GROUPADVERTISING2010-2011

AUSTRALIA

Cairns

Darwin

Perth

BrisbaneGold Coast

Blue Mountains Wellington

Nadi

AucklandWaitomo

Paihia

RotoruaTaupo

QLD

NSW

TAS

VIC

WA

NT

SAByron Bay

Sydney

NEWZEALAND

FIJI

Hervey Bay

Noosa

Airlie Beach

Cape Tribulation

Adelaide

Fremantle

Alice Springs

Melbourne

TongariroNational Park

Queenstown

NomadsNomads was born in February 1994 with ourfirst hostel opening in Adelaide, South Australia.Since then we have worked quietly behind the scenesto build the number of properties within the groupand today have one of the largest independent chainsin Australasia.

Nomads currently has over 30 hostels throughoutmajor destinations in Australia, New Zealand and Fijiand we are still growing. We now have an extremelystrong Australian network of properties and MadTravel shops, with our latest acquisitions in ByronBay, Noosa, Hervey Bay / Fraser and Airlie Beachfilling in the east coast run for us. Our interests inNew Zealand have also grown significantly with theintroduction of Nomads Auckland, several newaffiliate properties and our flagship for NZ, NomadsQueenstown.

The Nomads Mad Card & Guide (formerly theNomads Adventure Card) has sold over 20,000 pluscopies in Australia and New Zealand since its launchin September 2008. Cards are sold both domesticallyand internationally andmost recently have also beenavailable to purchase through our online bookingsystem.

In 2009 our hostel tour desks were transformed toMAD Travel shops and they became a major focuswithin our business. This decision paid off for us, wecurrently have 13 branded shops across Australia andNew Zealand. In 2010 we appointed a GeneralManager for Mad Travel to assist us with furtherexpansion plans we have for the Mad Travel Brand tohelp further solidify our place as a key player in retailtravel.

some nomads history

HOSTELS30+

Nomads bed numbers.....

our targetnumbers

WHERE OUR GUESTS ARE COMING FROM....

LOCATIONS AND BED NUMBERS

COUNTRY OF ORIGIN 2009

Nomads is providing you with the strategic opportunity toshowcase your product & service throughout our Australianand New Zealand network of hostels, mad travel stores andMad guide in the following areas:

11.. IInn--hhoouussee AAddvveerrttiissiinngg iinn NNoommaaddss HHoosstteellss aanndd MMaadd TTrraavveell SShhooppss::We have identified advertising placements throughout our hostels,these are great visual locations in high traffic and communalareas.

please see attachment 1 for individual property placements.

22.. MMAADD BBooookk aaddvveerrttiissiinngg::The new edition will be launched in 2011 and we're expecting toexceed the sales of 2008-2009 of 15,000 copies. MAD bookadvertising gives you the reach throughout Australia, New Zealandand Fiji.....backpackers do travel with the guide.

Books are sold throughout our hostels and travel network, as wellas many of our domestic and international agents.

With three major cards in the market, we've strategically positionedthe MAD Card with a major point of difference - tear out vouchers.In 2010 the voucher value is $1200, added to that the MAD card offersthe holder discounts on accommodation and tours. For 2011 we arelooking to increase the value of the vouchers and discounts.... thishas shown to be an extremely effective selling tool for the card.

The MAD book is printed in a DL sizedbooklet, easy for the travellers to takewith them. The card and book arepackaged in a printed plastic pouch...please see examples below.

33.. JJooiinntt aaddvveerrttiissiinnggNomads will be producing a range ofmarketing collateral this comingyear, below is a list of examples thatwe would be happy to co-brand

with....we are open to suggestions from operators who may haveinnovative ideas:

• Shopping Eco Bags• Sleeping Masks / ear plugs• Luggage tags• Media...you tube movies etc

44.. MMaajjoorr ssppoonnssoorr ffoorr oouurr aannnnuuaall MMaadd TTrraavveellmmaarrtt

May 2009 was the first “Mad Travelmart', held in Byron Bay. Sixteensuppliers attended this event which allowed each supplier to haveface to face training with our key front-line travel sales people andmanagers.

