EX-99.1 2 a05-4803_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

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Allen & Company

Arizona Conference

 

March 8, 2005

 

Property of priceline.com incorporated. All Rights Reserved.  3/1/04

 



 

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.

 

2



 

Recent Online Travel Stock Performance

 

Indexed Stock Price Performance: Last 3 Months

 

[CHART]

 

3



 

Online Travel Gross Bookings Performance

 

Gross Bookings Growth (Yr/Yr)

 

[CHART]

 

4



 

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

 

5



 

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

 

6



 

                  What drove purchasing decisions during hyper-growth phase (2000-2003)?

 

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                  What drives purchasing decisions today?

 

•     Price:

 

52

%

 

 

 

 

•     Trust:

 

14

%

 

 

 

 

•     Ease of Use:

 

13

%

 

 

 

 

•     Convenience:

 

10

%

 


Source: Goldman, Sachs Research

 

8



 

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

 

 

 

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[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

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

*

 

**

 

 

 

 

 

 

 

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

 

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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

 

 

 

 

 

 

 

 

 

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

 

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See More Discount Airfare Options

 

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Choose Exact Flights and Times

 

11



 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Compact

 

$19.99/day

 

$19.99/day

 

$19.99/day

 

$19.99/day

 

$19.99/day

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid-size

 

$19.99/day

 

$19.99/day

 

$19.99/day

 

$19.99/day

 

$19.99/day

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

•     Hotels:

Up to 40% savings vs. Expedia, Hotels.com, Travelocity

 

 

•     Packages:

Save up to $200

 

 

•     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

 

 

 

[GRAPHIC] Hotel Experts

 

 

 

[GRAPHIC] Everything for Your Trip

 

 

 

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[GRAPHIC] Two Great Ways to Save
Choose Your Flights & Times or Name Your Own Price®

 

 

 

[GRAPHIC] Best Hotel Prices Guaranteed!
Save up to 40% over leading online sites!*    More Info

 

 

 

Best Rental Car Prices Guaranteed! [GRAPHIC]
Save up to 25% over leading online sites Details

 

15



 

                  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

 

16



 

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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