U.S.TRAVELANDTOURISMOUTLOOKANDTRENDSResearch,Idea&PromotionTIAMissionStatement

ThemissionoftheTravelIndustryAssociationofAmericaistorepresentthewholeoftheU.S.travelindustrytopromoteandfacilitateincreasedtraveltoandwithintheUnitedStates.TravelandTourism-2003America’s3rdLargestRetailSalesIndustry$555billiontotalexpenditures$95billionintaxrevenueforfederal,stateandlocalgovernmentsOneofAmerica’sLargestEmployersEmploys7.2millionpeopledirectly.Tourismis1st,2nd,or3rdlargestemployerin30statesandtheDistrictofColumbia$158.4billionintravel-generatedpayrollSource:TravelIndustryAssociationofAmerica(TIA)WhereWeWereTumblingfromthePeaks

Between2000and2003Domesticbusinesstraveldown15%Domesticairlinetraveldown14%OverseastraveltotheU.S.down30%InternationalVisitorArrivalstoU.S.fromKeyCountries

2003 %Change Recoveryto

(inmillions)

2003/2000

2000ExpectedCanada 12.7-14% 2007UnitedKingdom 3.9-16 2006Japan3.2-37Beyond2007Germany 1.2-34Beyond2007France0.7-37Beyond2007Brazil0.4-53Beyond2007Argentina0.2-72Beyond2007Source:OfficeofTravelandTourismIndustriesBrightSpotDomesticLeisureTravel SlowbutsteadygrowthStayclosertohomeHighwaytravelShortgetawaysVisitstosmalltowns,ruralareasEconomizeTravelPerformance–FirstThreeQuarters2004

DuringJan–Sept,2004,domestictravelupnearly3%Leisuretravelup2.0%,exceededby6.8%gaininbusiness/conventiontravelStronggainsinairandhotelvolumeover2003InternationaltraveltoU.S.exceedingexpectationsSource:TravelIndustryAssociationofAmericaVisitorTrendsOccurringMore

inPastYearSource:TravelIndustryAssociationofAmericaPercentofTIAMembersReportingNTAOperators’ProductsSource:NationalTourAssociationPercentofNTAOperatorsRVTravelStrong7.8%ofallU.S.vehicle-owninghouseholdsownanRV,upfrom7.3%in19977.2millionRVsontheroad,comparedto6.4millionin1997RVShipmentsUp14%in2004RVRentalsUpNearly33%in2003and2004Combined6.4%ofRVRentalsbyInternationalVisitorsSource:RecreationVehicleIndustryAssociationNationalParksandPublicLandsNationalParkVisitationup4%throughNovember2004;SaleofParkPassesup8%SeeAmerica’sNationalParkspartnershipwithTIA,NationalParkServiceandNationalParkFoundationTravelPolicies–AirBusinessTravelers

2004and2002Source:TravelIndustryAssociationofAmericaandNationalBusinessTravelAssociationPercentofAirBusinessTravelersAlternativeTechnologiesUsedByBusinessTravelersinPastYear,2004Source:TravelIndustryAssociationofAmericaandNationalBusinessTravelAssociationPercentofBusinessTravelersEffectivenessandEfficiencyofTechnologytoReplaceTravel,2004and2002Source:TravelIndustryAssociationofAmericaandNationalBusinessTravelAssociationPercentofAirBusinessTravelers–TopTwoBoxesAUTOTRAVELPERFORMANCEU.S.autotravelup2%throughSeptember2004Stillholdingupdueto:Shiftsfromair,especiallyforshort-distancetripsCloser-to-hometravelIncreasinginterestinfamilytravelIncreasedinterestinRVsAirlineTurbulenceDomesticairtravelup5%over2003,butstill10%below2000.Internationalisup14%over2003,butbetteryet,up5%over2000.ExchangeratesmakeU.S.evenmoreofabargainUSAir,UnitedandATAinbankruptcyAirlinelosses$8billionin2004;$23billionbetween2001-2003U.S.HotelPerformanceStrengthensIn2004Source:SmithTravelResearch%ChangeoverPriorYearChangestoDomesticAdvertisingandMarketingProgramsSource:TravelIndustryAssociationofAmericaAmong90%ofMemberswithDomesticMarketingProgramsWhereareWeGoing?Americans’EconomicAssessmentsAreMixed41%nowrateeconomicconditionsaspositive,upslightly48%sayeconomygettingbettervs.42%whosayitisgettingworseNoticeabledeclineincitingeconomyasmostimportantproblemfacingAmerica–now30%vs.38%-40%inautumnof2004Only33%saysit’sagoodtimeto“findaqualityjob”,vs.62%whosayit’sabadtimeSource:GallupSurveysU.S.LeisureOutlookLeisuretravelintentionsremainstrongTrendsofthelastfewyearswillcontinuebutsomereturntomorenormalpatternsGrowthinairtravelexceedingthatofautotravelContinuedfocusonfamilyandconnectionsbutgreaterparticipationinotheractivitiestooSpendingup4%in2004over2003DomesticLeisureTravelWillContinuetoGrowSlowlyMillionofPerson-TripsSource:TravelIndustryAssociationofAmericaDomesticBusinessTravelWillRisebutStillBelow2000LevelsMillionsofPerson-TripsSource:TIAandGlobalInsightNote:Doesnotincludecombinedbusiness/leisuretravelU.S.HotelPerformanceExpectedtoRemainHealthyin2005Source:SmithTravelResearch%ChangeoverPriorYearForecastsforGrowthinU.S.DomesticTravel,2005

