American Historic Inns

1. American Historic Inns Bed & Breakfast Promotion and Sampling Opportunities

2. Our Story • Provide easy access and great motivation for travelers to explore B&Bs • Industry leader for market research • Represents the best of 19,000 B & B’s in North America • Provide single point of access to the inn guest and innkeepers • Value added promotions • A pioneer in the Bed & Breakfast and Country Inn industry • Founded in 1981 • First guidebook published in 1987 - Selected by Book-of-the-Month-Club • Won several publishing awards including “Book of the Year” - Publishers Marketing Association. • Established strong internet presence for B&B Industry • www.iLoveInns.com

3. The Inn Guest • 93% have some college or college degree • 48% have household income in excess of $90,000 • 77% are between the ages of 25 and 54 • Travel primarily as couples • 50% are leisure travelers • 24% are celebrating special occasion • 8% on business trip (21% for urban inns)

4. Promotion Opportunities • Product Sampling • In Pack & On Pack • Gift with Purchase • Incentive Programs • Custom Tie-Ins • Customer Loyalty/Rewards Programs • Experienced Innkeeper Support • Integrated Programs

5. Inn Guidebook In Stock or Custom • In-stock guidebooks • Range from 500-1000 pages • Illustrated with full property descriptions • Easily used in reward programs, incentives and as corporate gifts • 96-Page Book • 5.5" x 8.5" • Four color front and back cover • Approx. 1,500 Inns listed • 8 Customizable pages • 40-Page Book • 4" x 6" • Four color front and back cover • Approx. 500 Inns listed • Customizable Greeting Page

6. Free Night Program • High Value/Low Cost Promotion • Buy-one-night-get-one-night-free • More than 1,500 participating inns nationwide • Value up to $650, average $140 value • Inn picks up cost of free night • Can be delivered in several different formats • Inn Guidebook • CD Inn Guide • Point-of-Sale Coupon • Web-Based "In all my years working in the marketing/promotion business, I have to say that The Bed and Breakfast "Free Night" Promotion was probably the most exciting, impactful program I worked on. The program is so unique because it perfectly targets the right consumer and provides them with such a high value offer, making it impossible to pass up. The program was always successful in moving sales in businesses such as Amtrak Travel, Wamsutta Home Products and Lipton Herbal Teas - it truly is a program that works with so many different businesses." "From an execution standpoint, it was one of the most turn-key, easy-to-implement type of programs so brands were thrilled to repeat it again. Rarely can you say that about any promotion!" - Laura Tessinari, Ogilvy and Mather

7. Themed Programs Cookbooks & Recipes Calendars Sun & Fun Shopping Cultural Centers Landmarks Arts & History Adventure 100 Most Romantic Inns Hideaways Orchards Ranches Holiday Old West Wine Country Regional Sports Health & Beauty Spas Historic Inns Country Inns Family Pets Nature Books & Authors American History Wedding sites Family Reunions

8. Product Sampling The Experience is the Marketing Key Findings* • Experimental marketing drives purchase and consideration across age, gender and ethnicity • 70% of consumers say participating in experimental marketing would increase purchase consideration • 66% say experimental marketing is extremely/very influential on brand/product opinion • 57% say participating in experimental marketing would result in quicker purchase • 70% of all consumers say they would be much more likely to try a product or brand after participating in a live event marketing experience associated with something they enjoy • 9 in 10 say the most important thing they want from marketers is to “give me information about the brand/product” • Consumers say that seeing/trying through experience is the most effective way to get that information • 8 in 10 consumers who have participated in a marketing experience told others about it • 7 in 10 consumers say participating in a live experience would make them more receptive to the brand’s marketing “This is a very smart program for new products and we hold good memories of it.”   - Publicus Dialog Regarding a Tasters Choice program * According to Jack Morton’s 2004 Experimental Marketing Survey

9. Product Sampling • National or Regional / Large or Small • Reach up to 10 million Inn Guests each year • Product can be served by Innkeeper • Program tailored to meet your sampling velocity requirements • Target by market and class of Inn • Position product as part of the Inn Guests experience • Reach 3 times the amount of guests/consumers in one weekend of inns sampling compared to in-store sampling (typical sampling program runs one month) • Innkeepers stores product on site at no extra cost “I just wanted to tell you that THIS Senseo Promo has to be the best ever! My guests are going crazy for this promo and they absolutely LOVE the coffee. My guests wait in line to make their cup and chat…they all want one and they are taking the coupons anxious to buy a unit for there homes.  THIS IS THE BEST!” — Cupids’ Castle B&B, Pauma Valley, Calif.

10. Product Sampling • Generate Consumer • Awareness • Trial • Preference • Gain Immediate Feedback and results • No other sampling venue provides the personal service of Bed & Breakfast Inns • By “word-of-mouth”, expand brand/product marketing well beyond sampling venues • No other sampling venue provides the personal service of Bed & Breakfast Inns

11. Product Sampling Inn Distribution

12. Success Story Nabisco • Objective Run five years in a row, this was the most successful promotion in Nabisco History to increase sales of their specified products • Offer Advertised on-pack, FSI and in store, consumer sends in UPC from product and then received an Inn Guide with Free Night offer. • Results Unprecedented sales growth nationwide and high ROI

13. Barbara Naylon Marketing & Promotions American Historic Inns, Inc 249 Forest Avenue Laguna Beach, CA 92651 (949) 497-2232, ext. 305 (949) 497-9228 Fax barbara@iloveinns.com www.iLoveInns.com