The structure of this event is similar to speed dating, we run a seriesof 10 minute training session and our staff rotate through all theoperators.

This format works for everyone, it gives operators and our staffaccess for training outside of their normal busy work environmentand the ability to get the most from the trainings. Our inauguralevent proved to be a huge success.

Mad Travel now has 13 stores across Australia and New Zealand, wehave experienced massive growth over the last 12 months. Theappointment of a general manager for Mad Travel is an example ofour desire to build on this.

Due to the success of 2009 we will be holding the “Mad Travelmart"again in September 2010 (location to be advised). We would like toagain offer operators the opportunity to showcase their products toour key sales agents.

The participation costs help us to cover the flights andaccommodation for our staff. We see this as an integral trainingground for all staff and want as much exposure to product trainingas possible.....for us, getting them in an environment away from theoffice has shown sales results.

(PART A)

Advertising

Opportunities

nomads

1. In-house Advertising in

Nomads Hostels and Mad TravelShopsWe have chosen a more visual and contemporary way tohave advertising in our hostels. We want our advertisers tochoose visual images that attract attention instead ofwords and posters that people these days ignore.

Each poster will be put on a highly durable stretchedcanvas product that we have found, logos can only beplaced in the bottom right hand corner and can be nobigger than 1/16 of the image.

We are going to be more forceful about our propertiesappearances and unauthorised putting up of posters byoperators not a part of our media focus will not be allowed.

Nomads will be arranging the printing and this is includedin the total cost of advertising.

Operators will be given first right of refusal for the followingyear. Second year costs will be minus any set up costs toencourage year on year support for this project.

Please see appendix 1 for the terms and conditions as wellas the booking sheet.

2. Mad Book Advertising

Advertising options, print set up details and prices are inattached document for mad book.

Please see appendix 2 for the terms and conditions as wellas the booking sheet.

3. Joint advertising

We are interested to find products to be co-branded, ouraim being to get brand exposure for both parties and tocover our cost of production ....open to any and allsuggestions.

• Operators interested for Australia please contactjanine@nomadsworld.com

• Operators interested for New Zealand please contactjustine@nomadsworld.com

4. Major sponsor for our

annual Travel Mart

This is an excellent opportunity to get face to face with ourkey sellers at each MAD Travel Store from Australia andNew Zealand.

Each year we put together packs for the staff and we'reinterested in companies that would like to add something tothe pack. For example; pens/ t -shirts/ thongs. Sponsorshipfor the bags is also possible.

Your confirmation includes attendance for one staffmember and lunch during the day of the Travel Mart. Logosfor all companies attending will also be part of literaturefor the day.

The cost for company attendance is $400. ($50 for secondstaff member)

If you wish to participate in this years mad travelmartplease advise us of your interest before July 1st 2010.Further details will be sent closer to the time with venueand confirmed date.

Advertising Details

Appendix 1

HOSTELHostel Name:

Size/ placement:

Hostel Name:

Size/ placement:

Hostel Name:

Size/ placement:

Hostel Name:

Size/ placement:

MAD TRAVEL SHOPHostel Name:

Size/ placement:

Hostel Name:

Size/ placement:

For those wanting more placements please submit multiple forms

ARTWORK DETAILSwe will confirm the artwork specs with the confirmation of your booking.All artwork please send to: Janine@nomadsworld.com

TERMS & CONDITIONS

AdvertisingRATES

$

$

$

$

$

$

AUSTRALIA NEW ZEALANDJanine Schoeman Justine Brownjanine@nomadsworld.com justine@nomadsworld.comTel: 02 9280 4110 Tel: 09 300 9999Fax: 02-9280 4114 Fax: 09 302 0065

For further details or to discuss any aspect of this offer please feel free to contact us

Date

Name (please print)

Company

Total Cost

I have read and agree to the terms and conditions Y N

• No prices are to be included on any advertisement, companylogo can be placed on bottom right corner, no bigger than1/16 of the image.