TotalDomesticPerson-Trips 2.0%Leisure 1.7%Business 3.6%Auto 2.0%Air 2.0%HotelRoomDemand 3.0% Source:TIA,ATA,SmithTravelResearchInternationalVisitsExpectedtoIncreaseAgainin2005ArrivalsinMillionsSource:OfficeofTravelandTourismIndustries(OTTI)TravelExpendituresWillContinuetoRisep=preliminary;f=forecast

BillionsSource:TIA;OTTIOnlineTravelPlanningSteadyandBookingContinuestoRiseSource:TravelIndustryAssociationofAmericaMillionsHowWeSellandDistributeTravelChangedForever

InternetforleisureandbusinessPricingmoretransparent;consumerincontrolEncourageslatebookingsIncreasescompetitionOnlinehotelsalessoaringWhat’sAhead?LongTermTrendsWhowillbetomorrow’stravelersandwhatwilltheydo?Howwilltechnologyandchangingwork/leisurepatternsaffectthenatureoftravelplanningandtravelitself?Howwillwereachthem?Whattypesoftourismarelikelytogrow?KeyDemographicTrendsAgingofpopulationChangesinhouseholdsRisingeducationGeographicshiftsCulturaldiversityInfluenceofwomenGrowingnichemarketsPercentChangeinPopulationbyAge,2010/2000and2020/2000(PercentChange)Source:U.S.BureauoftheCensus“Junior”Matures(Age55-64)MoreLikelyThanOtherTravelersTo……TravelfartherawayfromhomeStayawayfromhomelongerIncludetwoormoredestinationsinonetripEngageinmoreactivitiesTravelwithonlyoneotherhouseholdmember,likelytheirspouseSpendmorepertripSource:TIAMaturityTrendsIncreaseinadult-onlytravelpartiesSlowergrowthintravelerslookingfor“traditional”familyexperiencesInterestinlocalheritage&cultureincreasesMaturialismImportantReasonsforU.S.FamilyVacationsSources:BetterHomes&GardensandTravelIndustryAssociationofAmerica(%of2002FamilyVacationers)FamilyTogetherness 87%GetAwayfromStress 74RestandRelaxation 71VisitFriends/Relatives 62Excitement/NewExperiences 50 PhysicalActivity 43NewPlaces/People 43ForLuxury/FeelPampered 25Top10ActivitiesAmongU.S.DomesticTravelers,2003Shopping 30%Social/FamilyEvent 27OutdoorRecreation 11City/UrbanSightseeing 10RuralSightseeing 10BeachActivities 10HistoricalPlaces/Museums 8Theme/AmusementPark 7Gambling 7National/StateParks 7Source:TIA81%ofTravelersIncludedCultural/Arts/HeritageActivitiesonTripsinPastYearSource:TIAandSmithsonianMagazineCultural,Arts,HeritageorHistoricActivitiesIncludedonTripsinPastYear

