message”) Distribution (Delivering the “Message” when/where the online traveler is researching/booking travel online) • Online Travel Points • of Purchase & Research: • Your Own Website • Brand Website • 3rd Party Travel Sites www.vfmii.com

6. Why Rich Content? (cont’d) It’s about the power of Rich content… • Rich media generates click-through rates 4X to 5X the average for non-rich media (DoubleClick, May 2003) • A January 2002 study by Carlson showed that Radisson hotels using VFMI rich media generated an average of 52% more online revenue from the Radisson.com website (alone) than hotels that did not • VFM Interactive hotel rich content generates click-through rates of 12% www.vfmii.com

7. Conclusion For Hoteliers • The Internet is the most important influencer of the travel buying decision • Online travelers choose hotels based on “perceived value”, a function of the expected consumer experience and price • If you are not competing based on the consumer experience, then you are competing based on price • Rich content can help you to effectively merchandise your hotel’s expected consumer experience • You Need Rich Content ! • You Need a Rich Content Distribution Strategy ! www.vfmii.com

8. VFM Interactive Inc. • VFMI produces video and other content specifically designed to drive more bookings for your property • VFMI draws attention to your unique value, and sells your hotel on its special features, not on price • VFMI is an approved vendor to Marriott, Starwood, Wyndham, Carlson, Choice, IC Hotels Group, Interstate and others • VFMI distributes interactive content on a subscription basis for more than 700 individual hotel and resort properties www.vfmii.com

9. Distribution Network (cont’d) • Your content is then distributed to over 5000 travel websites and affiliates including: www.vfmii.com

10. Distribution Network (cont’d) • Your content is posted on travel websites with which your property and VFM Interactive has a mutual relationship • The content icon clearly stands out and differentiates your hotel from your competitors • VFMI allows you to receive a unlimited number of playbacks to satisfy the consumers need to view your property before booking www.vfmii.com

11. Distribution Network (cont’d) www.vfmii.com

12. Distribution Network (cont’d) www.vfmii.com

13. Distribution Network (cont’d) www.vfmii.com

14. The VFMI Interactive Content Exchange ASP • VFMI Viewer Features: • Displays available electronic media for a hotel (photos, virtual tours, video, etc.) • Easy navigation • Can deliver unlimited number of images and other hotel content • Extensive tracking Confidential

15. What are Hotels and Travel Distributors Saying ? “VFM Interactive’s hotel and resort videos are another great source of relevant information that we are now able to provide to our users to enhance their travel research experience on TripAdvisor.” Steve Kaufer, CEO, TripAdvisor "Visual and audio content is becoming increasingly more important to the online leisure travel market. We elected to work with VFM Interactive because of the company's wide coverage of hotels and resorts, quality content and efficient ASP content delivery platform." Rick Miller, Director of e-Marketing, Mark Travel Corporation “This type of tool is clearly the future of hotel marketing and will help us build demand for our hotel.” Jay Dahlke, Director of Sales & Marketing, Courtyard by Marriott New Orleans www.vfmii.com

16. Contact Information VFM Interactive Inc. info@vfmii.com Tel. 416.593.6634 Toll Free 877.593.6634 www.vfmii.com www.vfmii.com