• It is the responsibility of the advertiser to supply finishedartwork in the specified format for the production of theadvertisement.

• It is the responsibility of the advertiser to adhere to thefollowing deadlines:• Booking request needs to by sent by May 1• All advertising must be paid by May 15• Supply finished artwork (including colour proof) needs to besent by May 15• Cancellation made after May 15 must be in writing and incura 50% cancellation fee.• The advertising will be printed on the 1st June 2010, ads notcancelled by this time will proceed and may bepublished using any artwork available to the publisher oncefinal layout is completed.

• The adverts will be displayed in the hostels from July 1.• It is the responsibility of the advertiser to supply finishedartwork in the specified format for the production of theadvertisement.

• The publisher reserves the right to decline any advertisementfor any reason.

• The publisher cannot be held responsible for any loss ordamage arising in relation to or in connection with anymaterial supplied, or by alteration, or omission of anyadvertisement.

• It is understood that the preferred positions are notguaranteed and are a request only. We will work on a first infirst served basis.

• It is understood that any advertising in the MAD book does notin any way guarantee sales.

AUSTRALIA NEW ZEALANDJanine Schoeman Justine Brownjanine@nomadsworld.com justine@nomadsworld.comTel: 02 9280 4110 Tel: +64 9 300 8258Fax: 02 9280 4114 Fax: +64 9 302 0065

For further details or to discuss any aspect of this offer please feel free to contact us

APPENDIX 2

MAD GUIDERATES

ARTWORK DETAILS:Double page spread Trim Size: 198mm wide x 210mm high

Bleed Size: 208mm wide x 220mm high

Allow 10mm gutter on spineFull page bleed Trim Size: 99mm wide x 210mm high

Bleed Size: 109mm high x 220mm high

Half page 83mm wide x 95mm high

Voucher Please supply the text and logo for the voucher

ARTWORK CHECKLIST:• PRESS QUALITY PDFs ONLY • Artwork must be supplied at correct size with correct bleed,

if required, and trim area indicated with crop marks• Images must be at a resolution 300dpi or higher • Images in CMYK format, no spot colours• All fonts embedded or converted to outlines• A hard copy proof must be supplied with material.

TERMS AND CONDITIONS:

AUSTRALIA (AUD)Inside front/ back cover $2300

Back cover $4000

Double Spread $2300

Full Page $1900

Half Page $1500Voucher $200Voucher payment only required for businesses with no advertisement in the guide. Payment is for 6 vouchers

NEW ZEALAND (NZD)Inside front/ back cover $2900

Back cover $5000

Double Spread $2900

Full Page $2400

Half Page $1900Voucher $250

• Advertised rates have to be valid from 01.01.2011 to 31.12.2011• It is the responsibility of the advertiser to adhere to the deadlines

outlined below:- Booking request needs to be sent by August 1- All advertising must be paid by August 15- Supply finished artwork (including colour proof) needs to be sent by

September 1- Cancellation made after September 1 must be in writing and incur a

50% cancellation fee.- The book goes to print on the 1st of October 2010, ads not cancelled

by this time will proceed and may be published using any artworkavailable to the publisher once final layout is completed.

• It is the responsibility of the advertiser to supply finished artwork in the

specified format for the production of the advertisement.• The publisher reserves the right to decline any advertisement for any

reason.• The publisher cannot be held responsible for any loss or damage arising

in relation to or in connection with any material supplied, or byalteration, or omission of any advertisement.

• It is understood that the preferred positions are not guaranteed and area request only.

• Ads incorporating a coupon offer must state that the offer is valid onlywhen accompanied by a Nomads Mad Card.

• All offers in the advert need to be bookable through travel desks • It is understood that any advertising in the MAD book does not in any

way guarantee sales.

SUPPLYING FILES:Artwork under 10MB in size can be emailed tojanine@nomadsworld.com. Files over 10MB can be sent via post on CD or sent via free FTP atwww.yousendit.com

Date

Name (please print)

Company

Total Cost

I have read and agree to the terms and conditions Y N