(%ofU.S.Adults)Source:TIAandSmithsonianMagazine

MoreOlderWomenLivingAloneMillionsMenWomenSource:U.S.BureauoftheCensusMillennialGeneration–GreatPotentialfortheFutureChildrenoftheBoomersBornbetween1977and1994;10–27yearsofagein200472million,28%ofpopulation13%ofthoseage20–24werebornoutsidetheU.S.MillennialGeneration–GreatPotentialfortheFutureRaciallyandethnicallydiverseVeryindependentFeelpowerfulButofthoseage20–24,50%ofmenand36%ofwomenstilllivewithoraredependentonparentsMedia-savvyTechnologyleadersTravelbyMinorityGroupsIncreasingHispanics 77.1million person-trips(8%oftotal)African-Americans 75.2million person-trips(7%oftotal)Asian-Americans 33.1million (3%oftotal)Source:TIAEthnicGroupstoGrowto50%ofPopulationby2050%DistributionofPopulationSource:U.S.BureauoftheCensusHispanicswillIncreasinglyDominate

MillionsSource:U.S.BureauoftheCensusChangingNatureofWorkandLeisureBlurringofboundariesofspaceandtimeforworkandleisureDramaticgrowthinworkflexibilityReducedneedtotravelsolelyforbusiness,butcombinedbusiness/leisureandleisuretravelwillgrowBothbusinessandleisuretravelmoremotivatedbyself-actualizationConsumerTrendsLikelytoBuildMorefocusondoingwellwhiledoinggoodGrowinginterestinmakingcontributiontosocietyCouldstimulaterisein“Volun-tourism”IncreasingemphasisonqualityoflifeandlifestyleenhancementRisingemphasisonenvironmentandsustainabilityConsumerTrendsLikelytoBuildEducationmorerecognizedandpromotedasalifelonggoaltoenhanceself-actualization-personalbestLeisureaslearning

TypesofTourismLikelytoGrowVisitFriends/Relatives/Reunions/IntergenerationalandGrand-Travel CombinedBusinessandLeisureTravelSecondHomesandTimeShareDestinationSpasEnrichmentTourismTypesofTourismLikelytoGrowHealth/Revitalization/Life-EnhancementTourism:PeterPangeneration;saynotoagingEco-TourismandSoftAdventureSpaceTourismInternationalTravel(InandOut-Bound)VirtualTravelConclusionsGrowthininternationaltraveldemandexceedingdomesticForecastsforsimilar,althoughsomewhatslowerdemandgrowthin2005Despiterisingdemand,somesectorsstillstrugglingfinanciallyRisingfuelcosts,sluggishjobgrowthandslowereconomicgrowthwillcontinuetomakefinancialrecoveryelusiveforsomeInternetwillcontinuetogaingroundinmanyaspectsoftravel

ConclusionsRenewedsenseofoptimism“Uptoustoseizetheday”(JamesRasulo,President,WaltDisneyParks&Resorts“Itistimeforustosoar!”(RogerDow,President&CEO,TIA)Strivetowardenhancingtourism’sinfluenceasatoolforworldpeaceandrestoringourimagearoundtheworldInternationalPowWow?istheU.S.travelindustry'spremierinternationalmarketplaceandisthelargestgeneratorofVisitUSAtravel.InternationalPowWow

HistoryFirstHeldin1969CommodoreHotel,NewYorkCity68U.S.TravelSuppliers67EuropeanTourOperatorsInternationalPowWowIs…NOTatypicaltradeshow.Morethan1,000U.S.travelorganizationsfromeveryregionandindustrycategoryoftheUSAMorethan1,500internationaldelegatesanddomesticbuyersfrom70+countriesThreedaysofintensivepre-scheduled,computer-generatedbusinessappointmentsmatchingbuyers&sellers–44appointmentslots30,000+appointmentsInternationalPowWow

ComputerizedAppointmentPriorities1.

