Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, at this time, we will begin the question and answer session.
(Operator Instructions)
Our first question comes from Heath Terry with Credit Suisse First Boston. Please go ahead.
Heath Terry - Credit Suisse First Boston
I was wondering if you could talk to us a little bit about the decline in conversion rate, and maybe a little more on what you think the specific drivers behind that could have been, particularly if you can give us an idea of whether or not you believe the direct channel, people using Expedia for pricing information and then going directly to the airlines or hotel sites is becoming a bigger issue.
Dara Khosrowshahi
Heath, it is very difficult to tell exactly what is happening to conversion rates because it is a mix of exogenous factors and it could be a mix of internal factors, so we certainly see increased competition from supplier direct, from other OLTA’s, as it relates to us, especially in the packages path. The other OLTA’s, as far as their messaging, are much more focused on packaging messaging.
Our older, prior kind of marketing messages were much more focused on packaging, and our marketing message at least in Q1 was much more general. So I do think there is certainly an element of more competition there from other online travel agents, as well as supplier direct, but it is really hard for us to exactly quantify that.
There were also some specific issues having to do with our site, ways in which that we do think that we an execute better on conversion, both from a technology standpoint, from a supply standpoint, and those are short-term issues that we are working on. But we certainly do not expect the competition to get any easier going forward.
Heath Terry - Credit Suisse First Boston
Great. Thank you.
Stu Haas
Thanks, Heath.
Operator
Thank you. Our next question comes from Robert Peck with Bear Stearns. Please go ahead.
Robert Peck - Bear Stearns
Hi, this is Anthony, in for Robert Peck, who is traveling. I have two quick questions, just following from the last question. I wanted to know if you could discuss the level of competition with international business. I think last quarter you talked about increased competition from tour operators. I wanted to get some more color there. How has that landscape changed? If you could focus in particular on the German market. I think the last quarter you also talked about that market was particularly weak. I wanted to know what has changed in Q1.
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