MutualInternationalBuyerandU.S.Supplierrequests2.InternationalBuyeronlyrequests3.MutualDomesticBuyerandU.S.Supplierrequests4.DomesticBuyeronlyrequests5.U.S.Supplieronlyrequests(uptofive)6.InternationalJournalistrequests7.VisitUSACommitteerequestsPremierbuyersarepre-qualifiedbasedontheirprovencapabilitytoselltheUSAasatraveldestinationBusinessnegotiationsthatresultinbillionsinfutureVisitUSAtravelSeveralhundredmilliondollarsgoesdirectlytoHostCity&State“AtInternationalPowWow,buyersandsellersareabletoconductbusinessthatwouldotherwisebegeneratedonlythroughanexhaustivenumberofaround-the-worldtrips.”InternationalPowWow20055,500+TotalDelegates3,000+U.S.Suppliers1,000+U.S.Companies1,200+Booths1,500InternationalDelegatesandDomesticBuyers70Countries400InternationalandDomesticPressPressProgramWorkingPressRoomMediaMarketplacePressBriefingRoomsPressKitRoomPowWowNewsServiceonCDOnlinePressReleaseProgramPowWowDailyAdPackagesPressBookAdsPressRoomMediaMarketplaceArecord-setting397journalistsattendedInternationalPowWowinLosAngelesfromallthetoptourist-generatingnationsintheworld.InternationalAndDomesticPressNetworking,Entertainment&GreatBusinessSeeAmericaMarketplaceHall

Lunchfor5,000KeynoteandInvitedSpeakersGlennTiltonBillMarriottAlGoreGov.BushGov.SchwarzeneggerEntertainmentEveningEventsarefunandmakegreat….…..NetworkingOpportunitiesScheduleofEventsRegistrationBoothSetupSightseeingToursPressEventatMOMAOpenEveningforallothersTuesday,May3ScheduleofEventsRegistration,BoothSetupCont’dSightseeingToursOrientationSessionMarketUpdateOpeningEveningEventatRockefellerCenterWednesday,May4ScheduleofEventsRegistrationRibboncuttingBusinessAppointmentsMediaMarketplaceLuncheonwithKeynoteAddress–HenrySilverman,Chairman&CEO,CendantEveningEventatTime/WarnerbuildingThursday,May5ScheduleofEventsRegistrationBusinessAppointmentsLuncheonwithaBroadwayShowcaseOpenEveningforPrivateEventsFriday,May6ScheduleofEventsBusinessAppointmentsClosingLuncheonClosingEveningEventatEllisIslandSaturday,May7Sunday,May8

DeparturesTIAMarketingGoals:PromotetraveltoandwithintheUnitedStatesSeeAmericabrandleverageCoopopportunitiesforallorganizations,largeandsmallAddedvalue

TosetthestageforthousandsoftravelindustryorganizationswhowanttospeakthesamelanguageinthemarketplaceToleverageeveryone’sfundsformutualbenefitTIAStrategyTrade:SeeAmericaWeeks,SeeAmericaPavilions,directmail,onlinepromotionsMedia:PR,MediaMarketplaceTIAStrategyConsumer:coopadvertisinginsertswithcomplementaryeditorialSeeA:OnestopshoppingforU.S.travel

our

NationalBrandSeeAmericaThemes2002GreetingsFromAmericaPartnershipwithUSPS2003SeeAmerica’sBywaysPartnershipwithDept.ofTransportation2004SeeAmerica’sNationalParkspartnershipwithNationalParkServiceandNationalParkFoundation2005ThemeSeeAmericaTreasureHuntGameandSweepstakes

Onlinegamewithcategories,(think“Jeopardy”meets“WhowantstobeaMillionaire?”);i.e.NationalParks,America’sByways,Americanmovies,etc.SeeAmericaTreasureHuntGameConceptCont’dEngagepeoplebyactivityinterestorgeographicinteresttoencouragevisitation.Allgameanswerslinkedtoappropriatewebsites.TIMING

LaunchedUKatWTMwithmoviecategoryonlytotieinwithDOCcampaignLaunchinternationalatITBLaunchdomesticatPowWowGameCategories

NationalParksScenicBywaysAmericanMoviesRecreation&OutdoorsAmericanCitiesAmusementParksFamousAmericansHistoricalSitesFamousPlacesJustforFunStatesSweepstakesStructureQualifiedentry:youmustanswerthreequestionstobeenteredintothesweepstakes.Prizes:ProposedU.S.trips,eachwithatheme:America’sGreatestCities&AmtrakNationalParkstrip:FourCornersthroughLasVegasgatewayThemeparks:OrlandoMovies:HollywoodFingerLakes/NiagaraFallsAlaskaCruiseSweepstakes,Cont’dViralComponent:sendsweepsentrytothreefriendsandgetanadditionalentryforyourself.Collectnames(optin)forfutureemailmarketing.U.S.CoopAdvertisingOpportunities2005Reader’sDigest–MarchIssue(soldout)USAToday–May6&September16Natio